Bill Text: TX SB88 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to a pilot project for financing certain Texas Department of Transportation projects.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-02-01 - Referred to Transportation [SB88 Detail]
Download: Texas-2019-SB88-Introduced.html
| 86R1956 JTS-D | ||
| By: Hall | S.B. No. 88 | |
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| 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, 2019. | ||
