| 1 | 1 | | By: Schwertner S.B. No. 980 |
|---|
| 2 | 2 | | (In the Senate - Filed February 21, 2017; March 6, 2017, |
|---|
| 3 | 3 | | read first time and referred to Committee on Transportation; |
|---|
| 4 | 4 | | April 10, 2017, reported adversely, with favorable Committee |
|---|
| 5 | 5 | | Substitute by the following vote: Yeas 7, Nays 2; April 10, 2017, |
|---|
| 6 | 6 | | sent to printer.) |
|---|
| 7 | 7 | | Click here to see the committee vote |
|---|
| 8 | 8 | | COMMITTEE SUBSTITUTE FOR S.B. No. 980 By: Hall |
|---|
| 9 | 9 | | |
|---|
| 10 | 10 | | |
|---|
| 11 | 11 | | A BILL TO BE ENTITLED |
|---|
| 12 | 12 | | AN ACT |
|---|
| 13 | 13 | | relating to state money or credit or a state guarantee used or |
|---|
| 14 | 14 | | provided for high-speed rail owned by a private entity. |
|---|
| 15 | 15 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 16 | 16 | | SECTION 1. Chapter 199, Transportation Code, is amended by |
|---|
| 17 | 17 | | adding Section 199.003 to read as follows: |
|---|
| 18 | 18 | | Sec. 199.003. STATE MONEY FOR HIGH-SPEED RAIL; PRIORITY OF |
|---|
| 19 | 19 | | LIEN. (a) For the purposes of this section, "high-speed rail" |
|---|
| 20 | 20 | | means intercity passenger rail service that is reasonably expected |
|---|
| 21 | 21 | | to reach speeds that exceed 110 miles per hour. |
|---|
| 22 | 22 | | (b) No state money, credit, or guarantee shall be used or |
|---|
| 23 | 23 | | provided, wholly or partly, for any purpose related to high-speed |
|---|
| 24 | 24 | | rail owned by a private entity unless, to secure the repayment of |
|---|
| 25 | 25 | | state money, this state acquires and maintains a lien on or other |
|---|
| 26 | 26 | | security interest in: |
|---|
| 27 | 27 | | (1) property of the private entity acquired with or |
|---|
| 28 | 28 | | through state money or credit or using a guarantee of this state; or |
|---|
| 29 | 29 | | (2) other assets owned by the private entity. |
|---|
| 30 | 30 | | (c) Before an entity or official of this state enters into |
|---|
| 31 | 31 | | an agreement to provide state money or credit or a state guarantee |
|---|
| 32 | 32 | | under Subsection (b), the Bond Review Board must review and certify |
|---|
| 33 | 33 | | the agreement to ensure that the lien or other security interest |
|---|
| 34 | 34 | | described by that subsection is sufficient, in accordance with |
|---|
| 35 | 35 | | generally accepted accounting standards, to protect this state's |
|---|
| 36 | 36 | | financial interests. |
|---|
| 37 | 37 | | (d) A lien on or other security interest held by this state |
|---|
| 38 | 38 | | in property or other assets described by Subsection (b) is superior |
|---|
| 39 | 39 | | and prior to any other lien, claim, or interest of any other person |
|---|
| 40 | 40 | | on or against the property or other assets of the private entity. |
|---|
| 41 | 41 | | SECTION 2. This Act takes effect September 1, 2017. |
|---|
| 42 | 42 | | * * * * * |
|---|