By Pickett, Hawley                                    H.B. No. 1370
         77R5475 JD-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the authority of certain public entities to borrow from
 1-3     the state infrastructure bank.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Subchapter D, Chapter 222, Transportation Code, is
 1-6     amended by adding Section 222.0745 to read as follows:
 1-7           Sec. 222.0745.  AUTHORITY OF PUBLIC ENTITY TO BORROW FROM
 1-8     BANK. (a)  This section applies only to a public entity, including
 1-9     a municipality, county, district, authority, agency, department,
1-10     board, or commission, that is authorized to construct, maintain, or
1-11     finance a qualified project.
1-12           (b)  A public entity may borrow funds for a qualified project
1-13     from the bank without issuing bonds or other obligations evidencing
1-14     the loan.
1-15           (c)  Funds borrowed by a public entity under this section
1-16     must be segregated from other money under the control of the public
1-17     entity and may be used only for a purpose related to the qualified
1-18     project for which the funds were borrowed.
1-19           SECTION 2. This Act takes effect immediately if it receives a
1-20     vote of two-thirds of all the members elected to each house, as
1-21     provided by Section 39, Article III, Texas Constitution.  If this
1-22     Act does not receive the vote necessary for immediate effect, this
1-23     Act takes effect September 1, 2001.