1-1     By:  Cain, Shapiro, Zaffirini                          S.B. No. 407
 1-2           (In the Senate - Filed January 25, 2001; January 29, 2001,
 1-3     read first time and referred to Committee on State Affairs;
 1-4     February 21, 2001, reported favorably by the following vote:  Yeas
 1-5     9, Nays 0; February 21, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the authority of a public entity to borrow funds from
 1-9     the state infrastructure bank.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Subchapter D, Chapter 222, Transportation Code,
1-12     is amended by adding Section 222.0745 to read as follows:
1-13           Sec. 222.0745.  INCURRENCE OF DEBT BY PUBLIC ENTITY.  (a)  A
1-14     public entity in this state, including a municipality, county,
1-15     district, authority, agency, department, board, or commission, that
1-16     is authorized by law to construct, maintain, or finance a qualified
1-17     project may borrow money from the bank, including by direct loan,
1-18     based on the credit of the public entity.
1-19           (b)  Money borrowed under this section must be segregated
1-20     from other funds under the control of the public entity and may
1-21     only be used for purposes related to a qualified project.
1-22           (c)  The authority granted by this section does not affect
1-23     the ability of a public entity to incur debt using other
1-24     statutorily authorized methods.
1-25           SECTION 2.  This Act takes effect immediately if it receives
1-26     a vote of two-thirds of all the members elected to each house, as
1-27     provided by Section 39, Article III, Texas Constitution.  If this
1-28     Act does not receive the vote necessary for immediate effect, this
1-29     Act takes effect September 1, 2001.
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