Texas 2009 - 81st Regular

Texas Senate Bill SCR88 Compare Versions

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1	1	By: Williams S.C.R. No. 88
2	2
3	3
4	4	SENATE CONCURRENT RESOLUTION
5	5	WHEREAS, Senate Bill No. 1495 has been adopted by the senate
6	6	and the house of representatives and is being prepared for
7	7	enrollment; and
8	8	WHEREAS, The bill contains technical errors that should be
9	9	corrected; now, therefore, be it
10	10	RESOLVED, by the 81st Legislature of the State of Texas, That
11	11	the enrolling clerk of the senate be instructed to correct S.B. No.
12	12	1495 by adding the following appropriately numbered SECTIONS to the
13	13	bill and renumbering existing SECTIONS accordingly:
14	14	SECTION ___. Subchapter A, Chapter 222, Transportation
15	15	Code, is amended by adding Section 222.004 to read as follows:
16	16	Sec. 222.004. GENERAL OBLIGATION BONDS FOR HIGHWAY
17	17	IMPROVEMENT PROJECTS. (a) In this section:
18	18	(1) "Bonds" means bonds, notes, and other public
19	19	securities.
20	20	(2) "Credit agreement" has the meaning assigned by
21	21	Section 1371.001, Government Code.
22	22	(3) "Improvement" includes the design of a highway,
23	23	the acquisition of a highway, the construction of a highway, the
24	24	major maintenance of a highway, and the acquisition of highway
25	25	rights-of-way.
26	26	(b) The commission by order or resolution may issue general
27	27	obligation bonds for the purposes stated in this section. The
28	28	aggregate principal amount of the bonds may not exceed the amount
29	29	specified by Section 49-p(a), Article III, Texas Constitution.
30	30	(c) The commission may enter into credit agreements
31	31	relating to the bonds. A credit agreement entered into under this
32	32	section may be secured by and payable from the same sources as the
33	33	bonds.
34	34	(d) The bonds shall be executed in the form, on the terms,
35	35	and in the denominations, bear interest, and be issued in
36	36	installments as prescribed by the commission, and must mature not
37	37	later than 30 years after their dates of issuance, subject to any
38	38	refundings or renewals. The bonds may be issued in multiple series
39	39	and issues from time to time and may include any provision the
40	40	commission determines appropriate and in the interest of this
41	41	state.
42	42	(e) The commission has any power necessary or appropriate to
43	43	carry out this section or to implement Section 49-p, Article III,
44	44	Texas Constitution, including each power granted to other
45	45	governmental units or agencies authorized to issue bonds or to a
46	46	nonprofit corporation by Chapter 1201, 1207, or 1371, Government
47	47	Code.
48	48	(f) The bonds, the record of the proceedings that authorize
49	49	the bonds, and any related credit agreement shall be submitted to
50	50	the attorney general for approval as to their legality. If the
51	51	attorney general finds that the bonds will be issued in accordance
52	52	with this section and other applicable law, the attorney general
53	53	shall approve the bonds. After payment by the purchasers of the
54	54	bonds in accordance with the terms of sale and the execution and
55	55	delivery of any related credit agreement, the bonds and the related
56	56	credit agreement are incontestable for any cause.
57	57	(g) Bonds may be issued for one or more of the following
58	58	purposes:
59	59	(1) to pay all or part of the costs of a highway
60	60	improvement project;
61	61	(2) to pay:
62	62	(A) the costs of administering a project
63	63	authorized under this section;
64	64	(B) the cost or expense of the issuance of the
65	65	bonds; or
66	66	(C) all or part of a payment owed or to be owed
67	67	under a credit agreement;
68	68	(3) to provide money for deposit to the credit of the
69	69	Texas Transportation Revolving Fund or a similar revolving fund
70	70	authorized by law, to be used to make loans for highway improvement
71	71	projects as provided by law; and
72	72	(4) to provide money to be used to finance projects
73	73	authorized by Section 222.104.
74	74	(h) Proceeds from the sale of the bonds may not be spent or
75	75	used for a purpose authorized by this section unless the
76	76	legislature has appropriated the proceeds.
77	77	(i) Ten percent of the proceeds from the sale of the bonds
78	78	must be used for the sole purpose of financing projects authorized
79	79	by Section 222.104. Bond proceeds dedicated by this subsection
80	80	shall be deposited to the credit of a separate account in the
81	81	general revenue fund created for the deposit of money to be used to
82	82	finance projects authorized by Section 222.104.
83	83	(j) The comptroller shall pay the principal of the bonds as
84	84	the bonds mature and the interest as it becomes payable and shall
85	85	pay any cost related to the bonds that becomes due, including a
86	86	payment under a credit agreement.
87	87	(k) The commission shall make a good faith effort to recruit
88	88	individuals who are in the private sector and described by Section
89	89	201.403 to underwrite the issuance of bonds under this section.
90	90	SECTION _____. Chapter 222, Transportation Code, is amended
91	91	by adding Subchapter F to read as follows:
92	92	SUBCHAPTER F. TEXAS TRANSPORTATION REVOLVING FUND
93	93	Sec. 222.131. DEFINITIONS. In this subchapter:
94	94	(1) "Bonds" means bonds, notes, and other public
95	95	securities.
96	96	(2) "Credit agreement" has the meaning assigned by
97	97	Section 1371.001, Government Code.
98	98	(3) "Fund" means the Texas Transportation Revolving
99	99	Fund.
100	100	(4) "Fund revenue bonds" means bonds issued under
101	101	Section 222.135.
102	102	(5) "Highway improvement project" includes
103	103	acquisition of the highway, construction, reconstruction, and
104	104	major maintenance, including any necessary design, and the
105	105	acquisition of rights-of-way.
106	106	(6) "Transit provider" has the meaning assigned by
107	107	Section 370.003.
108	108	(7) "Transportation project" means a tolled or
109	109	nontolled highway improvement project.
110	110	Sec. 222.132. CREATION OF FUND. The Texas Transportation
111	111	Revolving Fund is created as a fund held in the Texas Treasury
112	112	Safekeeping Trust Company.
113	113	Sec. 222.133. ADMINISTRATION OF FUND. (a) The commission,
114	114	through the department, shall manage, invest, use, administer, and
115	115	provide financial assistance from the fund as provided by this
116	116	subchapter.
117	117	(b) The commission may create within the fund one or more
118	118	accounts or subaccounts as determined appropriate and necessary by
119	119	the commission.
120	120	(c) The commission shall prepare and file annually with the
121	121	governor, the lieutenant governor, and the Legislative Budget Board
122	122	a report providing information on the operation of the fund,
123	123	including:
124	124	(1) the amounts and sources of money deposited in the
125	125	fund during the year;
126	126	(2) investments and returns on investments of money in
127	127	the fund;
128	128	(3) loans made from the fund;
129	129	(4) other financial assistance provided from the fund;
130	130	(5) the status of any defaults on repayment of loans or
131	131	other financial assistance provided from the fund; and
132	132	(6) the details of any transportation project for
133	133	which financial assistance is received from the fund, including the
134	134	identity of any highway directly affected by the project, and the
135	135	degree to which the project is designed to reduce congestion,
136	136	improve traffic safety, and enhance connectivity.
137	137	Sec. 222.134. SOURCES OF MONEY DEPOSITED IN FUND. The
138	138	commission may deposit in the fund money derived from any source
139	139	available to the commission, including:
140	140	(1) if appropriated by the legislature for that
141	141	purpose:
142	142	(A) the proceeds of bonds issued under Section
143	143	222.003;
144	144	(B) the proceeds of bonds authorized by Section
145	145	49-p, Article III, Texas Constitution, if the law providing for the
146	146	issuance of the bonds does not prohibit the deposit of the proceeds
147	147	in the fund;
148	148	(C) money provided by the commission from the
149	149	state highway fund;
150	150	(D) money provided by the commission from the
151	151	Texas Mobility Fund that is in excess of the money required to be on
152	152	deposit in the Texas Mobility Fund by the proceedings authorizing
153	153	Texas Mobility Fund bonds and credit agreements; and
154	154	(E) other direct appropriations;
155	155	(2) repayments of principal and interest on loans made
156	156	under Section 222.137;
157	157	(3) the proceeds from the sale of loans under Section
158	158	222.140;
159	159	(4) the proceeds from the sale of fund revenue bonds;
160	160	and
161	161	(5) gifts and grants.
162	162	Sec. 222.135. FUND REVENUE BONDS. (a) The commission may
163	163	issue, sell, and deliver fund revenue bonds for the purpose of
164	164	providing money for the fund.
165	165	(b) Fund revenue bonds are special obligations of the
166	166	commission payable from the repayment of loans from the fund and
167	167	other money on deposit in the fund as the commission may designate.
168	168	(c) Fund revenue bonds do not constitute a debt of the state
169	169	or a pledge of the faith and credit of the state.
170	170	(d) The commission by order or resolution may issue fund
171	171	revenue bonds in the name and on behalf of the state and the
172	172	department and may enter into credit agreements related to the
173	173	bonds. The bonds may be issued in multiple series and issues from
174	174	time to time and may be issued on the terms and with the provisions
175	175	the commission determines appropriate and in the interests of the
176	176	state.
177	177	(e) The commission has all powers necessary or appropriate
178	178	to carry out this section, including the powers granted to other
179	179	bond-issuing governmental agencies and units and to nonprofit
180	180	corporations by Chapters 1201, 1207, and 1371, Government Code.
181	181	(f) Before the issuance of fund revenue bonds or credit
182	182	agreements, the commission shall submit the record of proceedings
183	183	of the commission authorizing the issuance, execution, and delivery
184	184	of the bonds or credit agreement and any contract providing revenue
185	185	or security to pay the bonds or credit agreement to the attorney
186	186	general for review. If the attorney general finds that the
187	187	proceedings authorizing a bond or credit agreement and any bonds
188	188	authorized in the proceedings conform to the requirements of the
189	189	Texas Constitution and this subchapter, the attorney general shall
190	190	approve the proceedings and the bonds and deliver to the
191	191	comptroller for registration a copy of the attorney general's legal
192	192	opinion stating that approval and the record of proceedings. After
193	193	approval, the bonds or credit agreement may be executed and
194	194	delivered, exchanged, or refinanced from time to time in accordance
195	195	with those authorizing proceedings.
196	196	(g) If the proceedings and any bonds authorized in the
197	197	proceedings are approved by the attorney general and registered by
198	198	the comptroller as provided above, the bonds or credit agreement,
199	199	as applicable, or a contract providing revenue or security included
200	200	in or executed and delivered according to the authorizing
201	201	proceedings are incontestable in a court or other forum and are
202	202	valid, binding, and enforceable according to their terms.
203	203	(h) The proceeds from the sale of fund revenue bonds may be
204	204	used to finance other funds or accounts relating to the bonds or
205	205	credit agreement, including a debt service reserve fund, and to pay
206	206	the costs of issuance. All remaining proceeds received from the
207	207	sale of the bonds shall be deposited in the fund and invested and
208	208	used as provided by this subchapter.
209	209	Sec. 222.136. INVESTMENT OF MONEY IN THE FUND. (a) Money
210	210	in the fund may be invested as provided by Chapter 2256, Government
211	211	Code, except that the proceeds of bonds deposited in the fund under
212	212	Section 222.134 shall be subject to any limitations contained in
213	213	the documents authorizing the issuance of the bonds.
214	214	(b) Income received from the investment of money in the fund
215	215	shall be deposited in the fund, subject to requirements that may be
216	216	imposed by the proceedings authorizing bonds issued to provide
217	217	money for deposit in the fund that are necessary to protect the
218	218	tax-exempt status of interest payable on the bonds in accordance
219	219	with applicable law of the United States concerning federal income
220	220	taxation of interest on the bonds. Investment income shall be
221	221	deposited in an account or subaccount in the fund as determined by
222	222	the department.
223	223	Sec. 222.137. USES OF MONEY IN THE FUND. (a) Except as
224	224	otherwise provided by this section, the commission may use money
225	225	held in the fund to provide financial assistance to a public entity,
226	226	including the department, for the costs of a transportation project
227	227	by:
228	228	(1) making loans, including through the purchase of
229	229	obligations of the public entity;
230	230	(2) providing liquidity or credit enhancement,
231	231	including through the agreement to loan to or purchase bonds,
232	232	notes, or other obligations from a public entity;
233	233	(3) serving as a reserve fund established in
234	234	connection with debt financing by the public entity;
235	235	(4) providing capitalized interest for debt financing
236	236	by the public entity; or
237	237	(5) providing a guarantee of the payment of the costs
238	238	of operations and maintenance of a transportation project.
239	239	(b) The proceeds of bonds authorized by Section 49-p,
240	240	Article III, Texas Constitution, or issued under Section 222.003
241	241	may only be used to provide financial assistance for highway
242	242	improvement projects, subject to any limitations provided by law.
243	243	(c) Money from the state highway fund may only be used for
244	244	the purposes for which revenues are dedicated under Section 7-a,
245	245	Article VIII, Texas Constitution.
246	246	(d) Money from the Texas Mobility Fund may only be used to
247	247	provide financial assistance for state highway improvement
248	248	projects, publicly owned toll roads, and public transportation
249	249	projects, whether on or off of the state highway system, subject to
250	250	any limitations provided by law.
251	251	(e) Money in the fund may be used to pay debt service on fund
252	252	revenue bonds.
253	253	(f) The commission may require the payment of reasonable
254	254	fees and other amounts by a public entity for all forms of financial
255	255	assistance provided under this section.
256	256	(g) The department shall monitor the use of financial
257	257	assistance provided to a public entity to ensure the financial
258	258	assistance is used for purposes authorized by law and may audit the
259	259	books and records of a public entity for this purpose.
260	260	Sec. 222.138. BORROWING FROM THE FUND BY PUBLIC ENTITY.
261	261	(a) A public entity, including a municipality, county, district,
262	262	authority, agency, department, board, or commission, that is
263	263	authorized by law to construct, maintain, or finance a
264	264	transportation project may borrow money from the fund, including by
265	265	direct loan or other financial assistance from the fund, and may
266	266	enter into any agreement relating to receiving financial assistance
267	267	from the fund.
268	268	(b) Money received by a public entity under this subchapter
269	269	must be segregated from other funds under the control of the public
270	270	entity and may only be used for purposes authorized by this
271	271	subchapter.
272	272	(c) To provide for the repayment of a loan or other
273	273	financial assistance, a public entity may:
274	274	(1) pledge revenues or income from any available
275	275	source;
276	276	(2) pledge, levy, and collect any taxes, subject to
277	277	any constitutional limitation; or
278	278	(3) pledge any combination of revenues, income, and
279	279	taxes.
280	280	(d) This section is wholly sufficient authority for a public
281	281	entity to borrow or otherwise obtain financial assistance from the
282	282	fund as authorized by this subchapter and to pledge revenues,
283	283	income, or taxes, or any combination of revenues, income, and
284	284	taxes, to the repayment of a loan or other financial assistance.
285	285	Sec. 222.139. REPAYMENT TERMS; DEPOSIT OF REPAYMENTS.
286	286	(a) For financial assistance that must be repaid, the commission
287	287	shall determine the terms and conditions of the repayment,
288	288	including the interest rates to be charged.
289	289	(b) The commission may require the entity receiving
290	290	financial assistance that must be repaid to make charges, levy and
291	291	collect taxes, pledge revenues, or otherwise take such action as
292	292	may be necessary to provide for money in an amount sufficient for
293	293	repayment according to the terms agreed on at the time the financial
294	294	assistance is provided.
295	295	(c) For a tolled highway improvement project, the
296	296	commission, in lieu of requiring the repayment of financial
297	297	assistance and any interest thereon, may require that revenues from
298	298	the project be shared between the entity and the department, and the
299	299	entity and the department may enter into an agreement specifying
300	300	the terms and conditions of the revenue sharing.
301	301	(d) The department shall deposit in the fund all amounts
302	302	received from repayment of the financial assistance or as a share of
303	303	revenues from a tolled highway improvement project.
304	304	Sec. 222.140. SALE OF LOANS. (a) As used in this section,
305	305	"loan" includes any financial assistance that must be repaid or any
306	306	portion of such assistance.
307	307	(b) The commission may sell any loans made from money in the
308	308	fund and shall deposit the proceeds of the sale in the fund.
309	309	(c) For any loans to be sold under this section, the
310	310	commission may submit to the attorney general for review and
311	311	approval the related financial assistance agreement, which shall,
312	312	for the purposes of Chapter 1202, Government Code, be considered to
313	313	be a public security, along with the record of proceedings of the
314	314	borrowing entity relating to the agreement. If the attorney
315	315	general approves the agreement, it shall be incontestable in a
316	316	court or other forum and is valid, binding, and enforceable
317	317	according to its terms as provided by Chapter 1202, Government
318	318	Code.
319	319	(d) The commission must sell the loans using a competitive
320	320	bidding process and at the price and under the terms and conditions
321	321	that it determines to be reasonable.
322	322	(e) As part of the sales agreement with the purchaser of a
323	323	loan, the commission may agree to perform the functions required to
324	324	enforce the conditions and requirements stated in the loans,
325	325	including the payment of debt service by the borrowing entity.
326	326	(f) The commission may exercise any powers necessary to
327	327	carry out the authority granted by this section, including the
328	328	authority to contract with any person to accomplish the purposes of
329	329	this section.
330	330	(g) The commission shall not be liable for the repayment of,
331	331	and may not repay, any loan sold under this section.
332	332	Sec. 222.141. WAIVER OF SOVEREIGN IMMUNITY. A public
333	333	entity receiving financial assistance under this subchapter and the
334	334	department may agree to waive sovereign immunity to suit for the
335	335	purpose of adjudicating a claim to enforce any of their obligations
336	336	brought by a party for breach of the terms of the financial
337	337	assistance agreement.
338	338	Sec. 222.142. IMPLEMENTATION BY RULE. (a) The commission
339	339	shall adopt rules to implement this subchapter, including rules:
340	340	(1) establishing eligibility and prioritization
341	341	criteria for entities applying for financial assistance from the
342	342	fund and for transportation projects that may receive financial
343	343	assistance from the fund;
344	344	(2) specifying the method for setting the terms and
345	345	conditions for providing financial assistance from the fund and for
346	346	the repayment of financial assistance from the fund; and
347	347	(3) establishing procedures for the sale of loans
348	348	originated from amounts on deposit in the fund.
349	349	(b) The eligibility and prioritization criteria described
350	350	in Subsection (a)(1) shall provide that financial assistance made
351	351	available for the delivery of a transportation project by the
352	352	department may not be in a larger amount or on more favorable terms
353	353	than the financial assistance requested and previously offered for
354	354	the delivery of that transportation project by a public entity, if
355	355	any.
356	356	(c) The commission shall appoint a rules advisory committee
357	357	to advise the department and the commission on the development of
358	358	the commission's initial rules required by this section. The
359	359	committee must include one or more members representing a local
360	360	toll project entity, as defined in Section 228.0111. Chapter 2110,
361	361	Government Code, does not apply to the committee. This subsection
362	362	expires on the date the commission adopts initial rules under this
363	363	section.