HBA-MSH S.B. 407 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 407
By: Cain
Transportation
3/21/2001
Engrossed



BACKGROUND AND PURPOSE 

In a recent opinion issued by the Office of the Attorney General concerning
whether a county may borrow money from the state infrastructure bank
account for road and bridge construction without issuing bonds or other
obligations evidencing the loan, and repay the loan over a term of years
from the proceeds of taxes or other revenue pledged for that purpose, the
attorney general held that a county's authority to enter into debt must be
express or necessarily implied by statute and that the current statute does
not give this authority. Senate Bill 407 authorizes a public entity to
borrow money from the state infrastructure bank account without issuing
bonds or other obligations evidencing the loan.  

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

Senate Bill 407 amends the Transportation Code to authorize a public entity
that is authorized to construct, maintain, or finance a qualified project,
including construction of a federal-aid highway or transit project, to
borrow funds for the project from the state infrastructure bank account
without issuing bonds or other obligations evidencing the loan. The bill
provides that the public entity must segregate such funds from other money
under the control of the public entity and authorizes the use of such the
funds only for a purpose related to the qualified project for which the
funds were borrowed.  

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.