HBA-MSH S.J.R. 16 77(R) BILL ANALYSIS Office of House Bill AnalysisS.J.R. 16 By: Shapiro Transportation 4/16/2001 Engrossed BACKGROUND AND PURPOSE Currently, the state uses a "pay as you go" model to fund infrastructure projects. Under this system, Texas is only able to fund approximately 36 percent of identified and needed projects. During the last seven years, vehicle miles traveled on Texas roads have increased 4.1 percent annually, indicating a substantial increase in traffic and therefore the need for additional roads and road improvements. The lack of adequate funding for transportation infrastructure suggests the need to establish other funding mechanisms. As proposed, Senate Joint Resolution 16 requires the submission to the voters of a constitutional amendment creating the Texas Mobility Fund as a revolving fund and authorizing the use of money in the fund for transportation projects. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this resolution does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS Senate Joint Resolution 16 amends the Texas Constitution to create the Texas Mobility Fund (fund) with the comptroller as a revolving fund to provide a method of financing the construction, reconstruction, acquisition, and expansion of state highways. The resolution authorizes the use of money in the fund to provide participation by the state in the payment of a portion of the costs of constructing and providing publicly owned toll roads and other public transportation projects. The resolution authorizes the Texas Transportation Commission (commission) to issue and sell state obligations payable from and secured by a pledge of and lien on money in the fund. The resolution authorizes the legislature to dedicate state revenue to the fund. The resolution provides that the legislature may authorize the commission to guarantee the payment of any obligations and credit agreements issued and executed by the commission by pledging full credit of the state to that payment. The resolution requires that all obligations and related credit agreements to be issued and executed be submitted to the attorney general for approval as to their legality. The bill prohibits the inclusion of obligations or credit agreements under these provisions in the computation of the limit on state debt payable from the general revenue fund. FOR ELECTION This constitutional amendment shall be submitted to the voters at an election to be held November 6, 2001.