Part 1. TEXAS DEPARTMENT OF TRANSPORTATION
Chapter 15. TRANSPORTATION PLANNING AND PROGRAMMING
Subchapter N. STATE HIGHWAY PROJECTS FINANCED THROUGH THE ISSUANCE OF BONDS AND OTHER PUBLIC SECURITIES
The Texas Department of Transportation (department) proposes amendments to §15.170, purpose, §15.171, definitions, §15.172, applicability, and §15.173, state highway improvement projects, concerning state highway projects financed through the issuance of certain bonds and other public securities.
EXPLANATION OF PROPOSED AMENDMENTS
The amendments conform 43 TAC Chapter 15, Subchapter N to the changes made to Transportation Code, §222.003 by Senate Bill 792, 80th Legislature, 2007. Senate Bill 792 increased the annual bond issuance limit for bonds and other public securities secured by the state highway fund from $1 billion to $1.5 billion; increased the maximum aggregate issuance limitation from $3 billion to $6 billion; and increased the amount allocated to highway safety projects from $600 million to $1.2 billion. By deleting from the rules the amounts specified by the statute, the amendments remove the current and potential future discrepancies between the rules and statute, particularly with respect to the amount of bonds that the department may issue under 43 TAC Chapter 15, Subchapter N. Additionally, minor wording changes have been made to clarify the rules and to ensure consistency in terminology.
Amendments to §15.170, Purpose, delete references to the specific dollar amounts of the annual bond issuance limit, and the maximum aggregate bond issuance limit which are specified in Transportation Code, §222.003 and subject to change by the legislature. The specific amounts are replaced with a reference to the statute, thereby removing current and potential future discrepancies between the rules and statute.
Amendments to §15.171, Definitions, delete the definition of Trans-Texas Corridor because the only use of the term in the subchapter is being removed from §15.172 for the reasons set out in the explanation of amendments to that section. The amendments renumber the remaining definitions accordingly.
Amendments to §15.172, Applicability, delete references to the specific project and dollar amount limitations and insert references to relevant provisions of Transportation Code, §222.003 to more accurately reflect the prohibited uses of bond proceeds and describe the bond amount limits prescribed by the legislature. Senate Bill 792 amended Transportation Code, §222.003(d) to change the amount of the proceeds that are required to be used for highway safety projects. As a result the statute and the rules conflict, and in such a situation, the statute controls. Transportation Code, §222.003(e) prohibits the use of bond proceeds for an array of projects, of which §15.172 lists only facilities on the Trans-Texas Corridor. The amendments delete the reference to the Trans-Texas Corridor and substitute a reference to the statute thus capturing the prohibition of the use of the bond proceeds for all current and future prohibited uses.
Amendments to §15.173, State Highway Improvement Projects, delete language limiting the use of bond proceeds for projects or programs in the Unified Transportation Program to only those that would be accelerated, thereby making the funds available for use on more state highway improvement projects. Additionally, the amendments add as an eligibility criterion consideration of the potential of a project to be classified as a safety project.
FISCAL NOTE
James Bass, Chief Financial Officer, has determined that for each of the first five years the amendments as proposed are in effect, there will be no fiscal implications for state or local governments as a result of enforcing or administering the amendments.
Mr. Bass has certified that there will be no significant impact on local economies or overall employment as a result of enforcing or administering the amendments.
PUBLIC BENEFIT AND COST
Mr. Bass has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of enforcing or administering the amendments will be a more efficient administration of the state highway fund bond funding program. There are no anticipated economic costs for persons required to comply with the sections as proposed. There will be no adverse economic effect on small businesses.
SUBMITTAL OF COMMENTS
Written comments on the proposed amendments to §§15.170 - 15.173 may be submitted to James Bass, Chief Financial Officer, Texas Department of Transportation, 125 East 11th Street, Austin, Texas 78701-2483. The deadline for receipt of comments is 5:00 p.m. on June 9, 2008.
STATUTORY AUTHORITY
The amendments are proposed under Transportation Code, §201.101, which provides the Texas Transportation Commission (commission) with the authority to establish rules for the conduct of the work of the department, and Transportation Code, §222.003, which requires the commission to by rule prescribe criteria for selecting projects eligible for funding under the state highway fund bond program.
CROSS REFERENCE TO STATUTE
Transportation Code, §222.003.
§15.170.Purpose.
Transportation Code, §222.003, allows the Texas Transportation
Commission to issue bonds and other public securities secured by a
pledge of and payable from revenue deposited to the credit of the
state highway fund. Proceeds from the sale of these bonds and other
public securities must be used to fund state highway improvement projects
, subject to the limitations provided in that section. [A
maximum of $1 billion per year in debt may be issued not to exceed
an aggregate principal amount of $3 billion.] This subchapter
describes [prescribes] the criteria and policies
[and procedures] that will be used to select projects.
§15.171.Definitions.
The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:
(1) - (16) (No change.)
[(17) Trans-Texas Corridor--The statewide
system of multimodal facilities under the jurisdiction of the department
that is designated by the commission under Transportation Code, Chapter
227.]
(17) [(18)] Texas Highway Trunk
System--A planned rural network of four or more lane divided roadways
that will serve as a principal connector for Texas cities of greater
than 20,000 population as well as major ports and points of entry.
(18) [(19)] Unified Transportation
Program--The 10-year financial plan of the Texas Department of Transportation
outlining project development and construction.
§15.172. Use of Proceeds [ Applicability ].
(a) Transportation Code, §222.003(e) establishes
certain prohibitions on the use of proceeds from the sale of the bonds
[Proceeds from the sale of these bonds may not be used to construct
a state highway or other facility on the Trans Texas Corridor].
(b) The proceeds of the bonds authorized by Transportation
Code, §222.003 shall be used to fund state highway improvement
projects. Transportation Code, §222.003(d), allocates a specified
portion of those proceeds to safety projects [Transportation
Code, §222.003(d), requires at least $600 million of the aggregate
debt limit of $3 billion be used for safety projects. The remainder
of the funding may be used for state highway improvement projects,
including safety projects].
§15.173.State Highway Improvement Projects.
(a) Eligibility. Projects or programs contained in
the department's Unified Transportation Program [and which would
be accelerated,] are eligible for funding.
(b) Selection criteria. The department will consider one or more of the following criteria in selecting projects for funding under this section:
(1) - (4) (No change.)
(5) feasibility of the project; [and]
(6) traffic volume; and [.]
(7) the potential of the project to qualify as a safety project.
This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of the Secretary of State on April 25, 2008.
TRD-200802173
Bob Jackson
General Counsel
Texas Department of Transportation
Earliest possible date of adoption: June 8, 2008
For further information, please call: (512) 463-8683