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A BILL TO BE ENTITLED
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AN ACT
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relating to authorizing the designation of an area adjacent to a |
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state highway project as a transportation finance zone and |
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requiring that the revenue from the state sales and use taxes |
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imposed in the zone be used to pay obligations issued in connection |
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with the project. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 201.943(e) and (f), Transportation |
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Code, are amended to read as follows: |
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(e) Long-term obligations in the amount proposed to be |
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issued by the commission may not be issued unless the comptroller |
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projects in a comptroller's certification that the amount of money |
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dedicated to the fund pursuant to Sections [Section] 49-k(e) and |
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(e-1), Article III, Texas Constitution, and required to be on |
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deposit in the fund pursuant to Sections 49-k(e-1) and (f) [Section
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49-k(f)], Article III, Texas Constitution, and the investment |
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earnings on that money, during each year of the period during which |
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the proposed obligations are scheduled to be outstanding will be |
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equal to at least 110 percent of the requirements to pay the |
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principal of and interest on the proposed long-term obligations |
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during that year. |
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(f) Short-term obligations in the amount proposed by the |
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commission may not be issued unless the comptroller, in a |
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comptroller's certification: |
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(1) assumes that the short-term obligations will be |
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refunded and refinanced to mature over a 20-year period with level |
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principal requirements and bearing interest at then current market |
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rates, as determined by the comptroller; and |
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(2) projects that the amount of money dedicated to the |
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fund pursuant to Sections [Section] 49-k(e) and (e-1), Article III, |
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Texas Constitution, and required to be on deposit in the fund |
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pursuant to Sections 49-k(e-1) and (f) [Section 49-k(f)], Article |
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III, Texas Constitution, and the investment earnings on that money, |
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during each year of the assumed 20-year period will be equal to at |
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least 110 percent of the requirements to pay the principal of and |
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interest on the proposed refunding obligations during that year. |
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SECTION 2. Subchapter M, Chapter 201, Transportation Code, |
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is amended by adding Section 201.9435 to read as follows: |
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Sec. 201.9435. TRANSPORTATION FINANCE ZONES. (a) This |
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section applies only to a state highway project in connection with |
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which the commission has issued or proposes to issue obligations |
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under Section 201.943. |
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(b) The commission by order or resolution may designate as a |
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transportation finance zone an area that is adjacent to the |
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right-of-way of an existing or proposed state highway project and |
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within two miles on either side of the center line of the state |
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highway. The area designated as a transportation finance zone may |
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extend more than two miles on either side of the center line of a |
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state highway if necessary to avoid the splitting of a location in |
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which the sale, storage, use, or other consumption of a taxable item |
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would be consummated. |
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(c) The designation of a transportation finance zone is not |
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effective until the legislature has reviewed and approved the |
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designation and boundaries of the zone. |
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(d) Notwithstanding Section 151.801(a), Tax Code, proceeds |
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from the collection of the taxes imposed by that chapter in |
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connection with a sale, storage, use, or other consumption that is |
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consummated in a transportation finance zone shall be deposited to |
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the credit of a separate account in the fund. |
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(e) The proceeds from the collection of taxes deposited to |
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the credit of the fund under Subsection (d) may be used only for the |
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purpose of paying the principal of and interest on obligations |
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issued in connection with the state highway project located in the |
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transportation finance zone in which the taxes were collected or a |
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related credit agreement. |
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(f) In any state fiscal year the comptroller may not deposit |
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more than $250 million to the credit of the fund under Subsection |
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(d). |
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(g) A transportation finance zone terminates on the earlier |
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of: |
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(1) the termination date, if any, specified in the |
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order or resolution designating the zone; or |
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(2) the date on which the principal of and interest on |
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the applicable obligations or related credit agreement are paid. |
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(h) The commission and the comptroller shall adopt rules to |
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implement and administer this section. |
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SECTION 3. Section 201.944(a), Transportation Code, is |
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amended to read as follows: |
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(a) The commission may guarantee on behalf of the state the |
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payment of any obligations and credit agreements issued under |
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Section 201.943 by pledging the full faith and credit of the state |
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to the payment of the obligations and credit agreements in the event |
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the revenue and money dedicated to the fund pursuant to Sections |
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[Section] 49-k(e) and (e-1), Article III, Texas Constitution, and |
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on deposit in the fund pursuant to Sections 49-k(e-1) and (f) |
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[Section 49-k(f)], Article III, Texas Constitution, are |
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insufficient for that purpose. |
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SECTION 4. This Act takes effect January 1, 2010, but only |
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if the constitutional amendment authorizing the legislature to |
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permit the Texas Transportation Commission, subject to legislative |
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review and approval, to designate the area adjacent to a state |
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highway project as a transportation finance zone and dedicating the |
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proceeds of the state sales and use taxes imposed in a |
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transportation finance zone to the Texas Mobility Fund for certain |
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purposes is approved by the voters. If that amendment is not |
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approved by the voters, this Act has no effect. |