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A BILL TO BE ENTITLED
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AN ACT
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relating to the financing of transportation projects; authorizing |
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fees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 222.071, Transportation Code, is amended |
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to read as follows: |
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Sec. 222.071. DEFINITIONS. In this subchapter: |
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(1) "Bank" means the state infrastructure bank |
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account. |
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(2) "Credit agreement" has the meaning assigned by |
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Section 1371.001, Government Code ["Construction" has the meaning
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assigned by 23 U.S.C. Section 101]. |
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(3) "Federal act" means Section 350 of the National |
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Highway System Designation Act of 1995 (Pub. L. No. 104-59), |
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relating to the state infrastructure bank pilot program or the |
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state infrastructure bank program (23 U.S.C. Section 610), as |
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applicable. |
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(4) "Financial assistance" means a direct loan or |
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other assistance described by Section 222.074(a) ["Federal-aid
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highway" has the meaning assigned by 23 U.S.C. Section 101]. |
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(5) "Qualified project" includes: |
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(A) a public roadway project [the construction of
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a federal-aid highway]; |
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(B) a transportation project of a port authority |
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or navigation district created or operating under Section 52, |
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Article III, or Section 59, Article XVI, Texas Constitution; |
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(C) a freight rail project; |
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(D) an infrastructure project relating to an |
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intracoastal waterway; |
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(E) [a transit project under 49 U.S.C. Sections
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5307, 5309, and 5311; or
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[(C)] for the expenditure of secondary funds from |
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an account subject to Section 350 of the National Highway System |
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Designation Act of 1995 (Pub. L. No. 104-59), a project eligible for |
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assistance under Title 23 or Title 49, United States Code; or |
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(F) for the expenditure of money subject to the |
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federal act, a public roadway or public transit project. |
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(6) "Secondary funds" includes: |
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(A) the payment or repayment of a loan or other |
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assistance that is provided with money deposited to the credit of |
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the bank; and |
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(B) investment income generated by secondary |
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funds deposited to the credit of the bank. |
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SECTION 2. Section 222.072, Transportation Code, is amended |
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by amending Subsection (b) and adding Subsection (c) to read as |
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follows: |
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(b) The commission may deposit in the bank: |
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(1) federal [Federal] funds received by the state |
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under the federal act; |
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(2) [,] matching state funds in an amount required by |
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the federal [that] act; |
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(3) funds appropriated by the legislature for that |
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purpose; |
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(4) a payment or repayment of principal and interest |
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on a loan made under Section 222.074; |
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(5) proceeds from the sale of loans under Section |
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222.078; |
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(6) [,] proceeds from bonds issued under Section |
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222.075; |
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(7) [,] secondary funds; |
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(8) a gift or grant; |
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(9) fees paid to the bank; and |
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(10) investment earnings on the money on[, other state
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funds deposited into the bank by order of the commission, and other
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money received by the state that is eligible for] deposit in the |
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bank [may be deposited into the bank and used only for the purposes
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described in this subchapter]. |
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(c) Not later than January 31 of each year, the department |
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shall prepare and file with the governor, the lieutenant governor, |
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the Legislative Budget Board, and each standing committee of the |
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legislature with primary responsibility over transportation and |
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state finance a report that provides information on the operation |
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of the bank, including: |
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(1) investments and returns on investments of money in |
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the bank during the previous fiscal year; |
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(2) loans made from the bank during the previous |
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fiscal year; |
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(3) other financial assistance provided from the bank |
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during the previous fiscal year; |
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(4) the status of any defaults on repayment of loans or |
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on repayment of debt service paid from the bank; and |
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(5) the status of any uncompleted qualified project |
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for which a guarantee was provided from the bank during the previous |
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fiscal year. |
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SECTION 3. Section 222.073, Transportation Code, is amended |
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to read as follows: |
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Sec. 222.073. PURPOSES OF INFRASTRUCTURE BANK. The |
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[Notwithstanding Section 222.001, the] commission shall use money |
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deposited in the bank to: |
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(1) encourage public and private investment in |
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transportation facilities both within and outside of the state |
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highway system, including facilities that contribute to the |
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multimodal and intermodal transportation capabilities of the |
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state; [and] |
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(2) develop or expand transportation in the state; and |
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(3) develop financing techniques designed to: |
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(A) expand the availability of funding for |
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transportation projects and to reduce direct state costs; |
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(B) maximize private and local participation in |
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financing projects; and |
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(C) improve the efficiency of the state |
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transportation system. |
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SECTION 4. Section 222.074, Transportation Code, is amended |
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by amending Subsection (a) and adding Subsections (d), (e), and (f) |
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to read as follows: |
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(a) To further a purpose described by Section 222.073, the |
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commission may use money deposited to the credit of the bank to |
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provide financial assistance to a public [or private] entity, |
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including the department, for a qualified project to: |
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(1) extend credit by direct loan, including by |
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purchasing a bond or other obligation of a public entity; |
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(2) provide credit enhancements; |
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(3) serve as a capital reserve for bond or debt |
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instrument financing; |
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(4) subsidize interest rates; |
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(5) insure the issuance of a letter of credit or credit |
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instrument; |
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(6) finance a purchase or lease agreement in |
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connection with a transit project; |
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(7) provide security for bonds and other debt |
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instruments; [or] |
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(8) provide capitalized interest for debt financing by |
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a public entity; |
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(9) pay the cost of issuing a bond or other debt |
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instrument; or |
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(10) for money subject to the federal act, provide |
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methods of leveraging money that have been approved by the United |
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States secretary of transportation and relate to the project for |
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which the assistance is provided. |
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(d) The commission may require a public entity that requests |
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financial assistance from the bank to pay an application fee and |
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other reasonable amounts in connection with the request. The |
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department shall deposit revenue collected under this subsection: |
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(1) to the credit of the state highway fund to |
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reimburse the department for administrative costs relating to the |
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bank that were originally charged to the state highway fund; or |
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(2) in the subaccount in the bank from which the |
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financial assistance is requested. |
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(e) The department shall monitor the use of financial |
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assistance provided to a public entity to ensure that the |
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assistance is used for a purpose authorized by the financial |
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assistance agreement. The department may audit a book or record of |
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a public entity for that purpose. |
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(f) Financial assistance made available under this |
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subchapter for the delivery of a qualified project by the |
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department may not, taking into account any differing forms of the |
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offered assistance, be in a larger amount or on more favorable terms |
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than the financial assistance previously requested and offered for |
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the delivery of that project by a public entity other than the |
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department, if such a request and offer were made. The commission |
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shall adopt rules to implement an analysis required to comply with |
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this subsection. |
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SECTION 5. Section 222.0745, Transportation Code, is |
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amended to read as follows: |
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Sec. 222.0745. INCURRENCE OF DEBT BY PUBLIC ENTITY. (a) A |
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public entity in this state, including a municipality, county, |
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district, authority, agency, department, board, or commission, |
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that is authorized by law to construct, maintain, [or] finance, or |
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refinance a qualified project, or a transportation corporation or |
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local government corporation created under Chapter 431 and acting |
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on behalf of a public entity, may: |
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(1) borrow money from the bank, including by direct |
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loan or through another form of financial assistance; and |
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(2) enter into an agreement that relates to receiving |
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financial assistance from the bank[, based on the credit of the
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public entity]. |
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(b) Money received by a public entity under this subchapter |
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[borrowed under this section] must be segregated from other funds |
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under the control of the public entity and may only be used for |
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purposes authorized by the financial assistance agreement [related
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to a qualified project]. |
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(c) To provide for the payment or repayment of a loan or |
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another form of financial assistance provided under this |
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subchapter, a public entity may: |
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(1) pledge revenue or income from any available |
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source; |
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(2) pledge, impose, or collect a tax that the entity is |
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otherwise authorized to impose; or |
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(3) pledge any combination of revenue, income, or |
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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: |
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(1) borrow or otherwise obtain a form of financial |
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assistance from the bank as authorized by this subchapter; and |
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(2) pledge revenue, income, or taxes or any |
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combination of revenue, income, or taxes for the payment or |
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repayment of a loan or another form of financial assistance from the |
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bank. |
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(e) If under any constitutional limitation a public entity |
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must obtain voter approval to impose a tax to secure the payment or |
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repayment of any financial assistance provided under this |
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subchapter, the public entity may call an election for that |
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purpose. |
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(f) The authority granted by this section does not affect |
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the ability of a public entity to incur debt using other statutorily |
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authorized methods. |
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SECTION 6. Subsections (b), (f), (i), and (j), Section |
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222.075, Transportation Code, are amended to read as follows: |
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(b) Except as provided by Subsection (c), the commission |
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may: |
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(1) issue revenue bonds or revenue refunding bonds |
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under this section without complying with any other law applicable |
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to the issuance of bonds; and |
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(2) enter into a credit agreement related to the |
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bonds. |
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(f) The commission may require an entity [participants] to |
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[make charges, levy taxes, or otherwise] provide for sufficient |
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money to pay or repay financial assistance provided from the bank, |
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including any [pay] acquired obligations. |
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(i) Before the commission issues revenue bonds or enters |
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into a credit agreement under this section, the commission shall |
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submit a record of the [All] proceedings of the commission that |
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authorize [relating to] the issuance, execution, and delivery of |
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the [revenue] bonds or credit agreement and any contract that |
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provides revenue or security to pay the bonds or credit agreement |
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[issued under this section shall be submitted] to the attorney |
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general for review [examination]. If the attorney general finds |
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that the proceedings authorizing the bonds or credit agreement and |
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any bonds authorized by the proceedings conform to the requirements |
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prescribed by the Texas Constitution and this subchapter [On
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determining that the revenue bonds have been authorized in
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accordance with law], the attorney general shall approve the |
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proceedings and [revenue] bonds, and shall deliver to [the revenue
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bonds shall be registered by] the comptroller for registration a |
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copy of the attorney general's legal opinion relating to the |
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approval and a record of the proceedings. After approval by the |
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attorney general, the bonds or credit agreement may be executed and |
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delivered, exchanged, or refinanced in accordance with the |
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authorization proceedings. After the approval and registration, |
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the [revenue] bonds, credit agreement, or contract providing |
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revenue or security included in or executed and delivered according |
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to the authorization proceedings are incontestable in any court or |
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other forum for any reason and are valid, [and] binding, and |
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enforceable [obligations] in accordance with their terms for all |
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purposes. |
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(j) The commission may use proceeds from the sale of revenue |
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bonds to finance other funds or accounts relating to the bonds or |
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credit agreement, including a debt service reserve fund, and to pay |
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the cost of issuing the bonds. Any remaining [The] proceeds |
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received from the sale of the [revenue] bonds shall be deposited in |
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the bank and invested and used in the manner provided for other |
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funds deposited under this subchapter. |
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SECTION 7. Section 222.076, Transportation Code, is amended |
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to read as follows: |
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Sec. 222.076. SEPARATE SUBACCOUNTS. (a) The bank shall |
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consist of at least two separate subaccounts, a highway subaccount |
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and a transit subaccount. The commission may create additional |
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subaccounts that are capitalized with federal funds or with a |
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combination of federal funds and state funds. |
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(b) In addition to the subaccounts under Subsection (a), the |
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commission shall [may] create one subaccount that is, and may |
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create [or] more subaccounts that are, capitalized with state funds |
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only. Subaccounts capitalized with state funds only are not |
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subject to the federal act. |
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SECTION 8. Section 222.077, Transportation Code, is amended |
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by amending Subsections (a) and (b) and adding Subsection (a-1) to |
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read as follows: |
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(a) If a form of financial assistance [Any funds disbursed
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through the state infrastructure bank] must be paid or repaid, [on
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terms determined by] the commission shall determine the terms of |
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the payment or repayment, including the interest rate to be |
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charged, and enter into a financial assistance agreement with the |
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public entity receiving the assistance specifying the terms of the |
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payment or repayment. The terms must comply with the federal act |
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except for terms applicable to funds deposited in a subaccount |
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described by Section 222.076(b). |
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(a-1) For a tolled highway improvement project, the |
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commission may require that revenue from the project be shared |
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between an entity and the department. |
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(b) Notwithstanding any other law to the contrary: |
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(1) the payment or repayment of a loan or other |
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assistance provided with money deposited to the credit of a |
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subaccount in the bank, including all amounts received as a share of |
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revenue from a tolled highway improvement project, shall be |
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deposited in that subaccount; and |
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(2) investment income generated by money deposited to |
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the credit of a subaccount in the bank shall be: |
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(A) credited to that subaccount, subject to any |
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requirement imposed by a proceeding that authorizes bonds to be |
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issued to provide money for deposit in the bank that is necessary to |
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protect the tax-exempt status of interest payable on the bonds in |
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accordance with applicable federal law; |
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(B) available for use in providing financial |
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assistance under this subchapter; and |
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(C) invested as authorized by Chapter 2256, |
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Government Code, but money in the bank subject to the federal act |
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shall be invested in United States Treasury securities, [bank] |
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deposits in financial institutions, or other financing instruments |
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approved by the United States secretary of transportation to earn |
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interest and enhance the financing of projects assisted by the |
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bank, and proceeds from bonds deposited in the bank under Section |
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222.072 are subject to any limitations contained in a document that |
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authorizes the issuance of the bonds. |
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SECTION 9. Subchapter D, Chapter 222, Transportation Code, |
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is amended by adding Section 222.078 to read as follows: |
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Sec. 222.078. SALE OF LOANS. (a) In this section, "loan" |
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means any financial assistance provided under this subchapter that |
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must be repaid, including financial assistance repaid through |
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revenue sharing. |
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(b) The commission may direct the department to sell, in |
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accordance with this section, any loan made from money in the bank. |
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The department by rule must establish a competitive bidding process |
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for a sale conducted under this section. |
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(c) For a loan made to a public entity, the department shall |
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provide to the public entity written notice of the department's |
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intent to sell the loan. The notice must be provided not later than |
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the 90th day preceding the date established under rules of the |
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commission on which the process required for the sale under |
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Subsection (b) begins. |
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(d) The department may not sell a loan made to a public |
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entity if: |
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(1) prepayment of the principal of and accrued |
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interest due on the loan is tendered under Subsection (f); or |
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(2) the public entity prohibits the sale under |
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Subsection (g). |
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(e) The department may not sell a loan that was made to a |
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public entity for a tolled highway improvement project before the |
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later of: |
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(1) the date of the completion of the project's |
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construction; |
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(2) the date the loan is completely funded; or |
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(3) the earlier of: |
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(A) the date the project's forecasted |
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stabilization and ramp-up is achieved based on an investment grade |
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traffic and revenue study; or |
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(B) the sixth anniversary of the date the project |
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fully opened for tolled operations. |
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(f) The department must accept the prepayment of principal |
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of and accrued interest due on a loan in accordance with the |
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financial assistance agreement or, in the absence of prescribed |
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terms in the financial assistance agreement regarding prepayment, |
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on terms that the commission determines to be reasonable. |
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(g) If the terms of the financial assistance agreement |
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prohibit a public entity from prepaying its loan at the time of a |
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proposed sale of the loan under this section, the public entity may |
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prohibit the sale of the loan, in which event the department and the |
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public entity shall renegotiate the prepayment terms in the |
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financial assistance agreement to allow for prepayment of the loan |
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at the time of the proposed sale. The prohibition under this |
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subsection terminates on the date an agreement on the renegotiated |
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prepayment terms is executed. |
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(h) For any loan made to a public entity to be sold under |
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this section, the commission may submit to the attorney general for |
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review and approval the related financial assistance agreement |
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together with the record of proceedings of the public entity |
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relating to the agreement. For the purposes of Chapter 1202, |
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Government Code, the financial assistance agreement is considered |
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to be a public security. If the attorney general finds that the |
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financial assistance agreement has been authorized to be issued in |
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conformity with law, the attorney general shall approve the |
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agreement and deliver to the comptroller a copy of the attorney |
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general's legal opinion stating that approval and the record of |
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proceedings. Following approval by the attorney general, the |
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financial assistance agreement is incontestable in a court or other |
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forum and is valid, binding, and enforceable according to its terms |
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as provided by Chapter 1202, Government Code. |
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(i) As part of the sales agreement with the purchaser of a |
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loan, the department may agree to perform the functions required to |
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enforce the conditions and requirements stated in the loan, |
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including enforcing the payment of debt service by the borrowing |
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entity. |
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(j) The department shall deposit the proceeds of the sale of |
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a loan under this section in the bank. |
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(k) The commission and department may exercise any powers |
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necessary to carry out the authority granted by this section, |
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including the authority to contract with any person to accomplish |
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the purposes of this section. |
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(l) The state, the department, and the commission are not |
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liable for the repayment of any loan sold under this section and |
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neither may repay a loan sold under this section. |
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SECTION 10. This Act takes effect immediately if it |
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receives a vote of two-thirds of all the members elected to each |
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house, as provided by Section 39, Article III, Texas Constitution. |
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If this Act does not receive the vote necessary for immediate |
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effect, this Act takes effect September 1, 2013. |
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