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