Texas 2011 - 82nd Regular

Texas House Bill HB2802 Compare Versions

The same version is selected twice. Please select two different versions to compare.

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	82R22391 JAM-F
2	2	By: Pickett H.B. No. 2802
3	3	Substitute the following for H.B. No. 2802:
4	4	By: Fletcher C.S.H.B. No. 2802
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the financing of transportation projects.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Sections 201.943(b), (c), (d), (e), and (f),
12	12	Transportation Code, are amended to read as follows:
13	13	(b) Obligations must be secured by and payable from a pledge
14	14	of and lien on all or part of the money in the fund, including the
15	15	revenues of this state that are dedicated or appropriated for
16	16	deposit to the fund. Obligations may be additionally secured by and
17	17	payable from credit agreements. The commission may pay amounts due
18	18	on the obligations from discretionary money available to it that is
19	19	not dedicated to or appropriated for other specific purposes.
20	20	(c) The commission may create within the fund accounts,
21	21	reserves, and subfunds for purposes the commission finds
22	22	appropriate and necessary [in connection with the issuance of
23	23	obligations].
24	24	(d) Obligations may be issued for one or more of the
25	25	following purposes:
26	26	(1) to pay all or part of the costs of constructing,
27	27	reconstructing, acquiring, and expanding state highways, including
28	28	any necessary design and acquisition of rights-of-way, in the
29	29	manner and locations determined by the commission that, according
30	30	to conclusive findings of the commission, have an expected useful
31	31	life, without material repair, of not less than 10 years;
32	32	(2) to provide participation by the state in the
33	33	payment of part of the costs of constructing and providing publicly
34	34	owned toll roads and other public transportation projects that are
35	35	determined by the commission to be in the best interests of the
36	36	state in its major goal of improving the mobility of the residents
37	37	of the state;
38	38	(3) to make loans to public entities, including a
39	39	transportation corporation created under Chapter 431, for a purpose
40	40	described in Subdivisions (1) and (2);
41	41	(4) to create debt service reserve accounts;
42	42	(5) [(4)] to pay interest on obligations for a period
43	43	of not longer than two years;
44	44	(6) [(5)] to refund or cancel outstanding
45	45	obligations; and
46	46	(7) [(6)] to pay the commission's costs of issuance.
47	47	(e) Long-term obligations in the amount proposed to be
48	48	issued by the commission may not be issued unless the comptroller
49	49	projects in a comptroller's certification that the amount of money
50	50	dedicated to the fund pursuant to Section 49-k(e), Article III,
51	51	Texas Constitution, and required to be on deposit in the fund
52	52	pursuant to Section 49-k(f), Article III, Texas Constitution,
53	53	together with any other money or revenues that the commission
54	54	pledges or otherwise commits for the purposes of the fund,
55	55	including loan repayments to be deposited in the fund under Section
56	56	201.9461, receipts from credit agreements, and money received or to
57	57	be received from the federal government, uncommitted fund balances,
58	58	and the investment earnings on [that] money in the fund, during each
59	59	year of the period during which the proposed obligations are
60	60	scheduled to be outstanding will be equal to at least 110 percent of
61	61	the requirements to pay the principal of and interest on the
62	62	proposed long-term obligations during that year.
63	63	(f) Short-term obligations in the amount proposed by the
64	64	commission may not be issued unless the comptroller, in a
65	65	comptroller's certification:
66	66	(1) assumes that the short-term obligations will be
67	67	refunded and refinanced to mature over a 30-year [20-year] period
68	68	with level debt service [principal] requirements and bearing
69	69	interest at then current market rates, as determined by the
70	70	comptroller; and
71	71	(2) projects that the amount of money dedicated to the
72	72	fund pursuant to Section 49-k(e), Article III, Texas Constitution,
73	73	and required to be on deposit in the fund pursuant to Section
74	74	49-k(f), Article III, Texas Constitution, together with any other
75	75	money or revenues that the commission pledges or otherwise commits
76	76	for the purposes of the fund, including loan repayments to be
77	77	deposited in the fund under Section 201.9461, receipts from credit
78	78	agreements, and money received or to be received from the federal
79	79	government, uncommitted fund balances, and the investment earnings
80	80	on [that] money in the fund, during each year of the assumed 30-year
81	81	[20-year] period will be equal to at least 110 percent of the
82	82	requirements to pay the principal of and interest on the proposed
83	83	refunding obligations during that year.
84	84	SECTION 2. Subchapter M, Chapter 201, Transportation Code,
85	85	is amended by adding Sections 201.9461 and 201.9462 to read as
86	86	follows:
87	87	Sec. 201.9461. REPAYMENT TERMS; DEPOSIT OF REPAYMENTS. (a)
88	88	For money disbursed from the fund as a loan, the commission shall
89	89	determine the terms and conditions of repayment, including the
90	90	interest rate to be charged.
91	91	(b) The department shall deposit in the fund all amounts
92	92	received from repayment of a loan.
93	93	Sec. 201.9462. BORROWING FROM FUND BY PUBLIC ENTITY. (a) A
94	94	public entity, including a municipality, county, district,
95	95	authority, agency, department, board, or commission, that is
96	96	authorized by law to construct, maintain, or finance a highway
97	97	improvement project, toll road project, or public transportation
98	98	project may borrow money from the fund and may enter into any
99	99	agreement relating to receiving a loan made from money in the fund.
100	100	(b) Money borrowed under Subsection (a) must be segregated
101	101	from other funds under the control of the public entity and may be
102	102	used only for a purpose authorized by this subchapter.
103	103	(c) To provide for the repayment of a loan, a public entity
104	104	may:
105	105	(1) pledge revenues or income from any available
106	106	source;
107	107	(2) pledge, levy, and collect any taxes, subject to
108	108	any constitutional limitation; or
109	109	(3) pledge any combination of revenues, income, and
110	110	taxes.
111	111	(d) This section is wholly sufficient authority for a public
112	112	entity to borrow money from the fund as authorized by this
113	113	subchapter and to pledge revenues, income, or taxes, or any
114	114	combination of revenues, income, and taxes, to the repayment of a
115	115	loan.
116	116	SECTION 3. Sections 222.003(c) and (e), Transportation
117	117	Code, are amended to read as follows:
118	118	(c) Proceeds from the sale of bonds and other public
119	119	securities issued under this section:
120	120	(1) shall be used to fund state highway improvement
121	121	projects; and
122	122	(2) may be used to make loans to public entities,
123	123	including a transportation corporation created under Chapter 431,
124	124	for the purpose described by Subdivision (1).
125	125	(e) The proceeds of bonds and other public securities issued
126	126	under this section may not be used for any purpose other than any
127	127	costs related to the bonds and other public securities and the
128	128	purposes described by this section [for which revenues are
129	129	dedicated under Section 7-a, Article VIII, Texas Constitution].
130	130	The proceeds of bonds and other public securities issued under this
131	131	section may not be used for the construction of a state highway or
132	132	other facility on the Trans-Texas Corridor. For purposes of this
133	133	section, the "Trans-Texas Corridor" means the statewide system of
134	134	multimodal facilities under the jurisdiction of the department that
135	135	is designated by the commission, notwithstanding the name given to
136	136	that corridor.
137	137	SECTION 4. Subchapter A, Chapter 222, Transportation Code,
138	138	is amended by adding Sections 222.0031 and 222.0032 to read as
139	139	follows:
140	140	Sec. 222.0031. REPAYMENT TERMS; DEPOSIT OF REPAYMENTS. (a)
141	141	For money disbursed under Section 222.003 as a loan, the commission
142	142	shall determine the terms and conditions of repayment, including
143	143	the interest rate to be charged.
144	144	(b) The department shall deposit all amounts received from
145	145	repayment of a loan in:
146	146	(1) the state highway fund; or
147	147	(2) a subaccount in the state infrastructure bank.
148	148	Sec. 222.0032. BORROWING FROM BOND PROCEEDS BY PUBLIC
149	149	ENTITY. (a) A public entity, including a municipality, county,
150	150	district, authority, agency, department, board, or commission,
151	151	that is authorized by law to construct, maintain, or finance a
152	152	highway improvement project, toll road project, or public
153	153	transportation project may borrow money from the department through
154	154	a loan made under Section 222.003, and may enter into any agreement
155	155	relating to receiving a loan under that section.
156	156	(b) Money borrowed under Subsection (a) must be segregated
157	157	from other funds under the control of the public entity and may be
158	158	used only for the purpose authorized by Section 222.003(c)(1).
159	159	(c) To provide for the repayment of a loan, a public entity
160	160	may:
161	161	(1) pledge revenues or income from any available
162	162	source;
163	163	(2) pledge, levy, and collect any taxes, subject to
164	164	any constitutional limitation; or
165	165	(3) pledge any combination of revenues, income, and
166	166	taxes.
167	167	(d) This section is wholly sufficient authority for a public
168	168	entity to borrow money as authorized by Subsection (a) and to pledge
169	169	revenues, income, or taxes, or any combination of revenues, income,
170	170	and taxes, to the repayment of a loan.
171	171	SECTION 5. Sections 222.004(b) and (g), Transportation
172	172	Code, are amended to read as follows:
173	173	(b) The commission by order or resolution may issue general
174	174	obligation bonds for the purposes provided in this section. The
175	175	commission may at any time during a biennium issue bonds or other
176	176	public securities, and enter into related credit agreements, up to
177	177	the aggregate amount of general obligation bond proceeds
178	178	appropriated for that biennium, notwithstanding any estimate in an
179	179	appropriations act relating to amounts expected to be expended in a
180	180	fiscal year during that biennium. The aggregate principal amount
181	181	of the bonds that are issued may not exceed the amount specified by
182	182	Section 49-p(a), Article III, Texas Constitution.
183	183	(g) Bonds may be issued for one or more of the following
184	184	purposes:
185	185	(1) to pay all or part of the costs of highway
186	186	improvement projects;
187	187	(2) to make loans to public entities, including a
188	188	transportation corporation created under Chapter 431, for the
189	189	purpose described in Subdivision (1); and
190	190	(3) [(2)] to pay:
191	191	(A) the costs of administering projects
192	192	authorized under this section;
193	193	(B) the cost or expense of the issuance of the
194	194	bonds; or
195	195	(C) all or part of a payment owed or to be owed
196	196	under a credit agreement.
197	197	SECTION 6. Subchapter A, Chapter 222, Transportation Code,
198	198	is amended by adding Sections 222.0041 and 222.0042 to read as
199	199	follows:
200	200	Sec. 222.0041. REPAYMENT TERMS; DEPOSIT OF REPAYMENTS. (a)
201	201	For money disbursed under Section 222.004 as a loan, the commission
202	202	shall determine the terms and conditions of repayment, including
203	203	the interest rate to be charged.
204	204	(b) The department shall deposit all amounts received from
205	205	repayment of a loan made under Section 222.004 in a subaccount in
206	206	the state infrastructure bank.
207	207	Sec. 222.0042. BORROWING FROM BOND PROCEEDS BY PUBLIC
208	208	ENTITY. (a) A public entity, including a municipality, county,
209	209	district, authority, agency, department, board, or commission,
210	210	that is authorized by law to construct, maintain, or finance a
211	211	highway improvement project, toll road project, or public
212	212	transportation project may borrow money from the department through
213	213	a loan made under Section 222.004, and may enter into any agreement
214	214	relating to receiving a loan under that section.
215	215	(b) Money borrowed under Subsection (a) must be segregated
216	216	from other funds under the control of the public entity and may be
217	217	used only for the purpose authorized by Section 222.004(g)(1).
218	218	(c) To provide for the repayment of a loan, a public entity
219	219	may:
220	220	(1) pledge revenues or income from any available
221	221	source;
222	222	(2) pledge, levy, and collect any taxes, subject to
223	223	any constitutional limitation; or
224	224	(3) pledge any combination of revenues, income, and
225	225	taxes.
226	226	(d) This section is wholly sufficient authority for a public
227	227	entity to borrow money from the fund as authorized by Subsection (a)
228	228	and to pledge revenues, income, or taxes, or any combination of
229	229	revenues, income, and taxes, to the repayment of a loan.
230	230	SECTION 7. Section 222.103, Transportation Code, is amended
231	231	by amending Subsections (a) and (b) and adding Subsection (b-1) to
232	232	read as follows:
233	233	(a) The department may participate, by spending money from
234	234	any available source, in the cost of the acquisition, construction,
235	235	maintenance, or operation of a toll facility of a public or private
236	236	entity on terms and conditions established by the commission. The
237	237	commission:
238	238	(1) shall [may] require:
239	239	(A) the repayment of any money spent by the
240	240	department for the cost of a toll facility of a public entity; or
241	241	(B) the public entity to agree to share project
242	242	revenue with the department, on terms and conditions approved by
243	243	the commission; and
244	244	(2) shall require the repayment of any money spent by
245	245	the department for the cost of a toll facility of a private entity.
246	246	(b) Money repaid as required by the commission and other
247	247	payments received by the department in connection with an
248	248	expenditure made under this section shall be deposited to the
249	249	credit of the fund from which the expenditure was made. Money
250	250	deposited as required by this section is exempt from the
251	251	application of Section 403.095, Government Code.
252	252	(b-1) Loan repayments and revenue sharing and other
253	253	payments received by the department in connection with an
254	254	expenditure made under this section may be used by the commission or
255	255	the department to finance the construction, maintenance, or
256	256	operation of tolled or nontolled transportation projects, as
257	257	defined by Section 228.001, in any location in this state.
258	258	SECTION 8. Section 222.103(a), Transportation Code, as
259	259	amended by this Act, applies only to money loaned by the Texas
260	260	Department of Transportation on or after the effective date of this
261	261	Act.
262	262	SECTION 9. This Act takes effect immediately if it receives
263	263	a vote of two-thirds of all the members elected to each house, as
264	264	provided by Section 39, Article III, Texas Constitution. If this
265	265	Act does not receive the vote necessary for immediate effect, this
266	266	Act takes effect September 1, 2011.