HBA-MSH C.S.S.J.R. 16 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.S.J.R. 16 By: Shapiro Transportation 5/6/2001 Committee Report (Substituted) 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 the need for additional roads and road improvements. The lack of adequate funding for transportation infrastructure suggests the need to establish other funding mechanisms. C.S.S.J.R. 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 C.S.S.J.R. 16 amends the Texas Constitution to create the Texas Mobility Fund (fund) in the state treasury to be administered by the Texas Transportation Commission (commission) 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, but prohibits the legislature from dedicating money to the fund from the collection of motor vehicle registration fees and taxes on motor fuels and lubricants. 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 resolution 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. The resolution authorizes the legislature to authorize the Texas Department of Transportation to expend grant or loan money for the acquisition, construction, maintenance, or operation of turnpikes, toll roads, and toll bridges. The resolution removes provisions that require any money expended out of the state highway fund for toll projects to be repaid to the fund from tolls or other turnpike revenue and that authorize such expenditures only for projects of the Texas Turnpike Authority. FOR ELECTION This constitutional amendment shall be submitted to the voters at an election to be held November 6, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.S.J.R. 16 differs from the original by providing that the Texas Mobility Fund (fund) is created in the state treasury and administered by the Texas Transportation Commission, rather than created with the comptroller. The substitute removes the requirement that income on money in the fund be deposited in the fund. The substitute prohibits the legislature from dedicating to the fund money from the collection of motor vehicle registration fees and taxes on motor fuels and lubricants. The substitute authorizes the legislature to authorize the Texas Department of Transportation to expend grant or loan money for the acquisition, construction, maintenance, or operation of turnpikes, toll roads, and toll bridges. The substitute removes provisions that require any money expended out of the state highway fund for toll projects to be repaid to the fund from tolls or other turnpike revenue and that authorize such expenditures only for projects of the Texas Turnpike Authority.