SRC-JEC H.B. 1683 77(R) BILL ANALYSIS Senate Research Center H.B. 1683 By: Goolsby (Cain) Intergovernmental Relations 5/4/2001 Engrossed DIGEST AND PURPOSE Currently, the Dallas Area Rapid Transit Authority (DART) receives federal grants for certain construction projects. However, the timing of the receipt of the grants and the commencement of the projects is not always compatible. H.B. 1683 provides DART the authority to pledge future federal funds to pay for construction projects and allows for the adoption of a biennial budget in certain circumstances. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 452.108, Transportation Code, by adding Subsection (f), to provide that Subsection (c) does not apply to a lease or financing agreement that is payable from or secured by a pledge of funds described by Section 452.357(a)(4). SECTION 2. Amends Section 452.357, Transportation Code, by amending Subsection (a) and adding Subsection (e), as follows: (a)(4) Authorizes a transportation authority, to secure the payment of its bonds, to pledge all or part of funds the federal government has committed to the authority as grants in aid. (c) Authorizes the authority to pledge funds described by Subsection (a)(4) as the sole security for the bonds or in addition to any other security described by this section. SECTION 3. Amends Chapter 452O, Transportation Code, by adding Section 452.580, as follows: Sec. 452.580. CHANGE OF BUDGETING POLICY. Authorizes a subregional board to adopt on a two-thirds vote of the board a budgeting policy for the authority that provides for the adoption and implementation of a budget that extends for two fiscal years, with annual reviews as needed. SECTION 4. Effective date: September 1, 2001.