By: Carona, Zaffirini S.B. No. 263
(In the Senate - Filed November 12, 2008; February 11, 2009,
read first time and referred to Committee on Finance;
April 17, 2009, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 10, Nays 0; April 17, 2009,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 263 By: Lucio
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) In this section:
(1) "Bonds" means bonds, notes, and other public
securities.
(2) "Credit agreement" has the meaning assigned by
Section 1371.001, Government Code.
(3) "Improvement" includes acquisition of the
highway, construction, reconstruction, and major maintenance,
including any necessary design, and the acquisition of
rights-of-way.
(b) The commission by order or resolution may issue general
obligation bonds for the purposes provided in this section. 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 commission may enter into credit agreements
relating to the bonds. A credit agreement entered into under this
section may be secured by and payable from the same sources as the
bonds.
(d) The bonds shall be executed in the form, on the terms,
and in the denominations, bear interest, and be issued in
installments as prescribed by the commission, and must mature not
later than 30 years after their dates of issuance, subject to any
refundings or renewals. The bonds may be issued in multiple series
and issues from time to time and may have the provisions the
commission determines appropriate and in the interest of the state.
(e) The commission has all powers necessary or appropriate
to carry out this section and to implement Section 49-p, Article
III, Texas Constitution, 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) The bonds and the record of proceedings authorizing the
bonds and any related credit agreements shall be submitted to the
attorney general for approval as to their legality. If the attorney
general finds that they will be issued in accordance with this
section and other applicable law, the attorney general shall
approve them, and, after payment by the purchasers of the
obligations in accordance with the terms of sale and after
execution and delivery of the related credit agreements, the
obligations and related credit agreements are incontestable for any
cause.
(g) Bonds may be issued for one or more of the following
purposes:
(1) to pay all or part of the costs of highway
improvement projects;
(2) to pay:
(A) the costs of administering projects
authorized under this section;
(B) the cost or expense of the issuance of the
bonds; or
(C) all or part of a payment owed or to be owed
under a credit agreement; and
(3) to provide money for deposit in the Texas
Transportation Revolving Fund or similar revolving fund authorized
by law, to be used for the purpose of making loans for highway
improvement projects as provided by law.
(h) The proceeds from the issuance and sale of the bonds may
not be expended or used for the purposes authorized under this
section unless those proceeds have been appropriated by the
legislature.
(i) The comptroller shall pay the principal of the bonds as
they mature and the interest as it becomes payable and shall pay any
cost related to the bonds that becomes 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.
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