2009S0513-1 02/27/09
By: Carona S.B. No. 1350
A BILL TO BE ENTITLED
AN ACT
relating to the creation, administration, financing, and use of a
Texas Transportation Revolving Fund; granting the authority to
issue bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 222, Transportation Code, is amended by
adding Subchapter F to read as follows:
SUBCHAPTER F. TEXAS TRANSPORTATION REVOLVING FUND
Sec. 222.131. DEFINITIONS. In this subchapter:
(1) "Bonds" means bonds, notes, and other public
securities.
(2) "Credit agreement" has the meaning assigned by
Section 1371.001, Government Code.
(3) "Fund" means the Texas Transportation Revolving
Fund.
(4) "Fund revenue bonds" means bonds issued under
Section 222.135.
(5) "Highway improvement project" includes highway
operations and maintenance and the acquisition of a highway or
rights-of-way.
(6) "Transit provider" has the meaning assigned by
Section 370.003.
(7) "Transportation project" means:
(A) a tolled or nontolled highway improvement
project;
(B) the acquisition, construction, relocation,
maintenance, or operation of a freight or passenger rail facility
or system;
(C) a mass transit or public transportation
project acquired, constructed, maintained, or operated by a transit
provider;
(D) the acquisition, construction, maintenance,
or operation of a port facility, including a wharf or dock, cargo
handling facility, or other facility useful in or beneficial to the
operation of a port facility;
(E) the establishment, construction, or repair
of an aviation facility under Chapter 21; and
(F) any structure that is necessary for the
effective construction, maintenance, or operation of a project or
facility described in this subdivision, including an intermodal
transfer or staging area, weigh station, inspection station, rest
area, train or bus station, warehouse, freight interchange or
loading facility, switching yard, and maintenance yard.
Sec. 222.132. CREATION OF FUND. (a) The Texas
Transportation Revolving Fund is created within the state treasury.
(b) Notwithstanding any other law, the fund is exempt from
the application of Section 403.095, Government Code.
Sec. 222.133. ADMINISTRATION OF FUND. (a) The comptroller
shall hold the fund, and the commission, through the department,
shall manage, invest, use, administer, and provide financial
assistance from the fund as provided by this subchapter.
(b) The commission may create within the fund one or more
accounts or subaccounts as determined appropriate and necessary by
the commission.
(c) The commission shall prepare and file annually with the
governor and the presiding officer of each house of the legislature
a report providing information on the operation of the fund,
including:
(1) the amounts and sources of money deposited in the
fund during the year;
(2) investments and returns on investments of money in
the fund;
(3) loans made from the fund;
(4) other financial assistance provided from the fund;
and
(5) the status of any defaults on repayment of loans or
other financial assistance provided from the fund.
Sec. 222.134. SOURCES OF MONEY DEPOSITED IN FUND. The
commission may deposit in the fund money derived from any source
available to the commission, including:
(1) the proceeds of bonds issued under Section
222.003;
(2) the proceeds of bonds authorized by Section 49-p,
Article III, Texas Constitution, if the law providing for the
issuance of the bonds does not prohibit the deposit of the proceeds
in the fund;
(3) repayments of principal and interest on loans made
under Section 222.137;
(4) the proceeds from the sale of loans under Section
222.140;
(5) the proceeds from the sale of fund revenue bonds;
(6) money provided by the commission from the state
highway fund;
(7) money provided by the commission from the Texas
Mobility Fund that is in excess of the money required to be on
deposit in the Texas Mobility Fund by the proceedings authorizing
Texas Mobility Fund bonds and credit agreements;
(8) gifts, grants, and direct appropriations; and
(9) money from any other source designated by the
commission.
Sec. 222.135. FUND REVENUE BONDS. (a) The commission may
issue, sell, and deliver fund revenue bonds for the purpose of
providing money for the fund.
(b) Fund revenue bonds are special obligations of the
commission payable from the repayment of loans from the fund and
other money on deposit in the fund as the commission may designate.
(c) Fund revenue bonds do not constitute a debt of the state
or a pledge of the faith and credit of the state.
(d) The commission by order or resolution may issue fund
revenue bonds in the name and on behalf of the state and the
department and may enter into credit agreements related to the
bonds. The bonds may be issued in multiple series and issues from
time to time and may be issued on the terms and with the provisions
the commission determines appropriate and in the interests of the
state.
(e) The commission has all powers necessary or appropriate
to carry out this section, including the powers granted to other
bond-issuing governmental agencies and units and to nonprofit
corporations by Chapters 1201, 1207, and 1371, Government Code.
(f) Before the issuance of fund revenue bonds, the
commission shall submit the bonds and the record of proceedings to
the attorney general. If the bonds are approved by the attorney
general and registered by the comptroller as provided by Chapter
1201, Government Code, the bonds and any contract the proceeds of
which are pledged to the payment of the bonds are valid and
incontestable in a court or other forum and are binding obligations
enforceable for all purposes according to their terms.
(g) Before delivery of a credit agreement relating to the
bonds, the commission shall submit the record of proceedings
authorizing the credit agreement to the attorney general. If the
proceedings are approved by the attorney general and registered by
the comptroller as provided by Chapter 1371, Government Code, the
credit agreement is incontestable in a court or other forum and is
valid, binding, and enforceable according to its terms.
(h) The proceeds from the sale of fund revenue bonds may be
used to finance other funds or accounts relating to the bonds,
including a debt service reserve fund, and to pay the costs of
issuance. All remaining proceeds received from the sale of the
bonds shall be deposited in the fund and invested and used as
provided by this subchapter.
Sec. 222.136. INVESTMENT OF MONEY IN THE FUND. (a) Money
in the fund may be invested as provided by Chapter 2256, Government
Code, except that the proceeds of bonds deposited in the fund under
Section 222.134 shall be subject to any limitations contained in
the documents authorizing the issuance of the bonds.
(b) Income received from the investment of money in the fund
shall be deposited in the fund, subject to requirements that may be
imposed by the proceedings authorizing bonds issued to provide
money for deposit in the fund that are necessary to protect the
tax-exempt status of interest payable on the bonds in accordance
with applicable law of the United States concerning federal income
taxation of interest on the bonds.
Sec. 222.137. USES OF MONEY IN THE FUND. (a) Except as
otherwise provided by this section, the commission may use money
held in the fund to provide financial assistance to a public or
private entity for the costs of a transportation project by:
(1) making loans;
(2) providing credit enhancement;
(3) serving as a reserve fund established in
connection with debt financing by the public or private entity;
(4) providing capitalized interest for debt financing
by the public or private entity; or
(5) providing a guarantee of the payment of the costs
of operations and maintenance.
(b) The proceeds of bonds authorized by Section 49-p,
Article III, Texas Constitution or issued under Section 222.003 may
only be used to provide financial assistance for highway
improvement projects.
(c) Money from the state highway fund may only be used for
the purposes for which revenues are dedicated under Section 7-a,
Article VIII, Texas Constitution.
(d) Money from the Texas Mobility Fund may only be used to
provide financial assistance for state highway improvement
projects, publicly owned toll roads, and public transportation
projects.
(e) A private entity is only eligible to receive financial
assistance for a transportation project approved by the commission
that:
(1) provides a demonstrated public benefit, as
determined by the commission; or
(2) is constructed, maintained, or operated in
cooperation and under an agreement with a state agency or another
public entity.
(f) Money in the fund may be used to pay debt service on fund
revenue bonds.
(g) The commission may require the payment of fees and other
amounts by a public or private entity for all forms of financial
assistance provided under this section.
Sec. 222.138. BORROWING FROM THE FUND BY PUBLIC ENTITY.
(a) A public entity, including a municipality, county, district,
authority, agency, department, board, or commission, that is
authorized by law to construct, maintain, or finance a
transportation project may borrow money from the fund, including by
direct loan or other financial assistance from the fund, and may
enter into any agreement relating to receiving financial assistance
from the fund.
(b) Money received by a public entity under this subchapter
must be segregated from other funds under the control of the public
entity and may only be used for purposes authorized by this
subchapter.
(c) To provide for the repayment of a loan or other
financial assistance, a public entity may:
(1) pledge revenues or income from any available
source;
(2) pledge, levy, and collect any taxes, subject to
any constitutional limitation; or
(3) pledge any combination of revenues, income, and
taxes.
(d) This section is wholly sufficient authority for a public
entity to borrow or otherwise obtain financial assistance from the
fund as authorized by this subchapter and to pledge revenues,
income, or taxes, or any combination of revenues, income, and taxes
to the repayment of a loan or other financial assistance.
Sec. 222.139. REPAYMENT TERMS; DEPOSIT OF REPAYMENTS.
(a) For financial assistance that must be repaid, the commission
shall determine the terms and conditions of the repayment,
including the interest rates to be charged.
(b) The commission may require the entity receiving
financial assistance that must be repaid to make charges, levy and
collect taxes, pledge revenues, or otherwise take such action as
may be necessary to provide for money in an amount sufficient for
repayment according to the terms agreed on at the time the financial
assistance is provided.
(c) For a tolled highway improvement project, the
commission may require that revenues from the project be shared
between the entity and the commission, and the entity and the
department may enter into an agreement specifying the terms and
conditions of the revenue sharing.
(d) The department shall deposit in the fund all amounts
received from repayment of the financial assistance.
Sec. 222.140. SALE OF LOANS. (a) As used in this section,
"loan" includes any financial assistance that must be repaid or any
portion of such assistance.
(b) The commission may sell any loans made from money in the
fund and shall deposit the proceeds of the sale in the fund.
(c) For any loans to be sold under this section, the
commission may submit to the attorney general for review and
approval the related financial assistance agreement, which shall,
for the purposes of Chapter 1202, Government Code, be considered to
be a public security, along with the record of proceedings of the
borrowing entity relating to the agreement. If the attorney
general approves the agreement, it shall be incontestable in a
court or other forum and is valid, binding, and enforceable
according to its terms as provided by Chapter 1202, Government
Code.
(d) The commission must sell the loans using a competitive
bidding process and at the price and under the terms and conditions
that it determines to be reasonable.
(e) As part of the sales agreement with the purchaser of a
loan, the commission may agree to perform the functions required to
enforce the conditions and requirements stated in the loans,
including the payment of debt service by the borrowing entity.
(f) The commission may exercise any powers necessary to
carry out the authority granted by this section, including the
authority to contract with any person to accomplish the purposes of
this section.
(g) The commission shall not be liable for the repayment of,
and may not repay, any loan sold under this section.
Sec. 222.141. WAIVER OF SOVEREIGN IMMUNITY BY PUBLIC
ENTITIES. A public entity receiving financial assistance under
this subchapter waives sovereign immunity to suit brought by the
department for the purpose of adjudicating a claim for breach of the
terms of the financial assistance agreement.
Sec. 222.142. IMPLEMENTATION BY RULE. The commission shall
adopt rules to implement this subchapter, including rules:
(1) establishing eligibility and prioritization
criteria for entities applying for financial assistance from the
fund and for transportation projects that may receive financial
assistance from the fund;
(2) specifying the method for setting the terms and
conditions for providing financial assistance from the fund and for
the repayment of financial assistance from the fund; and
(3) establishing procedures for the sale of loans
originated from amounts on deposit in the fund.
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.