LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION May 7, 2021 TO: Honorable Terry Canales, Chair, House Committee on Transportation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4539 by Cain (Relating to the prohibition of tolls on portions of State Highway 146 and State Highway 99.), Committee Report 1st House, Substituted No significant fiscal implication to the State is anticipated. The bill would amend Subchapter E, Chapter 228, Transportation Code, to prohibit the Texas Department of Transportation (TxDOT) from charging a toll either directly or indirectly through an agreement with another entity on specific portions of State Highway 146 and State Highway 99. The bill would take effect immediately upon receiving a vote of two-thirds of all members elected to each house or otherwise on September 1, 2021.TxDOT reports that the portion of State Highway 99 that would be affected by the bill is currently designated as a toll facility as a segment of the Grand Parkway project. The Grand Parkway Transportation Corporation (GPTC), a public, nonprofit corporation created by the Texas Transportation Commission to finance, build, and operate certain segments of the Grand Parkway, has sold bonds to finance the Grand Parkway project, which are backed by a pledge of toll revenue from the project. TxDOT reports that implementation of the bill would reduce revenue pledged to pay GPTC bonds issued to finance the project and would be a violation of the GPTC's bond covenants. TxDOT reports that GPTC may be required to borrow money from TxDOT under an existing toll equity loan agreement if the loss of revenue from the affected segment of the Grand Parkway causes GPTC to have insufficient revenue to meet its bond obligations. In the event the GPTC is required to borrow money from TxDOT, it is assumed funding for the loan would be accommodated through the reallocation of TxDOT's existing highway planning and construction funds from other transportation projects. Local Government ImpactNo fiscal implication to units of local government is anticipated. Source Agencies: b > td > 601 Department of Transportation LBB Staff: b > td > JMc, AAL, MB, TG
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 87TH LEGISLATIVE REGULAR SESSION
May 7, 2021
TO: Honorable Terry Canales, Chair, House Committee on Transportation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB4539 by Cain (Relating to the prohibition of tolls on portions of State Highway 146 and State Highway 99.), Committee Report 1st House, Substituted
TO: Honorable Terry Canales, Chair, House Committee on Transportation
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB4539 by Cain (Relating to the prohibition of tolls on portions of State Highway 146 and State Highway 99.), Committee Report 1st House, Substituted
Honorable Terry Canales, Chair, House Committee on Transportation
Honorable Terry Canales, Chair, House Committee on Transportation
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB4539 by Cain (Relating to the prohibition of tolls on portions of State Highway 146 and State Highway 99.), Committee Report 1st House, Substituted
HB4539 by Cain (Relating to the prohibition of tolls on portions of State Highway 146 and State Highway 99.), Committee Report 1st House, Substituted
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would amend Subchapter E, Chapter 228, Transportation Code, to prohibit the Texas Department of Transportation (TxDOT) from charging a toll either directly or indirectly through an agreement with another entity on specific portions of State Highway 146 and State Highway 99. The bill would take effect immediately upon receiving a vote of two-thirds of all members elected to each house or otherwise on September 1, 2021.TxDOT reports that the portion of State Highway 99 that would be affected by the bill is currently designated as a toll facility as a segment of the Grand Parkway project. The Grand Parkway Transportation Corporation (GPTC), a public, nonprofit corporation created by the Texas Transportation Commission to finance, build, and operate certain segments of the Grand Parkway, has sold bonds to finance the Grand Parkway project, which are backed by a pledge of toll revenue from the project. TxDOT reports that implementation of the bill would reduce revenue pledged to pay GPTC bonds issued to finance the project and would be a violation of the GPTC's bond covenants. TxDOT reports that GPTC may be required to borrow money from TxDOT under an existing toll equity loan agreement if the loss of revenue from the affected segment of the Grand Parkway causes GPTC to have insufficient revenue to meet its bond obligations. In the event the GPTC is required to borrow money from TxDOT, it is assumed funding for the loan would be accommodated through the reallocation of TxDOT's existing highway planning and construction funds from other transportation projects.
TxDOT reports that implementation of the bill would reduce revenue pledged to pay GPTC bonds issued to finance the project and would be a violation of the GPTC's bond covenants. TxDOT reports that GPTC may be required to borrow money from TxDOT under an existing toll equity loan agreement if the loss of revenue from the affected segment of the Grand Parkway causes GPTC to have insufficient revenue to meet its bond obligations. In the event the GPTC is required to borrow money from TxDOT, it is assumed funding for the loan would be accommodated through the reallocation of TxDOT's existing highway planning and construction funds from other transportation projects.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: b > td > 601 Department of Transportation
601 Department of Transportation
LBB Staff: b > td > JMc, AAL, MB, TG
JMc, AAL, MB, TG