77R14433 JJT-D                          
         By Lucio, et al.                                      S.B. No. 1296
         Substitute the following for S.B. No. 1296:
         By Wise                                           C.S.S.B. No. 1296
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the issuance of general obligation bonds and notes to
 1-3     provide financial assistance to counties for roadway projects to
 1-4     serve border colonias.
 1-6           SECTION 1. Subtitle G, Title 9, Government Code, is amended
 1-7     by adding Chapter 1403 to read as follows:
 1-8                   CHAPTER 1403.  GENERAL OBLIGATION BONDS
1-10           Sec. 1403.001.  DEFINITIONS. In this chapter:
1-11                 (1)  "Authority" means the Texas Public Finance
1-12     Authority.
1-13                 (2)  "Commission" means the Texas Transportation
1-14     Commission.
1-16     COLONIA ROADWAY PROJECTS. (a)  As provided by Section 49-1, Article
1-17     III, Texas Constitution, the authority shall, in accordance with
1-18     requests from the office of the governor:
1-19                 (1)  issue general obligation bonds and notes in an
1-20     aggregate amount not to exceed $175 million, as authorized by the
1-21     office of the governor under Subsection (b); and
1-22                 (2)  as directed by the Texas Department of
1-23     Transportation, distribute the proceeds from the sale of the bonds
1-24     and notes to counties to provide financial assistance for colonia
 2-1     access roadway projects to serve border colonias.
 2-2           (b)  The office of the governor shall determine the amount of
 2-3     bonds or notes to be issued at any one time by the authority under
 2-4     Subsection (a)(1) and the times at which the bonds or notes are
 2-5     issued.
 2-6           (c)  The commission shall establish a program to administer
 2-7     the use of the proceeds of the bonds and notes.  The Texas
 2-8     Department of Transportation shall administer the program in
 2-9     cooperation with the office of the governor, the secretary of
2-10     state, and the Texas A&M University Center for Housing and Urban
2-11     Development.
2-12           (d)  The commission, in cooperation with the office of the
2-13     governor, shall:
2-14                 (1)  define by rule "border colonia";
2-15                 (2)  establish by rule criteria for selecting which
2-16     areas and which colonia access roadway projects are eligible for
2-17     assistance under this chapter;
2-18                 (3)  determine the counties and the colonia access
2-19     roadway projects that are to receive financial assistance and the
2-20     amount of assistance given to a county or project;
2-21                 (4)  establish by rule minimum road standards a
2-22     county's colonia access roadway proposal must meet to be awarded a
2-23     grant;
2-24                 (5)  establish by rule grant application procedures;
2-25     and
2-26                 (6)  establish by rule financial reporting requirements
2-27     for counties that receive assistance for colonia access roadway
 3-1     projects to serve border colonias.
 3-2           (e)  The issuance of general obligation bonds under this
 3-3     chapter shall comply with and is subject to Subtitle A, of this
 3-4     title, Chapter 1231, and applicable provisions of Chapters 1232 and
 3-5     1371.
 3-6           (f)  In connection with bonds or notes issued under this
 3-7     section, the authority may enter into one or more credit agreements
 3-8     at any time for a period and on conditions the authority approves.
 3-9     For purposes of this subsection, "credit agreement" includes:
3-10                 (1)  an interest rate swap agreement;
3-11                 (2)  an interest rate lock agreement;
3-12                 (3)  a currency swap agreement;
3-13                 (4)  a forward payment conversion agreement;
3-14                 (5)  an agreement to provide payments based on levels
3-15     of or changes in interest rates or currency exchange rates;
3-16                 (6)  an agreement to exchange cash flows or a series of
3-17     payments;
3-18                 (7)  an option, put, or call to hedge payment,
3-19     currency, rate, spread, or other exposure; or
3-20                 (8)  another agreement that enhances the marketability,
3-21     security, or creditworthiness of bonds or notes.
3-22           SECTION 2. This Act takes effect on the date on which the
3-23     constitutional amendment proposed by the 77th Legislature, Regular
3-24     Session, 2001, authorizing the issuance of state general obligation
3-25     bonds or notes to provide financial assistance to counties for
3-26     roadway projects to serve border colonias takes effect.  If that
3-27     amendment is not approved by the voters, this Act has no effect.