89R11554 JAM-F
By: Canales H.B. No. 4888
A BILL TO BE ENTITLED
AN ACT
relating to the provision by a regional mobility authority of
financial assistance for transportation projects of governmental
entities located in the area of the authority; providing authority
to issue bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 370.174(b), Transportation Code, is
amended to read as follows:
(b) Consistent with other law and commission rule, an
authority may spend surplus revenue on other transportation
projects by:
(1) constructing a transportation project located
within the counties of the authority;
(2) assisting in the financing of a toll or toll-free
transportation project of another governmental entity, including
by providing financial assistance in the manner provided by Section
370.1745; or
(3) with the approval of the commission, constructing
a toll or toll-free transportation project and, on completion of
the project, transferring the project to another governmental
entity if:
(A) the other governmental entity authorizes the
authority to construct the project and agrees to assume all
liability and responsibility for the maintenance and operation of
the project on its transfer; and
(B) the project is constructed in compliance with
all laws applicable to the governmental entity.
SECTION 2. Subchapter E, Chapter 370, Transportation Code,
is amended by adding Section 370.1745 to read as follows:
Sec. 370.1745. FINANCIAL ASSISTANCE FOR LOCAL GOVERNMENTAL
ENTITIES; REVENUE BONDS. (a) To assist in the financing of a toll
or toll-free transportation project under Section 370.174(b), an
authority may provide to a governmental entity any part of which is
located within the geographic boundaries of the authority financial
assistance for the project by:
(1) extending credit by direct loan;
(2) providing credit enhancements;
(3) serving as a capital reserve for bond or debt
instrument financing;
(4) subsidizing interest rates;
(5) insuring the issuance of a letter of credit or
credit instrument;
(6) financing a purchase or lease agreement in
connection with a transit project; or
(7) providing security for bonds and other debt
instruments.
(b) Financial assistance to a governmental entity under
Subsection (a) shall be limited, as applicable, to a transportation
project that is consistent with the transportation plan developed
by the metropolitan planning organization.
(c) A governmental entity that is authorized by law to
construct, maintain, or finance a transportation project may borrow
money from the authority, including by direct loan, based on the
credit of the governmental entity.
(d) Money borrowed under this section must be segregated
from other funds under the control of the governmental entity and
may only be used for purposes related to a transportation project.
(e) This section does not affect the ability of a
governmental entity to incur debt using other statutorily
authorized methods.
(f) The authority may require governmental entities
receiving assistance under this section to make charges, levy
taxes, or otherwise provide for sufficient money to pay acquired
obligations.
(g) Except as otherwise provided by this section, a
governmental entity that receives financial assistance under this
section may issue revenue bonds for the purpose of repaying that
assistance without complying with any other law applicable to the
issuance of bonds. Notwithstanding any other provision of this
section, Chapters 1201, 1202, 1204, and 1371, Government Code,
apply to bonds issued under this section. Revenue bonds issued
under this section shall be authorized by order of the governmental
entity and shall have the form and characteristics and bear the
designations as are provided in the order.
(h) Revenue bonds shall:
(1) be dated;
(2) bear interest at the rate or rates authorized by
law;
(3) mature at the time or times, serially, as term
bonds, revenue bonds, or otherwise not more than 50 years after
their dates;
(4) be called before stated maturity on the terms and
at the prices, be in the denominations, be in the form, either
coupon or registered, carry registration privileges as to principal
only or as to both principal and interest and as to successive
exchange of coupon for registered bonds or one denomination for
bonds of other denominations, and successive exchange of registered
revenue bonds for coupon revenue bonds, be executed in the manner,
and be payable at the place or places inside or outside the state,
as provided in the order;
(5) be issued in temporary or permanent form;
(6) be issued in one or more installments and from time
to time as required and sold at a price or prices and under terms
determined by the governmental entity to be the most advantageous
reasonably obtainable; and
(7) be issued on a parity with and be secured in the
manner as other revenue bonds authorized to be issued by this
section or be issued without parity and secured differently from
other revenue bonds.
(i) All proceedings relating to the issuance of revenue
bonds issued under this section shall be submitted to the attorney
general for examination. On determining that the revenue bonds
have been authorized in accordance with law, the attorney general
shall approve the revenue bonds, and the revenue bonds shall be
registered by the comptroller. After the approval and
registration, the revenue bonds are incontestable in any court or
other forum for any reason and are valid and binding obligations in
accordance with their terms for all purposes.
(j) The proceeds received from the sale of revenue bonds may
be deposited with the authority.
SECTION 3. This Act takes effect September 1, 2025.