S.B. No. 1536
  relating to the issuance of bonds by a municipality for certain
  improvements on the state highway system; providing authority to
  impose a tax.
         SECTION 1.  Subtitle J, Title 9, Government Code, is amended
  by adding Chapter 1510 to read as follows:
         Sec. 1510.001.  DEFINITION. In this chapter, "state highway
  system" means the highways in this state included in the plan
  providing for a system of state highways prepared under Section
  201.103, Transportation Code.
         Sec. 1510.002.  AUTHORITY TO ISSUE BONDS. (a)  A
  municipality may issue bonds to provide funds for the design,
  development, financing, construction, maintenance, operation,
  extension, expansion, or improvement of a nontoll project or
  facility on the state highway system located in the municipality
  or, as a continuation of the project or facility, in an adjacent
         (b)  To provide for the payment of bonds issued under this
  section, a municipality may:
               (1)  pledge revenue from any available source,
  including payments received under an agreement with the Texas
  Department of Transportation including under Section 222.104,
  Transportation Code;
               (2)  pledge, levy, and collect taxes, subject to any
  constitutional limitation; or
               (3)  pledge any combination of revenue and taxes
  described by Subdivisions (1) and (2).
         (c)  Any election required to permit action under Subsection
  (b) must be held in conformance with the Election Code or other law
  applicable to the municipality.
         (d)  A municipality that issues bonds under this section may
  exercise any of the rights and powers granted to the governing body
  of an issuer under Chapter 1371.
         (e)  A bond issued under this section must mature not later
  than 40 years after its date of issuance.
         (f)  This section is wholly sufficient authority for the
  issuance of bonds, the pledge of revenues, taxes, or any
  combination of revenues and taxes, and the performance of other
  acts and procedures authorized by this section by a municipality
  without reference to any other provision of law or any restriction
  or limitation contained in those provisions, except as specifically
  provided by this section.  To the extent of any conflict or
  inconsistency between this section and any other law, this section
  shall prevail and control. A municipality may use any law not in
  conflict with this section to the extent convenient or necessary to
  carry out any power or authority, expressed or implied, granted by
  this section.
         SECTION 2.  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, 2007.
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
         I hereby certify that S.B. No. 1536 passed the Senate on
  April 12, 2007, by the following vote:  Yeas 31, Nays 0.
  Secretary of the Senate    
         I hereby certify that S.B. No. 1536 passed the House on
  May 16, 2007, by the following vote:  Yeas 139, Nays 3, one present
  not voting.
  Chief Clerk of the House