HBA-NRS H.B. 1683 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1683 By: Goolsby Urban Affairs 2/25/2001 Introduced BACKGROUND AND PURPOSE Currently, 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 may have to borrow money, but DART does not currently 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 the legal authority to pledge future 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 anticipated future funds the authority expects to receive from grants in aid from the federal government to secure 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. EFFECTIVE DATE September 1, 2001.