2017S0366-1 03/02/17

By: Perry S.B. No. 1231

A BILL TO BE ENTITLED

AN ACT

relating to the issuance of general obligation bonds by the Texas Public Finance Authority to pay for certain state infrastructure projects.

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

SECTION 1. Subchapter C, Chapter 1232, Government Code, is amended by adding Section 1232.1117 to read as follows:

Sec. 1232.1117. CERTAIN STATE INFRASTRUCTURE PROJECTS; GENERAL OBLIGATION BONDS. (a) The authority has the exclusive power to issue general obligation bonds under Section 50-i, Article III, Texas Constitution. The board shall issue the bonds in a cumulative amount not to exceed $1 billion to pay for projects to repair, renovate, rehabilitate, or construct state infrastructure other than transportation infrastructure and higher education facilities. In this subsection:

(1) "Transportation infrastructure" means roads, streets, ways, bridges, or culverts.

(2) "Higher education facilities" means property, buildings, structures, or other facilities used or intended to be used by an institution of higher education, as defined by Section 61.003, Education Code.

(b) The board shall provide for, issue, and sell the bonds in accordance with Section 50-i, Article III, Texas Constitution, and this chapter. The authority shall deposit the proceeds from the sale of the bonds to the credit of the state infrastructure projects fund and invest the proceeds as provided by this chapter.

(c) Proceeds from the sale of the bonds may be spent on an authorized project or for the purchase of needed equipment only in accordance with the legislative appropriation of the proceeds.

SECTION 2. This Act takes effect on the date on which the constitutional amendment proposed by the 85th Legislature, Regular Session, 2017, authorizing the issuance of general obligation bonds to pay for certain state infrastructure projects takes effect. If that amendment is not approved by the voters, this Act has no effect.