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.

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