SRC-SEW S.B. 463 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 463
77R2540 JD-DBy: Shapleigh
State Affairs
2/12/2001
As Filed


DIGEST AND PURPOSE 

Under current law, counties must issue traditional forms of indebtedness
such as tax anticipation notes or bonds to sell to the Texas Department of
Transportation's State Infrastructure Bank (SIB) in order to acquire
funding for local transportation infrastructure projects.  This is often a
cumbersome and more expensive approach to borrowing than entering into a
direct loan program.  As proposed, S.B. 463 authorizes counties to borrow
via direct loan agreements with the SIB. 

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 Chapter 222D, Transportation Code, by adding Section
222.0745, as follows: 

Sec. 222.0745.  AUTHORITY OF COUNTY TO BORROW FROM BANK.  Authorizes a
county to borrow funds for road and bridge construction from the State
Infrastructure Bank (bank) and repay the bank with the proceeds of ad
valorem taxes imposed by the county for that purpose over a term of years
without issuing bonds or other obligations evidencing the loan. 

SECTION 2.  Effective date:  upon passage or September 1, 2001.