LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                                May 7, 2001
  
  
          TO:  Honorable Clyde Alexander, Chair, House Committee on
               Transportation
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SJR16  by Shapiro (Proposing a constitutional amendment
               creating the Texas Mobility Fund and authorizing grants
               and loans of money and issuance of obligations for
               financing the construction, reconstruction, acquisition,
               operation, and expansion of state highways, turnpikes,
               toll roads, toll bridges, and other mobility projects.),
               Committee Report 2nd House, Substituted
  
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*  No significant fiscal implication to the State is anticipated,        *
*  other than the cost of publication.                                   *
*                                                                        *
*  The cost to the state for publication of the resolution is $80,000.   *
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The resolution would amend the Texas Constitution to create the Texas
Mobility Fund as a revolving fund in the State Treasury for specific
purposes.  The resolution would authorize the Legislature to dedicate
specific sources, portions, or amounts of revenue, including taxes, and
other money of the state to the fund that are not otherwise dedicated by
the constitution.  The resolution would prohibit the Legislature from
dedicating money collected from motor vehicle registration fees and taxes
on motor fuels and lubricants dedicated under Section 7-a, Article VIII,
of the state constitution, but would allow the Legislature to dedicate
money received from other sources that are allocated to the same costs as
those dedicated taxes and fees.  The resolution would authorize the
Texas Department of Transportation (TxDOT) to administer the fund.  The
resolution would require the deposit of dedicated revenues into the fund
upon receipt by the state and would appropriate the funds for use under
law without further appropriation from the state.  The resolution would
also establish certain procedures and requirements for the reduction or
repeal of dedicated funds pledged to the payment of outstanding
obligations or related credit agreements.  The resolution would allow the
Legislature to enact law authorizing the Transportation Commission to
guarantee the payment of any obligations and credit agreements issued and
executed by the commission by pledging the full faith and credit of the
state to that payment if dedicated revenue is insufficient for that
purpose.

The resolution would allow the TxDOT to spend grant or loan money from
any available source for the acquisition, construction, maintenance, or
operation of turnpikes, toll roads, and toll bridges and would remove the
requirement that any expenditures from the State Highway Fund be repaid
to the fund from tolls or other turnpike revenues.

Costs related to the enactment of this resolution are provided in the
cost estimate for the enabling legislation.

The proposed constitutional amendment would take effect if approved by
voters on November 6, 2001.
  
Local Government Impact
  
The proposed amendment 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, MW