Texas 2025 - 89th Regular

Texas House Bill HB4888 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R11554 JAM-F
2	2	By: Canales H.B. No. 4888
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the provision by a regional mobility authority of
10	10	financial assistance for transportation projects of governmental
11	11	entities located in the area of the authority; providing authority
12	12	to issue bonds.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Section 370.174(b), Transportation Code, is
15	15	amended to read as follows:
16	16	(b) Consistent with other law and commission rule, an
17	17	authority may spend surplus revenue on other transportation
18	18	projects by:
19	19	(1) constructing a transportation project located
20	20	within the counties of the authority;
21	21	(2) assisting in the financing of a toll or toll-free
22	22	transportation project of another governmental entity, including
23	23	by providing financial assistance in the manner provided by Section
24	24	370.1745; or
25	25	(3) with the approval of the commission, constructing
26	26	a toll or toll-free transportation project and, on completion of
27	27	the project, transferring the project to another governmental
28	28	entity if:
29	29	(A) the other governmental entity authorizes the
30	30	authority to construct the project and agrees to assume all
31	31	liability and responsibility for the maintenance and operation of
32	32	the project on its transfer; and
33	33	(B) the project is constructed in compliance with
34	34	all laws applicable to the governmental entity.
35	35	SECTION 2. Subchapter E, Chapter 370, Transportation Code,
36	36	is amended by adding Section 370.1745 to read as follows:
37	37	Sec. 370.1745. FINANCIAL ASSISTANCE FOR LOCAL GOVERNMENTAL
38	38	ENTITIES; REVENUE BONDS. (a) To assist in the financing of a toll
39	39	or toll-free transportation project under Section 370.174(b), an
40	40	authority may provide to a governmental entity any part of which is
41	41	located within the geographic boundaries of the authority financial
42	42	assistance for the project by:
43	43	(1) extending credit by direct loan;
44	44	(2) providing credit enhancements;
45	45	(3) serving as a capital reserve for bond or debt
46	46	instrument financing;
47	47	(4) subsidizing interest rates;
48	48	(5) insuring the issuance of a letter of credit or
49	49	credit instrument;
50	50	(6) financing a purchase or lease agreement in
51	51	connection with a transit project; or
52	52	(7) providing security for bonds and other debt
53	53	instruments.
54	54	(b) Financial assistance to a governmental entity under
55	55	Subsection (a) shall be limited, as applicable, to a transportation
56	56	project that is consistent with the transportation plan developed
57	57	by the metropolitan planning organization.
58	58	(c) A governmental entity that is authorized by law to
59	59	construct, maintain, or finance a transportation project may borrow
60	60	money from the authority, including by direct loan, based on the
61	61	credit of the governmental entity.
62	62	(d) Money borrowed under this section must be segregated
63	63	from other funds under the control of the governmental entity and
64	64	may only be used for purposes related to a transportation project.
65	65	(e) This section does not affect the ability of a
66	66	governmental entity to incur debt using other statutorily
67	67	authorized methods.
68	68	(f) The authority may require governmental entities
69	69	receiving assistance under this section to make charges, levy
70	70	taxes, or otherwise provide for sufficient money to pay acquired
71	71	obligations.
72	72	(g) Except as otherwise provided by this section, a
73	73	governmental entity that receives financial assistance under this
74	74	section may issue revenue bonds for the purpose of repaying that
75	75	assistance without complying with any other law applicable to the
76	76	issuance of bonds. Notwithstanding any other provision of this
77	77	section, Chapters 1201, 1202, 1204, and 1371, Government Code,
78	78	apply to bonds issued under this section. Revenue bonds issued
79	79	under this section shall be authorized by order of the governmental
80	80	entity and shall have the form and characteristics and bear the
81	81	designations as are provided in the order.
82	82	(h) Revenue bonds shall:
83	83	(1) be dated;
84	84	(2) bear interest at the rate or rates authorized by
85	85	law;
86	86	(3) mature at the time or times, serially, as term
87	87	bonds, revenue bonds, or otherwise not more than 50 years after
88	88	their dates;
89	89	(4) be called before stated maturity on the terms and
90	90	at the prices, be in the denominations, be in the form, either
91	91	coupon or registered, carry registration privileges as to principal
92	92	only or as to both principal and interest and as to successive
93	93	exchange of coupon for registered bonds or one denomination for
94	94	bonds of other denominations, and successive exchange of registered
95	95	revenue bonds for coupon revenue bonds, be executed in the manner,
96	96	and be payable at the place or places inside or outside the state,
97	97	as provided in the order;
98	98	(5) be issued in temporary or permanent form;
99	99	(6) be issued in one or more installments and from time
100	100	to time as required and sold at a price or prices and under terms
101	101	determined by the governmental entity to be the most advantageous
102	102	reasonably obtainable; and
103	103	(7) be issued on a parity with and be secured in the
104	104	manner as other revenue bonds authorized to be issued by this
105	105	section or be issued without parity and secured differently from
106	106	other revenue bonds.
107	107	(i) All proceedings relating to the issuance of revenue
108	108	bonds issued under this section shall be submitted to the attorney
109	109	general for examination. On determining that the revenue bonds
110	110	have been authorized in accordance with law, the attorney general
111	111	shall approve the revenue bonds, and the revenue bonds shall be
112	112	registered by the comptroller. After the approval and
113	113	registration, the revenue bonds are incontestable in any court or
114	114	other forum for any reason and are valid and binding obligations in
115	115	accordance with their terms for all purposes.
116	116	(j) The proceeds received from the sale of revenue bonds may
117	117	be deposited with the authority.
118	118	SECTION 3. This Act takes effect September 1, 2025.