HB4888 - 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.

  89R11554 JAM-F     By: Canales H.B. No. 4888       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.