Texas Senate Bill SB1876

Texas 2009 - 81st Regular

• Out of Senate Committee: 4/22/09
• Voted on by Senate: 4/30/09
• Out of House Committee: 5/15/09
• Voted on by House: 5/26/09
• Governor Action: 6/19/09
• Enrolled: 5/27/09
• Passed: 6/19/09

Caption

Relating to the administration and powers of a coordinated county transportation authority.

Impact

The amendments in SB1876 are significant as they enhance the accountability of transportation authorities when it comes to fiscal decisions impacting taxpayers. By requiring a voter referendum for certain bond issuances, the bill strengthens public oversight and addresses concerns over local government spending and debt accumulation. Additionally, the bill allows for pledging earnings from public transportation systems, government grants, and lease revenues as potential collateral for these bonds, thus broadening the financial mechanisms available to these authorities.

Summary

SB1876 focuses on the administration and powers of coordinated county transportation authorities in Texas. The bill proposes amendments to the Transportation Code, particularly regarding the process for issuing bonds by these authorities. It stipulates that a bond, secured by sales and use tax revenues and with a maturity of five years or more, cannot be issued without prior approval from a majority of voters in the applicable municipalities. This aims to ensure public consent and transparency in financing transportation projects that may leverage local taxes.

Contention

Notably, the bill's provision to validate past acts or proceedings of a coordinated county transportation authority has caused debate. Critics argue that this could retroactively legitimize decisions that may not have undergone proper scrutiny or public involvement. Moreover, the specifics about which bonds are exempt from the voter approval requirement may raise concerns among advocates for transparency and local authority governance. These points of contention highlight the ongoing tension between facilitating infrastructure development and maintaining rigorous checks against government overreach.