S.B. 21 78(1)    BILL ANALYSIS


S.B. 21
By: Ogden
Transportation
Committee Report (Amended)



BACKGROUND AND PURPOSE 

S.B. 21 78(1)    S.B. 21 78(1)        S.B. 21 clarifies legislation
contained in H.B. 3184 and  H.B. 3588, 78th Regular Session, in the
following areas: 

First, S.B. 21 amends the funding provisions contained in H.B. 3588 to
reflect legislative intent that certain Department of Public Safety fees
go to general revenue (GR) for the 2004-2005 biennium to stabilize the
budget and go to the Texas Mobility Fund thereafter. 

Second, to re-characterize  the $30 "Additional Court Cost" created by
House Bill 3588 as a "State Traffic Fine." A person convicted of an
offense under Subtitle C, Title 7 of the Transportation Code shall pay
this $30 traffic fine and the fine shall not be waived by the judge. A
county or municipality will retain 5% of all fines collected and sent to
the comptroller, the same percentage  that  they received for collecting
the additional court cost implemented by HB 3588.  The comptroller shall
direct the fines to a dedicated  trauma care account and the Texas
Mobility Fund . 

Third, to clarify that specified portions of Driver Responsibility
surcharges and the State Traffic Fine go to the Texas Mobility Fund for
the 2004-2005 biennium and then are directed to  general revenue
thereafter.  

Fourth, to give TxDOT the ability to utilize bond proceeds or any amounts
deposited in a corresponding debt service reserve fund to pay the
principal of, interest on, or redemption premium on the bonds for the
particular project.    

Fifth, to appropriate  $231,700,000 deposited to the credit of the general
revenue fund in state fiscal year 2005 under Section 20.02(c) of HB 3588,
78th Regular Session, 2003 out of the general revenue fund for the state
fiscal biennium beginning September 1, 2003, to replace an equal amount of
federal fiscal relief funds utilized to certify general revenue
appropriations made by House Bill 1, 78th Regular Session.   (Theses funds
were not utilized for certification.) 

The bill also gives the Harris County Toll Road Authority the same powers
regarding "declarations of taking" (i.e. quick take) as the Texas Turnpike
Authority. 

Lastly, to make technical corrections to Chapter 361 of the Transportation
Code referencing the Texas Turnpike Authority.  Both House Bill 3588 and
House Bill 3184, 78th Regular Session, 2003, amended this law governing
TxDOT turnpike projects.  The conference committee report for House Bill
3184 inadvertently used the wrong version of the bill, resulting  in  two
different versions of the bill being passed into law.  Senate Bill 21
repeals the portions of House Bill 3184 that conflict with House Bill
3588. 

Finally, S.B. 21 clarifies additional technical provisions of H.B. 3184,
H.B. 3588, S.B. 631, and S.B. 1904. 

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly
granted to the Texas Transportation Commission in SECTION 19 (Section
361.306, Transportation Code) of this bill. 
 
ANALYSIS

SECTION 1.  Amends Section 284.061(c), Transportation Code,  to establish
that except as provided by Section 361.1375, if applicable, the county is
entitled to immediate possession of property subject to a condemnation
proceeding brought by the county after a tender of a bond or other
security in an amount sufficient to secure the owner for damages and the
approval of the bond or security by the court.   

SECTION 2.  Reenacts Section 361.136, Transportation Code, as amended by
House Bills 3184 and 3588, Acts of the 78th Legislature, Regular Session,
2003, as follows: 

Sec.  361.136.  SEVERANCE OF REAL PROPERTY.  (a)  Requires the Texas
Department of Transportation (TxDOT), if a turnpike project severs an
owner's real property, to make certain payments. 

(b)  Authorizes TxDOT to negotiate for and purchase the severed real
property or either part of the severed real property if TxDOT and the
owner agree on terms for the purchase.  Authorizes TxDOT, instead of a
single fixed payment for the real property, to agree to a payment to the
owner in the form of an intangible legal right to receive a percentage of
identified revenue attributable to the applicable segment of the turnpike
project or an exclusive or nonexclusive right to use or operate a segment
or part of the turnpike project. 

(c)  Provides that a right to payment under Subsection (b)(1) is subject
to any pledge of the revenue under the term of a trust agreement securing
bonds issued for the project. 

SECTION 3.  Reenacts Section 361.137, Transportation Code, as amended by
House Bills 3184 and 3588, Acts of the 78th Legislature, Regular Session,
2003, as follows: 

Sec.  361.137.  DECLARATION OF TAKING.  (a)  Authorizes TxDOT to file a
declaration of taking with the clerk of the court in which TxDOT files a
condemnation petition under Chapter 21 (Eminent Domain), Property Code, or
the clerk of the court to which the case is assigned. 

(b)  Authorizes TxDOT to file the declaration of taking concurrently with
or subsequent to the petition but prohibits TxDOT from filing the
declaration after the special commissioners have made an award in the
condemnation proceeding.  

(c)  Prohibits TxDOT from filing a declaration of taking before the
completion of: 
all environmental documentation, including a final environmental impact
statement or a record of decision, that is required by federal or state
law; all public hearings and meetings, including those held in connection
with the environmental process and under Sections 201.604 and 203.021,
that are required by federal or state law; and all notifications required
by Section 203.022. 

  (d)  Requires the declaration to include certain information.

(d-1)  Provides that deposit to the registry of the court of an amount
equal to the appraised value, as determined by TxDOT, of the property to
be condemned must accompany the declaration of taking. 
 
(e)  Establishes that the date on which the declaration is filed is the
date of taking for the purpose of assessing damages to which a property
owner is entitled. 

(f)  Requires the case, after a declaration of taking is filed, to proceed
as any other cases in eminent domain under Chapter 21, Property Code. 

 SECTION 4.  Amends Subchapter D, Chapter 361, Transportation Code, by
adding Section 361.1375, as follows: 

Sec.  361.1375.  DECLARATION OF TAKING BY CERTAIN COUNTIES.  (a) Provides
that this section applies only to county with a population of 3.3 million
or more that operates under Chapter 284. 

(b)  Provides that if, in connection with projects under Chapter 284, the
director authorizes the county to proceed in the manner provided by
Section 361.137, the county may file a declaration of taking proceed in
the manner provided by Section 361.137 on any project of the county under
Chapter 284 and a reference to the department in Section 361.137 means the
county. 

SECTION 5.  Reenacts Section 361.138(b), Transportation Code, as amended
by House Bills 3184 and 3588, Acts of the 78th Legislature, Regular
Session, 2003, to prohibit TxDOT  from taking  possession sooner than the
91st day after the date of service under Subsection (a), if the condemned
property is a homestead or a portion of the homestead as defined by
Section 41.002 (Definition of Homestead), Property Code. 

SECTION 6.  Reenacts Section 361.171, Transportation Code, as amended by
House Bills 3184 and 3588, Acts of the 78th Legislature, Regular Session,
2003, as follows: 

Sec.  361.171.  TURNPIKE REVENUE BONDS.  (a)  Authorizes the Texas
Transportation Commission (TTC) by order to authorize the issuance of
turnpike revenue bonds to pay all or part of the cost of a turnpike
project.  Requires each project to be financed and built by a separate
bond issue.  Authorizes the proceeds of a bond issue may to used solely
for the payment of the project for which the bonds were issued and
prohibits it from being divided between or among two or more projects.
Provides that each project is a separate undertaking, the cost of which is
to be determined separately. 

(b)  Requires the bonds of each issue, as determined in the order
authorizing the issuance, to be dated; bear interest at the rate or rates
provided by the order and beginning on the dates provided by the order and
as authorized by the law, or bear no interest; mature at the time or times
provided by the order, not exceeding 40 years from their date or dates;
and be made redeemable before maturity, at the price or prices and under
the terms provided by the order. 

(c)  Authorizes TTC to sell the bonds at public or private sale in the
manner and for the price it determines to be in the best interest of
TxDOT. 

(d)  Requires the proceeds of each bond issue to disbursed in the manner
and under the restrictions, if any,TTC provides in the order authorizing
the issuance of the bonds or in the trust agreement securing the bonds. 

(e)  Authorizes additional bonds to be issued in the same manner to pay
the costs of a turnpike project, if the proceeds of a bond issue are less
than the turnpike project cost.  Establishes that unless otherwise
provided  in the order authorizing the issuance of the bonds or in the
trust agreement securing the bonds, the additional bonds are on a parity
with and are payable, without preference or priority, from the same fund
as the bonds first issued.  Authorizes TTC, in addition, to issue bonds
for a turnpike project secured by a lien on the revenue of the turnpike
project subordinate to the lien on the revenue securing other bonds issued
for the turnpike project.  Makes a nonsubstantive change. 

(f)  Requires the surplus to be segregated from other TTC money and used
only for the purposes specified in the order authorizing the issuance, if
the proceeds of a bond issued exceed the cost of the turnpike project for
which the bonds were issued. 

 (g)  Authorizes the proceeds of a bond issue, in addition to other
permitted uses, to be used to pay cost incurred before the issuance of the
bonds, including costs of environmental review, design, planning,
acquisition of property, relocation assistance, construction, and
operations. 

(h)  Provides that bonds issued and delivered under this chapter and
interest coupons on the bonds are a security under Chapter 8 (Investment
Security), Business & Commerce Code. 

(i)  Provides that the bond issued under this chapter and income from the
bonds, including any profits made on the sale or transfer of the bonds,
are exempt from taxation in this state.   

SECTION 7.  Reenacts Section 361.172, Transportation Code, as amended by
House Bills 3184 and 3588, Acts of the 78th Legislature, Regular Session,
as follows 

Sec.  361.172.   APPLICABILITY OF OTHER LAW; CONFLICTS.  Establishes that
all laws affecting the issuance of bonds by governmental entities,
including Chapters 1201, 1202, 1204, 1207, and 1371, Government Code,
apply to bonds issued under this chapter. Provides that to the extent of a
conflict between those laws and this chapter, the provisions of this
chapter prevail.   

SECTION 8.  Reenacts Section 361.173(a), Transportation Code, as amended
by House Bills 3184 and 3588, Acts of the 78th Legislature, Regular
Session, 2003, to provide that the principal of, interest on, and any
redemption premium on bonds issued by TTC under this chapter are payable
solely from the revenue of the turnpike project for which the bonds were
issued, including tolls pledged to pay the bonds and amounts received
under a credit agreement relating to the turnpike project for which the
bonds are issued. 

SECTION 9.  Reenacts Section 361.174, Transportation Code, as amended by
House Bills 3184 and 3588, Acts of the 78th Legislature, Regular Session,
2003, as follows: 

Sec.  361.174.  SOURCES OF PAYMENT OF AND SECURITY FOR TURNPIKE PROJECT
BONDS.  Establishes that notwithstanding any other provisions of this
chapter, turnpike project bonds may be payable from and secured by
payments made under an agreement with a local governmental entity as
provided by Subchapter A, Chapter 362, and may state on their faces any
pledge of revenue or taxes and any security for the bonds under the
agreement. 

SECTION 10.  Reenacts Section  361.177, Transportation Code, as amended by
House Bills 3184 and 3588, Acts of the 78th Legislature, Regular Session,
2003, as follows: 

Sec. 361.177.  PROVISIONS PROTECTING AND ENFORCING RIGHTS AND REMEDIES OF
BONDHOLDERS.  Authorizes a  trust agreement or order providing for the
issuance of bonds to contain  certain provisions to protect and enforce
the rights and remedies of the bondholders. 

SECTION 11.  Reenacts Section 361.178, Transportation Code, as amended by
House Bills 3184 and 3588, Acts of the 78th Legislature, Regular Session,
2003, as follows: 
 
Sec. 361.178.  FURNISHING OF INDEMNIFYING BONDS OR PLEDGE OF SECURITIES.
Provides that a bank or trust company incorporated under the laws of this
state and that acts as depository of the proceeds of bonds or of revenue
may furnish indemnifying bonds or pledge securities that TxDOT requires. 

SECTION 12.  Reenacts Section 361.179(a), Transportation Code, as amended
by House Bills 3184 and 3588, Acts of the 78th Legislature, Regular
Session, 2003, to authorize TxDOT to take certain actions, including
imposing tolls for the use of each turnpike project and the different
segments or parts of each project. 
 
SECTION 13.  Reenacts Section 361.185(a), Transportation Code, as amended
by House Bills 3184 and 3588, Acts of the 78th Legislature, Regular
Session, 2003, 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.  Establishes that,
notwithstanding any other law, including Section 9, Chapter 1123, Acts of
the 75th Legislature, Regular Session, 1997, and without the prior
approval of the comptroller, funds held under this chapter shall be held
in trust by a banking institution chosen by TxDOT or, at the discretion of
TxDOT, in trust in the state treasury outside the general revenue fund. 

SECTION 14.  Reenacts Section 361.189, Transportation Code, as amended by
House Bills 3184 and 3588, Acts of the 78th Legislature, Regular Session,
2003, as follows: 
 
Sec. 361.189.  USE OF SURPLUS REVENUE.  Authorizes TTC by order to
authorize the use of surplus revenue of a turnpike project to pay the
costs of another turnpike project within the region.  Provides that TTC
may in the order prescribe terms for the use of the revenue, including the
pledge of the revenue, but prohibits it from taking an action under this
section that violates, impairs, or is inconsistent with a bond order,
trust agreement, or indenture governing the use of the surplus revenue. 

SECTION 15.  Reenacts Section 361.302,Transportation Code, as amended by
House Bills 3184 and 3588, Acts of the 78th Legislature, Regular Session ,
2003, as follows: 

Sec.  361.302.  COMPREHENSIVE DEVELOPMENT AGREEMENTS.  (a)  Authorizes
TxDOT, subject to Section 361.3021, to enter into a comprehensive
development agreement with a private entity to construct, maintain,
repair, operate, extend, or expand a turnpike project. 

  (b)  Redefines "comprehensive development agreement."

(c)  Authorizes TxDOT to negotiate provisions relating to professional and
consulting services provided in connection with a comprehensive
development agreement.   

(d)  Provides that the money distributed by TxDOT under comprehensive
development agreement is not included in the amount required to be spent
in a state fiscal biennium for engineering and design contracts under
Section 223.041; or appropriated in Strategy A.1.1. Plan/Design/ Manage of
the General Appropriations Act for that biennium for purpose of making
computation under Section 223.041.  

(e)  Provides that the Texas Turnpike Authority (authority) to enter into
comprehensive development agreements provided by section expires on August
31, 2001. 

SECTION 16.  Reenacts Section 361.3021, Transportation Code, as added by
House Bills 3184 and 3588, Acts of the 78th Legislature, Regular Session,
2003, as follows: 
 
Sec. 361.3021.  LIMITATION ON DEPARTMENT FINANCIAL PARTICIPATION.
Prohibits the amount of money disbursed by TxDOT from the state highway
fund and the Texas mobility fund during a federal fiscal year to pay the
costs under comprehensive development agreements from exceeding 40 percent
of the obligation authority under the federal-aid highway program that is
distributed to this state for the fiscal year. 

SECTION 17.   Reenacts Section 361.303(a), Transportation Code, as amended
by House Bills 3184 and 3588, Acts of the 78th Legislature, Regular
Session, 2003, to  provide that a turnpike project that is the subject of
a comprehensive development agreement with a private entity, including the
facilities acquired or constructed on the project, is public property and
belongs to TxDOT. 

 SECTION 18.  Reenacts Section 361.305, Transportation Code, as amended by
House Bills 3184 and 3588, Acts of the 78th Legislature, Regular Session,
2003, and amends it, as follows: 

Sec. 361.305.  TERMS OF PRIVATE PARTICIPATION.  (a)  Requires TxDOT to
negotiate the terms of private participation in a turnpike project,
including  methods to determine the applicable cost, profit, and project
distribution between the private equity investors and TxDOT; reasonable
methods to determine and classify toll rates; acceptable safety and
policing standards; and other applicable professional, consulting,
construction, operation, and maintenance standards, expenses, and costs. 
  
 (b)  Requires a comprehensive development agreement entered into under
Section 361.302 to include a provision authorizing TxDOT to purchase,
under terms and conditions agreed to by the parties, the interest of a
private equity investor in a turnpike agreement. 
 
(c)  Authorizes TxDOT to enter into a comprehensive development agreement
under Section 361.302 with a private equity investor only if the project
is identified in TxDOT's unified transportation program or is located on a
transportation corridor identified in the statewide transportation plan. 

SECTION 19.  Reenacts Section 361.306, Transportation Code, as amended by
House Bills 3184 and 3588, Acts of the 78th Legislature, Regular Session,
2003, as follows: 

Sec. 361.306.  RULES, PROCEDURES, AND GUIDELINES GOVERNING SELECTION AND
NEGOTIATING PROCESS.  (a)  Requires TTC to adopt rules, procedures, and
guidelines governing selection and negotiations to promote fairness,
obtain private participants in turnpike projects, and promote confidence
among those participants.  Requires the rules to contain criteria relating
to the qualifications of the participants and the award of the contracts. 
 
(b)  Requires TxDOT to have up-to-date procedures for participation in
negotiations on turnpike projects. 

(c)  Provides that TxDOT has exclusive judgment to determine the terms of
an agreement. 
 
(d) Requires TxDOT to include the attorney general or the attorney
general's designated representative in a negotiation with a private
participant. 

SECTION 20.  Reenacts Section 361.307, Transportation Code, as amended by
House Bills 3184 and 3588, Acts of the 78th Legislature, Regular Session,
2003, as follows: 
 
Sec. 361.307.  AGREEMENTS WITH PRIVATE ENTITIES AND OTHER GOVERNMENTAL
AGENCIES.  (a)  Authorizes TxDOT and a private entity jointly to enter
into an agreement with another governmental agency or entity, including a
federal agency, an agency of this or another state, including the United
Mexican States or a state of the United Mexican States, or a political
subdivision, to independently or jointly provide services, to study the
feasibility of a turnpike project, or to finance, construct, operate, and
maintain a turnpike project. 
 
(b)  Prohibits TxDOT from entering into an agreement with the United
Mexican States or a state of the United Mexican States without the
approval of the governor. 

SECTION 21.  Amends Section 361.281, Transportation Code, by amending
House Bills 3184 and 3588, Acts of the 78th Legislature, Regular Session,
to provide that this subchapter applies only to a county with a population
of more than 1.5 million; a local government corporation serving a county
with a population of more than 1.5 million; an adjacent county in a joint
turnpike authority with a population of more than 1.5 million; a
municipality with a population of  more than 100,000 that is adjacent to
the United Mexican States; a regional tollway authority created under
Chapter 366; or a regional mobility authority organized, rather than
created, under Chapter 370 or Section 361.003, as that section existed
before June 22, 2003. 

SECTION 22.  Amends the heading of Section 542.4031, Transportation Code,
as added by House Bill 3588, Acts of the 78th Legislature, Regular
Session, 2003, to STATE TRAFFIC FINE 

SECTION 23.   Amends Section 542.4031, Transportation Code, as added by
House Bill 3588, Acts of the 78th Legislature, Regular Session, 2003, as
follows: 

In subsections (a) - (d), all references to court costs are changed to
"state traffic fines". 

(h) Provides that the comptroller shall deposit 67 percent of the state
traffic fines and Driver Responsibility surcharges to the credit of the
general revenue fund only until the total amount of those fines and
surcharges equals $250 million for that year.  To the extent those fines
and surcharges exceed $250 million, the excess shall be deposited to the
credit of the Texas mobility fund. 

SECTION 24.  Amends Article 26.13(a), Code of Criminal Procedure by adding
the following language:  (a) Before accepting a plea of guilty or a plea
of nolo contendre, the court shall admonish the defendant of: (6) the fact
that the state imposes additional fees or financial obligations on the
defendant in connection with the plea and the amounts of those fees and
financial obligations. 

SECTION 25:  Amends Article 45.051, Code of Criminal Procedure, as amended
by Senate Bills 631 and 1904, Acts of the 78th Legislature, Regular
Session, 2003, to provide that the state traffic fine of $30 is imposed
pursuant to the failure of a defendant to comply with the terms of a judge
for dismissing the complaint if the offense is defined under Subtitle C,
Title 7, Transportation Code. 

SECTION 26.  Amends Article 45.051(c-1), Code of Criminal Procedure, as
added by Senate Bill 1904, Acts of the 78th Legislature, Regular Session,
2003, as follows: 

(c-1)  Requires the justice, at the conclusion of the deferral period, if
the defendant presents satisfactory evidence that the defendant has
complied with the requirements imposed, to impose the state traffic fine
of $30.  

SECTION 27.  Reenacts Article 45.0511(l), Code of Criminal Procedure, as
amended by Senate Bills 631 and 1904, Acts of the 78th Legislature,
Regular Session 2003, and amends it as follows: 

Requires the court, when a defendant complies with Subsection (c), to take
certain actions, including removing the judgment and dismissing the charge
and  reporting to DPS that the driver has taken the appropriate safety
course. 

SECTION 28.  Amends Article 45.0511, Code of Criminal Procedure, by adding
Subsections (l1) as follows: 

(l-1)  Requires the court, if the offense is defined by Subtitle C, Title
7, Transportation Code, to impose a fine of $30 on the defendant. 

SECTION 29.  Amends Section 780.002(c), Health and Safety Code, to delete
text requiring the comptroller to divide the deposit of certain excess
funds between the Texas mobility fund and the special account established
under this chapter.  Makes conforming changes. 

SECTION 30.  Amends Section 370.003(l), Transportation Code, as added by
House Bill 3588, Acts of the 78th Legislature, Regular Session, to
redefine "authority." 
 
SECTION 31. Amends Section 20.02, House Bill 3588, Acts of the 78th
Legislature, Regular Session, 2003, as follows: 
 
(a)  Deletes existing Subsection (a) and redesignates (b) as (a).
Establishes that, notwithstanding Sections 780.002(b) and (c), rather than
780.002(a) and (b), Health and Safety Code, as added by this Act, of the
money allocated to the undedicated portion of the general revenue fund by
Section 780.002(b), Health and Safety Code, rather than 780.002(a), Health
and Safety Code, as added by this Act, other than money that may only be
appropriated to the Department of Public Safety, in fiscal years 2004 and
2005 the comptroller shall deposit that money to the credit of the Texas
mobility fund instead of to the credit of the general revenue fund, rather
than to the debt service account which is subject to the provisions of
Subsection (d).  Deletes text requiring the comptroller to establish the
Texas mobility fund debt service account as a dedicated account within the
general revenue fund. 
 
(b)  Redesignated from Subsection (c).  Provides that notwithstanding
Section 542.4031(g)(1), Transportation Code, as added by this Act, of the
money allocated to the undedicated portion of the general revenue fund in
Section 542.4031(g)(1), Transportation Code, in fiscal years 2004 and 2005
the comptroller shall deposit that money to the credit of the Texas
mobility fund instead of to the credit of the general revenue fund.
Deletes text requiring the deposit to be made to the Texas mobility fund
debt service account, which is subject to the provisions of Subsection
(d).  

(c)  Deletes Subsection (d).  Redesignates Subsection (e) as (c).  Makes
conforming changes. 

SECTION 32.  Provides that an amount of funds estimated to be $231,700,000
deposited to the credit of the general revenue fund in state fiscal year
2005, is appropriated out of general revenue for the state fiscal biennium
beginning September 1, 2003, to replace an equal amount of federal fiscal
relief funds utilized to certify general revenue appropriations made by
House Bill 1, Acts of the 78th Legislature, Regular Session, 2003. The
federal fiscal relief funds so replaced are appropriated to the
comptroller for fiscal biennium beginning September 1, 2003, for the
purposes described in Section 11.28(a), Article IX, House Bill 1, Acts of
the 78th Legislature, Regular Session, 2003. 

SECTION 33.  Amends Section 11.28(a), Article IX, House Bill 1, Acts of
the 78th Legislature, Regular Session, 2003 (the General Appropriation
Act), to provide that, notwithstanding other provisions of this Act, based
upon passage of federal legislation that provides federal funds for the
purpose of state fiscal relief, such funds are appropriated to the
comptroller of public accounts in the fiscal year in which the funds are
received for the purpose of transferring funds to state agencies for state
fiscal relief, as directed by the governor and Legislative Budget Board
under Chapter 317, Government Code, and in accordance with Subsection (b)
of this section. Deletes text referencing Section 11.15, Contingency
Appropriation Reduction and Contingency Appropriation. 

SECTION 34.  Repealer: Section 361.181, Transportation Code (expenditures
for feasibility studies). 
 
Repealer: Section 361.182, Transportation Code (Texas turnpike authority
feasibility study fund). 

            Repealer: Section 361.184, Transportation Code (Texas turnpike
authority project revolving fund). 

  Repealer: Section 361.3025, Transportation Code .

SECTION 35.  Repealer: Section 521.427(c), Transportation Code, as added
by Section 11.04, House Bill 3588, Acts of the 78th Legislature, Regular
Session, 2003.  

 SECTION 36.  (a)  Effective date: immediately if two-thirds vote except
as provided by Subsection (b). 

(b)  Effective date of Sections 22-29 and 35, if this Act receives the
necessary two-thirds vote: September 1, 2003. 

(c)  Provides that if this Act does not receive the vote necessary for
effect on that date, this Act takes effect on the 91st day after the last
day of the legislative session 
 

EFFECTIVE DATE

Sections 22 through 29 and 35 take effect September 1, 2003, and the
remaining sections take effect immediately, or, if the Act does not
receive the necessary vote, the Act takes effect on the 91st day after the
last day of the legislative session.   


EXPLANATION OF AMENDMENTS

Committee Amendment No. 1 allows TxDOT to make a single bond issuance for
a project that will ultimately be a continuous facility even though the
project is not in a single metropolitan planning organization or located
in two adjacent TxDOT districts.  The bill as currently written does not
allow TxDOT to do this type of system financing (i.e. a single bond
issuance) unless the transportation project is within a single MPO or two
adjacent TxDOT districts. 

Committee Amendment No. 2 allows TxDOT to exceed the $12.5 million cap on
rail spending if the source of the funds are federal dollars earmarked for
rail projects or grant money from the Texas Enterprise Fund.  This does
not increase the amount of Fund 6 dollars that can be spent on rail above
the $12.5 million cap.