Bill Text: TX HB2802 | 2011-2012 | 82nd Legislature | Comm Sub
Bill Title: Relating to the financing of transportation projects.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-05-02 - Committee report sent to Calendars [HB2802 Detail]
Download: Texas-2011-HB2802-Comm_Sub.html
82R22391 JAM-F | |||
By: Pickett | H.B. No. 2802 | ||
Substitute the following for H.B. No. 2802: | |||
By: Fletcher | C.S.H.B. No. 2802 |
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relating to the financing of transportation projects. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Sections 201.943(b), (c), (d), (e), and (f), | ||
Transportation Code, are amended to read as follows: | ||
(b) Obligations must be secured by and payable from a pledge | ||
of and lien on all or part of the money in the fund, including the | ||
revenues of this state that are dedicated or appropriated for | ||
deposit to the fund. Obligations may be additionally secured by and | ||
payable from credit agreements. The commission may pay amounts due | ||
on the obligations from discretionary money available to it that is | ||
not dedicated to or appropriated for other specific purposes. | ||
(c) The commission may create within the fund accounts, | ||
reserves, and subfunds for purposes the commission finds | ||
appropriate and necessary [ |
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(d) Obligations may be issued for one or more of the | ||
following purposes: | ||
(1) to pay all or part of the costs of constructing, | ||
reconstructing, acquiring, and expanding state highways, including | ||
any necessary design and acquisition of rights-of-way, in the | ||
manner and locations determined by the commission that, according | ||
to conclusive findings of the commission, have an expected useful | ||
life, without material repair, of not less than 10 years; | ||
(2) to provide participation by the state in the | ||
payment of part of the costs of constructing and providing publicly | ||
owned toll roads and other public transportation projects that are | ||
determined by the commission to be in the best interests of the | ||
state in its major goal of improving the mobility of the residents | ||
of the state; | ||
(3) to make loans to public entities, including a | ||
transportation corporation created under Chapter 431, for a purpose | ||
described in Subdivisions (1) and (2); | ||
(4) to create debt service reserve accounts; | ||
(5) [ |
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of not longer than two years; | ||
(6) [ |
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obligations; and | ||
(7) [ |
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(e) Long-term obligations in the amount proposed to be | ||
issued by the commission may not be issued unless the comptroller | ||
projects in a comptroller's certification that the amount of money | ||
dedicated to the fund pursuant to Section 49-k(e), Article III, | ||
Texas Constitution, and required to be on deposit in the fund | ||
pursuant to Section 49-k(f), Article III, Texas Constitution, | ||
together with any other money or revenues that the commission | ||
pledges or otherwise commits for the purposes of the fund, | ||
including loan repayments to be deposited in the fund under Section | ||
201.9461, receipts from credit agreements, and money received or to | ||
be received from the federal government, uncommitted fund balances, | ||
and the investment earnings on [ |
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year of the period during which the proposed obligations are | ||
scheduled to be outstanding will be equal to at least 110 percent of | ||
the requirements to pay the principal of and interest on the | ||
proposed long-term obligations during that year. | ||
(f) Short-term obligations in the amount proposed by the | ||
commission may not be issued unless the comptroller, in a | ||
comptroller's certification: | ||
(1) assumes that the short-term obligations will be | ||
refunded and refinanced to mature over a 30-year [ |
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with level debt service [ |
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interest at then current market rates, as determined by the | ||
comptroller; and | ||
(2) projects that the amount of money dedicated to the | ||
fund pursuant to Section 49-k(e), Article III, Texas Constitution, | ||
and required to be on deposit in the fund pursuant to Section | ||
49-k(f), Article III, Texas Constitution, together with any other | ||
money or revenues that the commission pledges or otherwise commits | ||
for the purposes of the fund, including loan repayments to be | ||
deposited in the fund under Section 201.9461, receipts from credit | ||
agreements, and money received or to be received from the federal | ||
government, uncommitted fund balances, and the investment earnings | ||
on [ |
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[ |
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requirements to pay the principal of and interest on the proposed | ||
refunding obligations during that year. | ||
SECTION 2. Subchapter M, Chapter 201, Transportation Code, | ||
is amended by adding Sections 201.9461 and 201.9462 to read as | ||
follows: | ||
Sec. 201.9461. REPAYMENT TERMS; DEPOSIT OF REPAYMENTS. (a) | ||
For money disbursed from the fund as a loan, the commission shall | ||
determine the terms and conditions of repayment, including the | ||
interest rate to be charged. | ||
(b) The department shall deposit in the fund all amounts | ||
received from repayment of a loan. | ||
Sec. 201.9462. BORROWING FROM FUND BY PUBLIC ENTITY. (a) A | ||
public entity, including a municipality, county, district, | ||
authority, agency, department, board, or commission, that is | ||
authorized by law to construct, maintain, or finance a highway | ||
improvement project, toll road project, or public transportation | ||
project may borrow money from the fund and may enter into any | ||
agreement relating to receiving a loan made from money in the fund. | ||
(b) Money borrowed under Subsection (a) must be segregated | ||
from other funds under the control of the public entity and may be | ||
used only for a purpose authorized by this subchapter. | ||
(c) To provide for the repayment of a loan, a public entity | ||
may: | ||
(1) pledge revenues or income from any available | ||
source; | ||
(2) pledge, levy, and collect any taxes, subject to | ||
any constitutional limitation; or | ||
(3) pledge any combination of revenues, income, and | ||
taxes. | ||
(d) This section is wholly sufficient authority for a public | ||
entity to borrow money from the fund as authorized by this | ||
subchapter and to pledge revenues, income, or taxes, or any | ||
combination of revenues, income, and taxes, to the repayment of a | ||
loan. | ||
SECTION 3. Sections 222.003(c) and (e), Transportation | ||
Code, are amended to read as follows: | ||
(c) Proceeds from the sale of bonds and other public | ||
securities issued under this section: | ||
(1) shall be used to fund state highway improvement | ||
projects; and | ||
(2) may be used to make loans to public entities, | ||
including a transportation corporation created under Chapter 431, | ||
for the purpose described by Subdivision (1). | ||
(e) The proceeds of bonds and other public securities issued | ||
under this section may not be used for any purpose other than any | ||
costs related to the bonds and other public securities and the | ||
purposes described by this section [ |
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The proceeds of bonds and other public securities issued under this | ||
section may not be used for the construction of a state highway or | ||
other facility on the Trans-Texas Corridor. For purposes of this | ||
section, the "Trans-Texas Corridor" means the statewide system of | ||
multimodal facilities under the jurisdiction of the department that | ||
is designated by the commission, notwithstanding the name given to | ||
that corridor. | ||
SECTION 4. Subchapter A, Chapter 222, Transportation Code, | ||
is amended by adding Sections 222.0031 and 222.0032 to read as | ||
follows: | ||
Sec. 222.0031. REPAYMENT TERMS; DEPOSIT OF REPAYMENTS. (a) | ||
For money disbursed under Section 222.003 as a loan, the commission | ||
shall determine the terms and conditions of repayment, including | ||
the interest rate to be charged. | ||
(b) The department shall deposit all amounts received from | ||
repayment of a loan in: | ||
(1) the state highway fund; or | ||
(2) a subaccount in the state infrastructure bank. | ||
Sec. 222.0032. BORROWING FROM BOND PROCEEDS BY PUBLIC | ||
ENTITY. (a) A public entity, including a municipality, county, | ||
district, authority, agency, department, board, or commission, | ||
that is authorized by law to construct, maintain, or finance a | ||
highway improvement project, toll road project, or public | ||
transportation project may borrow money from the department through | ||
a loan made under Section 222.003, and may enter into any agreement | ||
relating to receiving a loan under that section. | ||
(b) Money borrowed under Subsection (a) must be segregated | ||
from other funds under the control of the public entity and may be | ||
used only for the purpose authorized by Section 222.003(c)(1). | ||
(c) To provide for the repayment of a loan, a public entity | ||
may: | ||
(1) pledge revenues or income from any available | ||
source; | ||
(2) pledge, levy, and collect any taxes, subject to | ||
any constitutional limitation; or | ||
(3) pledge any combination of revenues, income, and | ||
taxes. | ||
(d) This section is wholly sufficient authority for a public | ||
entity to borrow money as authorized by Subsection (a) and to pledge | ||
revenues, income, or taxes, or any combination of revenues, income, | ||
and taxes, to the repayment of a loan. | ||
SECTION 5. Sections 222.004(b) and (g), Transportation | ||
Code, are amended to read as follows: | ||
(b) The commission by order or resolution may issue general | ||
obligation bonds for the purposes provided in this section. The | ||
commission may at any time during a biennium issue bonds or other | ||
public securities, and enter into related credit agreements, up to | ||
the aggregate amount of general obligation bond proceeds | ||
appropriated for that biennium, notwithstanding any estimate in an | ||
appropriations act relating to amounts expected to be expended in a | ||
fiscal year during that biennium. The aggregate principal amount | ||
of the bonds that are issued may not exceed the amount specified by | ||
Section 49-p(a), Article III, Texas Constitution. | ||
(g) Bonds may be issued for one or more of the following | ||
purposes: | ||
(1) to pay all or part of the costs of highway | ||
improvement projects; | ||
(2) to make loans to public entities, including a | ||
transportation corporation created under Chapter 431, for the | ||
purpose described in Subdivision (1); and | ||
(3) [ |
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(A) the costs of administering projects | ||
authorized under this section; | ||
(B) the cost or expense of the issuance of the | ||
bonds; or | ||
(C) all or part of a payment owed or to be owed | ||
under a credit agreement. | ||
SECTION 6. Subchapter A, Chapter 222, Transportation Code, | ||
is amended by adding Sections 222.0041 and 222.0042 to read as | ||
follows: | ||
Sec. 222.0041. REPAYMENT TERMS; DEPOSIT OF REPAYMENTS. (a) | ||
For money disbursed under Section 222.004 as a loan, the commission | ||
shall determine the terms and conditions of repayment, including | ||
the interest rate to be charged. | ||
(b) The department shall deposit all amounts received from | ||
repayment of a loan made under Section 222.004 in a subaccount in | ||
the state infrastructure bank. | ||
Sec. 222.0042. BORROWING FROM BOND PROCEEDS BY PUBLIC | ||
ENTITY. (a) A public entity, including a municipality, county, | ||
district, authority, agency, department, board, or commission, | ||
that is authorized by law to construct, maintain, or finance a | ||
highway improvement project, toll road project, or public | ||
transportation project may borrow money from the department through | ||
a loan made under Section 222.004, and may enter into any agreement | ||
relating to receiving a loan under that section. | ||
(b) Money borrowed under Subsection (a) must be segregated | ||
from other funds under the control of the public entity and may be | ||
used only for the purpose authorized by Section 222.004(g)(1). | ||
(c) To provide for the repayment of a loan, a public entity | ||
may: | ||
(1) pledge revenues or income from any available | ||
source; | ||
(2) pledge, levy, and collect any taxes, subject to | ||
any constitutional limitation; or | ||
(3) pledge any combination of revenues, income, and | ||
taxes. | ||
(d) This section is wholly sufficient authority for a public | ||
entity to borrow money from the fund as authorized by Subsection (a) | ||
and to pledge revenues, income, or taxes, or any combination of | ||
revenues, income, and taxes, to the repayment of a loan. | ||
SECTION 7. Section 222.103, Transportation Code, is amended | ||
by amending Subsections (a) and (b) and adding Subsection (b-1) to | ||
read as follows: | ||
(a) The department may participate, by spending money from | ||
any available source, in the cost of the acquisition, construction, | ||
maintenance, or operation of a toll facility of a public or private | ||
entity on terms and conditions established by the commission. The | ||
commission: | ||
(1) shall [ |
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(A) the repayment of any money spent by the | ||
department for the cost of a toll facility of a public entity; or | ||
(B) the public entity to agree to share project | ||
revenue with the department, on terms and conditions approved by | ||
the commission; and | ||
(2) shall require the repayment of any money spent by | ||
the department for the cost of a toll facility of a private entity. | ||
(b) Money repaid as required by the commission and other | ||
payments received by the department in connection with an | ||
expenditure made under this section shall be deposited to the | ||
credit of the fund from which the expenditure was made. Money | ||
deposited as required by this section is exempt from the | ||
application of Section 403.095, Government Code. | ||
(b-1) Loan repayments and revenue sharing and other | ||
payments received by the department in connection with an | ||
expenditure made under this section may be used by the commission or | ||
the department to finance the construction, maintenance, or | ||
operation of tolled or nontolled transportation projects, as | ||
defined by Section 228.001, in any location in this state. | ||
SECTION 8. Section 222.103(a), Transportation Code, as | ||
amended by this Act, applies only to money loaned by the Texas | ||
Department of Transportation on or after the effective date of this | ||
Act. | ||
SECTION 9. 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, 2011. |