BILL ANALYSIS

 

 

Senate Research Center

S.B. 977

85R3629 JXC-D

By: Schwertner

 

Transportation

 

4/3/2017

 

As Filed

 

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

A group of private investors is currently considering the construction of a high-speed rail line connecting Houston and Dallas. The investors have repeatedly claimed that the planning, operation, and maintenance of these projects will be funded entirely with private investment and that the project will require no state funds. While the state is supportive of private business, Texas taxpayers have expressed concern that should the private entities fail in their undertaking, Texans would be left with an incomplete or failed high-speed rail project potentially requiring state bailouts for either project completion or damage mitigation.

 

S.B. 977 ensures that Texas taxpayers will not be asked to later subsidize, bail out, or otherwise financially support a private high-speed rail project.

 

The bill prohibits the legislature from making an appropriation related to the planning, facility construction or maintenance, security, or operation of a high-speed rail project operated by a private entity. State agencies are also prohibited from accepting or using state money for such costs. The bill makes certain exceptions for federally required environmental duties.

 

In order to ensure transparency and accountability, S.B. 977 requires that certain elected and appointed officials receive a quarterly report from agencies on high-speed rail-related expenses.

 

S.B. 977 protects the interests of state taxpayers while continuing to allow private entities to pursue their state objectives.

 

As proposed, S.B. 977 amends current law relating to the use of state money for high-speed rail operated by a private entity.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1. Amends Chapter 199, Transportation Code, by adding Section 199.003, as follows:

 

Sec. 199.003. USE OF STATE MONEY FOR HIGH-SPEED RAIL. (a) Defines "high-speed rail."

 

(b) Provides that, except as required by other law, including the National Environmental Policy Act of 1969 (42 U.S.C. Section 4321 et seq.):

 

(1) the legislature is prohibited from appropriating money to pay for a cost of planning, facility construction or maintenance, or security for, or operation of, high-speed rail operated by a private entity; and

 

(2) a state agency is prohibited from accepting or using state money to pay for a cost described by Subdivision (1).

 

(c) Requires a state agency to prepare a quarterly report of each expense described by this section and submit a copy of each report to the Texas Transportation Commission, the committee in each house of the legislature with primary jurisdiction over transportation, the lieutenant governor, and the governor.

 

SECTION 2. Effective date: September 1, 2017.