LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 10, 1997
         
         
      TO: Honorable Robert Junell, Chair            IN RE:  Senate Bill No. 1706, Committee Report 2nd House, Substituted
          Committee on Appropriations                              By: Ratliff
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB1706 ( relating 
to the funding of passenger rail service by the Texas Department 
of Transportation) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by SB1706-Committee Report 2nd House, Substituted
         
House Committee Substitute for Senate Bill 886 appropriates 
$5,600,000 to the Department of Transportation for loans to 
corporations providing passenger rail service in this state. 
 That appropriation is contingent on passage of Senate Bill 
1706.
         

         
 
FISCAL ANALYSIS
The bill would authorize the Texas Transportation 
Commission to make loans to certain corporations providing passenger 
rail service in the state.  Currently, Amtrak is the only eligible 
passenger rail corporation in the state.  

Loans could be 
granted only if a specific appropriation is made by the Legislature 
for that purpose.  The loans would be made from the General 
Revenue Fund.  The portion of the state highway fund revenues 
not dedicated by the constitution would serve as collateral 
for the loans.  The bill would require municipalities served 
by the passenger rail corporation to guarantee repayment with 
interest of half of any unpaid balances of the loan.
          
LOCAL
No fiscal implication to units of local government is 
anticipated.
          
   Source:            Agencies:   304   Comptroller of Public Accounts
                                         
                      LBB Staff:   JK ,RR ,RS