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1-1 AN ACT
1-2 relating to the administration and use of the Texas Mobility Fund
1-3 and the issuance of obligations for financing the construction,
1-4 reconstruction, acquisition, and expansion of state highways and
1-5 other mobility projects.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Chapter 201, Transportation Code, is amended by
1-8 adding Subchapter M to read as follows:
1-9 SUBCHAPTER M. OBLIGATIONS FOR CERTAIN HIGHWAY AND
1-10 MOBILITY PROJECTS
1-11 Sec. 201.941. DEFINITIONS. In this subchapter:
1-12 (1) "Comptroller's certification" means:
1-13 (A) as to long-term obligations, the
1-14 certification made under Section 201.943(e); and
1-15 (B) as to short-term obligations, the
1-16 certification made under Section 201.943(f).
1-17 (2) "Credit agreement" has the meaning assigned by
1-18 Section 1371.001, Government Code.
1-19 (3) "Fund" means the Texas Mobility Fund.
1-20 (4) "Long-term obligations" means an issue or series
1-21 of obligations the latest scheduled maturity of which is more than
1-22 five years.
1-23 (5) "Maximum obligation amount" means the maximum
1-24 aggregate principal amount of long-term obligations and short-term
1-25 obligations that the commission may issue from time to time after
2-1 receipt of the applicable comptroller's certification.
2-2 (6) "Obligations" means bonds, notes, and other public
2-3 securities.
2-4 (7) "Short-term obligations" means an issue or series
2-5 of obligations the latest scheduled maturity of which is five years
2-6 or less.
2-7 Sec. 201.942. ADMINISTRATION OF FUND. The comptroller shall
2-8 hold the fund, and the commission, through the department, shall
2-9 manage, invest, use, and administer the fund as provided by this
2-10 subchapter.
2-11 Sec. 201.943. AUTHORITY TO ISSUE OBLIGATIONS; PURPOSES;
2-12 LIMITATIONS. (a) Subject to Subsections (e), (f), and (g), the
2-13 commission by order or resolution may issue obligations in the name
2-14 and on behalf of the state and the department and may enter into
2-15 credit agreements related to the obligations. The obligations may
2-16 be issued in multiple series and issues from time to time in an
2-17 aggregate amount not exceeding the maximum obligation amount. The
2-18 obligations may be issued on and may have the terms and provisions
2-19 the commission determines appropriate and in the interests of the
2-20 state. The obligations may be issued as long-term obligations,
2-21 short-term obligations, or both. The latest scheduled maturity of
2-22 an issue or series of obligations may not exceed 30 years.
2-23 (b) Obligations must be secured by and payable from a pledge
2-24 of and lien on all or part of the money in the fund. Obligations
2-25 may be additionally secured by and payable from credit agreements.
2-26 The commission may pay amounts due on the obligations from
3-1 discretionary money available to it that is not dedicated to or
3-2 appropriated for other specific purposes.
3-3 (c) The commission may create within the fund accounts,
3-4 reserves, and subfunds for purposes the commission finds
3-5 appropriate and necessary in connection with the issuance of
3-6 obligations.
3-7 (d) Obligations may be issued for one or more of the
3-8 following purposes:
3-9 (1) to pay all or part of the costs of constructing,
3-10 reconstructing, acquiring, and expanding state highways, including
3-11 any necessary design and acquisition of rights-of-way, in the
3-12 manner and locations determined by the commission that, according
3-13 to conclusive findings of the commission, have an expected useful
3-14 life, without material repair, of not less than 10 years;
3-15 (2) to provide participation by the state in the
3-16 payment of part of the costs of constructing and providing publicly
3-17 owned toll roads and other public transportation projects that are
3-18 determined by the commission to be in the best interests of the
3-19 state in its major goal of improving the mobility of the residents
3-20 of the state;
3-21 (3) to create debt service reserve accounts;
3-22 (4) to pay interest on obligations for a period of not
3-23 longer than two years;
3-24 (5) to refund or cancel outstanding obligations; and
3-25 (6) to pay the commission's costs of issuance.
3-26 (e) Long-term obligations in the amount proposed to be
4-1 issued by the commission may not be issued unless the comptroller
4-2 projects in a comptroller's certification that the amount of money
4-3 dedicated to the fund pursuant to Section 49-k(e), Article III,
4-4 Texas Constitution, and required to be on deposit in the fund
4-5 pursuant to Section 49-k(f), Article III, Texas Constitution, and
4-6 the investment earnings on that money, during each year of the
4-7 period during which the proposed obligations are scheduled to be
4-8 outstanding will be equal to at least 110 percent of the
4-9 requirements to pay the principal of and interest on the proposed
4-10 long-term obligations during that year.
4-11 (f) Short-term obligations in the amount proposed by the
4-12 commission may not be issued unless the comptroller, in a
4-13 comptroller's certification:
4-14 (1) assumes that the short-term obligations will be
4-15 refunded and refinanced to mature over a 20-year period with level
4-16 principal requirements and bearing interest at then current market
4-17 rates, as determined by the comptroller; and
4-18 (2) projects that the amount of money dedicated to the
4-19 fund pursuant to Section 49-k(e), Article III, Texas Constitution,
4-20 and required to be on deposit in the fund pursuant to Section
4-21 49-k(f), Article III, Texas Constitution, and the investment
4-22 earnings on that money, during each year of the assumed 20-year
4-23 period will be equal to at least 110 percent of the requirements to
4-24 pay the principal of and interest on the proposed refunding
4-25 obligations during that year.
4-26 (g) The commission may agree to further restrictions in
5-1 connection with the issuance of obligations and may retain
5-2 independent professional consultants to make projections in
5-3 addition to, but not instead of, those of the comptroller if
5-4 required as a prerequisite to the issuance of the obligations.
5-5 (h) The commission has all powers necessary or appropriate
5-6 to carry out this subchapter and to implement Section 49-k, Article
5-7 III, Texas Constitution, including the powers granted to other
5-8 bond-issuing governmental agencies and units and to nonprofit
5-9 corporations by Chapters 1201, 1207, and 1371, Government Code.
5-10 (i) As required by Section 49-k(h), Article III, Texas
5-11 Constitution, proceedings authorizing obligations and related
5-12 credit agreements to be issued and executed under this subchapter
5-13 shall be submitted to the attorney general for approval as to their
5-14 legality. If the attorney general finds that they will be issued
5-15 in accordance with this subchapter and other applicable law, the
5-16 attorney general shall approve them, and, after payment by the
5-17 purchasers of the obligations in accordance with the terms of sale
5-18 and after execution and delivery of the related credit agreements,
5-19 the obligations and related credit agreements are incontestable for
5-20 any cause.
5-21 (j) A comptroller's certification under this section must be
5-22 based on economic data, forecasting methods, and projections that
5-23 the comptroller determines are reliable.
5-24 (k) The holders of obligations and the counterparties to
5-25 credit agreements have the rights granted in Section 49-k(j),
5-26 Article III, Texas Constitution.
6-1 Sec. 201.944. PLEDGE OF STATE'S FULL FAITH AND CREDIT.
6-2 (a) The commission may guarantee on behalf of the state the
6-3 payment of any obligations and credit agreements issued under
6-4 Section 201.943 by pledging the full faith and credit of the state
6-5 to the payment of the obligations and credit agreements in the
6-6 event the revenue and money dedicated to the fund pursuant to
6-7 Section 49-k(e), Article III, Texas Constitution, and on deposit in
6-8 the fund pursuant to Section 49-k(f), Article III, Texas
6-9 Constitution, are insufficient for that purpose.
6-10 (b) The exercise of the authority granted by Subsection (a)
6-11 does not modify or relieve the commission from complying with
6-12 Section 201.943(e) or (f) and does not permit the issuance of
6-13 aggregate obligations in an amount exceeding the maximum obligation
6-14 amount.
6-15 (c) If the commission exercises the authority granted by
6-16 Subsection (a), the constitutional appropriation contained in
6-17 Section 49-k(g), Article III, Texas Constitution, shall be
6-18 implemented and observed by all officers of the state during any
6-19 period during which obligations and credit agreements are
6-20 outstanding and unpaid.
6-21 Sec. 201.945. DEDICATION OF REVENUE TO FUND. Annually, the
6-22 revenue of the state that is dedicated or appropriated to the fund
6-23 pursuant to Section 49-k(e), Article III, Texas Constitution, shall
6-24 be deposited to the fund in accordance with Section 49-k(f),
6-25 Article III, Texas Constitution.
6-26 Sec. 201.946. INVESTMENT AND USES OF MONEY IN FUND.
7-1 (a) Money in the fund may be invested in the investments permitted
7-2 by law for the investment of money on deposit in the state highway
7-3 fund.
7-4 (b) As a part of its covenants and commitments made in
7-5 connection with the issuance of obligations and the execution of
7-6 credit agreements, the commission may limit the types of
7-7 investments eligible for investment of money in the fund but may
7-8 not expand the types of investments to include any investments that
7-9 are not authorized by Subsection (a).
7-10 (c) Income received from the investment of money in the fund
7-11 shall be deposited in the fund, subject to requirements that may be
7-12 imposed by the proceedings authorizing obligations to protect the
7-13 tax-exempt status of interest payable on the obligations under the
7-14 Internal Revenue Code of 1986.
7-15 (d) To the extent money is on deposit in the fund in amounts
7-16 that are in excess of the money required by the proceedings
7-17 authorizing the obligations and credit agreements to be retained on
7-18 deposit, the commission may use the money for any purpose for which
7-19 obligations may be issued under this subchapter.
7-20 Sec. 201.947. STRATEGIC PLAN. The commission may not issue
7-21 obligations under this subchapter before the department has
7-22 developed a strategic plan that outlines how the money will be used
7-23 and the benefit the state will derive from use of money in the
7-24 fund.
7-25 SECTION 2. (a) This Act takes effect:
7-26 (1) on the date on which the constitutional amendment
8-1 proposed by Senate Joint Resolution No. 16, 77th Legislature,
8-2 Regular Session, 2001, takes effect; and
8-3 (2) only if Senate Bill No. 342, 77th Legislature,
8-4 Regular Session, 2001, is enacted and becomes law.
8-5 (b) If the constitutional amendment proposed by Senate Joint
8-6 Resolution No. 16 is not approved by the voters or if Senate Bill
8-7 No. 342 does not become law, this Act has no effect.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 4 passed the Senate on
March 15, 2001, by a viva-voce vote; and that the Senate concurred
in House amendments on May 24, 2001, by a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 4 passed the House, with
amendments, on May 17, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor
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