1-1 By: Holzheauser (Senate Sponsor - Bivins) H.B. No. 1441
1-2 (In the Senate - Received from the House May 4, 1995;
1-3 May 5, 1995, read first time and referred to Committee on Natural
1-4 Resources; May 12, 1995, reported favorably by the following vote:
1-5 Yeas 9, Nays 0; May 12, 1995, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the financing of alternative fuels projects by the
1-9 Texas Public Finance Authority on behalf of state agencies and
1-10 certain political subdivisions of the state.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 9C, Texas Public Finance Authority Act
1-13 (Article 601d, Vernon's Texas Civil Statutes), is amended by
1-14 amending Subsections (a) and (f) and adding Subsections (g) and (h)
1-15 to read as follows:
1-16 (a) The authority may, if it determines that a project is
1-17 financially viable and sufficient revenue is or will be available,
1-18 issue and sell obligations the proceeds of which shall be used for
1-19 the financing of:
1-20 (1) the conversion of state agency vehicles and other
1-21 sources of substantial energy output to alternative fuels under
1-22 Section 3.29, State Purchasing and General Services Act (Article
1-23 601b, Vernon's Texas Civil Statutes), and its subsequent
1-24 amendments;
1-25 (2) the construction, acquisition, or maintenance by
1-26 the General Services Commission of fueling stations supplying
1-27 alternative fuels or equipment enhancing the use of engine-driven
1-28 technology to support state agency vehicles and other energy
1-29 applications that use alternative fuels;
1-30 (3) the conversion of school district motor vehicles
1-31 and other sources of substantial energy output to alternative fuels
1-32 under Section 21.174, Education Code, and its subsequent
1-33 amendments;
1-34 (4) the construction, acquisition, or maintenance by a
1-35 school district of fueling stations supplying alternative fuels or
1-36 equipment enhancing the use of engine-driven technology to support
1-37 school district motor vehicles and other energy applications that
1-38 use alternative fuels;
1-39 (5) the conversion of local mass transit authority or
1-40 department motor vehicles and other sources of substantial energy
1-41 output to alternative fuels under Section 14, Chapter 141, Acts of
1-42 the 63rd Legislature, Regular Session, 1973 (Article 1118x,
1-43 Vernon's Texas Civil Statutes), Section 20, Chapter 683, Acts of
1-44 the 66th Legislature, 1979 (Article 1118y, Vernon's Texas Civil
1-45 Statutes), and Section 6, Article 1118z, Revised Statutes, and
1-46 their subsequent amendments;
1-47 (6) the construction, acquisition, or maintenance of
1-48 fueling stations supplying alternative fuels or equipment enhancing
1-49 the use of engine-driven technology by a local mass transit
1-50 authority or department to support transit authority or department
1-51 vehicles and other energy applications that use alternative fuels;
1-52 <and>
1-53 (7) the conversion of motor vehicles and other sources
1-54 of substantial energy output of a local government, as defined by
1-55 Section 382.003, Health and Safety Code, to alternative fuels under
1-56 Section 382.134, Health and Safety Code;
1-57 (8) the conversion of motor vehicles and other sources
1-58 of substantial energy output of a hospital district or authority, a
1-59 housing authority, or a district or authority created under Section
1-60 52, Article III, Texas Constitution, or Section 59, Article XVI,
1-61 Texas Constitution, to alternative fuels;
1-62 (9) the construction, acquisition, or maintenance of
1-63 fueling stations supplying alternative fuels or equipment enhancing
1-64 the use of engine-driven technology to support motor vehicles and
1-65 other energy applications that use alternative fuels by a county, a
1-66 municipality, a hospital district or authority, a housing
1-67 authority, or a district or authority created under Section 52,
1-68 Article III, Texas Constitution, or Section 59, Article XVI, Texas
2-1 Constitution; and
2-2 (10) a joint venture between the private sector and a
2-3 state agency or political subdivision that is required under law to
2-4 use alternative fuels in the agency's or subdivision's vehicles or
2-5 other energy applications to:
2-6 (A) convert vehicles or other sources of
2-7 substantial energy output to alternative fuels;
2-8 (B) develop fueling stations and resources for
2-9 the supply of alternative fuels and engine-driven applications;
2-10 (C) aid in the distribution of alternative
2-11 fuels; and
2-12 (D) engage in other projects to facilitate the
2-13 use of alternative fuels.
2-14 (f) Costs of issuance of the bonds and of administration of
2-15 the alternative fuels finance program shall be considered a part of
2-16 project costs and shall be funded with bond proceeds.
2-17 (g) The authority may use the proceeds of obligations issued
2-18 by the authority to purchase, at a price determined by the
2-19 authority, an obligation of an entity described by Subsection (a)
2-20 of this section that evidences the entity's obligation to repay the
2-21 authority. Notwithstanding any other law to the contrary, the
2-22 authority may acquire an obligation of an entity described by
2-23 Subsection (a) of this section in a private sale as provided by
2-24 resolution or order of the governing body of the entity.
2-25 (h) An entity described by Subsection (a) of this section
2-26 may borrow from the authority by selling an obligation to the
2-27 authority.
2-28 SECTION 2. The legislature affirms its intent that:
2-29 (1) the purpose of Chapter 603, Acts of the 73rd
2-30 Legislature, Regular Session, 1993, is to establish a program
2-31 whereby loans are made to state agencies, local governments
2-32 including school districts, mass transit authorities,
2-33 municipalities, counties, or special districts, and joint ventures
2-34 between the private sector and a state agency or local government
2-35 to finance alternative fuels projects through the purchase by the
2-36 state of obligations issued by those local governments or by the
2-37 pledge of state agency appropriations;
2-38 (2) the legislature may, but is not obligated to,
2-39 appropriate funds to make payments on behalf of local governments
2-40 for loans authorized by Chapter 603, Acts of the 73rd Legislature,
2-41 Regular Session, 1993;
2-42 (3) the loans authorized by Chapter 603, Acts of the
2-43 73rd Legislature, Regular Session, 1993, be made to facilitate
2-44 alternative fuels projects for conversion of vehicles, development
2-45 of fueling stations, and the other purposes described in the Act;
2-46 (4) local governments are authorized to issue
2-47 obligations as evidence of repayment of the loan made by the Texas
2-48 Public Finance Authority Board under the program authorized by
2-49 Chapter 603, Acts of the 73rd Legislature, Regular Session, 1993;
2-50 and
2-51 (5) the revenue bond program authorized by Chapter
2-52 603, Acts of the 73rd Legislature, Regular Session, 1993, be
2-53 implemented expeditiously to achieve its intended purposes.
2-54 SECTION 3. The importance of this legislation and the
2-55 crowded condition of the calendars in both houses create an
2-56 emergency and an imperative public necessity that the
2-57 constitutional rule requiring bills to be read on three several
2-58 days in each house be suspended, and this rule is hereby suspended,
2-59 and that this Act take effect and be in force from and after its
2-60 passage, and it is so enacted.
2-61 * * * * *