C.S.H.B. 3017 78(R)    BILL ANALYSIS


C.S.H.B. 3017
By: Solomons
County Affairs
Committee Report (Substituted)



BACKGROUND AND PURPOSE 
Last session the legislature passed HB 3323, relating to the creation,
organization, and powers of a coordinated county transportation authority;
authorizing the imposition of a tax, the issuance of bonds and notes, and
the exercise of the power of eminent domain. Under this bill, Denton
County created the Denton County Transportation Authority (DCTA).  

After operating for a year, the DCTA's Executive Committee and their
financial advisors have recommended some changes which would help the
financial operation of the Authority. HB 3017 reflects those changes. 

RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS
HB 3017 would change the name of the governing body from Executive
Committee to Board of Directors to more closely align the structure of
other Transportation Authorities and change the terms of the Board
members, including provisions for term limits, vacancies, staggering
replacements and allowing for alternatives. It allows the Board to create,
by rule, a method by which municipalities may become participating
members.  
      
HB 3017 would grant the Authority more financial flexibility by allowing
the Authority to accept and pledge gifts, grants, donations, receipts, or
funds from any source to carry out its powers and duties. The bill extends
the types of bonds that the Authority may issue from 20 to 30 years and
makes them subject to Authority rules (repeals sections that refer to 20
year bonds). HB 3017 would also grant the Authority more flexibility by
imposing a smaller sales and use tax rate, but increase the amount of
notes they may have outstanding.   

Section 12 of HB 3017 is a validation of the acts taken by Denton County
to set up the Denton County Transportation Authority under the authority
granted under 77R HB 3323. 
  
EFFECTIVE DATE
This Act takes effect September 1, 2003, except Section 3 of this Act
takes effect only in House Bill 164, 78th Session, is passed by the House
and Senate and approved by the Governor. 

COMPARISON OF ORIGINAL TO SUBSTITUTE
CSHB 3017 differs from the original in that it change the terms of the
Board members, including provisions for vacancies, staggering replacements
and allowing for alternatives. It would also allow the Authority to pledge
grants, from any source to carry out its powers and duties. It changes the
extension of bonds that the Authority may issue from 40 years in the
original to 30 years in the committee substitute. HB 3017 would also grant
the Authority more flexibility by imposing a smaller sales and use tax
rate, but increase the amount of notes they may have outstanding. Lastly,
CSHB 3017 includes a validation of the Denton County Transportation
Authority.