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  H.B. No. 1
 
 
 
 
AN ACT
  relating to certain sources of revenue for the funding of highways
  and 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 222.004 to read as follows:
         Sec. 222.004.  ISSUANCE OF GENERAL OBLIGATION BONDS FOR
  HIGHWAY IMPROVEMENT PROJECTS. (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)  "Improvement" includes acquisition of the
  highway, construction, reconstruction, and major maintenance,
  including any necessary design, and the acquisition of
  rights-of-way.
         (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-p(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 30 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-p, 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 highway
  improvement projects; and
               (2)  to pay:
                     (A)  the costs of administering projects
  authorized under this section;
                     (B)  the cost or expense of the issuance of the
  bonds; or
                     (C)  all or part of a payment owed or to be owed
  under a credit agreement.
         (h)  The proceeds from the issuance and sale of the bonds may
  not be expended or used for the purposes authorized under this
  section unless those proceeds have been appropriated by the
  legislature.
         (i)  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.  Rider No. 60, Article VII, S.B. No. 1, Acts of
  the 81st Legislature, Regular Session, 2009 (the General
  Appropriations Act appropriations to the Texas Department of
  Transportation, page VII-36), is amended to read as follows:
  60.  Contingency for legislation authorizing issuance of
  Proposition 12 bonds [Senate Bill 263] and Senate Bill 1350.
  a.  Out of funds appropriated above in strategy A.1.2, Contracted
  Planning and Design, the amount of $60,000,000 in fiscal year 2010,
  and in Strategy A.1.3, Right-of-way Acquisition, the amount of
  $90,000,000 in fiscal year 2010, and in B.1.2, New Construction
  Contracts, $250,000,000 in fiscal year 2010 and $600,000,000 in
  fiscal year 2011, and in Strategy B.1.3, Construction Grants &
  Services, $1 billion in fiscal year 2011 in Proposition 12 General
  Obligation Bond proceeds and in strategy F.1.1, General Obligation
  Bonds, $100 million in General Revenue are contingent upon the
  enactment of [SB 263, or similar] legislation relating to the
  issuance by the Texas Transportation Commission of general
  obligation bonds for highway improvement projects, by the
  Eighty-first Legislature, Regular Session, or by a called session
  of the Eighty-first Legislature. The amounts from Proposition 12
  General Obligation Bond Proceeds in Strategy B.1.2, New
  Construction Contracts, shall be used to make progress payments on
  a maximum of $1,850,000,000 in new multi-year construction contract
  obligations for non-tolled highway projects.
  b.  Contingent upon the enactment of Senate Bill 1350 or similar
  legislation relating to the creation, administration, financing,
  and use of a Texas Transportation Revolving Fund by the
  Eighty-first Legislature, Regular Session, $1 billion out of the
  contingent appropriation of Proposition 12 General Obligation Bond
  proceeds in Strategy B.1.3, Construction Grants & Services, in
  subsection (a) of this rider shall be used to capitalize the Texas
  Transportation Revolving Fund for the purpose of implementing the
  provisions of Senate Bill 1350 or similar legislation. If Senate
  Bill 1350 or similar legislation is not enacted, $1 billion of the
  contingent appropriation from Proposition 12 General Obligation
  Bond proceeds in Strategy B.1.3, Construction Grants & Services, in
  subsection (a) of this rider shall be used to capitalize the State
  Infrastructure Bank for the purpose of making loans to public
  entities; provided that money in the State Infrastructure Bank may
  not be used for the purpose of converting a nontolled road or
  highway to a tolled road or highway.
         SECTION 3.  Section 228.0111(p), Transportation Code, is
  amended to read as follows:
         (p)  A local toll project entity and the department may issue
  bonds, including revenue bonds and refunding bonds, or other
  obligations, and enter into credit agreements, to pay any costs
  associated with a project under this section, including the
  payments deposited to the applicable toll project subaccount, and
  the costs to construct, maintain, and operate additional
  transportation projects that the local toll project entity or the
  department commits to undertake in accordance with this section, as
  follows:
               (1)  the bonds or other obligations and the proceedings
  authorizing the bonds or other obligations must be submitted to the
  attorney general for review and approval as required by Chapter
  1202, Government Code;
               (2)  the bonds or other obligations may be payable from
  and secured by revenue of one or more projects of the local toll
  project entity or the department, including toll road system
  revenues, or such other legally available revenue or funding
  sources as the local toll project entity or department shall
  determine;
               (3)  the bonds or other obligations may mature serially
  or otherwise not more than 40 [30] years from their date of
  issuance;
               (4)  the bonds or other obligations are not a debt of
  and do not create a claim for payment against the revenue or
  property of the local toll project entity or the department, other
  than the revenue sources pledged for which the bonds or other
  obligations are issued; and
               (5)  the local toll project entity and the department
  may issue obligations and enter into credit agreements under
  Chapter 1371, Government Code, and for purposes of that chapter, a
  local toll project entity and the department shall be considered a
  public utility and any cost authorized to be financed in accordance
  with this subsection is an eligible project.
         SECTION 4.  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 on the 91st day after the last day of the
  legislative session.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1 was passed by the House on July 2,
  2009, by the following vote:  Yeas 146, Nays 0, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1 was passed by the Senate on July 2,
  2009, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor       
         I certify that the amounts appropriated in the herein H.B.
  No. 1, 1st Called Session of the 81st Legislature, are within
  amounts estimated to be available in the affected fund.
  Certified_____________________
  ______________________________
  Comptroller of Public Accounts