BILL ANALYSIS

Senate Research Center                                                                                                      S.B. 1688

                                                                                                                                         By: Watson

Transportation & Homeland Security

3/26/2007

As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

This bill addresses a new challenge facing the City of Austin--the creation of a new toll road across largely open and unincorporated land--by creating a transportation infrastructure district.

As proposed, S.B. 1688 authorizes the City of Austin to expedite the construction of infrastructure in areas that would normally take years to serve and authorizes the city to maximize the economic development potential in the State Highway 130 corridor. This bill authorizes a municipality to create a transportation infrastructure district anywhere within five miles of State Highway 130 and within Austin's extraterritorial jurisdiction and grants the city limited annexation authority over the district. This bill authorizes the district issue bonds, establish regulations regarding drainage and flood control, and to implement assessments and impact fees to pay for infrastructure. In addition, S.B. 1688 requires the city to assume the district's debts upon annexation and authorizes the district to collect sales and property taxes to pay for utilities and infrastructure for the district, which are prohibited from exceeding the tax rate of the city.

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the transportation infrastructure services district in SECTION 1 (Section 432.152, Transportation Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subtitle I, Title 6, Transportation Code, by adding Chapter 432, as follows:

CHAPTER 432. TRANSPORTATION INFRASTRUCTURE SERVICES DISTRICT

Sets forth standard language for the creation of a transportation infrastructure services district (district). Sets forth standards, procedures, requirements, and criteria for:

Creation and approval of the district (Sections 432.001-432.057);

Size, composition, election, and terms of the board of directors of the district (Sections 432.101-432.103);

Powers, duties, and rulemaking authority of the district (Sections 432.151-432.155);

General financial provisions and authority to imposes taxes and issue bonds and obligations and levy assessments for the district (Sections 432.201-432.227); and

Dissolution of the district (Sections 432.251-432.253).

Prohibits the use of eminent domain by the district.

SECTION 2. Amends the heading to Subtitle I, Title 6, Transportation Code, to read as follows:

SUBTITLE I. TRANSPORTATION CORPORATIONS AND INFRASTRUCTURE DISTRICTS

SECTION 3. Amends Section 43.052(h)(5), Local Government Code, as follows:

(h) Provides that this section (Municipal Annexation Plan Required) to an area proposed for annexation if the area is annexed under certain sections of this code or Subchapter B, Chapter 432, Transportation Code.

SECTION 4. Effective date: upon passage or September 1, 2007.