By:  Ratliff                                          S.B. No. 1706

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the funding of passenger rail service by the Texas

 1-2     Department of Transportation.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subsection (b), Section 456.002, Transportation

 1-5     Code, is amended to read as follows:

 1-6           (b)  Each public transportation program provided by this

 1-7     chapter, with the exception of the passenger rail service

 1-8     assistance program under Subchapter D, is a matching grant program

 1-9     for public transportation projects.  Approval by the United States

1-10     of a proposed public transportation project means that the project

1-11     is consistent with the purposes of this chapter and with the

1-12     continuing, cooperative, and comprehensive regional transportation

1-13     planning implemented in accordance with the Federal Transit Act and

1-14     the Federal-Aid Highway Act.

1-15           SECTION 2.  Chapter 456, Transportation Code, is amended by

1-16     adding Subchapter D to read as follows:

1-17          SUBCHAPTER D.  PASSENGER RAIL SERVICE ASSISTANCE PROGRAM

1-18           Sec. 456.061.  DEFINITION.  In this subchapter, "eligible

1-19     corporation" means a corporation created under former Subchapter

1-20     III, Chapter 14, Title 45, United States Code (Pub. L. No. 91-518;

1-21     formerly 45 U.S.C. Section 501 et seq.; revised as 49 U.S.C.

1-22     Sections 24101 et seq. and 24301 et seq.).

1-23           Sec. 456.062.  LOANS TO CORPORATION.  (a)  Under the

 2-1     authority of Section 52-a, Article III, Texas Constitution, and

 2-2     from funds appropriated from the general revenue fund for such

 2-3     purposes, the commission may loan money to an eligible corporation

 2-4     that provides rail passenger service in the state.

 2-5           (b)  Notwithstanding any other statutory restriction, that

 2-6     portion of the state highway fund not dedicated by the constitution

 2-7     shall serve as collateral for repayment of a loan made under this

 2-8     section.  The comptroller may transfer from that portion of the

 2-9     state highway fund to the general revenue fund the amount needed to

2-10     repay any unpaid balance on the loan, including applicable

2-11     interest, in accordance with the loan agreement.

2-12           Sec. 456.063.  AGREEMENT.  The department, on behalf of the

2-13     commission and with the approval of the comptroller, shall enter

2-14     into an agreement, under terms and conditions it deems appropriate,

2-15     with an eligible corporation for the purposes of making a secured

2-16     loan under this subchapter.  The agreement must provide for

2-17     collateralization and guaranties in a form and amount determined by

2-18     the comptroller and the commission sufficient to repay to the state

2-19     highway fund any money transferred to the general revenue fund

2-20     under Section 456.062(b).

2-21           Sec. 456.064.  LIMITATION OF FUNDING.  The commission may

2-22     only expend funds specifically appropriated by the legislature for

2-23     the purposes of this subchapter.

2-24           SECTION 3.  The importance of this legislation and the

2-25     crowded condition of the calendars in both houses create an

 3-1     emergency and an imperative public necessity that the

 3-2     constitutional rule requiring bills to be read on three several

 3-3     days in each house be suspended, and this rule is hereby suspended,

 3-4     and that this Act take effect and be in force from and after its

 3-5     passage, and it is so enacted.