Eckhardt’s bill letting mobility authorities lend surplus toll money

The text as introduced · 902 words

89R11554 JAM-F

By: Eckhardt
S.B. No. 1384

A BILL TO BE ENTITLED

AN ACT

relating to the provision by a regional mobility authority of

financial assistance for transportation projects of governmental

entities located in the area of the authority; providing authority

to issue bonds.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 370.174(b), Transportation Code, is

amended to read as follows:

(b) Consistent with other law and commission rule, an

authority may spend surplus revenue on other transportation

projects by:

(1) constructing a transportation project located

within the counties of the authority;

(2) assisting in the financing of a toll or toll-free

transportation project of another governmental entity , including

by providing financial assistance in the manner provided by Section

370.1745 ; or

(3) with the approval of the commission, constructing

a toll or toll-free transportation project and, on completion of

the project, transferring the project to another governmental

entity if:

(A) the other governmental entity authorizes the

authority to construct the project and agrees to assume all

liability and responsibility for the maintenance and operation of

the project on its transfer; and

(B) the project is constructed in compliance with

all laws applicable to the governmental entity.

SECTION 2. Subchapter E, Chapter 370, Transportation Code,

is amended by adding Section 370.1745 to read as follows:

Sec. 370.1745. FINANCIAL ASSISTANCE FOR LOCAL GOVERNMENTAL

ENTITIES; REVENUE BONDS. (a) To assist in the financing of a toll

or toll-free transportation project under Section 370.174(b), an

authority may provide to a governmental entity any part of which is

located within the geographic boundaries of the authority financial

assistance for the project by:

(1) extending credit by direct loan;

(2) providing credit enhancements;

(3) serving as a capital reserve for bond or debt

instrument financing;

(4) subsidizing interest rates;

(5) insuring the issuance of a letter of credit or

credit instrument;

(6) financing a purchase or lease agreement in

connection with a transit project; or

(7) providing security for bonds and other debt

instruments.

(b) Financial assistance to a governmental entity under

Subsection (a) shall be limited, as applicable, to a transportation

project that is consistent with the transportation plan developed

by the metropolitan planning organization.

(c) A governmental entity that is authorized by law to

construct, maintain, or finance a transportation project may borrow

money from the authority, including by direct loan, based on the

credit of the governmental entity.

(d) Money borrowed under this section must be segregated

from other funds under the control of the governmental entity and

may only be used for purposes related to a transportation project.

(e) This section does not affect the ability of a

governmental entity to incur debt using other statutorily

authorized methods.

(f) The authority may require governmental entities

receiving assistance under this section to make charges, levy

taxes, or otherwise provide for sufficient money to pay acquired

obligations.

(g) Except as otherwise provided by this section, a

governmental entity that receives financial assistance under this

section may issue revenue bonds for the purpose of repaying that

assistance without complying with any other law applicable to the

issuance of bonds. Notwithstanding any other provision of this

section, Chapters 1201, 1202, 1204, and 1371, Government Code,

apply to bonds issued under this section. Revenue bonds issued

under this section shall be authorized by order of the governmental

entity and shall have the form and characteristics and bear the

designations as are provided in the order.

(h) Revenue bonds shall:

(1) be dated;

(2) bear interest at the rate or rates authorized by

law;

(3) mature at the time or times, serially, as term

bonds, revenue bonds, or otherwise not more than 50 years after

their dates;

(4) be called before stated maturity on the terms and

at the prices, be in the denominations, be in the form, either

coupon or registered, carry registration privileges as to principal

only or as to both principal and interest and as to successive

exchange of coupon for registered bonds or one denomination for

bonds of other denominations, and successive exchange of registered

revenue bonds for coupon revenue bonds, be executed in the manner,

and be payable at the place or places inside or outside the state,

as provided in the order;

(5) be issued in temporary or permanent form;

(6) be issued in one or more installments and from time

to time as required and sold at a price or prices and under terms

determined by the governmental entity to be the most advantageous

reasonably obtainable; and

(7) be issued on a parity with and be secured in the

manner as other revenue bonds authorized to be issued by this

section or be issued without parity and secured differently from

other revenue bonds.

(i) All proceedings relating to the issuance of revenue

bonds issued under this section shall be submitted to the attorney

general for examination. On determining that the revenue bonds

have been authorized in accordance with law, the attorney general

shall approve the revenue bonds, and the revenue bonds shall be

registered by the comptroller. After the approval and

registration, the revenue bonds are incontestable in any court or

other forum for any reason and are valid and binding obligations in

accordance with their terms for all purposes.

(j) The proceeds received from the sale of revenue bonds may

be deposited with the authority.

SECTION 3. This Act takes effect September 1, 2025.