| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to state money or credit or a state guarantee used or |
|
|
provided for high-speed rail owned by a private entity. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Chapter 199, Transportation Code, is amended by |
|
|
adding Section 199.003 to read as follows: |
|
|
Sec. 199.003. STATE MONEY FOR HIGH-SPEED RAIL; PRIORITY OF |
|
|
LIEN. (a) For the purposes of this section, "high-speed rail" |
|
|
means intercity passenger rail service that is reasonably expected |
|
|
to reach speeds that exceed 110 miles per hour. |
|
|
(b) No state money, credit, or guarantee shall be used or |
|
|
provided, wholly or partly, for any purpose related to high-speed |
|
|
rail owned by a private entity unless, to secure the repayment of |
|
|
state money, this state acquires and maintains a lien on or other |
|
|
security interest in: |
|
|
(1) property of the private entity acquired with or |
|
|
through state money or credit or using a guarantee of this state; or |
|
|
(2) other assets owned by the private entity. |
|
|
(c) Before an entity or official of this state enters into |
|
|
an agreement to provide state money or credit or a state guarantee |
|
|
under Subsection (b), the comptroller must review and certify the |
|
|
agreement to ensure that the lien or other security interest |
|
|
described by that subsection is sufficient, in accordance with |
|
|
generally accepted accounting standards, to protect this state's |
|
|
financial interests. |
|
|
(d) A lien on or other security interest held by this state |
|
|
in property or other assets described by Subsection (b) is superior |
|
|
and prior to any other lien, claim, or interest of any other person |
|
|
on or against the property or other assets of the private entity. |
|
|
SECTION 2. This Act takes effect September 1, 2017. |