SRC-BWC S.B. 343 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 343
77R2644 JD-FBy: Shapiro
State Affairs
2/15/2001
As Filed


DIGEST AND PURPOSE 

Currently, toll funds kept in the general revenue fund (GRF) create risk in
the minds of investors as it appears the funds are subject to legislative
and political influence.  Because investment appears riskier, costs for
toll projects are higher and the amount of toll revenues needed to repay
the toll bonds increases.  As proposed, S.B. 343 reenacts legislation that
allows the Texas Turnpike Authority (TTA) to maintain a separate toll fund
outside the GRF which may decrease the cost of toll projects by minimizing
risk for investors (thus lowering interest) and it allows the TTA to
maximize the interest earned on toll funds.  This bill reenacts legislation
passed last session which was inadvertently nullified. 

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.  Reenacts Section 361(a), (g), and (h), Transportation Code, as
follows, 

 Requires the authority to maintain the Texas Turnpike Authority
(authority) feasibility study fund that is held in trust by a banking
institution chosen by the authority or, at the discretion of the authority,
in trust in the state treasury outside the general revenue fund.  Requires
the fund to be kept separate from the money for any project.  Requires
interest and income earned on money deposited in the feasibility study fund
to be deposited to the credit of the fund.  Requires money transferred to
the Texas Department of Transportation (department) for the benefit of the
authority under Section 8.02, Chapter 1171, Acts of the 75th Legislature,
Regular Session, 1997, to remain in the state treasury and prohibits it
from being transferred to a private banking institution.  Provides that
this money is exempt from the application of Section 403.095 (Use of
Dedicated Revenue), Government Code, and is not subject to reduction or
elimination under any other provision of the Government Code.  

SECTION 2.  Reenacts Sections 361.184(a), (e), and (f), Transportation
Code, as follows: 

Authorizes the authority to maintain the Texas Turnpike Authority project
revolving fund, which is held in trust by a banking institution chosen by
the authority, or at the discretion of the authority, in trust in the state
treasury outside the general revenue fund.  Requires the fund to be kept
separate from other funds of the authority.  Requires interest and income
earned on money deposited in the project revolving fund to be deposited to
the credit of the fund.  Prohibits money transferred to the department for
the benefit of the authority under Section 8.02, Chapter 1171, Acts of the
75th Legislature, Regular Session, 1997, from being deposited in the
project revolving fund.  

SECTION 3.  Reenacts Section 361.185(a), Transportation Code, to provide
that all money received under this chapter, whether as proceeds from the
sale of bonds or as revenue, is a trust fund to be held and applied as
provided by this chapter.  Requires funds held under this chapter to be
held in trust by a  banking institution chosen by the authority or, at the
discretion of the authority, in trust in the state treasury outside the
general revenue fund, notwithstanding any other law, including Section 9,
Chapter 1123, Acts of the 75th Legislature, Regular Session, 1997. 

SECTION 4.  Effective date:  upon passage or September 1, 2001.