Enrolled Bill Summary

House Bill 1546	House Author:  McClendon et al.
Effective:  See below	Senate Sponsor:  Staples et al.

            House Bill 1546 amends the Transportation Code to provide for the administration and use of the Texas rail relocation and improvement fund and the issuance of bonds and other public securities to finance the relocation, rehabilitation, and expansion of freight or passenger rail facilities, including commuter rail, intercity rail, and high speed rail.  The bill requires the comptroller to hold the fund, and the Texas Transportation Commission, through the Texas Department of Transportation, to manage and administer the fund.  The bill authorizes the commission to issue obligations secured by a lien on all or part of the money in the fund and to guarantee the payment of any obligations and related credit agreements by pledging the full faith and credit of the state.  It specifies the purposes for which obligations may be issued and authorizes the department to acquire by purchase property for one or more of the purposes.  House Bill 1546 limits the issuance of short-term and long-term obligations to certain conditions certified by the comptroller and prohibits the commission from issuing obligations before the department has developed a strategic plan for the fund.  The bill authorizes money in the fund to be invested in the same investments as those permitted by law for the state highway fund.

            This bill takes effect contingent on voter approval of a constitutional amendment proposed by House Joint Resolution 54.