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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation, administration, financing, and use of a |
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Texas Transportation Revolving Fund; granting the authority to |
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issue bonds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 222, Transportation Code, is amended by |
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adding Subchapter F to read as follows: |
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SUBCHAPTER F. TEXAS TRANSPORTATION REVOLVING FUND |
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Sec. 222.131. DEFINITIONS. In this subchapter: |
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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) "Fund" means the Texas Transportation Revolving |
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Fund. |
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(4) "Fund revenue bonds" means bonds issued under |
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Section 222.135. |
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(5) "Highway improvement project" includes highway |
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operations and maintenance and the acquisition of a highway or |
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rights-of-way. |
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(6) "Transit provider" has the meaning assigned by |
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Section 370.003. |
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(7) "Transportation project" means: |
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(A) a tolled or nontolled highway improvement |
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project; |
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(B) the acquisition, construction, relocation, |
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maintenance, or operation of a freight or passenger rail facility |
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or system; |
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(C) a mass transit or public transportation |
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project acquired, constructed, maintained, or operated by a transit |
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provider; |
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(D) the acquisition, construction, maintenance, |
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or operation of a port facility, including a wharf or dock, cargo |
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handling facility, or other facility useful in or beneficial to the |
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operation of a port facility; |
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(E) the establishment, construction, or repair |
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of an aviation facility under Chapter 21; and |
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(F) any structure that is necessary for the |
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effective construction, maintenance, or operation of a project or |
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facility described in this subdivision, including an intermodal |
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transfer or staging area, weigh station, inspection station, rest |
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area, train or bus station, warehouse, freight interchange or |
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loading facility, switching yard, and maintenance yard. |
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Sec. 222.132. CREATION OF FUND. (a) The Texas |
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Transportation Revolving Fund is created within the state treasury. |
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(b) Notwithstanding any other law, the fund is exempt from |
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the application of Section 403.095, Government Code. |
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Sec. 222.133. ADMINISTRATION OF FUND. (a) The comptroller |
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shall hold the fund, and the commission, through the department, |
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shall manage, invest, use, administer, and provide financial |
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assistance from the fund as provided by this subchapter. |
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(b) The commission may create within the fund one or more |
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accounts or subaccounts as determined appropriate and necessary by |
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the commission. |
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(c) The commission shall prepare and file annually with the |
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governor and the presiding officer of each house of the legislature |
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a report providing information on the operation of the fund, |
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including: |
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(1) the amounts and sources of money deposited in the |
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fund during the year; |
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(2) investments and returns on investments of money in |
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the fund; |
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(3) loans made from the fund; |
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(4) other financial assistance provided from the fund; |
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and |
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(5) the status of any defaults on repayment of loans or |
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other financial assistance provided from the fund. |
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Sec. 222.134. SOURCES OF MONEY DEPOSITED IN FUND. The |
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commission may deposit in the fund money derived from any source |
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available to the commission, including: |
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(1) the proceeds of bonds issued under Section |
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222.003; |
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(2) the proceeds of bonds authorized by Section 49-p, |
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Article III, Texas Constitution, if the law providing for the |
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issuance of the bonds does not prohibit the deposit of the proceeds |
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in the fund; |
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(3) repayments of principal and interest on loans made |
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under Section 222.137; |
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(4) the proceeds from the sale of loans under Section |
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222.140; |
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(5) the proceeds from the sale of fund revenue bonds; |
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(6) money provided by the commission from the state |
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highway fund; |
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(7) money provided by the commission from the Texas |
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Mobility Fund that is in excess of the money required to be on |
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deposit in the Texas Mobility Fund by the proceedings authorizing |
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Texas Mobility Fund bonds and credit agreements; |
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(8) gifts, grants, and direct appropriations; and |
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(9) money from any other source designated by the |
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commission. |
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Sec. 222.135. FUND REVENUE BONDS. (a) The commission may |
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issue, sell, and deliver fund revenue bonds for the purpose of |
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providing money for the fund. |
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(b) Fund revenue bonds are special obligations of the |
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commission payable from the repayment of loans from the fund and |
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other money on deposit in the fund as the commission may designate. |
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(c) Fund revenue bonds do not constitute a debt of the state |
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or a pledge of the faith and credit of the state. |
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(d) The commission by order or resolution may issue fund |
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revenue bonds in the name and on behalf of the state and the |
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department and may enter into credit agreements related to the |
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bonds. The bonds may be issued in multiple series and issues from |
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time to time and may be issued on the terms and with the provisions |
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the commission determines appropriate and in the interests of the |
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state. |
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(e) The commission has all powers necessary or appropriate |
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to carry out this section, 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) Before the issuance of fund revenue bonds, the |
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commission shall submit the bonds and the record of proceedings to |
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the attorney general. If the bonds are approved by the attorney |
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general and registered by the comptroller as provided by Chapter |
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1201, Government Code, the bonds and any contract the proceeds of |
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which are pledged to the payment of the bonds are valid and |
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incontestable in a court or other forum and are binding obligations |
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enforceable for all purposes according to their terms. |
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(g) Before delivery of a credit agreement relating to the |
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bonds, the commission shall submit the record of proceedings |
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authorizing the credit agreement to the attorney general. If the |
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proceedings are approved by the attorney general and registered by |
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the comptroller as provided by Chapter 1371, Government Code, the |
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credit agreement is incontestable in a court or other forum and is |
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valid, binding, and enforceable according to its terms. |
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(h) The proceeds from the sale of fund revenue bonds may be |
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used to finance other funds or accounts relating to the bonds, |
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including a debt service reserve fund, and to pay the costs of |
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issuance. All remaining proceeds received from the sale of the |
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bonds shall be deposited in the fund and invested and used as |
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provided by this subchapter. |
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Sec. 222.136. INVESTMENT OF MONEY IN THE FUND. (a) Money |
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in the fund may be invested as provided by Chapter 2256, Government |
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Code, except that the proceeds of bonds deposited in the fund under |
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Section 222.134 shall be subject to any limitations contained in |
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the documents authorizing the issuance of the bonds. |
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(b) Income received from the investment of money in the fund |
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shall be deposited in the fund, subject to requirements that may be |
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imposed by the proceedings authorizing bonds issued to provide |
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money for deposit in the fund that are necessary to protect the |
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tax-exempt status of interest payable on the bonds in accordance |
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with applicable law of the United States concerning federal income |
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taxation of interest on the bonds. |
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Sec. 222.137. USES OF MONEY IN THE FUND. (a) Except as |
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otherwise provided by this section, the commission may use money |
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held in the fund to provide financial assistance to a public or |
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private entity for the costs of a transportation project by: |
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(1) making loans; |
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(2) providing credit enhancement; |
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(3) serving as a reserve fund established in |
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connection with debt financing by the public or private entity; |
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(4) providing capitalized interest for debt financing |
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by the public or private entity; or |
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(5) providing a guarantee of the payment of the costs |
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of operations and maintenance. |
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(b) The proceeds of bonds authorized by Section 49-p, |
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Article III, Texas Constitution or issued under Section 222.003 may |
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only be used to provide financial assistance for highway |
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improvement projects. |
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(c) Money from the state highway fund may only be used for |
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the purposes for which revenues are dedicated under Section 7-a, |
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Article VIII, Texas Constitution. |
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(d) Money from the Texas Mobility Fund may only be used to |
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provide financial assistance for state highway improvement |
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projects, publicly owned toll roads, and public transportation |
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projects. |
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(e) A private entity is only eligible to receive financial |
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assistance for a transportation project approved by the commission |
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that: |
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(1) provides a demonstrated public benefit, as |
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determined by the commission; or |
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(2) is constructed, maintained, or operated in |
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cooperation and under an agreement with a state agency or another |
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public entity. |
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(f) Money in the fund may be used to pay debt service on fund |
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revenue bonds. |
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(g) The commission may require the payment of fees and other |
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amounts by a public or private entity for all forms of financial |
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assistance provided under this section. |
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Sec. 222.138. BORROWING FROM THE FUND BY PUBLIC ENTITY. |
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(a) A public entity, including a municipality, county, district, |
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authority, agency, department, board, or commission, that is |
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authorized by law to construct, maintain, or finance a |
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transportation project may borrow money from the fund, including by |
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direct loan or other financial assistance from the fund, and may |
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enter into any agreement relating to receiving financial assistance |
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from the fund. |
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(b) Money received by a public entity under this subchapter |
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must be segregated from other funds under the control of the public |
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entity and may only be used for purposes authorized by this |
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subchapter. |
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(c) To provide for the repayment of a loan or other |
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financial assistance, a public entity may: |
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(1) pledge revenues or income from any available |
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source; |
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(2) pledge, levy, and collect any taxes, subject to |
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any constitutional limitation; or |
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(3) pledge any combination of revenues, income, and |
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taxes. |
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(d) This section is wholly sufficient authority for a public |
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entity to borrow or otherwise obtain financial assistance from the |
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fund as authorized by this subchapter and to pledge revenues, |
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income, or taxes, or any combination of revenues, income, and taxes |
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to the repayment of a loan or other financial assistance. |
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Sec. 222.139. REPAYMENT TERMS; DEPOSIT OF REPAYMENTS. |
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(a) For financial assistance that must be repaid, the commission |
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shall determine the terms and conditions of the repayment, |
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including the interest rates to be charged. |
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(b) The commission may require the entity receiving |
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financial assistance that must be repaid to make charges, levy and |
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collect taxes, pledge revenues, or otherwise take such action as |
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may be necessary to provide for money in an amount sufficient for |
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repayment according to the terms agreed on at the time the financial |
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assistance is provided. |
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(c) For a tolled highway improvement project, the |
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commission may require that revenues from the project be shared |
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between the entity and the commission, and the entity and the |
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department may enter into an agreement specifying the terms and |
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conditions of the revenue sharing. |
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(d) The department shall deposit in the fund all amounts |
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received from repayment of the financial assistance. |
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Sec. 222.140. SALE OF LOANS. (a) As used in this section, |
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"loan" includes any financial assistance that must be repaid or any |
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portion of such assistance. |
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(b) The commission may sell any loans made from money in the |
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fund and shall deposit the proceeds of the sale in the fund. |
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(c) For any loans to be sold under this section, the |
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commission may submit to the attorney general for review and |
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approval the related financial assistance agreement, which shall, |
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for the purposes of Chapter 1202, Government Code, be considered to |
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be a public security, along with the record of proceedings of the |
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borrowing entity relating to the agreement. If the attorney |
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general approves the agreement, it shall be incontestable in a |
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court or other forum and is valid, binding, and enforceable |
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according to its terms as provided by Chapter 1202, Government |
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Code. |
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(d) The commission must sell the loans using a competitive |
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bidding process and at the price and under the terms and conditions |
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that it determines to be reasonable. |
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(e) As part of the sales agreement with the purchaser of a |
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loan, the commission may agree to perform the functions required to |
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enforce the conditions and requirements stated in the loans, |
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including the payment of debt service by the borrowing entity. |
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(f) The commission may exercise any powers necessary to |
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carry out the authority granted by this section, including the |
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authority to contract with any person to accomplish the purposes of |
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this section. |
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(g) The commission shall not be liable for the repayment of, |
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and may not repay, any loan sold under this section. |
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Sec. 222.141. WAIVER OF SOVEREIGN IMMUNITY BY PUBLIC |
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ENTITIES. A public entity receiving financial assistance under |
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this subchapter waives sovereign immunity to suit brought by the |
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department for the purpose of adjudicating a claim for breach of the |
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terms of the financial assistance agreement. |
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Sec. 222.142. IMPLEMENTATION BY RULE. The commission shall |
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adopt rules to implement this subchapter, including rules: |
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(1) establishing eligibility and prioritization |
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criteria for entities applying for financial assistance from the |
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fund and for transportation projects that may receive financial |
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assistance from the fund; |
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(2) specifying the method for setting the terms and |
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conditions for providing financial assistance from the fund and for |
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the repayment of financial assistance from the fund; and |
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(3) establishing procedures for the sale of loans |
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originated from amounts on deposit in the fund. |
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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. |