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.