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A BILL TO BE ENTITLED
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AN ACT
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relating to the powers of certain regional transportation |
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authorities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 452.108(c) and (d), Transportation |
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Code, are amended to read as follows: |
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(c) Except as provided by Subsection (d), an authority |
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consisting of one subregion governed by a subregional board created |
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under Subchapter N or O may not enter a lease or financing agreement |
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secured wholly or partially by the assets of the authority if the |
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duration of the lease or financing agreement is longer than five |
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years unless the lease or agreement is approved by the voters of the |
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authority in the manner provided for the issuance of bonds and notes |
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under Subchapter H. |
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(d) To provide tax benefits to another party that are |
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available with respect to property under the laws of a foreign |
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country or to encourage private investment with a transportation |
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authority in the United States, and notwithstanding any other |
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provision of this chapter, an authority consisting of one subregion |
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governed by a subregional board created under Subchapter N or O may |
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enter into and execute, as it considers appropriate, contracts, |
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agreements, notes, security agreements, conveyances, bills of |
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sale, deeds, leases as lessee or lessor, and currency hedges, swap |
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transactions, or agreements relating to foreign and domestic |
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currency. The agreements or instruments may have the terms, |
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maturities, duration, provisions as to governing law, indemnities, |
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and other provisions that are approved by the subregional board. In |
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connection with any transaction authorized by this subsection, the |
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authority may deposit in trust, escrow, or similar arrangement cash |
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or lawful investments securities, or may enter into one or more |
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payment agreements, financial guarantees, or insurance contracts |
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with counterparties having either a corporate credit or debt rating |
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in any form, a claims-paying ability, or a rating for financial |
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strength of "AA" or better by Moody's Investors Service, Inc. or by |
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Standard & Poor's Corporation or of "A (Class XII)" or better by |
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Best's rating system, that by their terms, including interest to be |
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earned on the cash or securities, or payment obligations, are |
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sufficient in amount to pay when due all amounts required to be paid |
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by the authority as rent over the full term of the transaction plus |
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any optional purchase price or other obligation due under the |
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transaction. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2021. |