By Cain                                                S.B. No. 570
         77R5453 JD-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the powers of certain transportation authorities and to
 1-3     the exercise of those powers.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 452.108, Transportation Code, is amended
 1-6     by adding Subsection (f) to read as follows:
 1-7           (f)  Subsection (c) does not apply to a lease or financing
 1-8     agreement that is payable from or secured by a pledge of funds
 1-9     described by Section 452.357(a)(4).
1-10           SECTION 2. Section 452.357, Transportation Code, is amended
1-11     by amending Subsection (a)  and adding Subsection (e) to read as
1-12     follows:
1-13           (a)  To secure the payment of an authority's bonds, the
1-14     authority may:
1-15                 (1)  pledge all or part of revenue realized from any
1-16     tax that the authority may impose;
1-17                 (2)  pledge any part of the revenue of the public
1-18     transportation system; [and]
1-19                 (3)  mortgage any part of the public transportation
1-20     system, including any part of the system subsequently acquired; and
1-21                 (4)  pledge all or part of anticipated future funds the
1-22     authority expects to receive from grants in aid from the federal
1-23     government.
1-24           (e)  The authority may pledge funds described by Subsection
 2-1     (a)(4):
 2-2                 (1)  as the sole security for the bonds; or
 2-3                 (2)  in addition to any other security described by
 2-4     this section.
 2-5           SECTION 3. Subchapter O, Chapter 452, Transportation Code, is
 2-6     amended by adding Section 452.580 to read as follows:
 2-7           Sec. 452.580.  CHANGE OF BUDGETING POLICY. A subregional
 2-8     board may adopt on a two-thirds vote of the board a budgeting
 2-9     policy for the authority that provides for the adoption and
2-10     implementation of a budget that extends for two fiscal years.
2-11           SECTION 4. This Act takes effect September 1, 2001.