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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) 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 acquisition of the |
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highway, construction, reconstruction, and major maintenance, |
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including any necessary design, and the acquisition of |
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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 provided in this section. The |
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aggregate principal amount of the bonds that are issued may not |
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exceed the amount specified by Section 49-p(a), Article III, Texas |
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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 have the provisions the |
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commission determines appropriate and in the interest of the state. |
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(e) The commission has all powers necessary or appropriate |
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to carry out this section and to implement Section 49-p, Article |
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III, Texas Constitution, including the powers granted to other |
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bond-issuing governmental agencies and units and to nonprofit |
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corporations by Chapters 1201, 1207, and 1371, Government Code. |
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(f) The bonds and the record of proceedings authorizing the |
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bonds and any related credit agreements shall be submitted to the |
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attorney general for approval as to their legality. If the attorney |
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general finds that they will be issued in accordance with this |
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section and other applicable law, the attorney general shall |
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approve them, and, after payment by the purchasers of the |
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obligations in accordance with the terms of sale and after |
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execution and delivery of the related credit agreements, the |
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obligations and related credit agreements are incontestable for any |
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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 highway |
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improvement projects; |
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(2) to pay: |
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(A) the costs of administering projects |
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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; and |
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(3) to provide money for deposit in the Texas |
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Transportation Revolving Fund or similar revolving fund authorized |
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by law, to be used for the purpose of making loans for highway |
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improvement projects as provided by law. |
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(h) The proceeds from the issuance and sale of the bonds may |
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not be expended or used for the purposes authorized under this |
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section unless those proceeds have been appropriated by the |
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legislature. |
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(i) 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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cost related to the bonds that becomes 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. |
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