Texas 2011 - 82nd Regular

Texas House Bill HB3218 Compare Versions

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1	1	82R13696 T
2	2	By: Phillips H.B. No. 3218
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the administration, financing, and use of the State
8	8	Infrastructure Bank.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 222.071, Transportation Code, is amended
11	11	to read as follows:
12	12	Sec. 222.071. DEFINITIONS. In this subchapter:
13	13	(1) "Bank" means the state infrastructure bank
14	14	account.
15	15	(2) "Bonds" means bonds, notes, and other public
16	16	securities.
17	17	(3) [(2)] "Construction" has the meaning assigned by
18	18	23 U.S.C. Section 101.
19	19	(4) "Credit agreement" has the meaning assigned by
20	20	Section 1371.001, Government Code.
21	21	(5) [(3)] "Federal act" means Section 350 of the
22	22	National Highway System Designation Act of 1995 (Pub. L. No.
23	23	104-59).
24	24	(6) [(4)] "Federal-aid highway" has the meaning
25	25	assigned by 23 U.S.C. Section 101.
26	26	(7) [(5)] "Qualified project" includes:
27	27	(A) the construction of a federal-aid highway;
28	28	(B) a transit project under 49 U.S.C. Sections
29	29	5307, 5309, and 5311; [or]
30	30	(C) a transportation project; or
31	31	(D) [(C)] for the expenditure of secondary funds
32	32	from a subaccount subject to the federal act, a project eligible for
33	33	assistance under Title 23 or Title 49, United States Code.
34	34	(8) [(6)] "Secondary funds" includes:
35	35	(A) the repayment of a loan or other assistance
36	36	that is provided with money deposited to the credit of the bank; and
37	37	(B) investment income generated by secondary
38	38	funds deposited to the credit of the bank.
39	39	(9) "Transportation project" means a tolled or
40	40	nontolled highway improvement project.
41	41	SECTION 2. Section 222.072, Transportation Code, is amended
42	42	to read as follows:
43	43	Sec. 222.072. STATE INFRASTRUCTURE BANK. (a) The state
44	44	infrastructure bank is an account held in the Texas Treasury
45	45	Safekeeping Trust Company [state highway fund]. The bank is
46	46	administered by the commission.
47	47	(b) The commission may deposit in the bank money derived
48	48	from any source available to the commission, including:
49	49	(1) federal [Federal] funds received by the state,
50	50	including funds received under the federal act; [,]
51	51	(2) matching state funds in an amount required by the
52	52	federal [that] act; [,]
53	53	(3) if appropriated by the legislature for that
54	54	purpose:
55	55	(A) the proceeds of bonds issued under Section
56	56	222.003;
57	57	(B) the proceeds of bonds issued under Section
58	58	222.004; and
59	59	(C) other direct appropriations;
60	60	(4) the proceeds of bonds issued under Section 201.943
61	61	and money provided by the commission from the Texas Mobility Fund
62	62	that is in excess of the money required to be on deposit in the Texas
63	63	Mobility Fund by the proceedings authorizing Texas Mobility Fund
64	64	bonds and credit agreements;
65	65	(5) repayments of principal and interest on loans made
66	66	under Section 222.074;
67	67	(6) the proceeds from the sale of loans under Section
68	68	222.078;
69	69	(7) proceeds from bonds issued under Section 222.075;
70	70	[,]
71	71	(8) secondary funds; and [,]
72	72	(9) gifts and grants [other state funds deposited into
73	73	the bank by order of the commission, and other money received by the
74	74	state that is eligible for deposit in the bank may be deposited into
75	75	the bank and used only for the purposes described in this
76	76	subchapter].
77	77	(c) The commission shall prepare and file biennially with
78	78	the governor, the lieutenant governor, and the Legislative Budget
79	79	Board a report providing information on the operation of the bank,
80	80	including:
81	81	(1) the amounts and sources of money deposited in the
82	82	bank during the biennium;
83	83	(2) investments and returns on investments of money in
84	84	the bank during the biennium;
85	85	(3) loans made from the bank during the biennium;
86	86	(4) other financial assistance provided from the bank
87	87	during the biennium;
88	88	(5) the status of any defaults on repayment of loans or
89	89	other financial assistance provided from the bank; and
90	90	(6) the details of any qualified project for which
91	91	financial assistance is received from the bank during the biennium,
92	92	including the identity of any highway directly affected by the
93	93	project, and the degree to which the project is designed to reduce
94	94	congestion, improve traffic safety, and enhance connectivity.
95	95	SECTION 3. Section 222.074, Transportation Code, is amended
96	96	by amending Subsection (a) and by adding Subsections (d), (e), (f),
97	97	and (g) to read as follows:
98	98	(a) To further a purpose described by Section 222.073, the
99	99	commission may use money deposited to the credit of the bank to
100	100	provide financial assistance to a public or private entity,
101	101	including the department, for a qualified project to:
102	102	(1) extend credit by direct loan, including through
103	103	the purchase of obligations of a public entity;
104	104	(2) provide liquidity or credit enhancement,
105	105	[enhancements] including through the agreement to loan to a public
106	106	or private entity or to purchase bonds, notes, or other obligations
107	107	from a public entity;
108	108	(3) serve as a capital reserve for bond or debt
109	109	instrument financing;
110	110	(4) subsidize interest rates;
111	111	(5) insure the issuance of a letter of credit or credit
112	112	instrument;
113	113	(6) finance a purchase or lease agreement in
114	114	connection with a transit project;
115	115	(7) provide capitalized interest for debt financing by
116	116	the public or private entity;
117	117	(8) providing a guarantee of the payment of the costs
118	118	of the operation and maintenance of a qualified project by a public
119	119	entity;
120	120	(9) [(7)] provide security for bonds and other debt
121	121	instruments; [or]
122	122	(10) pay the costs of issuing bonds or other debt
123	123	instruments; or
124	124	(11) [(8)] provide methods of leveraging money that
125	125	have been approved by the United States secretary of transportation
126	126	and relate to the project for which the assistance is provided.
127	127	(d) The proceeds of bonds issued under Section 222.003 or
128	128	Section 222.004 may only be used to provide financial assistance
129	129	for highway improvement projects, subject to any limitations
130	130	provided by law.
131	131	(e) Money from the Texas Mobility Fund may only be used to
132	132	provide financial assistance for state highway improvement
133	133	projects, publicly owned toll roads, and public transportation
134	134	projects, whether on or off of the state highway system, subject to
135	135	any limitations provided by law.
136	136	(f) The commission may require a public or private entity to
137	137	pay an application fee and other reasonable amounts in connection
138	138	with any request for financial assistance provided from the bank.
139	139	Revenue generated from payments of fees and other amounts shall be
140	140	deposited in the state highway fund.
141	141	(g) The department shall monitor the use of financial
142	142	assistance provided to a public or private entity to ensure the
143	143	financial assistance is used for purposes authorized by law and may
144	144	audit the books and records of a public or private entity for this
145	145	purpose.
146	146	SECTION 4. Section 222.0745, Transportation Code, is
147	147	amended to read as follows:
148	148	Sec. 222.0745. INCURRENCE OF DEBT BY PUBLIC ENTITY. (a) A
149	149	public entity in this state, 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	qualified project may borrow money from the bank, including by
153	153	direct loan or other financial assistance from the bank, and may
154	154	enter into any agreement relating to receiving financial assistance
155	155	from the bank [based on the credit of the public entity].
156	156	(b) Money received by a public entity under this subchapter
157	157	[borrowed under this section] must be segregated from other funds
158	158	under the control of the public entity and may only be used for
159	159	purposes authorized by this subchapter [related to a qualified
160	160	project].
161	161	(c) To provide for the repayment of a loan or other
162	162	financial assistance, a public entity may:
163	163	(1) pledge revenues or income from any available
164	164	source;
165	165	(2) pledge, levy, and collect any taxes, subject to
166	166	any constitutional limitation; or
167	167	(3) pledge any combination of revenues, income, and
168	168	taxes.
169	169	(d) This section is wholly sufficient authority for a public
170	170	entity to borrow or otherwise obtain financial assistance from the
171	171	bank as authorized by this subchapter and to pledge revenues,
172	172	income, or taxes, or any combination of revenues, income, and
173	173	taxes, to the repayment of a loan or other financial assistance.
174	174	(e) [(c)] The authority granted by this section does not
175	175	affect the ability of a public entity to incur debt using other
176	176	statutorily authorized methods.
177	177	SECTION 5. Section 222.075, Transportation Code, is amended
178	178	by amending Subsections (b), (f), (i), and (j) to read as follows:
179	179	(b) Except as provided by Subsection (c), the commission may
180	180	issue revenue bonds or revenue refunding bonds under this section
181	181	without complying with any other law applicable to the issuance of
182	182	bonds, and may enter into credit agreements related to the bonds.
183	183	(f) The commission may require participants to make
184	184	charges, levy taxes, or otherwise provide for sufficient money to
185	185	repay financial assistance provided from the bank, including any
186	186	[pay] acquired obligations.
187	187	(i) Before the issuance of revenue bonds or credit
188	188	agreements, the commission shall submit the record of [All]
189	189	proceedings of the commission authorizing [relating to] the
190	190	issuance, execution, and delivery of the [revenue] bonds or credit
191	191	agreement and any contract providing revenue or security to pay the
192	192	bonds or credit agreement [issued under this section shall be
193	193	submitted] to the attorney general for review [examination]. If
194	194	the attorney general finds that the proceedings authorizing a bond
195	195	or credit agreement and any bonds authorized in the proceedings
196	196	conform to the requirements of the Texas Constitution and this
197	197	subchapter [On determining that the revenue bonds have been
198	198	authorized in accordance with law], the attorney general shall
199	199	approve the proceedings and the [revenue] bonds, and shall deliver
200	200	to [the revenue bonds shall be registered by] the comptroller for
201	201	registration a copy of the attorney general's legal opinion stating
202	202	that approval and the record of proceedings. After approval, the
203	203	bonds or credit agreement may be executed and delivered, exchanged,
204	204	or refinanced from time to time in accordance with those
205	205	authorizing proceedings. After the approval and registration, the
206	206	[revenue] bonds or credit agreement, as applicable, or a contract
207	207	providing revenue or security included in or executed and delivered
208	208	according to the authorizing proceedings are incontestable in any
209	209	court or other forum for any reason and are valid, [and] binding,
210	210	and enforceable [obligations] in accordance with their terms for
211	211	all purposes.
212	212	(j) The proceeds from the sale of revenue bonds may be used
213	213	to finance other funds or accounts relating to the bonds or credit
214	214	agreement, including a debt service reserve fund, and to pay the
215	215	costs of issuance. All remaining [The] proceeds received from the
216	216	sale of the [revenue] bonds shall be deposited in the bank and
217	217	invested and used in the manner provided for other funds deposited
218	218	under this subchapter.
219	219	SECTION 6. Section 222.076, Transportation Code, is amended
220	220	by adding Subsection (c) to read as follows:
221	221	(c) The commission may create within a subaccount one or
222	222	more additional subaccounts as determined appropriate and
223	223	necessary by the commission.
224	224	SECTION 7. Section 222.077, Transportation Code, is amended
225	225	to read as follows:
226	226	Sec. 222.077. REPAYMENT TERMS; DEPOSIT OF REPAYMENTS;
227	227	INVESTMENT INCOME. (a) For financial assistance that [Any funds
228	228	disbursed through the state infrastructure bank] must be repaid,
229	229	[on terms determined by] the commission shall determine the terms
230	230	and conditions of the repayment, including the interest rates to be
231	231	charged. The terms must comply with the federal act except for terms
232	232	applicable to funds deposited in a subaccount described by Section
233	233	222.076(b).
234	234	(b) For a tolled highway improvement project, the
235	235	commission may require that revenues from the project be shared
236	236	between the entity and the department, and the entity and the
237	237	department may enter into an agreement specifying the terms and
238	238	conditions of the revenue sharing.
239	239	(c) [(b)] Notwithstanding any other law to the contrary:
240	240	(1) the repayment of a loan or other assistance
241	241	provided with money deposited to the credit of a subaccount in the
242	242	bank, including all amounts received as a share of revenues from a
243	243	tolled highway improvement project, shall be deposited in that
244	244	subaccount; and
245	245	(2) investment income generated by money deposited to
246	246	the credit of a subaccount in the bank shall be:
247	247	(A) credited to that subaccount, subject to
248	248	requirements that may be imposed by the proceedings authorizing
249	249	bonds issued to provide money for deposit in the bank that are
250	250	necessary to protect the tax-exempt status of interest payable on
251	251	the bonds in accordance with applicable law of the United States
252	252	concerning federal income taxation of interest on the bonds;
253	253	(B) available for use in providing financial
254	254	assistance under this subchapter; and
255	255	(C) invested in United States Treasury
256	256	securities, bank deposits, or other financing instruments approved
257	257	by the United States secretary of transportation to earn interest
258	258	and enhance the financing of projects assisted by the bank, except
259	259	that the proceeds of bonds deposited in the bank under Section
260	260	222.072 shall be subject to any limitations contained in the
261	261	documents authorizing the issuance of the bonds.
262	262	(d) [(c)] The commission shall administer the bank in
263	263	compliance with applicable requirements of the federal act and any
264	264	applicable federal regulation or guideline.
265	265	(e) [(d)] The commission by rule shall:
266	266	(1) implement this subchapter; and
267	267	(2) establish eligibility criteria for an entity
268	268	applying for financial assistance from the bank.
269	269	SECTION 8. Subchapter D, Chapter 222, Transportation Code,
270	270	is amended by adding Sections 222.078 and 222.079 to read as
271	271	follows:
272	272	Sec. 222.078. SALE OF LOANS. (a) As used in this section,
273	273	"loan" includes any financial assistance that must be repaid or any
274	274	portion of such assistance.
275	275	(b) The commission may sell any loans made from money in the
276	276	bank and shall deposit the proceeds of the sale in the bank.
277	277	(c) For any loans to be sold under this section, the
278	278	commission may submit to the attorney general for review and
279	279	approval the related financial assistance agreement, which shall,
280	280	for the purposes of Chapter 1202, Government Code, be considered to
281	281	be a public security, along with the record of proceedings of the
282	282	borrowing entity relating to the agreement. If the attorney
283	283	general approves the agreement, it shall be incontestable in a
284	284	court or other forum and is valid, binding, and enforceable
285	285	according to its terms as provided by Chapter 1202, Government
286	286	Code.
287	287	(d) The commission must sell the loans using a competitive
288	288	bidding process and at the price and under the terms and conditions
289	289	that it determines to be reasonable.
290	290	(e) As part of the sales agreement with the purchaser of a
291	291	loan, the commission may agree to perform the functions required to
292	292	enforce the conditions and requirements stated in the loans,
293	293	including enforcing the payment of debt service by the borrowing
294	294	entity.
295	295	(f) The commission may exercise any powers necessary to
296	296	carry out the authority granted by this section, including the
297	297	authority to contract with any person to accomplish the purposes of
298	298	this section.
299	299	(g) Neither the state nor the commission shall be liable for
300	300	the repayment of, and may not repay, any loan sold under this
301	301	section.
302	302	Sec. 222.079. WAIVER OF SOVEREIGN IMMUNITY. A public
303	303	entity receiving financial assistance under this subchapter waives
304	304	sovereign immunity to suit for the purpose of adjudicating a claim
305	305	for breach of the terms of the financial assistance agreement.
306	306	SECTION 9. This Act takes effect immediately if it receives
307	307	a vote of two-thirds of all the members elected to each house, as
308	308	provided by Section 39, Article III, Texas Constitution. If this
309	309	Act does not receive the vote necessary for immediate effect, this
310	310	Act takes effect September 1, 2011.