BILL ANALYSIS

 

 

                                                                                                                                            S.B. 1074

                                                                                                                                   By: Wentworth

                                                                                                                                     Transportation

                                                                                                       Committee Report (Unamended)

 

 

 

BACKGROUND AND PURPOSE

 

VIA Metropolitan Transit (VIA) is the rapid transit authority in the San Antonio metropolitan area.  Currently, VIA may issue short-term bonds that are secured by revenue box fees for a term of not more than 12 months.  VIA has development projects which need funding immediately to keep costs down.  Allowing longer bonds would give VIA the opportunity to purchase land at a lower cost which is critical to the expansion of the system.

 

As proposed, S.B. 1074 authorizes VIA to issue short-term bonds with a 10-year term, rather than a 12-month term. 

 

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 Section 451.362, Transportation Code, by amending Subsection (a) and adding Subsection (d), as follows:

 

(a) Makes conforming changes.

 

(d) Authorizes bonds to have a term of not more than 10 years in a metropolitan rapid transit authority created before 1980 in which the principal municipality has a population of less than 1.2 million.  Provides that the bonds are payable only from fee revenue received on or after the date the bonds are issued.

 

SECTION 2.  Effective date: upon passage or September 1, 2007.

 

EFFECTIVE DATE

 

Upon passage, or, if the Act does not receive the necessary vote, the Act takes effect September 1, 2007.