1-1 By: Ratliff S.B. No. 1706 1-2 (In the Senate - Filed March 14, 1997; March 18, 1997, read 1-3 first time and referred to Committee on Finance; March 20, 1997, 1-4 reported adversely, with favorable Committee Substitute by the 1-5 following vote: Yeas 10, Nays 1; March 20, 1997, sent to printer.) 1-6 COMMITTEE SUBSTITUTE FOR S.B. No. 1706 By: Ratliff 1-7 A BILL TO BE ENTITLED 1-8 AN ACT 1-9 relating to the funding of passenger rail service by the Texas 1-10 Department of Transportation. 1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-12 SECTION 1. Subsection (b), Section 456.002, Transportation 1-13 Code, is amended to read as follows: 1-14 (b) Each public transportation program provided by this 1-15 chapter, with the exception of the passenger rail service 1-16 assistance program under Subchapter D, is a matching grant program 1-17 for public transportation projects. Approval by the United States 1-18 of a proposed public transportation project means that the project 1-19 is consistent with the purposes of this chapter and with the 1-20 continuing, cooperative, and comprehensive regional transportation 1-21 planning implemented in accordance with the Federal Transit Act and 1-22 the Federal-Aid Highway Act. 1-23 SECTION 2. Chapter 456, Transportation Code, is amended by 1-24 adding Subchapter D to read as follows: 1-25 SUBCHAPTER D. PASSENGER RAIL SERVICE ASSISTANCE PROGRAM 1-26 Sec. 456.061. DEFINITION. In this subchapter, "eligible 1-27 corporation" means a corporation created under former Subchapter 1-28 III, Chapter 14, Title 45, United States Code (Pub. L. No. 91-518; 1-29 formerly 45 U.S.C. Section 501 et seq.; revised as 49 U.S.C. 1-30 Sections 24101 et seq. and 24301 et seq.). 1-31 Sec. 456.062. LOANS TO CORPORATION. (a) Under the 1-32 authority of Section 52-a, Article III, Texas Constitution, and 1-33 from funds appropriated from the general revenue fund for such 1-34 purposes, the commission may loan money to an eligible corporation 1-35 that provides rail passenger service in the state. 1-36 (b) Notwithstanding any other statutory restriction, that 1-37 portion of the state highway fund not dedicated by the constitution 1-38 shall serve as collateral for repayment of a loan made under this 1-39 section. The comptroller may transfer from that portion of the 1-40 state highway fund to the general revenue fund the amount needed to 1-41 repay any unpaid balance on the loan, including applicable 1-42 interest, in accordance with the loan agreement. 1-43 Sec. 456.063. AGREEMENT. The department, on behalf of the 1-44 commission and with the approval of the comptroller, shall enter 1-45 into an agreement, under terms and conditions it deems appropriate, 1-46 with an eligible corporation for the purposes of making a secured 1-47 loan under this subchapter. The agreement must provide for 1-48 collateralization and guaranties in a form and amount determined by 1-49 the comptroller and the commission sufficient to repay to the state 1-50 highway fund any money transferred to the general revenue fund 1-51 under Section 456.062(b). 1-52 Sec. 456.064. LIMITATION OF FUNDING. The commission may 1-53 only expend funds specifically appropriated by the legislature for 1-54 the purposes of this subchapter. 1-55 SECTION 3. The importance of this legislation and the 1-56 crowded condition of the calendars in both houses create an 1-57 emergency and an imperative public necessity that the 1-58 constitutional rule requiring bills to be read on three several 1-59 days in each house be suspended, and this rule is hereby suspended, 1-60 and that this Act take effect and be in force from and after its 1-61 passage, and it is so enacted. 1-62 * * * * *