Because the number of waived toll transactions that may occur under the provisions of the bill is unknown, the potential negative impact to toll revenue and costs to the State to replace lost toll revenue cannot be determined at this time.
The bill would amend Chapter 372 of the Transportation Code to prohibit a toll project entity from requiring a school bus that is exempt from payment of vehicle registration fees to pay a toll for use of a toll project.
TxDOT reports that the bond indenture for the Central Texas Turnpike System (CTTS) does not allow TxDOT to provide free or discounted passage on CTTS toll facilities. Therefore, TxDOT would be required to replace lost revenue from waived tolls. For other toll projects with debt outstanding, TxDOT reports the bond indentures allow for discounted or waived tolls provided that the reduction of revenue does not impair the ability to meet the rate covenants. If the reduction in revenue impaired the ability to meet the rate covenants, TxDOT or the Legislature would be required to replace lost revenues.
Based on the information provided by TxDOT, it is assumed implementation of the bill would result in lost toll revenue on TxDOT toll projects and potential increased costs to replace lost toll revenue on the CTTS or other toll projects with debt outstanding. Because the number of waived transactions that may occur on each toll facility is unknown, the potential negative impact to toll revenue and costs to replace lost CTTS toll revenue cannot be determined at this time.
No significant fiscal implication to units of local government is anticipated.