By: Ogden S.B. No. 1083
(In the Senate - Filed March 10, 2003; March 17, 2003, read
first time and referred to Committee on Infrastructure Development
and Security; April 9, 2003, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 8, Nays 0;
April 9, 2003, sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1083 By: Ogden
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 highway improvement projects.
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.
(b) The aggregate principal amount of the bonds and other
public securities that are issued may not exceed $5 billion. The
commission may only issue bonds or other public securities in an
aggregate principal amount of not more than $1 billion each year.
(c) Proceeds from the sale of bonds and other public
securities issued under this section shall be used to fund highway
improvement projects. Of the aggregate principal amount of bonds
and other public securities that may be issued under this section,
at least 20 percent of the proceeds from the bonds or other public
securities shall be used to fund highway safety improvement
projects that correct or improve hazardous locations on the state
highway system, as determined by the commission.
(d) 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.
(e) The proceeds of bonds and other public securities issued
under this section may not be used for any purpose other than any
costs related to the bonds and other public securities and the
purposes for which revenues are dedicated under Section 7-a,
Article VIII, Texas Constitution.
(f) 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.
(g) All laws affecting the issuance of bonds and other
public securities by governmental entities, including Chapters
1201, 1202, 1204, 1207, 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.
(h) The proceeds of bonds and other public securities issued
under this section may be used to:
(1) finance other funds relating to the public
security, including debt service reserve and contingency; and
(2) pay the cost or expense of the issuance of the
public security.
(i) 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
by the commission to cause annual expenditures with respect to the
obligations to exceed 10 percent of the amount deposited to the
credit of the state highway fund in the immediately preceding year.
(j) Bonds and other public securities issued under this
section may be sold in such manner and subject to such terms and
provisions as set forth in the order authorizing their issuance,
and such bonds and other public securities must mature not later
than 20 years after their dates of issuance, subject to any
refundings or renewals.
(k) The comptroller shall withdraw from the state highway
fund and forward at the direction of the commission to another
person 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 become 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 highway improvement projects takes effect. If
that amendment is not approved by the voters, this Act has no
effect.
* * * * *