| |
|
|
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. Section 452.108, Transportation Code, is amended |
|
|
by amending Subsections (c) and (d) and adding Subsections (h), |
|
|
(i), and (j) 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. |
|
|
(h) Subsections (c) and (d) do not affect the eminent domain |
|
|
laws that govern an authority consisting of one subregion governed |
|
|
by a subregional board created under Subchapter N or grant the |
|
|
authority's power of eminent domain to any person who is not granted |
|
|
that power under other state law. |
|
|
(i) An authority consisting of one subregion governed by a |
|
|
subregional board created under Subchapter N may not enter into an |
|
|
agreement under this section with a private entity: |
|
|
(1) that results in the removal from a taxing unit's |
|
|
tax rolls of real property otherwise subject to ad valorem |
|
|
taxation, unless the taxing unit approves of the removal; or |
|
|
(2) for a term that exceeds 35 years. |
|
|
(j) An authority consisting of one subregion governed by a |
|
|
subregional board created under Subchapter N may only enter into a |
|
|
lease or financing agreement under this section for a development |
|
|
located within 1,500 feet of a planned or existing station, |
|
|
terminal complex, or transit route stop. |
|
|
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. |
|
|
|
|
|
* * * * * |