| 1 | 1 | | 87R7500 SRA-F |
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| 2 | 2 | | By: Powell S.B. No. 762 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the powers of certain regional transportation |
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| 8 | 8 | | authorities. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Sections 452.108(c) and (d), Transportation |
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| 11 | 11 | | Code, are amended to read as follows: |
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| 12 | 12 | | (c) Except as provided by Subsection (d), an authority |
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| 13 | 13 | | consisting of one subregion governed by a subregional board created |
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| 14 | 14 | | under Subchapter N or O may not enter a lease or financing agreement |
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| 15 | 15 | | secured wholly or partially by the assets of the authority if the |
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| 16 | 16 | | duration of the lease or financing agreement is longer than five |
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| 17 | 17 | | years unless the lease or agreement is approved by the voters of the |
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| 18 | 18 | | authority in the manner provided for the issuance of bonds and notes |
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| 19 | 19 | | under Subchapter H. |
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| 20 | 20 | | (d) To provide tax benefits to another party that are |
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| 21 | 21 | | available with respect to property under the laws of a foreign |
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| 22 | 22 | | country or to encourage private investment with a transportation |
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| 23 | 23 | | authority in the United States, and notwithstanding any other |
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| 24 | 24 | | provision of this chapter, an authority consisting of one subregion |
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| 25 | 25 | | governed by a subregional board created under Subchapter N or O may |
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| 26 | 26 | | enter into and execute, as it considers appropriate, contracts, |
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| 27 | 27 | | agreements, notes, security agreements, conveyances, bills of |
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| 28 | 28 | | sale, deeds, leases as lessee or lessor, and currency hedges, swap |
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| 29 | 29 | | transactions, or agreements relating to foreign and domestic |
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| 30 | 30 | | currency. The agreements or instruments may have the terms, |
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| 31 | 31 | | maturities, duration, provisions as to governing law, indemnities, |
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| 32 | 32 | | and other provisions that are approved by the subregional board. In |
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| 33 | 33 | | connection with any transaction authorized by this subsection, the |
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| 34 | 34 | | authority may deposit in trust, escrow, or similar arrangement cash |
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| 35 | 35 | | or lawful investments securities, or may enter into one or more |
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| 36 | 36 | | payment agreements, financial guarantees, or insurance contracts |
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| 37 | 37 | | with counterparties having either a corporate credit or debt rating |
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| 38 | 38 | | in any form, a claims-paying ability, or a rating for financial |
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| 39 | 39 | | strength of "AA" or better by Moody's Investors Service, Inc. or by |
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| 40 | 40 | | Standard & Poor's Corporation or of "A (Class XII)" or better by |
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| 41 | 41 | | Best's rating system, that by their terms, including interest to be |
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| 42 | 42 | | earned on the cash or securities, or payment obligations, are |
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| 43 | 43 | | sufficient in amount to pay when due all amounts required to be paid |
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| 44 | 44 | | by the authority as rent over the full term of the transaction plus |
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| 45 | 45 | | any optional purchase price or other obligation due under the |
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| 46 | 46 | | transaction. |
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| 47 | 47 | | SECTION 2. This Act takes effect immediately if it receives |
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| 48 | 48 | | a vote of two-thirds of all the members elected to each house, as |
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| 49 | 49 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 50 | 50 | | Act does not receive the vote necessary for immediate effect, this |
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| 51 | 51 | | Act takes effect September 1, 2021. |
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