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. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 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 1-9 FOR CERTAIN BORDER COLONIA PROJECTS 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. 1-15 Sec. 1403.002. GENERAL OBLIGATION BONDS AND NOTES FOR BORDER 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.