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.