SRC-LBB S.B. 410 78(R)BILL ANALYSIS


Senate Research Center   S.B. 410
78R1758 DWS-DBy: Lucio
Infrastructure Development and Security
2/28/2003
As Filed


DIGEST AND PURPOSE 

Currently, the Texas Transportation Commission (TCC)  is not allowed to
utilize Grant Anticipation Revenue Vehicle (GARVEE)  bonds as a financing
option for the construction of highway projects. New construction projects
may be impeded by lack of financing options.  As proposed, S.B. 410
authorizes TTC to fund state highway transportation projects through
GARVEE bonds, general obligation bonds, or a combination of both. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 222B, Transportation Code, by adding Section
222.035, as follows: 

Sec.  222.035.  ISSUANCE OF GRANT ANTICIPATION REVENUE BONDS.  (a)
Authorizes the Texas Transportation Commission (TTC) to issue bonds
secured by a pledge of and payable from certain sources. 

(b)  Requires proceeds from the sale of bonds to be used to fund
improvements to the state highway system.  Requires TTC, in conjunction
with the Bond Review Board, to consider certain criteria to select the
improvements to be funded. 

(c)  Prohibits the proceeds of bonds from being used for any other purpose
other than the purposes for which federal revenues are dedicated,
including acquiring rights-ofway and constructing, maintaining, and
policing public roadways. 

(d)  Authorizes TTC  to enter into bond enhancement agreements as relates
to bonds authorized by this section.  Provides that the agreements may be
secured by and made payable from the same sources as the bonds. 

  (e)  Provides that bonds issued under this section must mature within 15
years. 

(f)  Prohibits bonds issued and bond enhancement agreements entered into
under this section from having a principal amount or terms that, at the
time of the issuance or agreement, are expected to cause expenditures with
respect to the obligations to exceed 10 percent of the federal highway
obligation authority anticipated to be received by this state in any year
payments are to be due on the obligations. 

(g)  Prohibits TTC  from issuing bonds without the approval of the Bond
Review Board. 

SECTION 2.  Provides that this Act takes effect on the date on which the
proposed constitutional  amendment takes effect.  If that amendment is not
approved by the voters, this Act has no effect.