COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 2158-01
Bill No.: SB 612
Subject: Transportation; Department of Transportation; Roads & Highways
Type: Original
Date: March 19, 2001
FISCAL SUMMARY
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All State Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| None | $0 | $0 | $0 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2002 | FY 2003 | FY 2004 |
| Local Government | $0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
ASSUMPTION
Officials with the Office of Administration-Division of Budget & Planning and Division of Accounting and the Office of the State Treasurer assume no fiscal impact as a result of this proposal.
The Department of Transportation (MoDOT) assumes this legislation allows the State Highways and Transportation Commission to conduct feasibility studies for toll roads as well as to design, acquire, construct, maintain, reconstruct, and operate toll facilities. Additional powers are granted to issue revenue bonds, refund any outstanding bonds, and to fix and collect revenue from toll facilities.
MoDOT notes that under current law, the Missouri Highways and Transportation Commission does not have the authority to expend state road funds for the construction of toll facilities, such as toll bridges or toll highways. This legislation would authorize the Commission to construct and operate such facilities. The facilities would be funded from toll facility revenue bonds issued by the Commission. The bonds would not be an obligation of the state. When the bonds issued for a particular facility have been paid, the toll would be discontinued and the facility would become part of the free state highway system.
According to MoDOT, this legislation would create a positive impact, in that it would provide the Commission with an alternative method to fund and build needed transportation facilities in the state. This will not affect MoDOT revenues until the toll roads are constructed.
Oversight notes that the proposal specifically states that bonds issued would not be considered obligations of the state. Proceeds from the sale of such bonds as well as tolls and other revenues derived from any toll facilities constructed are to be credited to toll facility funds and used for payment of principal and interest on the bonds, as well as for the payment of costs associated with the establishment of toll facilities. The proposal does allow the Commission to transfer funds from the state road fund in the event revenues from a toll facility are inadequate, if necessary to meet current bond principal and interest obligations, or to initially pay for feasibility studies for and designs of toll facility projects. Any transfers from the state road fund are to be repaid with interest.
| FISCAL IMPACT - State Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
| $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2002
(10 Mo.) |
FY 2003 | FY 2004 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This act allows the Commission to construct toll roads. This act is similar to HB 204 and HJR 7 (2001). This act is contingent upon a constitutional amendment being passed.
This act enables the Highways and Transportation Commission to fund, construct, and operate toll roads, toll bridges, and other facilities connected with toll roads and bridges. It is contingent upon the approval of a constitutional amendment authorizing the commission to fund, construct, and operate toll facilities.
The Commission is authorized to issue revenue bonds and refunding bonds for toll facilities. No more than $500 million in bonds may be outstanding at any one time. The act exempts the interest on the bonds from taxation by the state.
Construction, operation, and retirement of debt in connection with toll facilities will be handled in three funds. The State Toll Facility Construction Fund will receive the proceeds from the sale of state road revenue bonds and moneys from other sources to be used to pay for the construction of toll facilities. The State Toll Facility Revenue Fund will receive state revenue from toll facilities. The State Toll Facility Bond and Interest Sinking Fund will receive funds from the State Toll Facility Revenue Fund which are in excess of what is needed to operate toll facilities.
These funds will be used to pay principal and interest on the bonds. If there are insufficient funds to do that, the commission is given authority to transfer moneys from the State Road Fund sufficient to make such payments. The commission will establish segregated accounts within the various funds to keep the financing of projects separated from each other. The commission has
authority to make transfers between funds and accounts. When the bonds issued for a particular toll facility are paid off, the facility will continue in the state transportation system as a free facility.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Office of the State Treasurer
Office of Administration
Division of Budget & Planning
Division of Accounting
Department of Transportation
Jeanne Jarrett, CPA
Director
March 19, 2001