H.J.R. 80 78(R) BILL ANALYSIS H.J.R. 80 By: Krusee Transportation Committee Report (Unamended) BACKGROUND AND PURPOSE The creation of regional mobility authorities (RMAs) was authorized during the 77th Legislative session. RMAs are authorized to plan, develop and operate turnpike projects. They are formed at the request of one or more counties, and must receive the approval of the Texas Transportation Commission. Because RMAs are intended to promote regionalism in transportation planning and project development, financing tools available to the authorities must reflect a regional approach. This resolution allows for counties within an RMA to support RMA issued debt provided that the project to which the debt relates is within the region of the RMA and provided that the voters within a county approve of the county's action in supporting the RMA's obligations. RULEMAKING AUTHORITY It is the committee's opinion that this resolution does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS HJR 80 amends Article III of the Texas Constitution by adding Section 52-d-1 to allow a county that is part of a regional mobility authority ("RMA") to, upon approval of a majority of voters, issue bonds, notes, or other obligations for the acquisition, construction, maintenance, or operation of a transportation project or system of the RMA. The transportation project or system does not have to be located within the boundaries of the county, but must be within an RMA of which the county is a part. The resolution allows such a county to enter into credit agreements in connection with such bonds, notes, or other obligations, including other agreements. A county may also, upon voter approval, enter into an agreement and make payments for the same purposes. Under such an agreement, the county may pay the principle of and interest on bonds, notes, or other obligations issued by the RMA, or may make payments under a credit agreement of the RMA. Finally, the resolution allows a county to levy and collect ad valorem taxes to make payments under any agreement, to pay interest as due on bonds, notes, or other obligations, and to provide a "sinking fund" for the redemption of bonds, notes, or other obligations. FOR ELECTION The proposed constitutional amendment shall be submitted to the voters an an election to be held November 4, 2003.