Bill Caption

Relating to the Texas Mobility Fund.

Fiscal Notes

Estimated Two-year Net Impact to General Revenue Related Funds for HB122, As Introduced: an impact of $0 through the biennium ending August 31, 2017. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill

Bill Analysis

The bill would amend the Transportation Code to specify that the Texas Transportation Commission may not issue obligations under Section 49-k, Article III, Texas Constitution (Texas Mobility Fund) after January 1, 2015. The bill would expand the authorized use of excess money in the Texas Mobility Fund (TMF) to include repayment of principal and interest (debt service) on short-term notes under Texas Constitution, Article III, Sec. 49-m; revenue obligations payable Page 1 of 2 from the State Highway Fund under Texas Constitution, Article III, Sec. 49-n (Proposition 14 Bonds); and (3) general obligation (GO) bonds and under Texas Constitution, Article III, Sec. 49-p (Proposition 12 GO Bonds). The use of excess amounts in the TMF to pay debt service on these other obligations would only be authorized to the extent that the proceeds of these other obligations are used for the purposes authorized for the TMF described by Transportation Code, Sec. 201.943 (d).

Vote Recommendation Notes

This legislation limits the use of excess revenue from the TMF from being spent on additional bonds, and instead pays down debt. We support this legislation for its ability and responsibility to pay down debt with excess revenue, instead of the potential growth of government.