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.