By: Darby H.B. No. 3665
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the financing of transportation projects; authorizing
  fees.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 222.071, Transportation Code, is amended
  to read as follows:
         Sec. 222.071.  DEFINITIONS. In this subchapter:
               (1)  "Bank" means the state infrastructure bank
  [account].
               (2)  "Bond" has the meaning assigned to "public
  security" by Section 1201.002, Government Code ["Construction" has
  the meaning assigned by 23 U.S.C. Section 101].
               (3)  "Credit agreement" has the meaning assigned by
  Section 1371.001, Government Code.
               (4)  "Federal act" means Section 350 of the National
  Highway System Designation Act of 1995 (Pub. L. No. 104-59),
  relating to the state infrastructure bank pilot program or the
  state infrastructure bank program (23 U.S.C. Section 610), as
  applicable.
               [(4)     "Federal-aid highway" has the meaning assigned by
  23 U.S.C. Section 101.]
               (5)  "Qualified project" includes:
                     (A)  a public roadway project [the construction of
  a federal-aid highway];
                     (B)  [a transit project under 49 U.S.C. Sections
  5307, 5309, and 5311; or
                     [(C)]  for the expenditure of secondary funds from
  an account subject to Section 350 of the National Highway System
  Designation Act of 1995 (Pub. L. No. 104-59), a project eligible for
  assistance under Title 23 or Title 49, United States Code; or
                     (C)  for the expenditure of money subject to the
  federal act, a project that qualifies under the federal act.
               (6)  "Secondary funds" includes:
                     (A)  the payment or repayment of a loan or other
  assistance that is provided with money deposited to the credit of
  the bank; and
                     (B)  investment income generated by secondary
  funds deposited to the credit of the bank.
         SECTION 2.  Section 222.072, Transportation Code, is amended
  to read as follows:
         Sec. 222.072.  STATE INFRASTRUCTURE BANK. (a) The state
  infrastructure bank is a fund held by the comptroller outside the
  state treasury or by a financial institution serving as trustee [an
  account in the state highway fund]. The bank is administered by the
  commission.
         (b)  The commission may deposit in the bank:
               (1)  federal [Federal] funds received by the state,
  including funds received under the federal act;
               (2)  [,]  matching state funds in an amount required by
  the federal [that] act;
               (3)  funds appropriated by the legislature for that
  purpose;
               (4)  a payment or repayment of principal and interest
  on a loan made under Section 222.074 or 222.088;
               (5)  proceeds from the sale of loans under Section
  222.078;
               (6)  [,]  proceeds from bonds issued under Section
  222.075;
               (7)  [,]  secondary funds;
               (8)  a gift or grant;
               (9)  fees paid to the bank; and
               (10)  investment earnings on the money on [, other
  state funds deposited into the bank by order of the commission, and
  other money received by the state that is eligible for] deposit in
  the bank [may be deposited into the bank and used only for the
  purposes described in this subchapter].
         (c)  Not later than January 31 of each year, the department
  shall prepare and file a report with the governor, the lieutenant
  governor, and the Legislative Budget Board that provides
  information on the operation of the bank, including:
               (1)  investments and returns on investments of money in
  the bank during the previous fiscal year;
               (2)  loans made from the bank during the previous
  fiscal year;
               (3)  other financial assistance provided from the bank
  during the previous fiscal year;
               (4)  the status of any defaults on repayment of loans or
  on repayment of debt service paid from the bank; and
               (5)  the status of any uncompleted qualified project
  for which a guarantee was provided from the bank during the previous
  fiscal year.
         SECTION 3.  Section 222.073, Transportation Code, is amended
  to read as follows:
         Sec. 222.073.  PURPOSES OF INFRASTRUCTURE BANK. The
  [Notwithstanding Section 222.001, the] commission shall use money
  deposited in the bank to:
               (1)  encourage public and private investment in
  transportation facilities both within and outside of the state
  highway system, including facilities that contribute to the
  multimodal and intermodal transportation capabilities of the
  state; [and]
               (2)  develop or expand transportation in the state; and
               (3)  develop financing techniques designed to:
                     (A)  expand the availability of funding for
  transportation projects and to reduce direct state costs;
                     (B)  maximize private and local participation in
  financing projects; and
                     (C)  improve the efficiency of the state
  transportation system.
         SECTION 4.  Section 222.074, Transportation Code, is amended
  by amending Subsection (a) and adding Subsections (d), (e), and (f)
  to read as follows:
         (a)  To further a purpose described by Section 222.073, the
  commission may use money deposited to the credit of the bank to
  provide financial assistance to a public [or private ]entity,
  including the department, for a qualified project to:
               (1)  extend credit by direct loan, including by
  purchasing a bond or other obligation of a public entity;
               (2)  provide liquidity or credit enhancement,
  including through an agreement to:
                     (A)  provide a loan to a public entity;
                     (B)  purchase a bond, note, or other obligation
  from a public entity; or
                     (C)  provide credit enhancements to a public
  entity under Subchapter D-1;
               (3)  serve as a capital reserve for bond or debt
  instrument financing;
               (4)  subsidize interest rates;
               (5)  insure the issuance of a letter of credit or credit
  instrument;
               (6)  finance a purchase or lease agreement in
  connection with a transit project;
               (7)  provide security for bonds and other debt
  instruments, including the replenishment of debt reserve funds;
  [or]
               (8)  provide capitalized interest for debt financing by
  a public entity;
               (9)  provide a guarantee of the payment of operation
  and maintenance costs of a qualified project by a public entity;
               (10)  pay the cost of issuing a bond or other debt
  instrument; or
               (11)  for money subject to the federal act, provide
  methods of leveraging money that have been approved by the United
  States secretary of transportation and relate to the project for
  which the assistance is provided.
         (d)  The commission may require a public entity that requests
  financial assistance from the bank to pay an application fee and
  other reasonable amounts in connection with the request. The
  department shall deposit revenue collected under this subsection:
               (1)  to the credit of the state highway fund to
  reimburse the department for administrative costs relating to the
  bank that were originally charged to the state highway fund; or
               (2)  in the account in the bank from which the financial
  assistance is requested.
         (e)  The department shall monitor the use of financial
  assistance provided to a public entity to ensure that the
  assistance is used for a purpose authorized by the financial
  assistance agreement. The department may audit a book or record of
  a public entity for that purpose.
         (f)  Financial assistance made available under this
  subchapter for the delivery of a qualified project by the
  department may not, taking into account any differing forms of the
  offered assistance, be in a larger amount or on more favorable terms
  than the financial assistance previously requested and offered for
  the delivery of that project by a public entity other than the
  department, if such a request and offer were made. The commission
  shall adopt rules to implement an analysis required to comply with
  this subsection.
         SECTION 5.  Section 222.0745, Transportation Code, is
  amended to read as follows:
         Sec. 222.0745.  INCURRENCE OF DEBT BY PUBLIC ENTITY. (a) A
  public entity in this state, including a municipality, county,
  district, authority, agency, department, board, or commission,
  that is authorized by law to [construct, maintain, or] finance or
  refinance a qualified project, or a transportation corporation or
  local government corporation created under Chapter 431 and acting
  on behalf of a public entity, may:
               (1)  borrow money from the bank, including by direct
  loan or through another form of financial assistance; and
               (2)  enter into an agreement that relates to receiving
  financial assistance from the bank [, based on the credit of the
  public entity].
         (b)  Money received by a public entity under this subchapter
  [borrowed under this section] must be segregated from other funds
  under the control of the public entity and may only be used for
  purposes authorized by the financial assistance agreement [related
  to a qualified project].
         (c)  To provide for the payment or repayment of a loan or
  another form of financial assistance provided under this
  subchapter, a public entity may:
               (1)  pledge revenue or income from any available
  source;
               (2)  pledge, impose, or collect a tax that the entity is
  otherwise authorized to impose; or
               (3)  pledge any combination of revenue, income, or
  taxes.
         (d)  This section is wholly sufficient authority for a public
  entity to:
               (1)  borrow or otherwise obtain a form of financial
  assistance from the bank as authorized by this subchapter; and
               (2)  pledge revenue, income, or taxes or any
  combination of revenue, income, or taxes for the payment or
  repayment of a loan or another form of financial assistance from the
  bank.
         (e)  If under any constitutional limitation a public entity
  must obtain voter approval to impose a tax to secure the payment or
  repayment of any financial assistance provided under this
  subchapter, the public entity shall call an election for that
  purpose.
         (f)  The authority granted by this section does not affect
  the ability of a public entity to incur debt using other statutorily
  authorized methods.
         SECTION 6.  Sections 222.075(b), (f), (i), and (j),
  Transportation Code, are amended to read as follows:
         (b)  Except as provided by Subsection (c), the commission
  may:
               (1)  issue revenue bonds or revenue refunding bonds
  under this section without complying with any other law applicable
  to the issuance of bonds; and
               (2)  enter into a credit agreement related to the
  bonds.
         (f)  The commission may require an entity [participants] to
  [make charges, levy taxes, or otherwise] provide for sufficient
  money to pay or repay financial assistance provided from the bank,
  including any [pay] acquired obligations.
         (i)  Before the commission issues revenue bonds or enters
  into a credit agreement under this section, the commission shall
  submit a record of the [All] proceedings of the commission that
  authorize [relating to] the issuance, execution, and delivery of
  the [revenue] bonds or credit agreement and any contract that
  provides revenue or security to pay the bonds or credit agreement
  [issued under this section shall be submitted] to the attorney
  general for review [examination]. If the attorney general finds
  that the proceedings authorizing the bonds or credit agreement and
  any bonds authorized by the proceedings conform to the requirements
  prescribed by the Texas Constitution and this subchapter [On
  determining that the revenue bonds have been authorized in
  accordance with law], the attorney general shall approve the
  proceedings and [revenue] bonds, and shall deliver to [the revenue
  bonds shall be registered by] the comptroller for registration a
  copy of the attorney general's legal opinion relating to the
  approval and a record of the proceedings. After approval by the
  attorney general, the bonds or credit agreement may be executed and
  delivered, exchanged, or refinanced in accordance with the
  authorization proceedings. After the approval and registration,
  the [revenue] bonds, credit agreement, or contract providing
  revenue or security included in or executed and delivered according
  to the authorization proceedings are incontestable in any court or
  other forum for any reason and are valid, [and] binding, and
  enforceable [obligations] in accordance with their terms for all
  purposes.
         (j)  The commission may use proceeds from the sale of revenue
  bonds to finance other funds or accounts relating to the bonds or
  credit agreement, including a debt service reserve fund, and to pay
  the cost of issuing the bonds. Any remaining [The] proceeds
  received from the sale of the [revenue] bonds shall be deposited in
  the bank and invested and used in the manner provided for other
  funds deposited under this subchapter.
         SECTION 7.  Subchapter D, Chapter 222, Transportation Code,
  is amended by adding Section 222.0755 to read as follows:
         Sec. 222.0755.  AUTHORIZATION TO BORROW. (a) For the
  purpose of providing money for the bank, the department may borrow
  money under terms and conditions authorized by the commission and
  may enter into a loan agreement or any other agreement necessary or
  convenient for a loan under this section.
         (b)  A loan under this section is a special obligation of the
  commission and department that may be secured by a pledge of and
  payable from income and receipts of the bank, or any portion
  thereof, as the commission may designate. A loan under this section
  does not constitute a debt of the state or a pledge of the faith and
  credit of the state. The income and receipts may include payments
  or repayments of financial assistance provided by the bank,
  investment or other income derived from money on deposit in the
  bank, or any combination of the foregoing.
         (c)  In accordance with the terms of a loan or other
  agreement, the proceeds from a loan under this section may be
  deposited in funds or accounts relating to the loan, including
  funds or accounts for capitalized interest and reserves, and used
  to pay the costs of entering into the loan or other agreement. All
  remaining proceeds received from the loan shall be deposited in the
  bank and invested in accordance with the terms of a loan or other
  agreement and in the manner provided for other funds deposited
  under this subchapter.
         SECTION 8.  Section 222.076, Transportation Code, is amended
  to read as follows:
         Sec. 222.076.  SEPARATE ACCOUNTS [SUBACCOUNTS]. (a) The
  bank shall consist of at least two separate accounts [subaccounts],
  a highway account [subaccount] and a transit account [subaccount].
  The commission may create additional accounts that are capitalized
  with federal funds or with a combination of federal funds and state
  funds.
         (b)  In addition to the accounts [subaccounts] under
  Subsection (a), the commission shall [may] create one account that
  is, and may create [or] more accounts [subaccounts] that are,
  capitalized with state funds only. Accounts [Subaccounts]
  capitalized with state funds only are not subject to the federal
  act.
         SECTION 9.  Section 222.077, Transportation Code, is amended
  by amending Subsections (a) and (b) and adding Subsection (a-1) to
  read as follows:
         (a)  If a form of financial assistance [Any funds disbursed
  through the state infrastructure bank] must be paid or repaid, [on
  terms determined by] the commission shall determine the terms of
  the payment or repayment, including the interest rate to be
  charged, and enter into a financial assistance agreement with the
  public entity receiving the assistance specifying the terms of the
  payment or repayment. The terms must comply with the federal act
  except for terms applicable to funds deposited in an account [a
  subaccount] described by Section 222.076(b).
         (a-1)  For a tolled highway improvement project, the
  commission may require that revenue from the project be shared
  between an entity and the department.
         (b)  Notwithstanding any other law to the contrary:
               (1)  the payment or repayment of a loan or other
  assistance provided with money deposited to the credit of an
  account [a subaccount] in the bank, including all amounts received
  as a share of revenue from a tolled highway improvement project,
  shall be deposited in that account [subaccount]; and
               (2)  investment income generated by money deposited to
  the credit of an account [a subaccount] in the bank shall be:
                     (A)  credited to that account, subject to any
  requirement imposed by a proceeding that authorizes bonds to be
  issued to provide money for deposit in the bank that is necessary to
  protect the tax-exempt status of interest payable on the bonds in
  accordance with applicable federal law [subaccount];
                     (B)  available for use in providing financial
  assistance under this subchapter and Subchapter D-1; and
                     (C)  invested as authorized by Chapter 2256,
  Government Code, but money in the bank subject to the federal act
  shall be invested in United States Treasury securities, [bank]
  deposits in financial institutions, or other financing instruments
  approved by the United States secretary of transportation to earn
  interest and enhance the financing of projects assisted by the
  bank, and proceeds from bonds deposited in the bank under Section
  222.072 are subject to any limitations contained in a document that
  authorizes the issuance of the bonds.
         SECTION 10.  Subchapter D, Chapter 222, Transportation Code,
  is amended by adding Section 222.078 to read as follows:
         Sec. 222.078.  SALE OF LOANS. (a) In this section, "loan"
  means any financial assistance provided under this subchapter that
  must be repaid, including financial assistance repaid through
  revenue sharing.
         (b)  The commission may direct the department to sell, in
  accordance with this section, any loan made from money in the bank.
  The department by rule must establish a competitive bidding or
  negotiated sale process for a sale conducted under this section.
         (c)  For a loan made to a public entity, the department shall
  provide to the public entity written notice of the department's
  intent to sell the loan. The notice must be provided not later than
  the 90th day preceding the date established under rules of the
  commission on which the process required for the sale under
  Subsection (b) begins.
         (d)  The department may not sell a loan made to a public
  entity if:
               (1)  prepayment of the principal of and accrued
  interest due on the loan is tendered under Subsection (f); or
               (2)  the public entity prohibits the sale under
  Subsection (g).
         (e)  The department may not sell a loan that was made to a
  public entity for a tolled highway improvement project before the
  later of:
               (1)  the date of the completion of the project's
  construction;
               (2)  the date that the loan is completely funded; or
               (3)  the earlier of:
                     (A)  the date that the project's forecasted
  stabilization and ramp-up is achieved based on an investment grade
  traffic and revenue study; or
                     (B)  the sixth anniversary of the date the project
  fully opened for tolled operations.
         (f)  The department must accept the prepayment of principal
  of and accrued interest due on a loan in accordance with the
  financial assistance agreement or, in the absence of prescribed
  terms in the financial assistance agreement regarding prepayment,
  on terms that the commission determines to be reasonable.
         (g)  If the terms of the financial assistance agreement
  prohibit a public entity from prepaying its loan at the time of a
  proposed sale of the loan under this section, the public entity may
  prohibit the sale of the loan, in which event the department and the
  public entity shall renegotiate the prepayment terms in the
  financial assistance agreement to allow for prepayment of the loan
  at the time of the proposed sale. The prohibition under this
  subsection terminates on the date an agreement on the renegotiated
  prepayment terms is executed.
         (h)  For any loan made to a public entity to be sold under
  this section, the commission may submit to the attorney general for
  review and approval the related financial assistance agreement
  together with the record of proceedings of the public entity
  relating to the agreement. For the purposes of Chapter 1202,
  Government Code, the financial assistance agreement is considered
  to be a public security. If the attorney general finds that the
  financial assistance agreement has been authorized to be issued in
  conformity with law, the attorney general shall approve the
  agreement and deliver to the comptroller a copy of the attorney
  general's legal opinion stating that approval and the record of
  proceedings. Following approval by the attorney general, the
  financial assistance agreement is incontestable in a court or other
  forum and is valid, binding, and enforceable according to its terms
  as provided by Chapter 1202, Government Code.
         (i)  As part of the sales agreement with the purchaser of a
  loan, the department may agree to perform the functions required to
  enforce the conditions and requirements stated in the loan,
  including enforcing the payment of debt service by the borrowing
  entity.
         (j)  The department shall deposit the proceeds of the sale of
  a loan under this section in the bank.
         (k)  The commission and department may exercise any powers
  necessary to carry out the authority granted by this section,
  including the authority to contract with any person to accomplish
  the purposes of this section.
         (l)  The state, the department, and the commission are not
  liable for the repayment of any loan sold under this section and
  neither may repay a loan sold under this section.
         SECTION 11.  Chapter 222, Transportation Code, is amended by
  adding Subchapter D-1 to read as follows:
  SUBCHAPTER D-1. TRANSPORTATION INFRASTRUCTURE
  CREDIT ENHANCEMENT PROGRAM
         Sec. 222.081.  APPLICABILITY OF OTHER LAW. To the extent of
  any conflict between this subchapter and another law, including a
  municipal charter, this subchapter controls.
         Sec. 222.082.  DEFINITIONS. In this subchapter:
               (1)  "Account" means the transportation infrastructure
  credit enhancement account created and administered under this
  subchapter.
               (2)  "Bond" has the meaning assigned to "public
  security" by Section 1201.002, Government Code.
               (3)  "Credit agreement" means an agreement between a
  public entity and the department or the commission relating to a
  guarantee of bonds authorized by this subchapter.
               (4)  "Debt service" means the principal of and interest
  due on bonds on any particular payment date.
               (5)  "Paying agent" means the financial institution or
  other entity that is designated by a public entity as its agent for
  the payment of the debt service due on bonds issued by a public
  entity and guaranteed under this subchapter.
               (6)  "Public entity" means a municipality, county,
  district, authority, agency, department, board, or commission of
  this state that is authorized by law to finance or refinance a
  public transportation project, or a transportation corporation or
  local government corporation created under Chapter 431 and acting
  on behalf of any of those entities.
               (7)  "Public transportation project" means the
  construction or provision of a tolled or nontolled publicly owned
  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, 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.
         Sec. 222.083.  TRANSPORTATION INFRASTRUCTURE CREDIT
  ENHANCEMENT ACCOUNT. (a) The commission shall create a
  transportation infrastructure credit enhancement account in the
  state infrastructure bank.
         (b)  The following shall be deposited in the account:
               (1)  money appropriated by the legislature for the
  capitalization of the account;
               (2)  gifts and grants;
               (3)  interest earned on balances in the account;
               (4)  fees paid to the department by public entities for
  the guarantee of bonds;
               (5)  repayment of debt service paid on guaranteed bonds
  from the account;
               (6)  amounts due to the department under the terms of a
  credit agreement; and
               (7)  application fees imposed by the commission.
         Sec. 222.084.  USE OF ACCOUNT. (a) The commission shall use
  the account to implement the credit enhancement program authorized
  by this subchapter.
         (b)  The commission may use money in the account to pay or
  reimburse the department's costs of administering this subchapter.
         Sec. 222.085.  CREDIT ENHANCEMENT PROGRAM. The commission
  may establish a program to guarantee the payment of debt service on
  bonds issued by a public entity to finance or refinance a public
  transportation project that will develop or expand transportation
  in the state by:
               (1)  addressing mobility in an area containing any of
  the 50 most congested roadway segments;
               (2)  encouraging public and private investment in
  public transportation projects, including public transportation
  projects that contribute to the multimodal and intermodal
  transportation capabilities of the state;
               (3)  expanding the availability of funding for public
  transportation projects; or
               (4)  improving the efficiency of the state
  transportation system.
         Sec. 222.086.  PUBLIC ENTITY'S AUTHORITY. (a) A public
  entity may apply for a guarantee of its bonds under this subchapter.
         (b)  If required by the commission, a public entity whose
  application is approved shall enter into a credit agreement with
  the department to further secure the public entity's obligation to
  repay amounts drawn from the account to pay debt service on
  guaranteed bonds.
         (c)  Payments owed by a public entity under a credit
  agreement, or interest thereon, may be secured by a pledge of:
               (1)  revenue or income from any available source;
               (2)  any taxes of the public entity, including:
                     (A)  ad valorem or sales taxes imposed and
  collected by the public entity; or
                     (B)  revenue or taxes collected by or assigned to
  the public entity from a transportation reinvestment zone; or
               (3)  any combination of revenue, income, and taxes
  described in Subdivisions (1) and (2).
         (d)  If under any constitutional limitation a public entity
  must obtain voter approval to impose a tax to secure the payment of
  guaranteed bonds or a credit agreement, the public entity may call
  an election for that purpose.
         (e)  A public entity may exercise the powers provided by this
  subchapter and perform the acts authorized by this subchapter or
  under any credit agreement entered into under this subchapter
  without reference to any other statutory authority or without any
  restrictions or limitations contained in any other statute,
  provided that a record of proceedings of the public entity
  authorizing the issuance, execution, and delivery of a credit
  agreement entered into under this subchapter shall be submitted to
  the attorney general for review and approval in the manner provided
  by Chapter 1371, Government Code.
         (f)  This section is wholly sufficient authority within
  itself for a public entity to:
               (1)  obtain a guarantee on bonds and to enter into,
  execute, and deliver a credit agreement; and
               (2)  pledge revenue, income, or taxes, or any
  combination of revenue, income, and taxes, to secure the payment of
  guaranteed bonds and credit agreements.
         (g)  A public entity may use a provision of another law that
  does not conflict with this subchapter in order to carry out any
  authority granted by this subchapter.
         (h)  A public entity must comply with all state law related
  to the design and construction of projects, including the
  procurement of design and construction services, that apply to the
  public entity.
         Sec. 222.087.  APPLICATION; FEES. (a) To apply for a
  guarantee of bonds under this subchapter a public entity must
  submit to the department:
               (1)  an application using a form established by the
  department for that purpose; and
               (2)  any fee required by the commission.
         (b)  The commission may impose an application fee.
         (c)  The commission may impose fees for providing a guarantee
  under this subchapter.
         Sec. 222.088.  REPAYMENT. Any money disbursed from the
  account for payment of debt service on a guaranteed bond must be
  repaid by the public entity that issued the guaranteed bond,
  together with any additional amounts required by an applicable
  credit agreement.
         Sec. 222.089.  TIME AND EFFECT OF CREDIT ENHANCEMENT. (a)
  If bonds are approved for guarantee by the account, the record of
  proceedings submitted for the attorney general's review and
  approval of those bonds must include the guarantee, as evidenced by
  an endorsement on the bonds. If the attorney general approves the
  bonds, the attorney general shall approve the guarantee. Upon
  approval by the attorney general, the guarantee shall be registered
  by the comptroller.
         (b)  On the approval by the attorney general and registration
  by the comptroller under Subsection (a), and issuance of the bonds:
               (1)  the guarantee of the bonds is effective and the
  bonds are guaranteed by the account;
               (2)  the guarantee of the bonds is valid and
  incontestable in a court or other forum;
               (3)  the obligations of the department are binding for
  all purposes according to the terms of the guarantee; and
               (4)  debt service on the bonds is irrevocably
  guaranteed by the corpus and income of the account.
         (c)  A bond guaranteed under this subchapter is not an
  obligation of the state. The department's sole obligation is to pay
  debt service due and unpaid on a bond from the account under the
  terms of the guarantee. The department's obligation to pay debt
  service on a guaranteed bond is limited to the money on deposit in
  the account.
         (d)  Notwithstanding any other law:
               (1)  any guarantee of bonds approved by the commission
  remains in effect until the date that all guaranteed bonds mature
  and are paid, are redeemed and paid, or are legally defeased under
  Chapter 1207, Government Code; and
               (2)  the account shall continue in existence until each
  guarantee made from the account is no longer in effect, and all
  amounts due to the account have been paid.
         Sec. 222.090.  DEPARTMENT ACTION AFTER RECEIPT OF NOTICE OF
  INABILITY TO PAY. After receipt of written notice from a public
  entity or a paying agent of the insufficiency of money available to
  pay debt service due on a guaranteed bond, the department shall
  instruct the comptroller or the trustee bank, as applicable, to
  transfer, from the account to the paying agent, the amount
  necessary to pay the amount of debt service due on the bond.
         Sec. 222.091.  COMPTROLLER'S OR TRUSTEE BANK'S DUTIES. (a)
  On instruction from the department, the comptroller or the trustee
  bank, as applicable, shall pay the debt service due on a guaranteed
  bond.
         (b)  The comptroller or the trustee bank, as applicable,
  shall hold all documentation relating to the payment made from the
  account on behalf of the account and the department.
         (c)  After repayment to the account on the terms prescribed
  by the department, the department shall instruct the comptroller or
  the trustee bank, as applicable, to submit documentation to the
  public entity or the paying agent needed to evidence the repayment.
         Sec. 222.092.  AUTHORITY TO COMPLETE, OPERATE, OR MAINTAIN
  PROJECT. (a) To protect its right to receive repayment for
  payments made from the account under a guarantee and any related
  enforcement expenses, the commission may authorize the department
  to undertake completion of a public transportation project if the
  public entity has failed to comply with a deadline imposed under the
  terms of a credit agreement or the bond financing documents.
         (b)  The commission may authorize the department to
  undertake the proper operation and maintenance of a public
  transportation project on the failure of the public entity to
  operate or maintain the public transportation project in compliance
  with requirements in a credit agreement or the bond financing
  documents.
         (c)  A public entity shall reimburse the department from any
  available source of funds, including bond proceeds, for completion,
  operation, and maintenance costs incurred by the department under
  this section.
         Sec. 222.093.  RULES. The commission by rule shall:
               (1)  implement this subchapter; and
               (2)  establish eligibility criteria and application
  requirements for a public entity applying for a guarantee from the
  account.
         SECTION 12.  This Act takes effect immediately if it
  receives a vote of two-thirds of all the members elected to each
  house, as provided by Section 39, Article III, Texas Constitution.
  If this Act does not receive the vote necessary for immediate
  effect, this Act takes effect September 1, 2013.