By Lucio                                               S.B. No. 241
         77R4057 DRH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the financing, construction, and improvement to
 1-3     critical transportation projects by the Texas Department of
 1-4     Transportation.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Subchapter B, Chapter 222, Transportation Code,
 1-7     is amended by adding Section 222.035 to read as follows:
 1-8           Sec. 222.035.  ISSUANCE OF GRANT ANTICIPATION REVENUE BONDS.
 1-9     (a)  The commission may issue bonds secured by a pledge of and
1-10     payable from revenue received or to be received from the federal
1-11     government that is available for the payment of bonds and
1-12     bond-related costs under 23 U.S.C. Section 122 and its subsequent
1-13     amendments and from other revenue deposited in the state highway
1-14     fund.
1-15           (b)  Proceeds from the sale of bonds issued under this
1-16     section shall be used to fund improvements to transportation
1-17     projects in the three border transportation districts of Pharr,
1-18     Laredo, and El Paso.
1-19           (c)  Chapters 1201, 1202, 1204, 1231, and 1371, Government
1-20     Code, apply to bonds issued under this chapter.
1-21           (d)  The proceeds of bonds issued under this section may not
1-22     be used for any purpose other than the purposes for which federal
1-23     revenues are dedicated under Section 7-b, Article VIII, Texas
1-24     Constitution.
 2-1           (e)  The commission may enter into bond enhancement
 2-2     agreements relating to the bonds authorized by this section.  The
 2-3     agreements may be secured by and made payable from the same sources
 2-4     as the bonds.
 2-5           (f)  The maximum annual debt service in any fiscal year on
 2-6     state debt authorized by this section may not exceed 15 percent of
 2-7     the amount received from the federal highway trust fund by this
 2-8     state in the preceding fiscal year.
 2-9           (g)  Before September 1, 2004, the Sunset Advisory Commission
2-10     shall review, conduct a performance evaluation of, and prepare a
2-11     written report on the improvements made with the proceeds of bonds
2-12     issued under this section in the manner that Chapter 325,
2-13     Government Code (Texas Sunset Act), requires the Sunset Advisory
2-14     Commission to review, evaluate, and report on a state agency
2-15     scheduled to be abolished on September 1, 2005.  The department
2-16     shall perform any duty related to that review and evaluation that
2-17     Chapter 325, Government Code (Texas Sunset Act), imposes on a state
2-18     agency under that chapter.
2-19           (h)  A project in the border transportation districts shall
2-20     receive priority by the commission if the project:
2-21                 (1)  involves an improvement to existing transportation
2-22     or supporting infrastructure that facilitates passage across the
2-23     Texas-Mexico border of passenger vehicles and commercial motor
2-24     vehicles;
2-25                 (2)  is related to construction of a highway that aids
2-26     the movement of passenger vehicles and commercial motor vehicles on
2-27     a high priority corridor on the national highway system; or
 3-1                 (3)  involves a construction improvement, including an
 3-2     improvement relating to electronic data interchange and use of
 3-3     telecommunications to expedite movement of vehicular traffic across
 3-4     the Texas-Mexico border.
 3-5           SECTION 2.  Subchapter B, Chapter 223, Transportation Code,
 3-6     is amended by adding Section 223.049 to read as follows:
 3-7           Sec. 223.049.  REPORTING REQUIREMENTS. Not later than
 3-8     December 1 of each even-numbered year, the commission shall report
 3-9     to the governor, lieutenant governor, and speaker of the house of
3-10     representatives on the use and effectiveness of bonds issued under
3-11     Section 222.035.  The report must include:
3-12                 (1)  a description of the use of:
3-13                       (A)  matching funds, matching funds relief, and
3-14     local incentives in approved bond projects;
3-15                       (B)  bonds for the acceleration of the Texas
3-16     highway trunk system as defined by department rule; and
3-17                       (C)  bonds for the development of highway and
3-18     bridge improvements in this state and along the Texas-Mexico
3-19     border;
3-20                 (2)  a list of projected, planned, and funded projects
3-21     and the location of the projects that have been or will be
3-22     constructed with the proceeds of the bonds issued under Section
3-23     222.035;
3-24                 (3)  recommended methods for optimum use of the bonds
3-25     and leveraging of state and federal funds to meet the needs of
3-26     international trade; and
3-27                 (4)  projections for the construction of improvements
 4-1     to critical transportation projects in the three border
 4-2     transportation districts of Pharr, Laredo, and El Paso for the next
 4-3     2, 4, 10, and 20 years if the authorization to issue bonds under
 4-4     Section 222.035 is continued.
 4-5           SECTION 3.  This Act takes effect on the date on which the
 4-6     constitutional amendment proposed by the 77th Legislature, Regular
 4-7     Session, 2001, that authorizes the legislature to provide for the
 4-8     issuance of bonds for certain improvements to the state highway
 4-9     system, takes effect.  If that amendment is not approved by the
4-10     voters, this Act has no effect.