HBA-MPA H.B. 2311 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2311
By: Cuellar
Transportation
4/19/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, the Texas Turnpike Authority (TTA) has broad authority to plan
and develop turnpike projects which may be financed, in large part, through
the issuance of bonds or other sources of private investment.  In order to
assure potential investors that invested funds and revenues for the
repayment of invested funds are secure and free from competing budgetary
needs of the state, it is desirable for the authority to have the ability
to maintain funds in banking institutions or in trust with the comptroller.
H.B. 2311 clarifies that feasibility study funds, project revolving funds,
proceeds from the sale of bonds, and the revenue from turnpike projects of
TTA may be, at TTA's option, held either by a banking institution of its
choosing or in the state treasury, and the interest income earned on such
funds shall be credited to the fund from which the income or interest was
earned. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 361.182, Transportation Code, to provide that
the Texas Turnpike Authority (TTA) feasibility study fund, at the
discretion of TTA, may be held in the state treasury with the comptroller
in trust.  Requires the interest and income earned on money deposited in
the feasibility study fund to be deposited to the credit of that fund.
Provides that the feasibility study fund is exempt from the application of
Section 404.071 (Disposition of Interest on Investments), Government Code. 

SECTION 2.  Amends Section 361.184, Transportation Code, to provide that
TTA project revolving fund, at the discretion of TTA, may be held in the
state treasury with the comptroller in trust. Requires the interest and
income earned on money deposited in the project revolving fund to be
deposited to the credit of that fund.  Provides that the project revolving
fund is exempt from the application of Section 404.071 (Disposition of
Interest on Investments), Government Code. 

SECTION 3.  Amends Section 361.185(a), Transportation Code, to require that
funds held under this chapter be held in trust by a banking institution
chosen by TTA, or at its discretion, in the state treasury with the
comptroller in trust, notwithstanding the provisions of any other law
including Section 9 (Bond Funds), Chapter 1123, Acts of the 75th
Legislature, Regular Session, 1997. 

SECTION 4.  Repealer: Section 8.06 (concerning remittanceof funds to the
comptroller in the event of the abolition of TTA), Chapter 1171, Acts of
the 75th Legislature, Regular Session, 1997. 

SECTION 5.Emergency clause.
  Effective date: upon passage.