Texas House Bill HB2396

Texas 2011 - 82nd Regular

• Introduced: 3/7/11
• Out of House Committee: 4/19/11
• Voted on by House: 5/6/11
• Refer: 3/10/11
• Out of Senate Committee: 5/20/11
• Report Pass: 4/13/11
• Voted on by Senate: 5/23/11
• Engrossed: 5/6/11
• Governor Action: 6/17/11
• Refer: 5/9/11
• Report Pass: 5/20/11
• Enrolled: 5/27/11
• Passed: 6/17/11

Caption

Relating to the pledge of advanced transportation district sales and use taxes to certain bonds.

Impact

If enacted, the bill provides a streamlined process for advanced transportation districts to pledge sales and use tax revenues as collateral for the issuance of bonds without requiring a new election. This change facilitates quicker access to funding for important transportation projects, allowing more immediate responses to urban mobility challenges. Additionally, the requirement for public hearings prior to bonding ensures transparency and community engagement in the decision-making process.

Summary

House Bill 2396 aims to amend specific provisions within the Texas Transportation Code concerning advanced transportation districts and the management of sales and use tax revenues in relation to transportation improvement bonds. The bill stipulates how authorities with a population exceeding 1.3 million may impose a sales and use tax to generate funds for transportation projects if approved by voters. The potential tax rates are set between one-eighth and one-half of one percent, providing a flexible framework for local governance to fund necessary enhancements to transportation infrastructure.

Contention

There may be concerns among policymakers and community members regarding the implications of making significant financial commitments through bond issuance supported by sales tax revenues. Critics worry about the long-term effects on taxpayers and the precedence it sets for the financial strategies employed by local governments. The bill manages a delicate balance between fostering infrastructure growth and maintaining fiscal responsibility, which could generate debate among legislators as well as constituents.