Texas House Bill HB2167

Texas 2017 - 85th Regular

Caption

Relating to state money or credit or a state guarantee used or provided for high-speed rail owned by a private entity.

Impact

If enacted, HB2167 could significantly reshape the landscape of transportation funding in Texas by imposing stringent controls on how state resources can be used to support private rail projects. The bill requires thorough scrutiny of agreements involving state funding by the comptroller, ensuring that financial protections are in place. This may lead to a more cautious approach to funding high-speed rail initiatives, potentially impacting the pace of development for such projects that rely on state support.

Summary

House Bill 2167 focuses on the use of state money, credit, or guarantees related to high-speed rail services operated by private entities. The bill aims to ensure that any state funding provided for high-speed rail is paired with adequate security measures to protect the state's financial interests. Specifically, it mandates that before state funds can be utilized, the state must acquire a lien or security interest in the property and assets of the private entity benefiting from the funds. This provision is designed to mitigate the risks associated with public investment in private ventures.

Contention

Debate surrounding HB2167 may revolve around the balance between fostering public-private partnerships and ensuring state resources are protected. Supporters of the bill may argue that these measures are essential to safeguarding taxpayer money, while opponents could contend that such requirements could hinder the development of innovative transportation solutions by making state funding less accessible to private firms. The requirement for a lien could also raise concerns about the attractiveness of high-speed rail projects for potential private investors, potentially affecting the overall growth of this sector in Texas.