| TO: | Honorable Mike Krusee, Chair, House Committee on Transportation |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | SB668 by Watson (Relating to the operation, powers, and duties of a toll project entity.), As Engrossed |
The bill would amend the Transportation Code to include provisions and financial reporting requirements for governing boards of toll project entities, including regional mobility authorities, regional tollway authorities, certain counties, and the Texas Department of Transportation (TxDOT). The bill would require a toll project entity to reimburse a local government for any money contributed to a toll project operated by the entity unless the money is from bond proceeds approved by the voters of the local government or the governing body of the local government voted publicly to approve or ratify the financing or use of money for the toll project. The bill would require a toll project entity to obtain the approval of the appropriate metropolitan planning organization before the entity may (1) lease, sell, or convey in another manner a toll project; (2) contract with a person to operate all or part of a project; (3) refinance a project; (4) continue tolling after the discharge of bond indebtedness of a project unless the tolls are imposed to pay for maintenance and operation of the project; or (5) spend surplus revenue from a project on other transportation projects; and would provide certain exemptions from these provisions for a regional mobility authority located within an area served by two metropolitan planning organizations.
TxDOT indicates that the provisions of the bill regarding the reimbursement of money pledged by a local government for a toll project could have a negative impact to state and local tolling entities since many regional toll projects require state and local subsidies in the form of cash and/or right-of-way in order to be built. The fiscal impact of the bill would depend on the number of tolling projects provided pledges of local money and the amount of pledged money that was neither approved by a local bond election or by a public vote of a local governing body and, therefore, cannot be determined.
The bill would take effect on September 1, 2007.
| Source Agencies: | 601 Department of Transportation
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| LBB Staff: | JOB, MW, TG, KJG
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