Amend CSSB 1420 (house committee report) by adding the following appropriately numbered SECTIONS and renumbering subsequent SECTIONS of the bill accordingly:

SECTION ____.  Section 222.071, Transportation Code, is amended by adding Subdivisions (1-a), (2-a), and (7) and amending Subdivision (5) to read as follows:

(5)  "Qualified project" includes:

(A)  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 a subaccount subject to the federal act, a project eligible for assistance under Title 23 or Title 49, United States Code; or

(D)  a transportation project.

SECTION ____.  Section 222.072, Transportation Code, is amended to read as follows:

Sec. 222.072.  STATE INFRASTRUCTURE BANK. (a) The state infrastructure bank is an account held by the Texas Treasury Safekeeping Trust Company [in the state highway fund]. The bank is administered by the commission.

(b)  The commission may deposit in the bank money derived from any source available to the commission, including:

(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;

(7) [,]  proceeds from bonds issued under Section 222.075;

(8) [,]  secondary funds; and

(9)  a gift or grant [, 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].

SECTION ____.  Section 222.074, Transportation Code, is amended by amending Subsection (a) and adding Subsections (d), (e), (f), and (g) 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 an obligation of a public entity;

(2)  provide liquidity or credit enhancement, including through an agreement to:

(B)  purchase a bond, note, or other obligation from a public entity [enhancements];

(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; [or]

(8)  provide capitalized interest for debt financing by a public or private entity;

(11)  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.

SECTION ____.  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 a qualified project 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 this subchapter [related to a qualified project].

(c)  To provide for the repayment of a loan or another form of financial assistance from the bank, a public entity may:

(e)  The authority granted by this section does not affect the ability of a public entity to incur debt using other statutorily authorized methods.

SECTION ____.  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 participants to make charges, levy taxes, or otherwise provide for sufficient money to 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 ____.  Section 222.076, Transportation Code, is amended by adding Subsection (c) to read as follows:

SECTION ____.  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 repaid, [on terms determined by] the commission shall determine the terms of the repayment, including the interest rate to be charged. The terms must comply with the federal act except for terms applicable to funds deposited in a subaccount described by Section 222.076(b).

(b)  Notwithstanding any other law to the contrary:

(1)  the repayment of a loan or other assistance provided with money deposited to the credit of 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 subaccount; and

(2)  investment income generated by money deposited to the credit of a subaccount in the bank shall be:

(A)  credited to that subaccount, 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;

(B)  available for use in providing financial assistance under this subchapter; and

(C)  invested in United States Treasury securities, bank deposits, 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, except that 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 ____.  Subchapter D, Chapter 222, Transportation Code, is amended by adding Sections 222.078 and 222.079 to read as follows: