By: Shapiro S.B. No. 4
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the administration and use of the Texas Mobility Fund
1-3 and the issuance of obligations for financing the construction,
1-4 reconstruction, acquisition, and expansion of state highways and
1-5 other mobility projects.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Chapter 201, Transportation Code, is amended by
1-8 adding Subchapter M to read as follows:
1-9 SUBCHAPTER M. OBLIGATIONS FOR CERTAIN HIGHWAY AND
1-10 MOBILITY PROJECTS
1-11 Sec. 201.941. DEFINITIONS. In this subchapter:
1-12 (1) "Comptroller's certification" means:
1-13 (A) as to long-term obligations, the
1-14 certification made under Section 201.943(e); and
1-15 (B) as to short-term obligations, the
1-16 certification made under Section 201.943(f).
1-17 (2) "Credit agreement" has the meaning assigned by
1-18 Section 1371.001, Government Code.
1-19 (3) "Fund" means the Texas Mobility Fund.
1-20 (4) "Long-term obligations" means an issue or series
1-21 of obligations the latest scheduled maturity of which is more than
1-22 five years.
1-23 (5) "Maximum obligation amount" means the maximum
1-24 aggregate principal amount of long-term obligations and short-term
1-25 obligations that the commission may issue from time to time after
2-1 receipt of the applicable comptroller's certification.
2-2 (6) "Obligations" means bonds, notes, or other
2-3 negotiable securities.
2-4 (7) "Short-term obligations" means an issue or series
2-5 of obligations the latest scheduled maturity of which is five years
2-6 or less.
2-7 Sec. 201.942. ADMINISTRATION OF FUND. The comptroller shall
2-8 hold the fund, and the commission, through the department, shall
2-9 manage, invest, use, and administer the fund as provided by this
2-10 subchapter. Income on money in the fund shall be deposited in the
2-11 fund.
2-12 Sec. 201.943. AUTHORITY TO ISSUE OBLIGATIONS; PURPOSES;
2-13 LIMITATIONS. (a) Subject to Subsections (e), (f), and (g), the
2-14 commission by order or resolution may issue obligations in the name
2-15 and on behalf of the state and the department and may enter into
2-16 credit agreements related to the obligations. The obligations may
2-17 be issued in multiple series and issues from time to time in an
2-18 aggregate amount not exceeding the maximum obligation amount. The
2-19 obligations may be issued on and may have the terms and provisions
2-20 the commission determines appropriate and in the interests of the
2-21 state. The obligations may be issued as long-term obligations,
2-22 short-term obligations, or both. The latest scheduled maturity of
2-23 an issue or series of obligations may not exceed 30 years.
2-24 (b) Obligations must be secured by and payable from a pledge
2-25 of and lien on all or part of the money in the fund. Obligations
2-26 may be additionally secured by and payable from credit agreements.
3-1 The commission may pay amounts due on the obligations from
3-2 discretionary money available to it that is not dedicated to or
3-3 appropriated for other specific purposes.
3-4 (c) The commission may create within the fund accounts,
3-5 reserves, and subfunds for purposes the commission finds
3-6 appropriate and necessary in connection with the issuance of
3-7 obligations.
3-8 (d) Obligations may be issued for one or more of the
3-9 following purposes:
3-10 (1) to pay all or part of the costs of constructing,
3-11 reconstructing, acquiring, and expanding state highways, including
3-12 any necessary design and acquisition of rights-of-way, in the
3-13 manner and locations determined by the commission that, according
3-14 to conclusive findings of the commission, have an expected useful
3-15 life, without material repair, of not less than five years;
3-16 (2) to provide participation by the state in the
3-17 payment of part of the costs of constructing and providing publicly
3-18 owned toll roads and other transportation projects that are
3-19 determined by the commission to be in the best interests of the
3-20 state in its major goal of improving the mobility of the residents
3-21 of the state;
3-22 (3) to create debt service reserve accounts, paying
3-23 interest on obligations for a period of not longer than two years;
3-24 (4) to refund or cancel outstanding obligations; and
3-25 (5) to pay the commission's costs of issuance.
3-26 (e) Long-term obligations in the amount proposed to be
4-1 issued by the commission may not be issued unless the comptroller
4-2 projects in a comptroller's certification that the amount of money
4-3 to be on deposit in the fund during each year of the period during
4-4 which the proposed obligations are scheduled to be outstanding will
4-5 be at least equal to 110 percent of the requirements to pay the
4-6 principal of and interest on the proposed long-term obligations
4-7 during the year.
4-8 (f) Short-term obligations in the amount proposed by the
4-9 commission may not be issued unless the comptroller, in a
4-10 comptroller's certification:
4-11 (1) assumes that the short-term obligations will be
4-12 refunded and refinanced to mature over a 20-year period with level
4-13 principal requirements and bearing interest at then current market
4-14 rates, as determined by the comptroller; and
4-15 (2) projects that the amount of money to be on deposit
4-16 in the fund during each year of the assumed 20-year period will be
4-17 at least equal to 110 percent of the requirements to pay the
4-18 principal of and interest on the proposed refunding obligations
4-19 during the year.
4-20 (g) The commission may agree to further restrictions in
4-21 connection with the issuance of obligations and may retain
4-22 independent professional consultants to make projections in
4-23 addition to, but not instead of, those of the comptroller if
4-24 required as a prerequisite to the issuance of the obligations.
4-25 (h) The commission has all powers necessary or appropriate
4-26 to carry out this subchapter and to implement Section 49-k, Article
5-1 III, Texas Constitution, including the powers granted to other
5-2 bond-issuing governmental agencies and units and to nonprofit
5-3 corporations by Chapters 1201, 1207, and 1371, Government Code.
5-4 (i) A comptroller's certification under this section must be
5-5 based on economic data, forecasting methods, and projections that
5-6 the comptroller determines are reliable.
5-7 Sec. 201.944. PLEDGE OF STATE'S FULL FAITH AND CREDIT.
5-8 (a) The commission may guarantee on behalf of the state the
5-9 payment of any obligations and credit agreements issued under
5-10 Section 201.943 by pledging the full faith and credit of the state
5-11 to the payment of the obligations and credit agreements in the
5-12 event the revenue and money dedicated under Section 201.945 or
5-13 other law and on deposit in the fund are insufficient for that
5-14 purpose.
5-15 (b) The exercise of the authority granted by Subsection (a)
5-16 does not modify or relieve the commission from complying with
5-17 Section 201.943(e) or (f) and does not permit the issuance of
5-18 aggregate obligations in an amount exceeding the maximum obligation
5-19 amount.
5-20 (c) If the commission exercises the authority granted by
5-21 Subsection (a), the constitutional appropriation contained in
5-22 Section 49-k(f), Article III, Texas Constitution, shall be
5-23 implemented and observed by all officers of the state during any
5-24 period during which obligations and credit agreements are
5-25 outstanding and unpaid.
5-26 Sec. 201.945. DEDICATION OF REVENUE TO FUND. Annually, out
6-1 of the miscellaneous and general revenue of the state that is not
6-2 dedicated for specific purposes by the constitution, an amount
6-3 determined by the General Appropriations Act is dedicated to the
6-4 fund.
6-5 Sec. 201.946. USE OF MONEY IN FUND. (a) Money in the fund
6-6 may be invested in the investments permitted by law for the
6-7 investment of money on deposit in the state highway fund.
6-8 (b) As a part of its covenants and commitments made in
6-9 connection with the issuance of obligations and the execution of
6-10 credit agreements, the commission may limit the types of
6-11 investments eligible for investment of money in the fund but may
6-12 not expand the types of investments to include any investments that
6-13 are not authorized by Subsection (a).
6-14 (c) To the extent money is on deposit in the fund in amounts
6-15 that are in excess of the money required by the provisions of the
6-16 obligations and credit agreements to be retained on deposit, the
6-17 commission may use the money for any purpose for which obligations
6-18 may be issued under this subchapter.
6-19 SECTION 2. This Act takes effect on the date on which the
6-20 constitutional amendment proposed by the 77th Legislature, Regular
6-21 Session, 2001, creating the Texas Mobility Fund and authorizing
6-22 the issuance of obligations for financing the construction,
6-23 reconstruction, acquisition, and expansion of state highways and
6-24 other mobility projects, takes effect. If that amendment is not
6-25 approved by the voters, this Act has no effect.