BILL ANALYSIS

H.B. 3070

By: Solomons

Urban Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

The 77th Texas Legislature enacted legislation that provided for the creation of a coordinated county transportation authority by a county adjacent to a county with a population of more than one million. Denton County has created such an authority in an effort to offer transportation alternatives to its region and alleviate traffic congestion and pollution.

H.B. 3070 clarifies the location where an election to lengthen the maturity date of debt or bonds is required to be held. The bill clarifies that such an election is not required to refund existing debt or to create or fund self-insurance or retirement or pension fund reserves and that certain collateral can be pledged for authority of debt, regardless of when acquired. The bill authorizes the authority to issue obligations and credit agreements. 

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

H.B. 3070 amends the Transportation Code to specify that an election required to be held to obtain voter approval of a coordinated county transportation authority's proposed issue of certain bonds having a maturity date of five years or longer from the date of issuance must be held in the municipalities in which the authority has been authorized to impose a sales and use tax. The bill removes the condition that the proposition proposing the issue requiring voter approval be approved in accordance with provisions established for the authorization of a tax levy by the authority. The bill establishes that the election and voter approval requirements do not apply to the issuance of refunding bonds or bonds for the creation or funding of self-insurance or retirement or pension fund reserves.

H.B. 3070 clarifies that the coordinated county transportation authority's authorization to mortgage any part of the public transportation system to secure the payment of its bonds applies to a system or part of a system regardless of when the system or part is acquired. The bill authorizes an authority to issue obligations and enter into credit agreements.

H.B. 3070 amends the Government Code to make a conforming change relating to the coordinated county transportation authority's authorization to issue obligations by including a coordinated county transportation authority within the definition of "issuer" in the state law authorizing governmental bodies to issue, sell, and deliver obligations for certain public improvements.

H.B. 3070 establishes that any act or proceeding of a coordinated county transportation authority is validated as of the date it occurred and that the provisions of the bill do not validate any governmental act or proceeding that, under state law at the time the act or proceeding occurred, was a misdemeanor offense or a felony offense.

EFFECTIVE DATE

September 1, 2009.