79R9313 MTB-D

By:  Krusee                                                       H.B. No. 2652

relating to the creation of a private activity bond program for highway and surface freight facilities. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter B, Chapter 222, Transportation Code, is amended by adding Section 222.035 to read as follows: Sec. 222.035. PRIVATE ACTIVITY BONDS. (a) In this section, "private activity bond" has the meaning assigned by Section 141(a), Internal Revenue Code (26 U.S.C. Section 141(a)). (b) If the attorney general makes a determination that the United States Congress has enacted legislation amending the Internal Revenue Code to include highway facilities or surface freight transfer facilities among the types of facilities for which private activity bonds may be used: (1) the determination shall be published in the Texas Register; and (2) Subsections (d), (e), and (f) take effect on the 30th day after the date on which the attorney general's determination is published in the Texas Register. (c) The attorney general shall monitor federal legislation for purposes of this section. (d) The department shall administer a program for private activity bonds issued for highway facilities or surface freight transfer facilities in this state. (e) The program, at a minimum, must include a process by which the department receives and evaluates applications for issuance of private activity bonds for highway facilities or surface freight transfer facilities. The department shall approve an application if the application proposes a project that is a state priority, as determined by the department. (f) The department shall adopt rules to administer the program established under this section. SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2005.