By: Carona, et al. S.B. No. 263
Substitute the following for S.B. No. 263:
By: Pickett C.S.S.B. No. 263
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. 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 the design of a highway,
the acquisition of a highway, the construction of a highway, the
major maintenance of a highway, and the acquisition of highway
rights-of-way.
(b) The commission by order or resolution may issue general
obligation bonds for the purposes stated in this section. The
aggregate principal amount of the bonds 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 include any provision the
commission determines appropriate and in the interest of this
state.
(e) The commission has any power necessary or appropriate to
carry out this section or to implement Section 49-p, Article III,
Texas Constitution, including each power granted to other
governmental units or agencies authorized to issue bonds or to a
nonprofit corporation by Chapter 1201, 1207, or 1371, Government
Code.
(f) The bonds, the record of the proceedings that authorize
the bonds, and any related credit agreement shall be submitted to
the attorney general for approval as to their legality. If the
attorney general finds that the bonds will be issued in accordance
with this section and other applicable law, the attorney general
shall approve the bonds. After payment by the purchasers of the
bonds in accordance with the terms of sale and the execution and
delivery of any related credit agreement, the bonds and the related
credit agreement 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 a highway
improvement project;
(2) to pay:
(A) the costs of administering a project
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;
(3) to provide money for deposit to the credit of the
Texas Transportation Revolving Fund or a similar revolving fund
authorized by law, to be used to make loans for highway improvement
projects as provided by law; and
(4) to provide money to be used to finance projects
authorized by Section 222.104.
(h) Proceeds from the sale of the bonds may not be spent or
used for a purpose authorized by this section unless the
legislature has appropriated the proceeds.
(i) Ten percent of the proceeds from the sale of the bonds
must be used for the sole purpose of financing projects authorized
by Section 222.104. Bond proceeds dedicated by this subsection
shall be deposited to the credit of a separate account in the
general revenue fund created for the deposit of money to be used to
finance projects authorized by Section 222.104.
(j) The comptroller shall pay the principal of the bonds as
the bonds mature and the interest as it becomes payable and shall
pay any cost related to the bonds that becomes due, including a
payment under a credit agreement.
(k) The commission shall make a good faith effort to recruit
individuals who are in the private sector and described by Section
201.403 to underwrite the issuance of bonds under this section.
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.