By: Pickett H.B. No. 471
A BILL TO BE ENTITLED
relating to the borrowing of money by the Texas Department of
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 201, Transportation Code,
is amended by adding Section 201.115 to read as follows:
Sec. 201.115. BORROWING MONEY. (a) The commission may
authorize the department to borrow money from the state treasury or
any other source to carry out the functions of the department.
(b) A contract for a loan under this section may contain any
provisions the department considers appropriate, except:
(1) the term of the loan may not exceed five years;
(2) the amount of the loan, combined with any amounts
outstanding on other loans under this section, may not exceed the
average monthly revenue deposited to the state highway fund for the
12 months preceding the month of the loan; and
(3) the loan may not create general obligation of the
state and is payable only as authorized by legislative
(c) The comptroller may contract with the department for a
loan of money in the state treasury, other than money in the state
highway fund, that is not dedicated to a specific purpose.
(d) Notwithstanding Section 222.001, money in the state
highway fund may be used to repay a loan under this section, if
appropriated by the legislature for that purpose.
SECTION 2. This Act takes effect on the date on which the
constitutional amendment proposed by the 78th Legislature, Regular
Session, 2003, providing for authorization of the borrowing of
money on a short-term basis by a state transportation agency for
transportation-related projects takes effect. If that amendment is
not approved by the voters, this Act has no effect.