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79R8011 DWS-F

By:  Madla                                                        S.B. No. 1434



A BILL TO BE ENTITLED

AN ACT

relating to use of money of an advanced transportation district to 
pay or secure bond-related costs of a county, municipality, or 
local government corporation.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 451.701(4), Transportation Code, is 
amended to read as follows:
		(4)  "Mobility enhancement" means the design, 
construction, reconstruction, alteration, financing, and 
maintenance of:
			(A)  streets, roads, highways, high occupancy 
vehicle lanes, toll lanes, sidewalks, and infrastructure designed 
to improve mobility;
			(B)  traffic signal prioritization and 
coordination systems;               
			(C)  monitoring systems;  [and]                             
			(D)  other mobility enhancement facilities, 
equipment, systems, and services; and
			(E)  any debt service requirement, capitalized 
interest, reserve fund requirement, credit agreement as defined by 
Section 1371.001, Government Code, administrative cost, or other 
bond-related cost incurred by or relating to the issuance of 
obligations by a county or municipality or by a local government 
corporation created under Chapter 431 acting on behalf of a county 
or municipality.
	SECTION 2.  Section 451.702, Transportation Code, is amended 
by amending Subsection (i) and adding Subsections (k), (l), and (m) 
to read as follows:
	(i)  The governing body of the district shall place 
one-fourth of the proceeds of the sales and use tax in a separate 
account.  Funds in the account, together with interest or other 
revenues earned on those funds, may be used as determined by the 
governing body of the district only in the territory of the 
district:
		(1)  to provide the appropriate amount to the Texas 
Department of Transportation as the local share of a state or 
federal grant for advanced transportation or mobility enhancement 
purposes; and
		(2)  for the purposes provided by Subsection (k) [in 
the territory of the district].
	(k)  The governing body of the district may enter into an 
agreement or other contractual arrangement with a county, 
municipality, or local government corporation created under 
Chapter 431 by a county or municipality to transfer and create a 
lien on and pledge of the part of the district's sales and use tax 
identified in Subsection (i) for the benefit of obligations issued 
or incurred by the county, municipality, or local government 
corporation to finance any cost relating to mobility enhancement 
purposes.
	(l)  A lien or pledge under Subsection (k) is subject to 
Chapter 1208, Government Code.
	(m)  The governing body of the district may enter into an 
agreement or contractual arrangement under Subsection (k) without 
the necessity of an election.
	SECTION 3.  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.