LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 77th Regular Session
Revision 2
May 8, 2001
TO: Honorable Clyde Alexander, Chair, House Committee on
Transportation
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,
construction, maintenance, and operation of toll
facilities.), Committee Report 2nd House, Substituted
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* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. Estimated impact to General Revenue related funds *
* through the biennium ending August 31, 2003 of $0 regardless of *
* whether Scenario 1 or Scenario 2 takes effect. *
**************************************************************************
Scenario 1 below reflects the fiscal implications of the enactment and
voter approval of SJR 16 without the enactment of SB 4.
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* State Highway Fund *
* 0006 *
* 2002 $0 *
* 2003 0 *
* 2004 0 *
* 2005 0 *
* 2006 0 *
*****************************************************
Scenario 2 below reflects the fiscal implications of the enactment and
voter approval of SJR 16 and the enactment of SB 4.
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*Fiscal Probable Revenue Gain/(Loss) Probable Revenue Gain/(Loss) *
* Year from New Texas Mobility Fund from TXDOT Turnpike Authority *
* Account/ GR Dedicated *
* 5038 *
* 2002 $2,300,000 $(2,300,000) *
* 2003 0 0 *
* 2004 0 0 *
* 2005 0 0 *
* 2006 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 also transfer all unspent and unobligated
appropriations and other funds under control of the TTA to the TTC.
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
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 tollway authority at
the request of a TxDOT district office for turnpike projects if one does
not exist in that area. The bill would establish the powers, duties, and
requirements of a created regional tollway authority. The bill would
require a regional tollway authority to transfer to the Texas Mobility
Fund any revenue that exceeded the amount necessary to cover the regional
authority's debt service requirements and the costs necessary to operate
and maintain the authority's projects, unless that revenue were to be
used for the expansion of a turnpike project or system.
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 except for the section that
would abolish the board of directors of the TTA and require the transfer
of all powers and duties of the TTA to the TTC, which would take effect
September 1, 2001. Upon the enactment of SB 4, the bill would require
all unspent 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 on which the constitutional amendment proposed by SJR
16, 77th Legislature, Regular Session, 2001, takes effect.
Methodology
For the purposes of this analysis, it is assumed in the first scenario
above 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 not be
enacted; and that SJR 16 would not be approved by the voters.
It is assumed in the second scenario above 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: 601 Texas Department of Transportation, 304
Comptroller of Public Accounts
LBB Staff: JK, JO, RT, MW