By: Lucio, et al. S.B. No. 241
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the financing and construction of highways.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapter B, Chapter 222, Transportation Code,
1-5 is amended by adding Section 222.035 to read as follows:
1-6 Sec. 222.035. ISSUANCE OF GRANT ANTICIPATION REVENUE BONDS.
1-7 (a) The commission may issue bonds secured by a pledge of and
1-8 payable from:
1-9 (1) revenue received or to be received from the
1-10 federal 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;
1-13 (2) other revenue deposited in the state highway fund;
1-14 or
1-15 (3) a combination of those sources.
1-16 (b) Proceeds from the sale of bonds issued under this
1-17 section shall be used to fund improvements to the state highway
1-18 system. The commission shall select the improvements to be funded
1-19 considering the following criteria:
1-20 (1) potential cost savings, economic and
1-21 environmental benefits, and other benefits associated with
1-22 completing the project earlier than would be possible using
1-23 traditional methods of funding; and
1-24 (2) the effect on the state's transportation system.
1-25 (c) The proceeds of bonds issued under this section may not
2-1 be used for any purpose other than the purposes for which federal
2-2 revenues are dedicated under Section 7-b, Article VIII, Texas
2-3 Constitution.
2-4 (d) The commission may enter into bond enhancement
2-5 agreements relating to the bonds authorized by this section. The
2-6 agreements may be secured by and made payable from the same sources
2-7 as the bonds.
2-8 (e) Bonds issued under this section must mature not later
2-9 than 15 years after their date.
2-10 (f) Bonds issued and bond enhancement agreements entered
2-11 into under this section may not have a principal amount or terms
2-12 that, at the time of the issuance or agreement, are expected to
2-13 cause expenditures with respect to the obligations to exceed five
2-14 percent of the federal highway obligation authority anticipated to
2-15 be received by this state in any year payments are to be due on the
2-16 obligations.
2-17 (g) The commission may not issue the bonds without the
2-18 approval of the Bond Review Board.
2-19 (h) Before the issuance of bonds or the entering into of a
2-20 bond enhancement agreement, the proceedings relating to the
2-21 issuance or agreement shall be submitted to the attorney general
2-22 for review and approval. If the attorney general finds that the
2-23 proceedings conform to law, the attorney general shall approve
2-24 them. After this approval the bonds or agreements are
2-25 incontestable.
2-26 (i) The comptroller shall withdraw from the state highway
3-1 fund and forward to the commission or another person at the
3-2 direction of the commission the amounts as determined by the
3-3 commission to permit timely payment of:
3-4 (1) the principal of and interest on the bonds that
3-5 mature or become due; and
3-6 (2) any cost related to the bonds that becomes due,
3-7 including payments under bond enhancement agreements, eligible for
3-8 reimbursement under federal law.
3-9 (j) Before each issuance of bonds authorized by this
3-10 section, the commission shall determine the 10-year historic
3-11 average expenditure ratio of nonfederal aid projects to federal aid
3-12 projects and certify to the governor and Legislative Budget Board,
3-13 in a form prescribed by the governor and Legislative Budget Board,
3-14 that the ratio will not be reduced as a result of the proposed
3-15 issuance.
3-16 SECTION 2. This Act takes effect on the date on which the
3-17 constitutional amendment proposed by the 77th Legislature, Regular
3-18 Session, 2001, that authorizes the legislature to provide for the
3-19 issuance of bonds for improvements to the state highway system
3-20 takes effect. If that amendment is not approved by the voters,
3-21 this Act has no effect.