1-1 By: Shapiro S.J.R. No. 16 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 28, 2001, reported adversely, with favorable Committee 1-5 Substitute by the following vote: Yeas 7, Nays 0; 1-6 February 28, 2001, sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.J.R. No. 16 By: Shapiro 1-8 SENATE JOINT RESOLUTION 1-9 proposing a constitutional amendment creating the Texas Mobility 1-10 Fund and authorizing the issuance of obligations for financing the 1-11 construction, reconstruction, acquisition, and expansion of state 1-12 highways and other mobility projects. 1-13 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-14 SECTION 1. Article III, Texas Constitution, is amended by 1-15 adding Section 49-k to read as follows: 1-16 Sec. 49-k. (a) In this section: 1-17 (1) "Commission" means the Texas Transportation 1-18 Commission or its successor. 1-19 (2) "Comptroller" means the comptroller of public 1-20 accounts of the State of Texas. 1-21 (3) "Fund" means the Texas Mobility Fund. 1-22 (4) "Obligations" means bonds, notes, and other 1-23 negotiable instruments. 1-24 (b) The Texas Mobility Fund is created with the comptroller 1-25 as a revolving fund to provide a method of financing the 1-26 construction, reconstruction, acquisition, and expansion of state 1-27 highways, including any necessary design and acquisition of 1-28 rights-of-way, as determined by the commission in accordance with 1-29 standards and procedures established by law. 1-30 (c) Money in the fund may also be used to provide 1-31 participation by the state in the payment of a portion of the costs 1-32 of constructing and providing publicly owned toll roads and other 1-33 public transportation projects in accordance with procedures, 1-34 standards, and limitations established by law. Income on money in 1-35 the fund shall be deposited in the fund. 1-36 (d) The commission may issue and sell obligations of the 1-37 state, and enter into related credit agreements, that are payable 1-38 from and secured by a pledge of and a lien on all or part of the 1-39 money on deposit from time to time in the fund in an aggregate 1-40 principal amount that can be repaid when due from the money on 1-41 deposit in the fund, including money that is required, by law 1-42 enacted under Subsection (e) of this section, to be deposited in 1-43 the fund, as that aggregate amount is projected by the comptroller 1-44 in accordance with procedures established by law. The proceeds of 1-45 the obligations must be deposited in the fund and used: 1-46 (1) for one or more of the specific purposes 1-47 authorized by law, including: 1-48 (A) refunding obligations authorized by this 1-49 section; 1-50 (B) creating reserves for payment of the 1-51 obligations and related credit agreements; 1-52 (C) paying the costs of issuance; and 1-53 (D) paying interest on the obligations and 1-54 related credit agreements for a period not longer than the maximum 1-55 period established by law; and 1-56 (2) in the manner, to the extent, on the terms, and 1-57 subject to the limitations prescribed or permitted by law. 1-58 (e) The legislature by law may dedicate to the fund one or 1-59 more specific sources or portions or a specific amount of the 1-60 revenue, including taxes, and other money of the state. In 1-61 exercising that authority, the legislature may dedicate to the fund 1-62 only that portion of the money received from the levy and 1-63 collection of motor vehicle registration fees and from taxes on 1-64 motor fuels and lubricants that are dedicated for public highway 2-1 and roadway purposes by Section 7-a, Article VIII, of this 2-2 constitution that result from the payment out of other funds of the 2-3 state of costs to which those fees and taxes are dedicated. 2-4 (f) Money dedicated as provided by this section is 2-5 appropriated when received by the state, shall be deposited in the 2-6 fund, and may be used as provided by this section and law enacted 2-7 under this section without further appropriation. While money in 2-8 the fund is pledged to the payment of any outstanding obligations 2-9 or related credit agreements, the dedication of a specific source 2-10 or portion of revenue, taxes, or other money made as provided by 2-11 this section may not be reduced, rescinded, or repealed unless: 2-12 (1) the legislature by law dedicates a substitute or 2-13 different source that is projected by the comptroller to be of a 2-14 value equal to or greater than the source or amount being reduced, 2-15 rescinded, or repealed and authorizes the commission to implement 2-16 the authority granted by Subsection (g) of this section; and 2-17 (2) the commission implements the authority granted by 2-18 the legislature pursuant to Subsection (g) of this section. 2-19 (g) In addition to the dedication of specified sources or 2-20 amounts of revenue, taxes, or money as provided by Subsection (e) 2-21 of this section, the legislature may by law authorize the 2-22 commission to guarantee the payment of any obligations and credit 2-23 agreements issued and executed by the commission under the 2-24 authority of this section by pledging the full faith and credit of 2-25 the state to that payment if dedicated revenue is insufficient for 2-26 that purpose. If that authority is granted and is implemented by 2-27 the commission, while any of the bonds, notes, other obligations, 2-28 or credit agreements are outstanding and unpaid, and for any fiscal 2-29 year during which the dedicated revenue, taxes, and money are 2-30 insufficient to make all payments when due, there is appropriated, 2-31 and there shall be deposited in the fund, out of the first money 2-32 coming into the state treasury in each fiscal year that is not 2-33 otherwise appropriated by this constitution, an amount that is 2-34 sufficient to pay the principal of the obligations and agreements 2-35 and the interest on the obligations and agreements that become due 2-36 during that fiscal year, minus any amount in the fund that is 2-37 available for that payment in accordance with applicable law. 2-38 (h) All obligations and related credit agreements to be 2-39 issued and executed under the authority of this section shall be 2-40 submitted to the attorney general for approval as to their 2-41 legality. If the attorney general finds that they will be issued 2-42 in accordance with this section and applicable law, the attorney 2-43 general shall approve them, and, after payment by the purchasers of 2-44 the obligations in accordance with the terms of sale and after 2-45 execution and delivery of the related credit agreements, they are 2-46 incontestable for any cause. 2-47 (i) Obligations and credit agreements issued or executed 2-48 under the authority of this section may not be included in the 2-49 computation required by Section 49-j, Article III, of this 2-50 constitution, except that if money in a specified amount has been 2-51 dedicated to the fund without specification of its source or the 2-52 authority granted by Subsection (g) of this section has been 2-53 implemented, the obligations and credit agreements shall be 2-54 included to the extent the comptroller projects that general funds 2-55 of the state, if any, will be required to pay amounts due on or on 2-56 account of the obligations and credit agreements. 2-57 (j) The collection and deposit of the amounts required by 2-58 this section, applicable law, and contract to be applied to the 2-59 payment of obligations and related credit agreements issued, 2-60 executed, and secured under the authority of this section may be 2-61 enforced by mandamus against the commission, an agency governed by 2-62 the commission, and the comptroller in a district court of Travis 2-63 County, and the sovereign immunity of the state is waived for that 2-64 purpose. 2-65 SECTION 2. This proposed constitutional amendment shall be 2-66 submitted to the voters at an election to be held November 6, 2001. 2-67 The ballot shall be printed to permit voting for or against the 2-68 proposition: "The constitutional amendment creating the Texas 2-69 Mobility Fund and authorizing the issuance of obligations for 3-1 financing the construction, reconstruction, acquisition, and 3-2 expansion of state highways and other mobility projects." 3-3 * * * * *