Texas House Bill HB1439

Texas 2009 - 81st Regular

Caption

Relating to the use of county and municipal bond proceeds for toll projects.

Impact

If enacted, HB1439 will modify existing state laws surrounding the financing of toll projects, placing stricter controls on how local governments can use bond proceeds. This change is significant as it may impact various planned and ongoing toll projects funded through municipal or county bonds, thereby affecting infrastructure development and improvements within the regions that depend on these funding sources. The law will apply specifically to bonds authorized after the bill's effective date, ensuring that future funding decisions adhere to these new rules.

Summary

House Bill 1439 seeks to regulate the use of county and municipal bond proceeds specifically for toll projects in Texas. The main provision of the bill stipulates that any toll project entity cannot utilize county or municipal bond proceeds for constructing a toll project unless this usage is explicitly detailed in the proposition that authorized the issuance of those bonds. This requirement aims to ensure transparency and accountability in how bond funds are allocated and spent, particularly in relation to transportation projects.

Contention

There might be points of contention surrounding this bill based on concerns about restrictions imposed on local governments. While proponents argue that it enforces fiscal responsibility, critics may see it as a limiting factor on local autonomy in financial matters. The requirement for explicit inclusion of toll project funding in bond propositions may lead to conflicts between local needs and state regulations, potentially stalling necessary infrastructure projects in communities that rely on tolls for funding their transportation systems.