CHAPTER 1403. GENERAL OBLIGATION BONDS FOR CERTAIN BORDER COLONIA PROJECTS
GOVERNMENT CODE
TITLE 9. PUBLIC SECURITIES
SUBTITLE G. SPECIFIC AUTHORITY FOR STATE GOVERNMENT TO ISSUE
SECURITIES
CHAPTER 1403. GENERAL OBLIGATION BONDS FOR CERTAIN BORDER COLONIA
PROJECTS
Sec. 1403.001. DEFINITIONS. In this chapter:
(1) "Authority" means the Texas Public Finance Authority.
(2) "Commission" means the Texas Transportation Commission.
Added by Acts 2001, 77th Leg., ch. 950, Sec. 1, eff. Nov. 6,
2001.
Sec. 1403.002. GENERAL OBLIGATION BONDS AND NOTES FOR BORDER
COLONIA ROADWAY PROJECTS. (a) As provided by Section 49-1,
Article III, Texas Constitution, the authority shall, in
accordance with requests from the office of the governor:
(1) issue general obligation bonds and notes in an aggregate
amount not to exceed $175 million, as authorized by the office of
the governor under Subsection (b); and
(2) as directed by the Texas Department of Transportation,
distribute the proceeds from the sale of the bonds and notes to
counties to provide financial assistance for colonia access
roadway projects to serve border colonias.
(b) The office of the governor shall determine the amount of
bonds or notes to be issued at any one time by the authority
under Subsection (a)(1) and the times at which the bonds or notes
are issued.
(c) The commission shall establish a program to administer the
use of the proceeds of the bonds and notes. The Texas Department
of Transportation shall administer the program in cooperation
with the office of the governor, the secretary of state, and the
Texas A&M University Center for Housing and Urban
Development.
(d) The commission, in cooperation with the office of the
governor, shall:
(1) define by rule "border colonia" as a geographic area that
consists of 11 or more dwellings that are located in close
proximity to each other in an area that may be described as a
community or neighborhood and subject to any other criteria
considered appropriate by the commission and the office of the
governor;
(2) establish by rule criteria for selecting which areas and
which colonia access roadway projects are eligible for assistance
under this chapter;
(3) determine the counties and the colonia access roadway
projects that are to receive financial assistance and the amount
of assistance given to a county or project;
(4) establish by rule minimum road standards a county's colonia
access roadway proposal must meet to be awarded a grant;
(5) establish by rule grant application procedures; and
(6) establish by rule financial reporting requirements for
counties that receive assistance for colonia access roadway
projects to serve border colonias.
(e) The issuance of general obligation bonds under this chapter
shall comply with and is subject to Subtitle A, of this title,
Chapter 1231, and applicable provisions of Chapters 1232 and
1371.
(f) In connection with bonds or notes issued under this section,
the authority may enter into one or more credit agreements at any
time for a period and on conditions the authority approves. For
purposes of this subsection, "credit agreement" includes:
(1) an interest rate swap agreement;
(2) an interest rate lock agreement;
(3) a currency swap agreement;
(4) a forward payment conversion agreement;
(5) an agreement to provide payments based on levels of or
changes in interest rates or currency exchange rates;
(6) an agreement to exchange cash flows or a series of payments;
(7) an option, put, or call to hedge payment, currency, rate,
spread, or other exposure; or
(8) another agreement that enhances the marketability, security,
or creditworthiness of bonds or notes.
Added by Acts 2001, 77th Leg., ch. 950, Sec. 1, eff. Nov. 6,
2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
341, Sec. 7, eff. June 15, 2007.
Sec. 1403.003. SET-ASIDE FOR COLONIAS LOCATED IN RURAL BORDER
COUNTIES. (a) In this section:
(1) "Border colonia" means a border colonia as defined by
commission rule under Section 1403.002.
(2) "Rural border county" means a county that:
(A) has a population of less than 55,000; and
(B) is adjacent to an international border.
(3) "Set-aside" means a reservation of a portion of the proceeds
from the sale of general obligation bonds and notes under this
chapter to provide financial assistance for specific colonia
access roadway projects proposed by rural border counties.
(b) The authority shall set aside an amount equal to 10 percent
of the proceeds from each sale of general obligation bonds and
notes under this chapter to provide financial assistance for
colonia access roadway projects designed to pave roads serving
border colonias located in rural border counties.
(c) The authority, as directed by the Texas Department of
Transportation, shall provide a grant from the set-aside on a
priority basis to a rural border county that proposes to pave for
the first time a road serving a border colonia located in that
county.
Added by Acts 2003, 78th Leg., ch. 320, Sec. 1, eff. June 18,
2003.
Sec. 1403.004. USE OF GRANTS FOR PROJECT MATERIALS OR EQUIPMENT.
A grant under this chapter may be used to purchase any materials
or to lease any equipment as reasonably necessary to accomplish
the goal of the project. Materials purchased as permitted by this
section must be used solely in connection with the project.
Equipment leased as permitted by this section must be used
substantially in connection with the project throughout the
period of the applicable lease.
Added by Acts 2003, 78th Leg., ch. 320, Sec. 1, eff. June 18,
2003.