By Oliveira H.B. No. 52
77R352 DRH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the financing and construction of highways 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. Subchapter B, Chapter 222, Transportation Code,
1-6 is amended by adding Sections 222.035 and 222.036 to read as
1-7 follows:
1-8 Sec. 222.035. ISSUANCE OF GRANT ANTICIPATION REVENUE BONDS.
1-9 (a) The commission may issue bonds secured by a pledge of and
1-10 payable from revenue received or to be received from the federal
1-11 government that is available for the payment of bonds and
1-12 bond-related costs under 23 U.S.C. Section 122, as amended, and
1-13 from other revenues deposited to the credit of the state highway
1-14 fund.
1-15 (b) The commission shall use proceeds from the sale of bonds
1-16 issued under this section to fund improvements to the state highway
1-17 system. An improvement is eligible for funding under this section
1-18 only if the improvement has a total cost estimated to exceed $50
1-19 million. In its use of the proceeds of the bonds issued under this
1-20 section, the commission shall consider among the state's highest
1-21 priorities improvements relating to North American Free Trade
1-22 Agreement trade corridors.
1-23 (c) The only laws relating to the issuance of bonds that
1-24 apply to bonds issued under this section are Chapters 1201, 1202,
2-1 1204, 1231, and 1371, Government Code.
2-2 (d) The proceeds of bonds issued under this section may not
2-3 be used for any purpose other than the purposes for which federal
2-4 revenues are dedicated under Section 7-b, Article VIII, Texas
2-5 Constitution.
2-6 (e) The commission may enter into bond enhancement
2-7 agreements relating to the bonds authorized by this section. The
2-8 agreements may be secured by and made payable from the same sources
2-9 as the bonds.
2-10 (f) Annual payments for the principal of and interest on
2-11 bonds issued under this section may not exceed 15 percent of
2-12 federal highway apportionments expected to be received by this
2-13 state in the year of payment.
2-14 (g) Before September 1, 2004, the Sunset Advisory Commission
2-15 shall review, conduct a performance evaluation of, and prepare a
2-16 written report on the commission's issuance of bonds under this
2-17 section in the manner that Chapter 325, Government Code (Texas
2-18 Sunset Act), requires the Sunset Advisory Commission to review,
2-19 evaluate, and report on a state agency scheduled to be abolished on
2-20 September 1, 2005. The department shall perform any duty related
2-21 to that review and evaluation that Chapter 325, Government Code
2-22 (Texas Sunset Act), imposes on a state agency under that chapter.
2-23 (h) This section expires September 1, 2005.
2-24 Sec. 222.036. REPORTING REQUIREMENTS. (a) Not later than
2-25 December 1 of each even-numbered year, the commission shall report
2-26 to the governor, lieutenant governor, and speaker of the house of
2-27 representatives on the use and effectiveness of bonds issued under
3-1 Section 222.035. The report shall identify high priority North
3-2 American Free Trade Agreement trade corridor improvements for which
3-3 the time for construction was shortened through the issuance of
3-4 bonds under Section 222.035.
3-5 (b) This section expires September 1, 2005.
3-6 SECTION 2. This Act takes effect on the date the
3-7 constitutional amendment authorizing the legislature to provide for
3-8 the issuance of bonds for certain improvements to the state highway
3-9 system takes effect. If that amendment is not approved by the
3-10 voters, this Act has no effect.