SRC-HRD C.S.S.B. 1706 75(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 1706
By: Ratliff
Finance
3-20-97
Committee Report (Substituted)


DIGEST 

In June of 1996, citing funding shortfalls, the National Railroad
Passenger Corporation (Amtrak) announced its intent to eliminate the Texas
Eagle.  The Texas Eagle runs from Chicago and St. Louis to San Antonio,
providing service to 19 Texas cities.  Approximately 200,000 passengers
travel through Texas on the Texas Eagle annually.  This bill enables the
Texas Department of Transportation to enter into a loan agreement with
Amtrak to support the continuation of this national passenger rail
service. 

PURPOSE

As proposed, C.S.S.B. 1706 authorizes the Texas Department of
Transportation to enter into a loan agreement with an eligible corporation
for funding passenger rail service. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 456.002(b), Transportation Code, to provide that
each public transportation program provided by this chapter, with the
exception of the passenger rail service assistance program under
Subchapter D, is a matching grant program for public transportation
projects. 

SECTION 2. Amends Chapter 456, Transportation Code, by adding Subchapter
D, as follows: 

SUBCHAPTER D.  PASSENGER RAIL SERVICE ASSISTANCE PROGRAM

Sec. 456.061.  DEFINITION.  Defines "eligible corporation."

Sec. 456.062.  LOANS TO CORPORATION.  Authorizes the Texas Transportation
Commission (commission), under the authority of Section 52-a, Article III,
Texas Constitution, using funds appropriated from the general revenue fund
for such purposes, to loan money to an eligible corporation that provides
rail passenger service in the state. Requires, notwithstanding any other
statutory restriction, that portion of the state highway fund not
dedicated by the constitution to serve as collateral for repayment of a
loan made under this section.  Authorizes the comptroller to transfer from
that portion of the state highway fund to the general revenue fund the
amount needed to repay any unpaid balance on the loan, including
applicable interest, in accordance with the loan agreement. 

Sec. 456.063.  AGREEMENT.  Requires the Texas Department of Transportation
(department), on behalf of the commission and with the approval of the
comptroller, to enter into an agreement, under terms and conditions it
deems appropriate, with an eligible corporation for the purposes of making
a loan under this subchapter.  Requires the agreement to provide for
collateralization and guaranties in a form and amount determined by the
comptroller and the commission sufficient to repay to the state highway
fund any money transferred to the general revenue fund under Section
456.062(b). 

 Sec. 456.064.  LIMITATION OF FUNDING.  Authorizes the commission to only
expend funds specifically appropriated by the legislature for the purposes
of this subchapter. 

SECTION 3. Emergency clause.
  Effective date: upon passage.

SUMMARY OF COMMITTEE CHANGES

SECTION 2.

Amends proposed Chapter 456D, Transportation code, by adding Section
456.062(b), to require that portion of the state highway fund not
dedicated by the constitution to serve as collateral for repayment of a
loan made under this section and to authorize the comptroller to transfer
a certain amount from that portion of the state highway fund to the
general revenue fund.  

Amends proposed Section 456.063, Transportation Code, to require the
agreement to provide for collateralization and guaranties in a certain
form and amount.