BILL ANALYSIS

 

 

                                                                                                                                    C.S.H.B. 2650

                                                                                                                                          By: Krusee

                                                                                                                                     Transportation

                                                                                                        Committee Report (Substituted)

 

 

 

BACKGROUND AND PURPOSE

 

CSHB 2650 allows a local government to enter into an agreement with TxDOT, a regional mobility authority, or a private entity to assist in the financing of the construction, maintenance and operations of a turnpike project located in the government’s jurisdiction.  In return for that financial assistance the local government may receive a percentage of the turnpike project revenues.

 

A local government may use any revenue available for road purposes to provide financing of the project.

 

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

 

Section 1.  Amends Subchapter I, Chapter 361, Transportation Code by adding Section 361.308.  Local governments are defined as a county, municipality, special district or subdivision of the state including local government corporations under Subchapter D, Chapter 431.

 

Section 2.  Amends Subchapter G, Chapter 370, Transportation Code by adding Section 370.317,   outlining local government participation in turnpike projects with TxDOT or a regional mobility authority.  The legislation also provides for any combination of two or more entities defined as a local government.

 

Section 3.  Governs the effective date of the bill.

 

EFFECTIVE DATE

 

September 1, 2005.

 

COMPARISON OF ORIGINAL TO SUBSTITUTE

 

The Substitute adds language in Section 1 which authorizes that an agreement between a local government and a private entity must be approved by TxDOT.  It also adds language in Section 1  which states that the revenue received by the local government as part of the agreement under this section must be used for transportation purposes.