By Shapiro S.B. No. 4
Substitute the following for S.B. No. 4:
By Alexander C.S.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
2-1 obligations that the commission may issue from time to time after
2-2 receipt of the applicable comptroller's certification.
2-3 (6) "Obligations" means bonds, notes, and other public
2-4 securities.
2-5 (7) "Short-term obligations" means an issue or series
2-6 of obligations the latest scheduled maturity of which is five years
2-7 or less.
2-8 Sec. 201.942. ADMINISTRATION OF FUND. The comptroller shall
2-9 hold the fund, and the commission, through the department, shall
2-10 manage, invest, use, and administer the fund as provided by this
2-11 subchapter.
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.
2-27 The commission may pay amounts due on the obligations from
3-1 discretionary money available to it that is not dedicated to or
3-2 appropriated for other specific purposes.
3-3 (c) The commission may create within the fund accounts,
3-4 reserves, and subfunds for purposes the commission finds
3-5 appropriate and necessary in connection with the issuance of
3-6 obligations.
3-7 (d) Obligations may be issued for one or more of the
3-8 following purposes:
3-9 (1) to pay all or part of the costs of constructing,
3-10 reconstructing, acquiring, and expanding state highways, including
3-11 any necessary design and acquisition of rights-of-way, in the
3-12 manner and locations determined by the commission that, according
3-13 to conclusive findings of the commission, have an expected useful
3-14 life, without material repair, of not less than 10 years;
3-15 (2) to provide participation by the state in the
3-16 payment of part of the costs of constructing and providing publicly
3-17 owned toll roads and other public transportation projects that are
3-18 determined by the commission to be in the best interests of the
3-19 state in its major goal of improving the mobility of the residents
3-20 of the state;
3-21 (3) to create debt service reserve accounts;
3-22 (4) to pay interest on obligations for a period of not
3-23 longer than two years;
3-24 (5) to refund or cancel outstanding obligations; and
3-25 (6) to pay the commission's costs of issuance.
3-26 (e) Long-term obligations in the amount proposed to be
3-27 issued by the commission may not be issued unless the comptroller
4-1 projects in a comptroller's certification that the amount of money
4-2 dedicated to the fund pursuant to Subsection (f), Section 49-k,
4-3 Article III, Texas Constitution, and required to be on deposit in
4-4 the fund pursuant to Subsection (g), Section 49-k, Article III,
4-5 Texas Constitution, and the investment earnings on that money,
4-6 during each year of the period during which the proposed
4-7 obligations are scheduled to be outstanding will be equal to at
4-8 least 110 percent of the requirements to pay the principal of and
4-9 interest on the proposed long-term obligations during that year.
4-10 (f) Short-term obligations in the amount proposed by the
4-11 commission may not be issued unless the comptroller, in a
4-12 comptroller's certification:
4-13 (1) assumes that the short-term obligations will be
4-14 refunded and refinanced to mature over a 20-year period with level
4-15 principal requirements and bearing interest at then current market
4-16 rates, as determined by the comptroller; and
4-17 (2) projects that the amount of money dedicated to the
4-18 fund pursuant to Subsection (f), Section 49-k, Article III, Texas
4-19 Constitution, and required to be on deposit in the fund pursuant to
4-20 Subsection (g), Section 49-k, Article III, Texas Constitution, and
4-21 the investment earnings on that money, during each year of the
4-22 assumed 20-year period will be equal to at least 110 percent of the
4-23 requirements to pay the principal of and interest on the proposed
4-24 refunding obligations during that year.
4-25 (g) The commission may agree to further restrictions in
4-26 connection with the issuance of obligations and may retain
4-27 independent professional consultants to make projections in
5-1 addition to, but not instead of, those of the comptroller if
5-2 required as a prerequisite to the issuance of the obligations.
5-3 (h) The commission has all powers necessary or appropriate
5-4 to carry out this subchapter and to implement Section 49-k, Article
5-5 III, Texas Constitution, including the powers granted to other
5-6 bond-issuing governmental agencies and units and to nonprofit
5-7 corporations by Chapters 1201, 1207, and 1371, Government Code.
5-8 (i) As required by Subsection (i), Section 49-k, Article
5-9 III, Texas Constitution, proceedings authorizing obligations and
5-10 related credit agreements to be issued and executed under this
5-11 subchapter shall be submitted to the attorney general for approval
5-12 as to their legality. If the attorney general finds that they will
5-13 be issued in accordance with this subchapter and other applicable
5-14 law, the attorney general shall approve them, and, after payment by
5-15 the purchasers of the obligations in accordance with the terms of
5-16 sale and after execution and delivery of the related credit
5-17 agreements, the obligations and related credit agreements are
5-18 incontestable for any cause.
5-19 (j) A comptroller's certification under this section must be
5-20 based on economic data, forecasting methods, and projections that
5-21 the comptroller determines are reliable.
5-22 (k) The holders of obligations and the counterparties to
5-23 credit agreements have the rights granted in Subsection (k),
5-24 Section 49-k, Article III, Texas Constitution.
5-25 Sec. 201.944. PLEDGE OF STATE'S FULL FAITH AND CREDIT.
5-26 (a) The commission may guarantee on behalf of the state the
5-27 payment of any obligations and credit agreements issued under
6-1 Section 201.943 by pledging the full faith and credit of the state
6-2 to the payment of the obligations and credit agreements in the
6-3 event the revenue and money dedicated to the fund pursuant to
6-4 Subsection (f), Section 49-k, Article III, Texas Constitution, and
6-5 on deposit in the fund pursuant to Subsection (g), Section 49-k,
6-6 Article III, Texas Constitution, are insufficient for that purpose.
6-7 (b) The exercise of the authority granted by Subsection (a)
6-8 does not modify or relieve the commission from complying with
6-9 Section 201.943(e) or (f) and does not permit the issuance of
6-10 aggregate obligations in an amount exceeding the maximum obligation
6-11 amount.
6-12 (c) If the commission exercises the authority granted by
6-13 Subsection (a), the constitutional appropriation contained in
6-14 Subsection (h), Section 49-k, Article III, Texas Constitution,
6-15 shall be implemented and observed by all officers of the state
6-16 during any period during which obligations and credit agreements
6-17 are outstanding and unpaid.
6-18 Sec. 201.945. DEDICATION OF REVENUE TO FUND. Annually, the
6-19 revenue of the state that is dedicated or appropriated to the fund
6-20 pursuant to Subsection (f), Section 49-k, Article III, Texas
6-21 Constitution, shall be deposited to the fund in accordance with
6-22 Subsection (g), Section 49-k, Article III, Texas Constitution.
6-23 Sec. 201.946. INVESTMENT AND USES OF MONEY IN FUND.
6-24 (a) Money in the fund may be invested in the investments permitted
6-25 by law for the investment of money on deposit in the state highway
6-26 fund.
6-27 (b) As a part of its covenants and commitments made in
7-1 connection with the issuance of obligations and the execution of
7-2 credit agreements, the commission may limit the types of
7-3 investments eligible for investment of money in the fund but may
7-4 not expand the types of investments to include any investments that
7-5 are not authorized by Subsection (a).
7-6 (c) Income received from the investment of money in the fund
7-7 shall be deposited in the fund, subject to requirements that may be
7-8 imposed by the proceedings authorizing obligations to protect the
7-9 tax-exempt status of interest payable on the obligations under the
7-10 Internal Revenue Code of 1986.
7-11 (d) To the extent money is on deposit in the fund in amounts
7-12 that are in excess of the money required by the proceedings
7-13 authorizing the obligations and credit agreements to be retained on
7-14 deposit, the commission may use the money for any purpose for which
7-15 obligations may be issued under this subchapter.
7-16 SECTION 2. (a) This Act takes effect:
7-17 (1) on the date on which the constitutional amendment
7-18 proposed by S.J.R. 16, 77th Legislature, Regular Session, 2001,
7-19 takes effect; and
7-20 (2) only if S.B. 342, 77th Legislature, Regular
7-21 Session, 2001, is enacted and becomes law.
7-22 (b) If the constitutional amendment proposed by S.J.R. 16 is
7-23 not approved by the voters or if S.B. 342 does not become law, this
7-24 Act has no effect.