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. 1-30 * * * * *