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.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 407 passed the Senate on
         March 1, 2001, by the following vote:  Yeas 30, Nays 0, one
         present, not voting.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 407 passed the House on
         March 27, 2001, by the following vote:  Yeas 137, Nays 9, one
         present, not voting.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor