Honorable Terry Canales, Chair, House Committee on Transportation
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
HB899 by Israel (relating to bonds issued by certain metropolitan rapid transit authorities.), Committee Report 1st House, Substituted
No fiscal implication to the State is anticipated.
The bill would amend the Transportation Code relating to the terms of bonds issued by certain metropolitan rapid transit authorities.
Local Government Impact
According to the Capital Metropolitan Transit Authority, the bill would result in significant savings as it would enable the authority to own rather than lease facilities. Financing the construction of large facilities is more cost effective than leasing or saving the capital for a number of years and would result in the authority retaining the residual asset value of any owned facility, likely to be tens of millions of dollars, as well as annual cash flow savings over the life of the facility following repayment of the loan.
601 Department of Transportation, 352 Bond Review Board