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