Enrolled Bill Summary

Senate Bill 1706 amends the Transportation Code to create a passenger rail service assistance program. It authorizes the Texas Department of Transportation to loan money from appropriated funds to a corporation that provides rail passenger service in Texas. The loan agreement must be approved by the comptroller and provide for adequate collateralization and guaranties. The act provides further for agreements with cities that receive passenger rail service, guaranteeing repayment of half of any unpaid loan balance, including interest. Loan money comes from the general revenue fund, backed fiscally by the undedicated portion of the state highway fund. Senate Bill 886 appropriates $5.6 million to the department for loan purposes.