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.