1-1     By:  Shapiro                                             S.B. No. 4
 1-2           (In the Senate - Filed January 25, 2001; January 29, 2001,
 1-3     read first time and referred to Committee on State Affairs;
 1-4     February 28, 2001, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 7, Nays 0;
 1-6     February 28, 2001, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 4                    By:  Shapiro
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the administration and use of the Texas Mobility Fund
1-11     and the issuance of obligations for financing the construction,
1-12     reconstruction, acquisition, and expansion of state highways and
1-13     other mobility projects.
1-14           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-15           SECTION 1.  Chapter 201, Transportation Code, is amended by
1-16     adding Subchapter M to read as follows:
1-17             SUBCHAPTER M.  OBLIGATIONS FOR CERTAIN HIGHWAY AND
1-18                              MOBILITY PROJECTS
1-19           Sec. 201.941.  DEFINITIONS.  In this subchapter:
1-20                 (1)  "Comptroller's certification" means:
1-21                       (A)  as to long-term obligations, the
1-22     certification made under Section 201.943(e); and
1-23                       (B)  as to short-term obligations, the
1-24     certification made under Section 201.943(f).
1-25                 (2)  "Credit agreement" has the meaning assigned by
1-26     Section 1371.001, Government Code.
1-27                 (3)  "Fund" means the Texas Mobility Fund.
1-28                 (4)  "Long-term obligations" means an issue or series
1-29     of obligations the latest scheduled maturity of which is more than
1-30     five years.
1-31                 (5)  "Maximum obligation amount" means the maximum
1-32     aggregate principal amount of long-term obligations and short-term
1-33     obligations that the commission may issue from time to time after
1-34     receipt of the applicable comptroller's certification.
1-35                 (6)  "Obligations" means bonds, notes, or other
1-36     negotiable securities.
1-37                 (7)  "Short-term obligations" means an issue or series
1-38     of obligations the latest scheduled maturity of which is five years
1-39     or less.
1-40           Sec. 201.942.  ADMINISTRATION OF FUND.  The comptroller shall
1-41     hold the fund, and the commission, through the department, shall
1-42     manage, invest, use, and administer the fund as provided by this
1-43     subchapter.  Income on money in the fund shall be deposited in the
1-44     fund.
1-45           Sec. 201.943.  AUTHORITY TO ISSUE OBLIGATIONS; PURPOSES;
1-46     LIMITATIONS.  (a) Subject to Subsections (e), (f), and (g), the
1-47     commission by order or resolution may issue obligations in the name
1-48     and on behalf of the state and the department and may enter into
1-49     credit agreements related to the obligations.  The obligations may
1-50     be issued in multiple series and issues from time to time in an
1-51     aggregate amount not exceeding the maximum obligation amount.  The
1-52     obligations may be issued on and may have the terms and provisions
1-53     the commission determines appropriate and in the interests of the
1-54     state.  The obligations may be issued as long-term obligations,
1-55     short-term obligations, or both.  The latest scheduled maturity of
1-56     an issue or series of obligations may not exceed 30 years.
1-57           (b)  Obligations must be secured by and payable from a pledge
1-58     of and lien on all or part of the money in the fund.  Obligations
1-59     may be additionally secured by and payable from credit agreements.
1-60     The commission may pay amounts due on the obligations from
1-61     discretionary money available to it that is not dedicated to or
1-62     appropriated for other specific purposes.
1-63           (c)  The commission may create within the fund accounts,
1-64     reserves, and subfunds for purposes the commission finds
 2-1     appropriate and necessary in connection with the issuance of
 2-2     obligations.
 2-3           (d)  Obligations may be issued for one or more of the
 2-4     following purposes:
 2-5                 (1)  to pay all or part of the costs of constructing,
 2-6     reconstructing, acquiring, and expanding state highways, including
 2-7     any necessary design and acquisition of rights-of-way, in the
 2-8     manner and locations determined by the commission that, according
 2-9     to conclusive findings of the commission, have an expected useful
2-10     life, without material repair, of not less than five years;
2-11                 (2)  to provide participation by the state in the
2-12     payment of part of the costs of constructing and providing publicly
2-13     owned toll roads and other transportation projects that are
2-14     determined by the commission to be in the best interests of the
2-15     state in its major goal of improving the mobility of the residents
2-16     of the state;
2-17                 (3)  to create debt service reserve accounts, paying
2-18     interest on obligations for a period of not longer than two years;
2-19                 (4)  to refund or cancel outstanding obligations; and
2-20                 (5)  to pay the commission's costs of issuance.
2-21           (e)  Long-term obligations in the amount proposed to be
2-22     issued by the commission may not be issued unless the comptroller
2-23     projects in a comptroller's certification that the amount of money
2-24     to be on deposit in the fund during each year of the period during
2-25     which the proposed obligations are scheduled to be outstanding will
2-26     be at least equal to 110 percent of the requirements to pay the
2-27     principal of and interest on the proposed long-term obligations
2-28     during the year.
2-29           (f)  Short-term obligations in the amount proposed by the
2-30     commission may not be issued unless the comptroller, in a
2-31     comptroller's certification:
2-32                 (1)  assumes that the short-term obligations will be
2-33     refunded and refinanced to mature over a 20-year period with level
2-34     principal requirements and bearing interest at then current market
2-35     rates, as determined by the comptroller; and
2-36                 (2)  projects that the amount of money to be on deposit
2-37     in the fund during each year of the assumed 20-year period will be
2-38     at least equal to 110 percent of the requirements to pay the
2-39     principal of and interest on the proposed refunding obligations
2-40     during the year.
2-41           (g)  The commission may agree to further restrictions in
2-42     connection with the issuance of obligations and may retain
2-43     independent professional consultants to make projections in
2-44     addition to, but not instead of, those of the comptroller if
2-45     required as a prerequisite to the issuance of the obligations.
2-46           (h)  The commission has all powers necessary or appropriate
2-47     to carry out this subchapter and to implement Section 49-k, Article
2-48     III, Texas Constitution, including the powers granted to other
2-49     bond-issuing governmental agencies and units and to nonprofit
2-50     corporations by Chapters 1201, 1207, and 1371, Government Code.
2-51           (i)  A comptroller's certification under this section must be
2-52     based on economic data, forecasting methods, and projections that
2-53     the comptroller determines are reliable.
2-54           Sec. 201.944.  PLEDGE OF STATE'S FULL FAITH AND CREDIT.
2-55     (a)  The commission may guarantee on behalf of the state the
2-56     payment of any obligations and credit agreements issued under
2-57     Section 201.943 by pledging the full faith and credit of the state
2-58     to the payment of the obligations and credit agreements in the
2-59     event the revenue and money dedicated under Section 201.945 or
2-60     other law and on deposit in the fund are insufficient for that
2-61     purpose.
2-62           (b)  The exercise of the authority granted by Subsection (a)
2-63     does not modify or relieve the commission from complying with
2-64     Section 201.943(e) or (f) and does not permit the issuance of
2-65     aggregate obligations in an amount exceeding the maximum obligation
2-66     amount.
2-67           (c)  If the commission exercises the authority granted by
2-68     Subsection (a), the constitutional appropriation contained in
2-69     Section 49-k(f), Article III, Texas Constitution, shall be
 3-1     implemented and observed by all officers of the state during any
 3-2     period during which obligations and credit agreements are
 3-3     outstanding and unpaid.
 3-4           Sec. 201.945.  DEDICATION OF REVENUE TO FUND.  Annually, out
 3-5     of the miscellaneous and general revenue of the state that is not
 3-6     dedicated for specific purposes by the constitution, an amount
 3-7     determined by the General Appropriations Act is dedicated to the
 3-8     fund.
 3-9           Sec. 201.946.  USE OF MONEY IN FUND.  (a) Money in the fund
3-10     may be invested in the investments permitted by law for the
3-11     investment of money on deposit in the state highway fund.
3-12           (b)  As a part of its covenants and commitments made in
3-13     connection with the issuance of obligations and the execution of
3-14     credit agreements, the commission may limit the types of
3-15     investments eligible for investment of money in the fund but may
3-16     not expand the types of investments to include any investments that
3-17     are not authorized by Subsection (a).
3-18           (c)  To the extent money is on deposit in the fund in amounts
3-19     that are in excess of the money required by the provisions of the
3-20     obligations and credit agreements to be retained on deposit, the
3-21     commission may use the money for any purpose for which obligations
3-22     may be issued under this subchapter.
3-23           SECTION 2.  This Act takes effect on the date on which the
3-24     constitutional amendment proposed by the 77th Legislature, Regular
3-25     Session, 2001,  creating the Texas Mobility Fund and authorizing
3-26     the issuance of obligations for financing the construction,
3-27     reconstruction, acquisition, and expansion of state highways and
3-28     other mobility projects, takes effect.  If that amendment is not
3-29     approved by the voters, this Act has no effect.
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