House Bill 3588
5. ISSUANCE OF BONDS AND OTHER PUBLIC SECURITIES
TABLE OF CONTENTS
Art. 1. Trans-Texas Corridor -
Art. 2. Regional Mobility
Authorities - Art. 3. Advance Acquisition of Property
Art. 4. Rail Facilities
Art. 5. Issuance of Bonds and Other Public Securities -
Pass-Through Tolls -
Conversion of Nontoll State Highway -
Commercial Driver's Licenses -
Motor Vehicle Sales Tax -
Driver Responsibility -
Disposition of Department of Public Safety Fees -
Additional Court Costs -
Statewide Coordination of Public Transportation -
Conditional Grant Program -
Texas Turnpike Authority -
Commercial Motor Vehicle Safety Standards -
Nonrepairable and Salvage Motor Vehicles; Salvage Vehicle Dealers -
Funding of Port Security, Projects, and Studies -
Miscellaneous Provisions -
General Provisions; Effective Date
ARTICLE 5. ISSUANCE OF BONDS AND OTHER PUBLIC SECURITIES
SECTION 5.01. Subchapter A, Chapter 222, Transportation Code, is amended by adding Section 222.003 to read as follows:
Sec. 222.003. ISSUANCE OF BONDS SECURED BY STATE HIGHWAY FUND.
(a) The commission may issue bonds and other public securities secured by a pledge of and payable from revenue deposited to the credit of the state highway fund.
(b) The aggregate principal amount of the bonds and other public securities that are issued may not exceed $3 billion. The commission may only issue bonds or other public securities in an aggregate principal amount of not more than $1 billion each year.
(c) Proceeds from the sale of bonds and other public securities issued under this section shall be used to fund state highway improvement projects.
(d) Of the aggregate principal amount of bonds and other public securities that may be issued under this section, the commission shall issue bonds or other public securities in an aggregate principal amount of $600 million to fund projects that reduce accidents or correct or improve hazardous locations on the state highway system. The commission by rule shall prescribe criteria for selecting projects eligible for funding under this section. In establishing criteria for the projects, the commission shall consider accident data, traffic volume, pavement geometry, and other conditions that can create or exacerbate hazardous roadway conditions.
(e) The proceeds of bonds and other public securities issued under this section may not be used for any purpose other than any costs related to the bonds and other public securities and the purposes for which revenues are dedicated under Section 7-a, Article VIII, Texas Constitution. The proceeds of bonds and other
public securities issued under this section may not be used for the construction of a state highway or other facility on the Trans-Texas Corridor. For purposes of this section, the "Trans-Texas Corridor" means the statewide system of multimodal facilities under the jurisdiction of the department that is designated by the commission, notwithstanding the name given to that corridor.
(f) The commission may enter into credit agreements, as defined by Chapter 1371, Government Code, relating to the bonds and other public securities authorized by this section. The agreements may be secured by and payable from the same sources as the bonds and other public securities.
(g) All laws affecting the issuance of bonds and other public
securities by governmental entities, including Chapters 1201, 1202, 1204,
1207, 1231, and 1371, Government Code, apply to the issuing of bonds and
other public securities and the entering into of credit agreements under
(h) The proceeds of bonds and other public securities issued under this section may be used to:
(1) finance other funds relating to the public security, including debt service reserve and contingency; and
(2) pay the cost or expense of the issuance of the public security.
(i) Bonds and other public securities and credit agreements authorized by this section may not have a principal amount or terms that, at the time the bonds or other public securities are issued or the agreements entered into, are expected by the commission to cause annual expenditures with respect to the obligations to exceed 10 percent of the amount deposited to the credit of the state highway fund in the immediately preceding year.
(j) Bonds and other public securities issued under this section may be sold in such manner and subject to such terms and provisions as set forth in the order authorizing their issuance, and such bonds and other public securities must mature not later than 20 years after their dates of issuance, subject to any refundings or renewals.
(k) The comptroller shall withdraw from the state highway fund and forward at the direction of the commission to another person the amounts as determined by the commission to permit timely payment of:
(1) the principal of and interest on the bonds and other public securities that mature or become due; and
(2) any cost related to the bonds and other public securities that become due, including payments under credit agreements.
SECTION 5.02. This article takes effect on the date on which the constitutional amendment proposed by the 78th Legislature, Regular Session, 2003, that authorizes the legislature to provide for the issuance of bonds and other public securities secured by the state highway fund for highway improvement projects takes effect. If that amendment is not approved by the voters, this article has no effect.