By: Callegari H.B. No. 3363
A BILL TO BE ENTITLED
AN ACT
relating to the issuance of general obligation bonds by the Texas
Transportation Commission to fund state highways, publicly owned
toll roads, and other publicly owned transportation 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 222.007 to read as follows:
Sec. 222.007. CENTURY BONDS. (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) "Transportation project" means the construction
or provision of a tolled or nontolled project, the primary purpose
of which is to preserve or facilitate the movement of people or
goods by any mode of transportation. The term includes buildings,
structures, parking areas, appurtenances, rights-of-way, rolling
stock, and other property needed for the project, but does not
include a project that is primarily for recreational purposes such
as a hiking trail or off-road vehicle trail.
(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-q(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 100 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-q, 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 deliver them to the comptroller for registration.
After approval by the attorney general, registration by the
comptroller, and payment by the purchasers of the bonds in
accordance with the terms of sale and after execution and delivery
of the related credit agreements, the bonds 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 constructing,
reconstructing, acquiring, and expanding state highways, including
any necessary design and acquisition of rights-of-way;
(2) to provide participation by the state in the
payment of part of the costs of constructing and providing publicly
owned toll roads and other publicly owned transportation projects;
and
(3) to pay:
(A) the costs of administering projects
authorized under this section;
(B) the cost or expense of the issuance of the
bonds;
(C) refunding bonds and related credit
agreements authorized by this section; or
(D) all or part of a payment owed or to be owed
under a credit agreement.
(h) 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 on the date on which the
constitutional amendment proposed by the 83rd Legislature, Regular
Session, 2013, providing for the issuance of general obligation
bonds by the Texas Transportation Commission in an amount not to
exceed $3 billion to provide funding for state highways, publicly
owned toll roads, and other publicly owned transportation projects,
takes effect. If that amendment is not approved by the voters, this
Act has no effect.