LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
May 26, 2001
TO: Honorable Bill Ratliff, Lieutenant Governor
Honorable James E. "Pete" Laney, Speaker of the House
FROM: John Keel, Director, Legislative Budget Board
IN RE: SB342 by Shapiro (Relating to the participation of the
Texas Department of Transportation in the acquisition,
constuction, maintenance, and operation of toll
facilities.), Conference Committee Report
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* SB342, Conference Committee Report: positive impact of $0 through *
* the biennium ending August 31, 2003. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2002 $0 *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 0 *
****************************************************
All Funds, Five-Year Impact:
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*Fiscal Probable Revenue Probable Revenue Probable Revenue *
* Year Gain/(Loss) from New Gain/(Loss) from Gain/(Loss) from *
* Texas Mobility Fund TXDOT Turnpike State Highway Fund *
* Authority Account/ 0006 *
* GR Dedicated *
* 5038 *
* 2002 $2,300,000 $(2,300,000) $0 *
* 2003 0 0 0 *
* 2004 0 0 0 *
* 2005 0 0 0 *
* 2006 0 0 0 *
**************************************************************************
Fiscal Analysis
The bill would amend the Transportation Code to allow the Texas
Department of Transportation (TxDOT) to spend money from any available
source to participate in the cost of the acquisition, construction,
maintenance, or operation of a public or private toll facility on terms
and conditions established by the Texas Transportation Commission (TTC).
The bill would allow TxDOT to provide for the expenditure of money for
the cost of the acquisition, construction, maintenance, or operation of a
toll facility by the Texas Turnpike Authority (TTA) and would allow
TxDOT to require the TTA to make repayments from toll revenue or other
sources on terms established by the TTC. The bill would abolish the
board of directors of the TTA and transfer all powers and duties of the
TTA to the TTC. The bill would transfer all unexpended and unobligated
appropriations and other funds under control of the TTA to the TTC and
then to the Texas Mobility Fund.
The bill would retain the obligation that funds spent by TxDOT for a
private entity's toll facility costs be repaid and credited to funds from
which expenditures were made. The bill would make the repayment of
funds spent by TxDOT on public toll facilities permissible (currently
repayment is required) and would also allow TxDOT to transfer State
Highway Fund No. 006 (Fund 6) funds to the Texas Turnpike Authority
Revolving Fund without a repayment obligation to Fund 6. The bill would
provide requirements and guidelines for making financial contributions
and transfers to the revolving fund and would allow the TTC to require
the repayment of contribution amounts. The bill would also require that
all repayments be credited to funds from which expenditures were made and
that any bond or other debt obligation issued by a public or private
entity for financing a toll facility in which TxDOT participates is an
obligation of the issuing entity and not of the State. The bill would
exempt any funds repaid in accordance with the bill from the application
of Section 403.095, Government Code, relating to the use of dedicated
revenue. The bill would require that any transfers, expenditures,
advances, contributions, or means of cost participation occurring prior
to the effective date of the bill would be governed by law existing
immediately before that date.
The bill would require that money granted during each federal fiscal year
by TxDOT may not exceed 30 percent of the obligation authority under the
federal-aid highway program and that any project using constitutionally
dedicated funds received from grants or loans for construction or
maintenance must be let using certain procedures. The bill would also
allow the TTA, or its successor, to enter into exclusive development
agreements on four projects before May 1, 2004.
The bill would allow the TTC to create a regional mobility authority for
the purposes of constructing, maintaining, and operating a turnpike
project in a region of the state. The bill would establish the powers,
duties, and requirements of a created regional mobility authority and
would prohibit the regional mobility authority from constructing,
maintaining, and operating a turnpike project in certain counties. The
bill would require a regional mobility authority to determine if it has
surplus revenue from turnpike projects annually and to either reduce
tolls, expend the revenue on other transportation projects in the region,
or deposit the revenue in the Texas Mobility Fund.
The bill would take effect on the date on which the constitutional
amendment proposed by SJR 16, 77th Legislature, Regular Session, 2001,
takes effect contingent upon the enactment of SB 4, 77th Legislature,
Regular Session, 2001. The proposed amendment would be submitted to
voters during the election to be held November 6, 2001. If the
amendment is not approved by the voters, or SB 4 does not become
enacted, the bill would not take effect. The bill would require all
unexpended and unobligated appropriations and other funds, transferred
to the TTC from the TTA to be transferred to the Texas Mobility Fund on
the effective date of the constitutional amendment proposed by SJR 16,
77th Legislature, Regular Session, 2001.
Methodology
For the purposes of this analysis, it is assumed that any Fund 6 funds
provided to public entities for toll projects, as of the effective date
of the bill, would be absolved of the repayment obligation required
under current law; that SB 4 would be enacted; and that SJR 16 would be
approved by the voters. It is estimated that approximately $2.3 million
in appropriations made from the General Revenue - Dedicated TxDOT
Turnpike Authority Account No. 5038 for the 2000-01 biennium would be
unexpended as of August 31, 2001, and that this amount would be
transferred to the credit of the Texas Mobility Fund authorized and
established through SJR 16 and SB 4 for the purposes of that fund.
Local Government Impact
The bill would allow TxDOT to provide funding that would significantly
offset local government costs with the State's participation in the
construction of toll facilities and the absence of a repayment
obligation. Funding provided through grants would have a significant
positive impact on local entities issuing bonds for construction,
whereas funding through loans would not.
Source Agencies:
LBB Staff: JK, JO, RT, MW