By Brown, et al. S.B. No. 1695
76R9009 JRD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the Texas Vital Infrastructure Program and to the
1-3 issuance of bonds backed by tobacco settlement money to pay for
1-4 infrastructure programs.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subtitle G, Title 10, Government Code, is amended
1-7 by adding Chapter 2312 to read as follows:
1-8 CHAPTER 2312. TEXAS VITAL INFRASTRUCTURE PROGRAM
1-9 Sec. 2312.001. DEVELOPMENT OF VITAL INFRASTRUCTURE PROGRAMS.
1-10 (a) The Texas Education Agency may define, develop, and propose to
1-11 the governor and the Legislative Budget Board infrastructure
1-12 programs relating to the construction and improvement of the
1-13 state's public school infrastructure, including public school
1-14 buildings and other essential public education facilities. The
1-15 agency shall design programs that will:
1-16 (1) provide needed infrastructure;
1-17 (2) help equalize the cost of building public school
1-18 infrastructure between school districts that have relatively high
1-19 taxable property values and school districts that have relatively
1-20 low taxable property values; or
1-21 (3) provide local property tax relief.
1-22 (b) The Texas Department of Health, and each institution of
1-23 higher education, as defined by Section 61.003, Education Code,
1-24 that has as a component or affiliate of the institution a health
2-1 sciences center or medical school, may define, develop, and propose
2-2 to the governor and the Legislative Budget Board infrastructure
2-3 programs designed to provide infrastructure for medical research,
2-4 such as cancer research or pediatric medical research, at state
2-5 medical research institutions.
2-6 (c) The Texas Department of Transportation may define,
2-7 develop, and propose to the governor and the Legislative Budget
2-8 Board infrastructure programs that will supplement the efforts of
2-9 counties and of the department to improve highways, roads, and
2-10 bridges in various parts of the state.
2-11 (d) The Texas Water Development Board may define, develop,
2-12 and propose to the governor and the Legislative Budget Board
2-13 infrastructure programs designed to provide or improve
2-14 infrastructure, such as water or wastewater facilities or
2-15 facilities required for the maintenance of the environment, to
2-16 improve the quality of life in various parts of the state.
2-17 Sec. 2312.002. REVIEW AND APPROVAL BY GOVERNOR AND
2-18 LEGISLATIVE BUDGET BOARD. (a) The governor and the Legislative
2-19 Budget Board shall review and comment on proposed programs
2-20 submitted under Section 2312.001. The governor and the budget board
2-21 shall consider the extent to which a proposed program is consistent
2-22 with the state's infrastructure priorities as determined under
2-23 applicable law or by the governor and the budget board.
2-24 (b) A proposed program is not considered approved unless the
2-25 governor and the Legislative Budget Board approve the program.
2-26 Sec. 2312.003. TEXAS PUBLIC FINANCE AUTHORITY; BOND REVIEW
2-27 BOARD. (a) After the governor and the Legislative Budget Board
3-1 approve a proposed program, the Texas Public Finance Authority
3-2 shall prepare a plan to issue bonds to pay for the approved
3-3 infrastructure program.
3-4 (b) The Texas Public Finance Authority shall submit the
3-5 financing plan to the Bond Review Board for its review and
3-6 approval.
3-7 Sec. 2312.004. ISSUANCE OF BONDS. (a) If the financing
3-8 plan is approved by the Bond Review Board, the Texas Public Finance
3-9 Authority shall issue bonds to finance the approved infrastructure
3-10 program on terms approved by the Bond Review Board and in
3-11 accordance with Section 49-k, Article III, Texas Constitution.
3-12 (b) The only money that may be pledged by the Texas Public
3-13 Finance Authority to the payment of the principal and interest on
3-14 the bonds is money generated by an approved vital infrastructure
3-15 program and money received by the state under the Comprehensive
3-16 Settlement Agreement and Release filed in the case styled The State
3-17 of Texas v. The American Tobacco Co., et al., No. 5-96CV-91, in the
3-18 United States District Court, Eastern District of Texas. For any
3-19 calendar year, not more than 50 percent of the sum of unspent and
3-20 unencumbered money received in previous years from settlement
3-21 proceeds in the tobacco litigation together with the projected
3-22 amount reasonably expected to be received from those proceeds
3-23 during that year may be scheduled for the payment of principal and
3-24 interest during the year on all outstanding bonds issued under this
3-25 chapter.
3-26 (c) The holders of bonds issued under this chapter have a
3-27 first lien on the money pledged to the payment of the bonds.
4-1 (d) Bonds issued under this section must be issued subject
4-2 to the condition that bondholders do not have the right to demand
4-3 payment out of a source of money that has not been specifically
4-4 pledged to the payment of principal and interest on the bonds.
4-5 Sec. 2312.005. TRANSFER OF TOBACCO SETTLEMENT MONEY. (a)
4-6 The comptroller shall transfer any amounts received by the state as
4-7 proceeds of the tobacco settlement described by Section 2312.004
4-8 that are pledged to the payment of principal or interest on a bond
4-9 issued under this chapter into a separate vital infrastructure
4-10 program account in the general revenue fund. All payments of
4-11 principal and interest on bonds issued under this chapter shall be
4-12 made from that account.
4-13 (b) Amounts in the vital infrastructure program account that
4-14 are not required during a fiscal year to make payments of principal
4-15 and interest on bonds or to create a reasonable reserve fund for
4-16 the bonds may be appropriated for other purposes for that fiscal
4-17 year.
4-18 SECTION 2. This Act takes effect on the date on which the
4-19 constitutional amendment proposed by the 76th Legislature, Regular
4-20 Session, 1999, allowing the state to create a program involving the
4-21 issuance of bonds to meet the vital infrastructure needs of the
4-22 state, takes effect. If that amendment is not approved by the
4-23 voters, this Act has no effect.
4-24 SECTION 3. The importance of this legislation and the
4-25 crowded condition of the calendars in both houses create an
4-26 emergency and an imperative public necessity that the
4-27 constitutional rule requiring bills to be read on three several
5-1 days in each house be suspended, and this rule is hereby suspended.