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.