81R245 DWS-F
By: Pickett H.B. No. 2116
A BILL TO BE ENTITLED
AN ACT
relating to the issuance by the Texas Transportation Commission of
general obligation bonds for highway improvement projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 222, Transportation Code,
is amended by adding Section 222.004 to read as follows:
Sec. 222.004. ISSUANCE OF GENERAL OBLIGATION BONDS FOR
HIGHWAY IMPROVEMENT PROJECTS. (a) The commission may issue
general obligation bonds to fund state highway improvement
projects.
(b) The aggregate principal amount of the bonds that are
issued may not exceed the amount specified by Section 49-p(a),
Article III, Texas Constitution.
(c) The proceeds of the bonds may not be used for any purpose
other than the payment of any costs related to the bonds and the
purposes for which revenues are dedicated under Section 7-a,
Article VIII, Texas Constitution.
(d) The commission may enter into credit agreements, as
defined by Chapter 1371, Government Code, relating to the bonds.
The agreements may be secured by and payable from the same sources
as the bonds.
(e) All laws affecting the issuance of bonds and other
public securities by governmental entities, including Chapters
1201, 1202, 1204, 1207, 1231, and 1371, Government Code, apply to
the issuing of bonds and the entering into of credit agreements
under this section.
(f) The proceeds of the bonds may be used to:
(1) finance other funds relating to the bonds,
including debt service reserve and contingency; and
(2) pay the expense of the issuance of the bonds.
(g) The bonds may be sold in the manner and subject to the
terms and provisions provided by the order authorizing their
issuance. The bonds must mature not later than 30 years after their
dates of issuance, subject to any refunding or renewal.
(h) The comptroller shall pay the principal of the bonds as
they mature and the interest as it becomes payable and shall pay any
costs related to the bonds that become due, including payments
under credit agreements.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.