HBA-MSH H.B. 1045 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 1045 By: Alexander Transportation 2/12/2001 Introduced BACKGROUND AND PURPOSE Under current law, the Texas Department of Transportation (TxDOT) is authorized to expend money, from any source available, for the cost of turnpikes, toll roads, or toll bridges of the Texas Turnpike Authority provided that money expended out of the state highway fund is repaid from tolls or other turnpike revenue. TxDOT and the Texas Transportation Commission are also authorized to participate in the cost, construction, maintenance, and operation of toll facilities of various entities provided that funds expended are repaid. TxDOT is precluded from advancing funds for turnpike project development without an obligation of repayment. Entities that construct toll facilities seek federal and state highway funds to leverage their own funds and complete financing for high-cost facilities, but repayment obligations may make construction infeasible. House Bill 1045 removes the requirement for repayment from public entities and authorizes TxDOT to expend funds for the cost of toll projects of the public and private entities. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Transportation Commission in SECTION 1 (Section 222.103, Transportation Code) of this bill. ANALYSIS House Bill 1045 amends the Transportation Code to authorize the Texas Department of Transportation (TxDOT) to participate in the cost of the acquisition of a toll facility of a public or private entity by spending money from any available source, on terms established by the Texas Transportation Commission (commission). The bill sets forth provisions relating to repayment of any money spent by TxDOT for a toll facility of a public or private entity. The bill requires the commission to adopt rules for the spending and repayment of money for such toll facilities. The bill specifies that a bond or other debt obligation to finance a toll facility is an obligation of the issuing entity and not of the state. The bill authorizes TxDOT to expend money for the cost of the acquisition, construction, maintenance, or operation of a turnpike project by the Texas Turnpike Authority (authority). The bill authorizes TxDOT to require the authority to repay the money from toll revenue or other sources. If TxDOT spends money for a joint venture agreement with the authority, the bill authorizes the commission to require the authority to repay the money from toll revenue or other sources. If the commission finds that the mobility of the traveling public will be enhanced, the bill authorizes the commission to enter into an agreement with the authority for the contribution of money to the authority for any purpose of the Texas Turnpike Authority Project Revolving Fund. The bill authorizes the commission to require the repayment of money contributed to the authority from toll revenue or other sources. The bill authorizes TxDOT or the commission to require the repayment of money contributed to a regional tollway authority from toll revenue and other sources. The bill requires that money repaid as required by TxDOT or the commission under these provisions be credited to the fund from which the contribution was made. EFFECTIVE DATE The date on which the constitutional amendment relating to authorizing aid for turnpikes, toll roads, and toll bridges takes effect.