By: Cain, et al. S.B. No. 407 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the authority of a public entity to borrow funds from 1-3 the state infrastructure bank. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter D, Chapter 222, Transportation Code, 1-6 is amended by adding Section 222.0745 to read as follows: 1-7 Sec. 222.0745. INCURRENCE OF DEBT BY PUBLIC ENTITY. (a) A 1-8 public entity in this state, including a municipality, county, 1-9 district, authority, agency, department, board, or commission, that 1-10 is authorized by law to construct, maintain, or finance a qualified 1-11 project may borrow money from the bank, including by direct loan, 1-12 based on the credit of the public entity. 1-13 (b) Money borrowed under this section must be segregated 1-14 from other funds under the control of the public entity and may 1-15 only be used for purposes related to a qualified project. 1-16 (c) The authority granted by this section does not affect 1-17 the ability of a public entity to incur debt using other 1-18 statutorily authorized methods. 1-19 SECTION 2. This Act takes effect immediately if it receives 1-20 a vote of two-thirds of all the members elected to each house, as 1-21 provided by Section 39, Article III, Texas Constitution. If this 1-22 Act does not receive the vote necessary for immediate effect, this 1-23 Act takes effect September 1, 2001.