HBA-NRS H.B. 1683 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1683
By: Goolsby
Urban Affairs
7/20/2001
Enrolled



BACKGROUND AND PURPOSE 

The Dallas Area Rapid Transit Authority (DART) receives federal funds for
construction of certain transportation corridors. Unfortunately, federal
funds may not always be received at the same time that construction
activities are set to begin. To mitigate these timing differences, DART
might need to borrow money. However, prior to the 77th Legislature DART did
not have the legal authority to pledge future federal funds to repay the
notes. In addition, DART utilizes a yearly budget. Because revenue,
expenses, and capital programs tend to be predictable, the process of
multi-year budgeting may be more appropriate for DART. House Bill 1683
provides DART with the legal authority to pledge committed federal funds to
leverage funding in the future for certain construction projects, and
allows for the adoption of a biennial budget.  

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. 

ANALYSIS

House Bill 1683 amends the Transportation Code to authorize a regional
transportation authority (authority) to pledge all or part of funds the
federal government has committed to the authority as grants in aid for the
purpose of securing the payment of the authority's bonds. The bill
authorizes the authority to pledge such funds as the sole security for the
bonds or in addition to any other security pledged. The bill provides that
an authority consisting of one subregion governed by a subregional board
having a principal municipality with a population of more than 800,000 may
make such a pledge without obtaining approval from the voters of the
authority. The bill authorizes a subregional board to adopt by vote of the
board a budgeting policy for the authority that extends for two fiscal
years, with annual reviews as needed.  

EFFECTIVE DATE

September 1, 2001.