HBA-MPA C.S.H.B. 2311 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2311 By: Cuellar Transportation 5/10/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, the Texas Turnpike Authority division of the Texas Department of Transportation (the authority) 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 trust in a banking institutions or in the state treasury outside the general revenue fund. C.S.H.B. 2311 clarifies that feasibility study funds, project revolving funds, proceeds from the sale of bonds, and the revenue from turnpike projects of the authority may be, at the authority's option, held either by a banking institution of its choosing or in the state treasury outside the general revenue fund, 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, by amending Subsection (a) and adding Subsections (g) and (h), as follows: (a) Provides that the Texas Turnpike Authority feasibility study fund, at the discretion of the Texas Turnpike Authority division of the Texas Department of Transportation (the authority), may be held in trust in the state treasury outside the general revenue fund. (g) Requires the interest and income earned on money deposited in the feasibility study fund to be deposited to the credit of that fund. (h) Requires money transferred to the Texas Department of Transportation (TxDOT) for the benefit of the authority under Section 8.02 (concerning payments made to the Texas Turnpike Authority for assets assumed by the North Texas Tollway Authority), Chapter 1171, Acts of the 75th Legislature, Regular Session, 1997, to remain in trust in the state treasury, and prohibits it from being transferred to a private banking institution. Provides that this money is exempt from the application of Section 403.095 (Use of Dedicated Revenue), Government Code, and not subject to reduction or elimination under any other provision of the Government Code. SECTION 2. Amends Section 361.184, Transportation Code, to provide that the Texas Turnpike Authority project revolving fund, at the discretion of the authority, may be held in trust in the state treasury outside the general revenue fund. Requires the interest and income earned on money deposited in the project revolving fund to be deposited to the credit of that fund. Prohibits money transferred to TxDOT for the benefit of the authority under Section 8.02, Chapter 1171, Acts of the 75th Legislature, Regular Session, 1997, from being deposited in the project revolving fund. 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 the authority, or at its discretion, in trust in the state treasury outside the general revenue fund, 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 remittance of funds to the comptroller in the event of the abolition of the Texas Turnpike Authority), Chapter 1171, Acts of the 75th Legislature, Regular Session, 1997. SECTION 5.Emergency clause. Effective date: upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2311 differs from the original bill by replacing the reference to the disposition of certain funds, "with the comptroller in trust," in the original bill, with the phrase "outside of the general revenue fund" in the substitute (describing how the funds may be held in the state treasury). The substitute replaces the phrase in SECTION 1 (Section 361.182(a), Transportation Code) referring to the feasibility study fund, in SECTION 2 (Section 361.184(a), Transportation Code) referring to the Texas Turnpike Authority project revolving fund, and in SECTION 3 (Section 361.185(a), Transportation Code) referring to proceeds from the sale of bonds. C.S.H.B. 2311 differs from the original in SECTIONS 1 and 2 (proposed Sections 361.182(h) and 361.184(f), Transportation Code, respectively) by replacing reference to exempting the feasibility study fund and the Texas Turnpike Authority project revolving fund from application of Section 404.071 (Disposition of Interest on Investments), Government Code, in the original bill, with a provision prohibiting the money received under Section 8.02 (concerning payments made to the Texas Turnpike Authority for assets assumed by the North Texas Turnpike Authority), Chapter 1171, Acts of the 75th Legislature, Regular Session, 1997, from being transferred to a private banking institution. In SECTION 1 the substitute exempts this money from the application of Section 403.095, Government Code, and provides that it is not subject to reduction or elimination under any other provision of the Government Code.