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A BILL TO BE ENTITLED
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AN ACT
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relating to the issuance by the Texas Transportation Commission of |
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general obligation bonds for highway improvement projects. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 222, Transportation Code, |
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is amended by adding Section 222.004 to read as follows: |
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Sec. 222.004. ISSUANCE OF GENERAL OBLIGATION BONDS FOR |
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HIGHWAY IMPROVEMENT PROJECTS. (a) The commission may issue |
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general obligation bonds to fund state highway improvement |
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projects. |
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(b) The aggregate principal amount of the bonds that are |
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issued may not exceed the amount specified by Section 49-p(a), |
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Article III, Texas Constitution. |
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(c) The proceeds of the bonds may not be used for any purpose |
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other than the payment of any costs related to the bonds and the |
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purposes for which revenues are dedicated under Section 7-a, |
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Article VIII, Texas Constitution. |
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(d) The commission may enter into credit agreements, as |
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defined by Chapter 1371, Government Code, relating to the bonds. |
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The agreements may be secured by and payable from the same sources |
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as the bonds. |
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(e) All laws affecting the issuance of bonds and other |
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public securities by governmental entities, including Chapters |
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1201, 1202, 1204, 1207, 1231, and 1371, Government Code, apply to |
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the issuing of bonds and the entering into of credit agreements |
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under this section. |
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(f) The proceeds of the bonds may be used to: |
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(1) finance other funds relating to the bonds, |
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including debt service reserve and contingency; and |
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(2) pay the expense of the issuance of the bonds. |
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(g) The bonds may be sold in the manner and subject to the |
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terms and provisions provided by the order authorizing their |
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issuance. The bonds must mature not later than 30 years after their |
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dates of issuance, subject to any refunding or renewal. |
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(h) The comptroller shall pay the principal of the bonds as |
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they mature and the interest as it becomes payable and shall pay any |
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costs related to the bonds that become due, including payments |
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under credit agreements. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |