BILL ANALYSIS
Senate Research Center S.B. 883
81R4894 JTS-D By: Carona
Transportation & Homeland Security
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
State Highway Fund 006 (Fund 006) has at times been used for non-highway purposes such as a loan guarantee or as an insurance for bonds in connection with certain toll projects. The use of Fund 006 for these purposes will eventually affect its value and ultimately have an adverse effect on the state's highway transportation system.
As proposed, S.B. 883 prohibits the Texas Department of Transportation from pledging or otherwise encumbering money deposited in the state highway fund to guarantee a loan obtained by a public or private entity for costs associated with a toll facility of the public or private entity or insure bonds issued by a public or private entity for costs associated with a toll facility of the public or private entity.
RULEMAKING AUTHORITY
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 222.001, Transportation Code, as follows:
Sec. 222.001. USE OF STATE HIGHWAY FUND. (a) Creates this subsection from existing text.
(b) Prohibits the Texas Department of Transportation, notwithstanding Section 222.103 (Cost Participation), from pledging or otherwise encumbering money deposited in the state highway fund to guarantee a loan obtained by a public or private entity for costs associated with a toll facility of the public or private entity, or insure bonds issued by a public or private entity for costs associated with a toll facility of the public or private entity.
SECTION 2. Makes application of Section 222.001(b), as added by this Act, prospective.
SECTION 3. Effective date: upon passage or September 1, 2009.