Honorable Robert Nichols, Chair, Senate Committee on Transportation
FROM:
Ursula Parks, Director, Legislative Budget Board
IN RE:
SB385 by Burton (Relating to voter approval of local acceptance and use of federal funds for commuter rail projects.), Committee Report 1st House, Substituted
No significant fiscal implication to the State is anticipated.
The bill would amend the Transportation Code to prohibit a political subdivision from accepting or using federal funds for the construction of a commuter rail project. This prohibition applies to federal dollars that are passed through the Texas Department of Transportation and given to local political subdivisions.
The governing body of each municipality must hold an election in which a station or track segment of the project is located or proposed to be located and a majority of the votes cast must be in favor of adoption.
The bill would also require another election or set of elections to re-authorize the acceptance or use of federal funds for the rail project if construction of the project as originally approved has not begun on the project before the fifth anniversary of the date of the previous election.
The bill would take effect immediately if it receives a two-thirds votes in each house; otherwise, it would take effect September 1, 2017.
Local Government Impact
According to the Texas Department of Transportation, the bill could have a negative but indeterminate fiscal impact on local municipalities, as it would require them to hold additional elections and may result in possibly losing federal funding that would assist in project delivery.