By: Callegari H.B. No. 3363

A BILL TO BE ENTITLED

AN ACT

relating to the issuance of general obligation bonds by the Texas Transportation Commission to fund state highways, publicly owned toll roads, and other publicly owned transportation projects.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter A, Chapter 222, Transportation Code, is amended by adding Section 222.007 to read as follows:

Sec. 222.007. CENTURY BONDS. (a) In this section:

(1) "Bonds" means bonds, notes, and other public securities.

(2) "Credit agreement" has the meaning assigned by Section 1371.001, Government Code.

(3) "Transportation project" means the construction or provision of a tolled or nontolled project, the primary purpose of which is to preserve or facilitate the movement of people or goods by any mode of transportation. The term includes buildings, structures, parking areas, appurtenances, rights-of-way, rolling stock, and other property needed for the project, but does not include a project that is primarily for recreational purposes such as a hiking trail or off-road vehicle trail.

(b) The commission by order or resolution may issue general obligation bonds for the purposes provided in this section. The aggregate principal amount of the bonds that are issued may not exceed the amount specified by Section 49-q(a), Article III, Texas Constitution.

(c) The commission may enter into credit agreements relating to the bonds. A credit agreement entered into under this section may be secured by and payable from the same sources as the bonds.

(d) The bonds shall be executed in the form, on the terms, and in the denominations, bear interest, and be issued in installments as prescribed by the commission, and must mature not later than 100 years after their dates of issuance, subject to any refundings or renewals. The bonds may be issued in multiple series and issues from time to time and may have the provisions the commission determines appropriate and in the interest of the state.

(e) The commission has all powers necessary or appropriate to carry out this section and to implement Section 49-q, Article III, Texas Constitution, including the powers granted to other bond-issuing governmental agencies and units and to nonprofit corporations by Chapters 1201, 1207, and 1371, Government Code.

(f) The bonds and the record of proceedings authorizing the bonds and any related credit agreements shall be submitted to the attorney general for approval as to their legality. If the attorney general finds that they will be issued in accordance with this section and other applicable law, the attorney general shall approve them and deliver them to the comptroller for registration. After approval by the attorney general, registration by the comptroller, and payment by the purchasers of the bonds in accordance with the terms of sale and after execution and delivery of the related credit agreements, the bonds and related credit agreements are incontestable for any cause.

(g) Bonds may be issued for one or more of the following purposes:

(1) to pay all or part of the costs of constructing, reconstructing, acquiring, and expanding state highways, including any necessary design and acquisition of rights-of-way;

(2) to provide participation by the state in the payment of part of the costs of constructing and providing publicly owned toll roads and other publicly owned transportation projects; and

(3) to pay:

(A) the costs of administering projects authorized under this section;

(B) the cost or expense of the issuance of the bonds;

(C) refunding bonds and related credit agreements authorized by this section; or

(D) all or part of a payment owed or to be owed under a credit agreement.

(h) The comptroller shall pay the principal of the bonds as they mature and the interest as it becomes payable and shall pay any cost related to the bonds that becomes due, including payments under credit agreements.

SECTION 2. This Act takes effect on the date on which the constitutional amendment proposed by the 83rd Legislature, Regular Session, 2013, providing for the issuance of general obligation bonds by the Texas Transportation Commission in an amount not to exceed $3 billion to provide funding for state highways, publicly owned toll roads, and other publicly owned transportation projects, takes effect. If that amendment is not approved by the voters, this Act has no effect.