SRC-SEW S.B. 342 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 342
77R3896 JD-DBy: Shapiro
State Affairs
2/15/2001
As Filed


DIGEST AND PURPOSE 

Currently, the state constitution prevents the state from contributing a
portion of the cost of a toll project without repayment.  Many toll
projects are not built because they fail to generate enough revenue to pay
for themselves.  The Texas Department of Transportation (TxDOT), acting on
behalf of the state, cannot fund these much needed projects in a timely
manner because necessary funding is not available. As proposed, S.B. 342
allows the state, through TxDOT, to contribute a portion of the cost of a
toll project without a requirement for repayment. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Transportation
Commission in SECTION 1 (Section 222.103, Transportation Code) of this
bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 222.103, Transportation Code, to authorize the
Texas Department of Transportation (department) to participate, by spending
money from any available source, in the cost of the acquisition of a toll
facility of a public or private entity on terms and conditions established
by the Texas Transportation Commission (commission) .  Authorizes the
commission to require the repayment of any money spent by the department
for the cost of a toll facility of a public entity and requires the
commission to require the repayment of any money spent by the department
for the cost of a toll facility of a private entity.  Deletes language
regarding the inclusion of requirements for repayment.  Requires money
repaid as required by the commission to be deposited to the credit of the
fund from which the expenditure was made.  Provides that a bond or other
debt obligation issued by a public or private entity to finance the cost of
a toll facility in which the department participates is an obligation of
the issuing entity and prohibits such from being an obligation of this
state.  Deletes language regarding an entity receiving cost participation
from the department under this section being a successor agency to the
Texas Turnpike Authority for the purposes of Section 52b (Loan of State's
Credit or Grant of Public Money for Toll Road Purposes; Exception), Article
III, Texas Constitution.  Requires the department to notify each member of
the legislature that represents any part of the area affected by the
project of the status of the project and how any other project in any other
district would be affected on request of a member of the legislature not
later than the 90th day before the date an expenditure is made by the
department for a project under this section.  Provides that this section
applies to any participation by the department in the cost of a project
under Chapter 284, 361, or 366.  Requires the commission to adopt rules to
implement Subsection (a). 

SECTION 2.  Amends Section 361.184(b), Transportation Code, to delete
language authorizing the board of directors of the Texas Turnpike Authority
(authority) to transfer, or direct the authority to transfer, into the
project revolving fund money from money received from the state high way
fund if the advances are repaid as required by Section 52b, Article III,
Texas Constitution.  Makes a conforming change. 

SECTION 3.  Amends Section 361.191, Transportation Code, to authorize the
department to provide for the expenditure of money for the cost of the
acquisition, construction, maintenance, or operation of  a turnpike project
by the authority.  Authorizes the department to require the authority to
repay money provided under this section from toll revenue or other sources
on terms established by the commission. Requires money repaid as required
by the department to be deposited to the credit of the fund from which the
money was provided. 





SECTION 4.  Amends Section 362.004(e) and (f), Transportation Code, to
authorize the commission, if the department spends money under an agreement
under this section, to require the authority to repay the money from toll
revenue or other sources on terms established by the commission.  Requires
money repaid as required by the commission to be deposited to the credit of
the fund from which the expenditure was made. Makes conforming changes. 

SECTION 5.  Amends Section 366.174(b), Transportation Code, to authorize an
authority to transfer into its revolving fund money received from the state
highway fund, rather than advances authorized under Section 52b, Article
III, Texas Constitution. 

SECTION 6.  Amends Section 366.301(c), Transportation Code, to authorize
the commission or department to require money contributed by the commission
or department (rather than money spent from the state highway fund) under
this section to be repaid from tolls or other revenue of the turnpike
project or system on which the money was spent.  Makes conforming changes. 

SECTION 7.  Repealer:  Section 361.055 (Successor Agency to Authority),
Transportation Code. 

SECTION 8.  Makes the application of this Act contingent upon passage of
S.J.R. 12.