Texas House Bill HB709

Texas 2019 - 86th Regular

Caption

Relating to the use of private activity bonds to finance high-speed rail service.

Impact

The passage of HB709 would directly impact funding avenues for high-speed rail initiatives in Texas. Proponents of this bill argue that it safeguards taxpayer money by preventing potential misuse of public funding for high-speed rail projects, which they deem risky and unproven in terms of return on investment. Critics, however, may view this as an obstacle to progress in developing modern transportation infrastructure that could enhance intercity travel and reduce congestion on existing highways.

Summary

House Bill 709 seeks to restrict the use of private activity bonds in Texas, specifically prohibiting their issuance for the financing of high-speed rail services that operate between municipalities at speeds exceeding 100 miles per hour. This legislation aims to clarify the state's stance on public funding for high-speed rail projects, reflecting a growing concern over the economic viability and necessity of such projects within the state. By amending Chapter 1372 of the Government Code, the bill establishes clear guidelines regarding what types of services can and cannot be financed through private activity bonds.

Contention

Notable points of contention surrounding HB709 include debates over the future of transportation infrastructure in Texas. Supporters of high-speed rail argue that it could provide significant economic benefits by improving connectivity and reducing travel times. However, opponents highlight concerns regarding the financial implications and practicality of such projects, especially in light of existing economic challenges. The discussions suggest a divide between traditional transportation advocates and those cautious about the fiscal responsibility associated with high-speed rail developments.