By:  Ogden                                                        S.B. No. 1083


A BILL TO BE ENTITLED

AN ACT

relating to the issuance of bonds and other public securities 
secured by the state highway fund and the financing and 
construction of highways.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter A, Chapter 222, Transportation Code, 
is amended by adding Section 222.003 to read as follows:
	Sec. 222.003.  ISSUANCE OF BONDS SECURED BY STATE HIGHWAY 
FUND.  (a)  The commission may issue bonds and other public 
securities secured by a pledge of and payable from revenue 
deposited to the credit of the state highway fund.  The total amount 
of the bonds and other public securities may not exceed $5 billion.
	(b)  $1 billion from the sale of bonds and other public 
securities issued under this section shall be used only to fund 
highway safety improvement projects that correct or improve 
hazardous locations on the state highway system.
	(c)  The commission by rule shall prescribe criteria for 
selecting highway safety improvement projects eligible for funding 
under this section.  In establishing these criteria, the commission 
shall consider accident data, traffic volume, pavement geometry, 
and other conditions that can create or exacerbate hazardous 
roadway conditions.
	(d)  The proceeds of bonds and other public securities issued 
under this section may not be used for any purpose other than the 
purposes for which revenues are dedicated under Section 7-a, 
Article VIII, Texas Constitution.
	(e)  The commission may enter into bond enhancement 
agreements relating to the bonds and other public securities 
authorized by this section.  The agreements may be secured by and 
payable from the same sources as the bonds and other public 
securities.
	(f)  Chapters 1201, 1202, 1204, 1231, and 1371, Government 
Code, apply to the issuing of bonds and other public securities and 
the entering into of bond enhancement agreements under this 
section.
	(g)  Bonds and other public securities and bond enhancement 
agreements authorized by this section may not have a principal 
amount or terms that, at the time the bonds or other public 
securities are issued or the agreements entered into, are expected 
to cause annual expenditures with respect to all the bond 
obligations to exceed 10 percent of the amount deposited to the 
credit of the state highway fund in the year prior to issue.
	(h)  Bonds and other public securities issued under this 
section must mature not later than 15 years after their dates of 
issuance, subject to any refundings or renewals.
	(i)  The comptroller shall withdraw from the state highway 
fund and forward to the commission or another person at the 
direction of the commission the amounts as determined by the 
commission to permit timely payment of:
		(1)  the principal of and interest on the bonds and 
other public securities that mature or become due; and
		(2)  any cost related to the bonds and other public 
securities that becomes due, including payments under bond 
enhancement agreements.
	SECTION 2.  This Act takes effect on the date on which the 
constitutional amendment proposed by the 78th Legislature, Regular 
Session, 2003, that authorizes the legislature to provide for the 
issuance of bonds and other public securities secured by the state 
highway fund for improvements to the state highway system takes 
effect.  If that amendment is not approved by the voters, this Act 
has no effect.