By Lucio S.B. No. 190
77R1713 DRH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the financing and construction of highways by the Texas
1-3 Department of Transportation.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter B, Chapter 222, Transportation Code,
1-6 is amended by adding Section 222.035 to read as follows:
1-7 Sec. 222.035. ISSUANCE OF GRANT ANTICIPATION REVENUE BONDS.
1-8 (a) The commission may issue bonds secured by a pledge of and
1-9 payable from revenue received or to be received from the federal
1-10 government that is available for the payment of bonds and
1-11 bond-related costs under 23 U.S.C. Section 122 and its subsequent
1-12 amendments and from other revenue deposited in the state highway
1-13 fund.
1-14 (b) Proceeds from the sale of bonds issued under this
1-15 section shall be used to fund improvements to the state highway
1-16 system. The commission shall give priority to:
1-17 (1) North American Free Trade Agreement-related
1-18 projects; and
1-19 (2) completion of the Texas highway trunk system, as
1-20 defined by department rule.
1-21 (c) Chapters 1201, 1202, 1204, 1231, and 1371, Government
1-22 Code, apply to bonds issued under this chapter.
1-23 (d) The proceeds of bonds issued under this section may not
1-24 be used for any purpose other than the purposes for which federal
2-1 revenues are dedicated under Section 7-b, Article VIII, Texas
2-2 Constitution.
2-3 (e) The commission may enter into bond enhancement
2-4 agreements relating to the bonds authorized by this section. The
2-5 agreements may be secured by and made payable from the same sources
2-6 as the bonds.
2-7 (f) The maximum annual debt service in any fiscal year on
2-8 state debt authorized by this section may not exceed 15 percent of
2-9 the amount received from the federal highway trust fund by this
2-10 state in the preceding fiscal year.
2-11 (g) Before September 1, 2004, the Sunset Advisory Commission
2-12 shall review, conduct a performance evaluation of, and prepare a
2-13 written report on the improvements made with the proceeds of bonds
2-14 issued under this section in the manner that Chapter 325,
2-15 Government Code (Texas Sunset Act), requires the Sunset Advisory
2-16 Commission to review, evaluate, and report on a state agency
2-17 scheduled to be abolished on September 1, 2005. The department
2-18 shall perform any duty related to that review and evaluation that
2-19 Chapter 325, Government Code (Texas Sunset Act), imposes on a state
2-20 agency under that chapter.
2-21 (h) In this section, "North American Free Trade
2-22 Agreement-related project" means a project that:
2-23 (1) involves an improvement to existing transportation
2-24 or supporting infrastructure that facilitates passage across the
2-25 Texas-Mexico border of passenger vehicles and commercial motor
2-26 vehicles;
2-27 (2) is related to construction of a highway that aids
3-1 the movement of passenger vehicles and commercial motor vehicles on
3-2 a high priority corridor on the national highway system;
3-3 (3) involves a construction improvement, including an
3-4 improvement relating to electronic data interchange and use of
3-5 telecommunications to expedite movement of vehicular traffic across
3-6 the Texas-Mexico border; or
3-7 (4) is located within 100 miles of the Texas-Mexico
3-8 border.
3-9 (i) This section expires September 1, 2005.
3-10 SECTION 2. Subchapter B, Chapter 223, Transportation Code,
3-11 is amended by adding Section 223.049 to read as follows:
3-12 Sec. 223.049. REPORTING REQUIREMENTS. (a) Not later than
3-13 December 1 of each even-numbered year, the commission shall report
3-14 to the governor, lieutenant governor, and speaker of the house of
3-15 representatives on the use and effectiveness of bonds issued under
3-16 Section 222.035. The report must include:
3-17 (1) a description of the use of:
3-18 (A) matching funds, matching funds relief, and
3-19 local incentives in approved bond projects;
3-20 (B) bonds for the acceleration of the Texas
3-21 highway trunk system as defined by department rule;
3-22 (C) bonds for the acceleration of the
3-23 construction of North American Free Trade Agreement-related
3-24 projects, as defined by Section 222.035; and
3-25 (D) bonds for the development of highway and
3-26 bridge improvements in this state and along the Texas-Mexico
3-27 border;
4-1 (2) a list of projected, planned, and funded projects
4-2 and the location of the projects that have been or will be
4-3 constructed with the proceeds of the bonds issued under Section
4-4 222.035;
4-5 (3) recommended methods for optimum use of the bonds
4-6 and leveraging of state and federal funds to meet the needs of
4-7 international trade; and
4-8 (4) projections for the construction of improvements
4-9 to the state highway system for the next five, 10, and 20 years if
4-10 the authorization to issue bonds under Section 222.035 is
4-11 continued.
4-12 (b) This section expires September 1, 2005.
4-13 SECTION 3. This Act takes effect on the date on which the
4-14 constitutional amendment proposed by the 77th Legislature, Regular
4-15 Session, 2001, that authorizes the legislature to provide for the
4-16 issuance of bonds for certain improvements to the state highway
4-17 system, takes effect. If that amendment is not approved by the
4-18 voters, this Act has no effect.