By: Watson S.B. No. 1794
A BILL TO BE ENTITLED
AN ACT
relating to a transportation revolving fund for certain
metropolitan planning organizations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 472, Transportation code,
is amended by adding Section 472,036 to read as follows:
Sec.472.036.Transportation Revolving Fund.
(a) A metropolitan planning organization with a planning
jurisdiction of at least five counties, the largest of which has
authorized a regional mobility authority under Chapter 370 of this
code, may establish a revolving fund held in a banking institution
selected by the metropolitan planning organization.
(b) A revolving fund may be funded with state and federal
transportation money, local contributions, or other revenue of the
metropolitan planning organization.
(c) Money in the revolving fund may be loaned or granted to
cities, counties, the State of Texas, regional mobility
authorities, rail districts, or metropolitan transit authorities,
within the planning jurisdiction of the metropolitan planning
organization to pay expenses of planning, developing, acquiring
right of way, constructing, implementing, and maintaining
transportation projects approved by the metropolitan planning
organization.
(i) Money borrowed or granted under this section must
be segregated from other funds under the control of the authorized
public entity and may only be used for purposes authorized by the
metropolitan planning organization.
(d) Prior to establishing a revolving fund, the
metropolitan planning organization shall do the following:
(i) Ensure there are sufficient funds to carry out its
other required state and federal regional planning functions;
(ii) Allocate sufficient funds to hire financial and
other expertise to operate the revolving fund; and
(iii) Adopt guidelines to evaluate applications for
loans and grants pursuant to this section.
(e) A revolving fund created pursuant to this section shall
be held in a depository selected by the metropolitan planning
organization using the provisions of chapter 116, Texas Local
Government Code or invested pursuant to the Public Funds Investment
Act.
(f) The board of directors of the metropolitan planning
organization may direct the with drawl of any funds deposited in the
revolving fund that are not immediately required to pay obligations
of the revolving fund unless such and investment or with drawl is
prohibited by law or the with drawl is contrary to the terms of the
depository contract.
(i) The funds may be invested in accordance with
Subchapter A, Chapter 2256, Government Code. In addition to the
obligations, certificates, and agreements described by that Act,
the funds may be invested in certificates of deposit issued by a
state or federal savings and loan association domiciled in this
state, the payment of which is insured in full by the Federal
Savings and Loan Insurance Corporation or its successor.
(ii) If a metropolitan planning organization
purchases a security repurchase agreement, the agreement must be
purchased under a master contractual agreement that specifies the
rights and obligations of both parties and that requires that
securities involved in the transaction be held in a safekeeping
account subject to the control and custody of the metropolitan
planning organization.
Section 2. This Act takes effect September 1, 2013.