Bill Text: TX SB84 | 2017-2018 | 85th Legislature | Introduced

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Bill Title: Relating to a pilot project for financing certain Texas Department of Transportation projects.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2017-05-01 - Left pending in committee [SB84 Detail]

Download: Texas-2017-SB84-Introduced.html

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85R1318 JTS-D
By: Hall S.B. No. 84

A BILL TO BE ENTITLED
AN ACT
relating to a pilot project for financing certain Texas Department
of Transportation projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter F, Chapter 223, Transportation Code,
is amended by adding Section 223.251 to read as follows:
Sec. 223.251. DEPARTMENT PILOT FINANCING PROJECT USING
ECONOMIC IMPACT ZONE. (a) The department may select one nontolled
highway project under a design-build contract to be financed,
including through the issuance of bonds, wholly or partly using
revenue from:
(1) transportation reinvestment zones under
Subchapter E, Chapter 222; and
(2) an economic impact zone under Subsection (b).
(b) The department may establish an economic impact zone for
an area that extends not more than one mile on either side of the
centerline of the project. If a zone is created:
(1) the department shall notify the comptroller of the
establishment of the zone not later than the 30th day after the date
the zone is established; and
(2) the comptroller shall:
(A) at the beginning of each calendar year,
estimate the projected annual increase in state sales tax revenue
in the zone during the calendar year over the amount of state sales
tax revenue in the zone during the calendar year in which the zone
was established;
(B) monthly deposit into a separate account
outside the treasury, without the necessity of an appropriation,
one-twelfth of the amount of the estimated projected annual
increase calculated under Paragraph (A); and
(C) at the end of each calendar year:
(i) transfer from the account to the
department for the purpose of financing the project, an amount
necessary to pay the costs of the project as described by Subsection
(d), not to exceed the actual increase in state sales tax revenue in
the zone during the calendar year over the amount of the state sales
tax revenue in the zone during the calendar year in which the zone
was established; and
(ii) transfer to the general revenue fund
any amounts remaining in the account after the transfer.
(c) The department may require that the municipalities in
which the project is located assume responsibility for project
costs for rights-of-way and utility relocation.
(d) Revenue described by Subsection (b) may be used only
for:
(1) development and construction of the project;
(2) payment of debt incurred for the project; and
(3) maintenance of the project.
(e) Financing agreements for a project financed under this
section must contain provisions to allow the early retirement of
debt using money from an economic impact zone under Subsection (b)
or money appropriated by the legislature.
(f) The maturity date of any bonds issued for the project
may not be extended after the bonds are issued, including through
the use of refunding bonds or other refinancing agreements, unless
the extension of the maturity date will decrease the total amount of
interest to be paid until maturity.
SECTION 2. This Act takes effect August 31, 2017.