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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. GENERAL OBLIGATION BONDS FOR HIGHWAY |
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IMPROVEMENT PROJECTS. (a) In this section: |
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(1) "Bonds" means bonds, notes, and other public |
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securities. |
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(2) "Credit agreement" has the meaning assigned by |
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Section 1371.001, Government Code. |
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(3) "Improvement" includes the design of a highway, |
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the acquisition of a highway, the construction of a highway, the |
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major maintenance of a highway, and the acquisition of highway |
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rights-of-way. |
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(b) The commission by order or resolution may issue general |
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obligation bonds for the purposes stated in this section. The |
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aggregate principal amount of the bonds may not exceed the amount |
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specified by Section 49-p(a), Article III, Texas Constitution. |
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(c) The commission may enter into credit agreements |
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relating to the bonds. A credit agreement entered into under this |
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section may be secured by and payable from the same sources as the |
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bonds. |
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(d) The bonds shall be executed in the form, on the terms, |
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and in the denominations, bear interest, and be issued in |
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installments as prescribed by the commission, and must mature not |
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later than 30 years after their dates of issuance, subject to any |
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refundings or renewals. The bonds may be issued in multiple series |
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and issues from time to time and may include any provision the |
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commission determines appropriate and in the interest of this |
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state. |
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(e) The commission has any power necessary or appropriate to |
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carry out this section or to implement Section 49-p, Article III, |
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Texas Constitution, including each power granted to other |
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governmental units or agencies authorized to issue bonds or to a |
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nonprofit corporation by Chapter 1201, 1207, or 1371, Government |
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Code. |
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(f) The bonds, the record of the proceedings that authorize |
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the bonds, and any related credit agreement shall be submitted to |
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the attorney general for approval as to their legality. If the |
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attorney general finds that the bonds will be issued in accordance |
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with this section and other applicable law, the attorney general |
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shall approve the bonds. After payment by the purchasers of the |
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bonds in accordance with the terms of sale and the execution and |
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delivery of any related credit agreement, the bonds and the related |
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credit agreement are incontestable for any cause. |
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(g) Bonds may be issued for one or more of the following |
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purposes: |
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(1) to pay all or part of the costs of a highway |
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improvement project; |
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(2) to pay: |
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(A) the costs of administering a project |
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authorized under this section; |
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(B) the cost or expense of the issuance of the |
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bonds; or |
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(C) all or part of a payment owed or to be owed |
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under a credit agreement; |
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(3) to provide money for deposit to the credit of the |
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Texas Transportation Revolving Fund or a similar revolving fund |
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authorized by law, to be used to make loans for highway improvement |
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projects as provided by law; and |
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(4) to provide money to be used to finance projects |
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authorized by Section 222.104. |
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(h) Proceeds from the sale of the bonds may not be spent or |
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used for a purpose authorized by this section unless the |
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legislature has appropriated the proceeds. |
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(i) Ten percent of the proceeds from the sale of the bonds |
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must be used for the sole purpose of financing projects authorized |
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by Section 222.104. Bond proceeds dedicated by this subsection |
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shall be deposited to the credit of a separate account in the |
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general revenue fund created for the deposit of money to be used to |
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finance projects authorized by Section 222.104. |
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(j) The comptroller shall pay the principal of the bonds as |
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the bonds mature and the interest as it becomes payable and shall |
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pay any cost related to the bonds that becomes due, including a |
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payment under a credit agreement. |
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(k) The commission shall make a good faith effort to recruit |
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individuals who are in the private sector and described by Section |
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201.403 to underwrite the issuance of bonds under this section. |
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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. |