1-1     By:  Goolsby, et al. (Senate Sponsor - Cain)          H.B. No. 1683
 1-2           (In the Senate - Received from the House March 22, 2001;
 1-3     March 26, 2001, read first time and referred to Committee on
 1-4     Intergovernmental Relations; May 9, 2001, reported favorably by the
 1-5     following vote:  Yeas 5, Nays 0, 1 present, not voting;
 1-6     May 9, 2001, sent to printer.)
 1-7                            A BILL TO BE ENTITLED
 1-8                                   AN ACT
 1-9     relating to the powers of certain transportation authorities and to
1-10     the exercise of those powers.
1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12           SECTION 1. Section 452.108, Transportation Code, is amended
1-13     by adding Subsection (f) to read as follows:
1-14           (f)  Subsection (c) does not apply to a lease or financing
1-15     agreement that is payable from or secured by a pledge of funds
1-16     described by Section 452.357(a)(4).
1-17           SECTION 2. Section 452.357, Transportation Code, is amended
1-18     by amending Subsection (a)  and adding Subsection (e) to read as
1-19     follows:
1-20           (a)  To secure the payment of an authority's bonds, the
1-21     authority may:
1-22                 (1)  pledge all or part of revenue realized from any
1-23     tax that the authority may impose;
1-24                 (2)  pledge any part of the revenue of the public
1-25     transportation system; [and]
1-26                 (3)  mortgage any part of the public transportation
1-27     system, including any part of the system subsequently acquired; and
1-28                 (4)  pledge all or part of funds the federal government
1-29     has committed to the authority as grants in aid.
1-30           (e)  The authority may pledge funds described by Subsection
1-31     (a)(4):
1-32                 (1)  as the sole security for the bonds; or
1-33                 (2)  in addition to any other security described by
1-34     this section.
1-35           SECTION 3. Subchapter O, Chapter 452, Transportation Code, is
1-36     amended by adding Section 452.580 to read as follows:
1-37           Sec. 452.580.  CHANGE OF BUDGETING POLICY. A subregional
1-38     board may adopt on a two-thirds vote of the board a budgeting
1-39     policy for the authority that provides for the adoption and
1-40     implementation of a budget that extends for two fiscal years, with
1-41     annual reviews as needed.
1-42           SECTION 4. This Act takes effect September 1, 2001.
1-43                                  * * * * *