75R11497 DWS-F By Ratliff S.B. No. 1706 Substitute the following for S.B. No. 1706: By Delisi C.S.S.B. No. 1706 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the funding of passenger rail service by the Texas 1-3 Department of Transportation. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Section 456.002(b), Transportation Code, is 1-6 amended to read as follows: 1-7 (b) Each public transportation program provided by this 1-8 chapter, except the passenger rail service assistance program under 1-9 Subchapter D, is a matching grant program for public transportation 1-10 projects. Approval by the United States of a proposed public 1-11 transportation project means that the project is consistent with 1-12 the purposes of this chapter and with the continuing, cooperative, 1-13 and comprehensive regional transportation planning implemented in 1-14 accordance with the Federal Transit Act and the Federal-Aid Highway 1-15 Act. 1-16 SECTION 2. Chapter 456, Transportation Code, is amended by 1-17 adding Subchapter D to read as follows: 1-18 SUBCHAPTER D. PASSENGER RAIL SERVICE ASSISTANCE PROGRAM 1-19 Sec. 456.061. DEFINITION. In this subchapter, "eligible 1-20 corporation" means a corporation created under former Subchapter 1-21 III, Chapter 14, Title 45, United States Code (now 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 1-24 authority of Section 52-a, Article III, Texas Constitution, and 2-1 from funds appropriated from the general revenue fund for this 2-2 purpose, the commission may loan money to an eligible corporation 2-3 that provides rail passenger service in the state. 2-4 (b) Notwithstanding any other statutory restriction, the 2-5 portion of the state highway fund not dedicated by the constitution 2-6 is collateral for repayment of a loan made under this section. The 2-7 comptroller may transfer from that portion of the state highway 2-8 fund to the general revenue fund the amount needed to repay any 2-9 unpaid balance on the loan, including applicable interest, in 2-10 accordance with the loan agreement. 2-11 Sec. 456.063. AGREEMENT. The department, on behalf of the 2-12 commission and with the approval of the comptroller, shall enter 2-13 into an agreement, under terms and conditions the department 2-14 considers appropriate, with an eligible corporation for the 2-15 purposes of making a secured loan under this subchapter. The 2-16 agreement must provide for collateralization and guaranties in a 2-17 form and amount determined by the comptroller and the commission to 2-18 be sufficient to repay to the state highway fund any money 2-19 transferred to the general revenue fund under Section 456.062(b). 2-20 Sec. 456.064. LIMITATION OF FUNDING. The commission may 2-21 only expend funds specifically appropriated by the legislature for 2-22 the purposes of this subchapter. 2-23 Sec. 456.065. GUARANTEE FROM MUNICIPALITIES. The 2-24 department, on behalf of the commission and with the approval of 2-25 the comptroller, shall secure an agreement or agreements with the 2-26 municipalities served by an eligible corporation that receives 2-27 assistance under this subchapter to further guarantee the repayment 3-1 of half of any unpaid balance on a loan, including interest, made 3-2 under this subchapter. 3-3 SECTION 3. The importance of this legislation and the 3-4 crowded condition of the calendars in both houses create an 3-5 emergency and an imperative public necessity that the 3-6 constitutional rule requiring bills to be read on three several 3-7 days in each house be suspended, and this rule is hereby suspended, 3-8 and that this Act take effect and be in force from and after its 3-9 passage, and it is so enacted.