§ 64-8-207 — Powers granted for financing the mass transit and transportation plans

Tennessee § 64-8-207

• Jurisdiction: Tennessee
• Title: 64

Text

In order to finance the construction, operation, maintenance, and management of the mass transit and transportation plans and plans for transit adjacent or transit oriented development established by the authority, the authority shall have the following powers: (1) To fix, alter, establish and collect rates, fares, fees, rentals, tolls and other charges for the services planned, financed, constructed, operated, maintained or managed by the authority associated with transit and transit oriented development, including, but not limited to, demand-response transit services, vanpool programs, rideshare programs, local bus services, regional bus services, bus rapid transit services, light rail transit services, commuter rail services, park-and-ride lots, transit oriented development nodes and all infrastructure that would be required to support or sustain such facilities or services. These rates, fares, fees, rentals, tolls, sales and other charges shall always be sufficient to comply with any covenants made with the holders of any bonds issued pursuant to this part; (2) To solicit, accept and expend grants, appropriations, contributions or other funds from any source, public or private, and maintain an accounting of such receipts and expenditures, subject to audit by the comptroller of the treasury; (3) To sell, convey, exchange, lease as a lessor, transfer or otherwise dispose of any real or personal property, or interest in real or personal property, acquired by the authority, including air rights, or to purchase, lease or otherwise acquire real property as needed for the construction or operation of mass transit or transportation services and to implement transit adjacent or transit oriented development plans; (4) (A) The authority shall have power and is authorized to issue its bonds in order to finance: (i) The costs of any project authorized by this part; (ii) The payment of the costs of issuance of such bonds, including underwriter's discount, financial advisory fees, preparation of the definitive bonds, preparation of all public offering and marketing materials, advertising, credit enhancement, and legal, accounting, fiscal and other similar expenses; (iii) Reimbursement of the authority for moneys previously spent by the authority for any of the purposes set forth in subdivision (4)(A)(ii); (iv) The establishment of reasonable reserves for the payment of debt service on such bonds, for repair and replacement of any project, or for such other purposes as the board deems necessary and proper in connection with the issuance of any bonds and operation of any project for the benefit of which the financing is being undertaken; and (v) The contribution of the authority's share of the funding for any joint undertaking for the purposes set forth in this subdivision (4); (B) (i) The authority shall have the power and is authorized to issue its bonds to refund and refinance outstanding bonds of the authority heretofore or hereafter issued or lawfully assumed by the authority. The proceeds of the sale of the bonds may be applied to: (a) The payment of the principal amount of the bonds being refunded and refinanced; (b) The payment of the redemption or tender premium thereon, if any; (c) The payment of unpaid interest on the bonds being refunded, including interest in arrears, for the payment of which sufficient funds are not available, to the date of delivery or exchange of the refunding bonds; (d) The payment of fees or other charges incident to the termination of any interest rate hedging agreements, liquidity or credit facilities or other agreements related to the bonds being refunded and refinanced; (e) The payment of interest on the bonds being refunded and refinanced from the date of delivery of the refunding bonds to maturity or to, and including, the first or any subsequent available redemption date or dates on which the bonds being refunded may be called for redemption; (f) The payment of the costs of issuance of the refunding bonds, including underwriter's discount, financial advisory fees, preparation of the definitive bonds, preparation of all public offering and marketing materials, advertising, credit enhancement, and legal, accounting, fiscal and other similar expenses, and the costs of refunding the outstanding bonds, including the costs of establishing an escrow for the retirement of the outstanding bonds, trustee and escrow agent fees in connection with any escrow, and accounting, legal and other professional fees in connection therewith; and (g) The establishment of reserves for the purposes set forth in subdivision (4)(A)(iv); (ii) Refunding bonds may be issued to refinance and refund more than one issue of outstanding bonds, notwithstanding that the outstanding bonds may have been issued at different times. Refunding bonds may be issued jointly with other refunding bonds or other bonds of the authority. The principal proceeds from the sale of refunding bonds may be applied either to the immediate payment and retirement of the bonds being refunded or, to the extent not required for the immediate payment of the bonds being refunded, to the deposit in escrow with a bank or trust company to provide for the payment and retirement at a later date of the bonds being refunded; (C) No bonds shall be issued under this subdivision (4) unless authorized to be issued or assumed by resolution of the governing board of the authority. Bonds authorized to be issued under this subdivision (4) may be issued in one (1) or more series, may bear such date or dates, mature at such time or times, not exceeding forty (40) years from their respective dates, bear interest at such rate or rates, payable at such time or times, be in such denominations, be in such form, either coupon or registered, be executed in such manner, be payable in such medium of payment, at such place or places, and be subject to such terms of redemption, with or without premium, as such resolution or resolutions may provide. Bonds may be issued for money or property at competitive or negotiated sale for such price or prices as the governing board, or its designee, shall determine. The authority may enter into such agreements in connection with the issuance of any bonds as its governing board may approve, including, without limitation, agreements related to municipal bond insurance, credit or liquidity facility agreements, remarketing agreements and bond purchase agreements; (D) Bonds may be repurchased by the authority out of any available funds at such price as the governing board shall determine, and all bonds so repurchased shall be cancelled or held as an investment of the authority as the governing board may determine; (E) Pending the preparation or execution of definitive bonds, interim receipts or certificates or temporary bonds may be delivered to the purchasers of bonds; (F) (i) With respect to all or any portion of any issue of bonds issued under this subdivision (4), at any time during the term of the bonds, and upon receipt of a report of the comptroller of the treasury or the comptroller's designee finding that the contracts and agreements authorized in this subdivision (4) are in compliance with the guidelines, rules or regulations adopted or promulgated by the state funding board, as set forth in § 9-21-130 , the authority, by resolution of the governing board, may authorize and enter into interest rate swap or exchange agreements, agreements establishing interest rate floors or ceilings, or both, and other interest rate hedging agreements under such terms and conditions as the governing board may determine, including, without limitation, provisions permitting the authority to pay to, or receive from, any person or entity any loss of benefits under such agreement upon early termination of the agreement or default under the agreement; (ii) The authority may enter into an agreement to sell bonds, other than its refunding bonds, under this part providing for delivery of its bonds on a date greater than ninety (90) days and not greater than five (5) years or such greater period of time if approved by the comptroller of the treasury or the comptroller's designee, from the date of execution of the agreement or to sell its refunding bonds providing for delivery of the refunding bonds on a date greater than ninety (90) days from the date of execution of the agreement and not greater than the first optional redemption date on which the bonds being refunded can be optionally redeemed resulting in cost savings or at par, whichever is earlier, only upon receipt of a report of the comptroller of the treasury or the comptroller's designee finding that the agreement or contract of the authority to sell its bonds as authorized in this subdivision (4) is in compliance with the guidelines, rules or regulations adopted or promulgated by the state funding board in accordance with § 9-21-130 . Agreements to sell bonds and refunding bonds for delivery ninety (90) days or less from the date of execution of the agreement do not require a report of the comptroller of the treasury or the comptroller's designee; (iii) Prior to the adoption by the governing board of a resolution authorizing a contract or agreement described in subdivision (4)(F)(i) or (4)(F)(ii), a request shall be submitted to the comptroller of the treasury or the comptroller's designee for a report finding that the contract or agreement is in compliance with the guidelines, rules or regulations of the state funding board. Within fifteen (15) days of receipt of the request, the comptroller of the treasury or the comptroller's designee shall determine whether the contract or agreement substantially complies with the guidelines, rules or regulations and shall report on compliance to the authority. If the report of the comptroller of the treasury or the comptroller's designee finds that the contract or agreement complies with the guidelines, rules or regulations of the state funding board or the comptroller of the treasury shall fail to report within the fifteen-day period, then the authority may take such action with respect to the proposed contract or agreement as it deems advisable in accordance with this section and the guidelines, rules or regulations of the state funding board. If the report of the comptroller of the treasury or the comptroller's designee finds that the contract or agreement is not in compliance with the guidelines, rules or regulations, then the authority is not authorized to enter into the contract or agreement. The guidelines, rules or regulations shall provide for an appeal process upon a determination of noncompliance; (iv) When entering into any contracts or agreements facilitating the issuance and sale of bonds, including contracts or agreements providing for liquidity and credit enhancement and reimbursement agreements relating thereto, interest rate swap or exchange agreements, agreements establishing interest rate floors or ceilings, or both, other interest rate hedging agreements, and agreements with the purchaser of the bonds, evidencing a transaction bearing a reasonable relationship to this state and also to another state or nation, the authority may agree in the written contract or agreement that the rights and remedies of the parties to the contract or agreement shall be governed by the laws of this state or the laws of such other state or nation; provided, that jurisdiction over the authority shall lie solely in the courts of any participating metropolitan government, county, city or town; (G) (i) All bonds issued by the authority shall be payable out of the revenue and receipts derived from any projects, or of any portion of projects owned, operated or leased to or from the authority, as may be designated by the board of directors of the authority, or from any revenues to be derived directly or indirectly by the authority from such projects, or from any revenues derived directly or indirectly by the authority from the allocation, transfer, contribution or pledge of tax revenues or other moneys of any nature by the state or any county, municipality or other public instrumentality thereof; (ii) The principal of and interest on any bonds issued by the authority shall be secured, as may be designated by the governing board, by a pledge of revenues and receipts of the authority described in subdivision (4)(G)(i), by a pledge of the authority's rights under agreements, leases and other contracts, or by a mortgage or deed of trust covering all or any part of the projects from which the revenues or receipts so pledged may be derived. The proceedings under which the bonds are authorized to be issued and any such pledge agreement or mortgage or deed of trust may contain any agreements and provisions respecting the maintenance of the projects covered by the bonds, the fixing and collection of rents for any portions of projects leased by the authority to others, the creation and maintenance of special funds from such revenues and the rights and remedies available in the event of default, all as the governing board deems advisable and not in conflict with this part. Each pledge, agreement, or mortgage or deed of trust made for the benefit or security of any of the bonds of the authority shall continue effective until the principal of and interest on the bonds for the benefit of which the pledge, agreement, or mortgage or deed of trust were made shall have been fully paid. In the event of default in the payment or in any agreement of the authority made as a part of the contract under which the bonds were issued, whether contained in the proceedings authorizing the bonds or in any mortgage or deed of trust executed as security for the bonds, the payment or agreement may be enforced by suit, mandamus, the appointment of a receiver in equity or by foreclosure of any such mortgage or deed of trust, or any one (1) or more of these remedies; (H) The authority may issue interim certificates, bond anticipation notes or other temporary obligations pending the issuance of its revenue bonds, which temporary obligations shall be payable out of revenues and receipts of the authority in like manner as the revenue bonds and shall be retired from the proceeds of such bonds upon the issuance of the revenue bonds, and shall be in such form and contain such terms, conditions and provisions consistent with this part as the governing board may determine; (I) Bonds and notes of the authority shall be executed in the name of the authority by such officers of the authority and in such manner as the governing board may direct and shall be sealed with the corporate seal of the authority. If so provided in the proceedings authorizing the bonds, the facsimile signature of any of the officers executing the bonds and a facsimile of the corporate seal of the authority may appear on the bonds in lieu of the manual signature of the officer and the manual impress of the seal; (J) Any bonds and notes of the authority may be sold at public or private sale, for such price and in such manner and from time to time as may be determined by the governing board of directors of the authority to be most advantageous; and the authority may pay all expenses, premiums and commissions that its board of directors may deem necessary or advantageous in connection with the issuance of the bonds; (K) Any participating metropolitan government, county, city or town is authorized to aid or otherwise provide assistance to an authority created pursuant to this part, including entering into leases of projects, or parts of projects with an authority, for such term or terms and upon such conditions as may be determined by resolution of the governing body of the metropolitan government, county, city or town, notwithstanding and without regard to the restrictions, prohibitions or requirements of any other law, whether public or private, or granting, contributing or pledging revenues of the metropolitan government, county, city or town to or for the benefit of the authority derived from any source; (L) Any participating metropolitan government, county, city or town is authorized, upon recommendation of the governing board of the authority, to issue and sell its bonds to finance the acquisition, construction, improvement or expansion of the facilities authorized in this part, and to refund bonds previously issued by the metropolitan government, county, city or town or by the authority, or refinance indebtedness previously incurred for such purposes. The facilities authorized by this part shall be deemed to be public works projects for purposes of § 9-21-105 of the Local Government Public Obligations Act of 1986 (LGPOA), compiled in title 9, chapter 21, and any such bonds issued by a participating metropolitan government, county, city or town under this part shall be issued, and the proceeds of the bonds applied, in accordance with the applicable provisions of the LGPOA. Notwithstanding this subdivision (4)(L), prior to the issuance of any general obligation bonds by a metropolitan government, county, city or town under the authority of this part, a referendum shall be held concurrently with a general election in the metropolitan government, county, city or town. The referendum shall in all other respects be conducted in compliance with the requirements of the LGPOA, specifically with those contained in §§ 9-21-205 - 9-21-209; (M) Each participating metropolitan government, county, city or town, upon approval by resolution of its governing body, is authorized to enter into such agreements with the authority and the other participating metropolitan governments, counties, cities or towns as may be determined by the governing body of the metropolitan government, county, city or town to be convenient or necessary to accomplish the purposes set forth in subdivisions (4)(K) and (L); (N) Except to the extent of any revenues that may be specifically allocated, transferred, contributed or pledged by a participating metropolitan government, county, city or town in accordance with this part and laws, rules and regulations applicable to this part, no metropolitan government, county, city or town shall in any event be liable for the payment of the principal of or interest on any bonds of the authority or for the performance of any pledge, mortgage, obligation or agreement of any kind whatsoever that may be undertaken by the authority, and none of the bonds of the authority or any of its agreements or obligations shall be construed to constitute an indebtedness of a participating metropolitan government, county, city or town within the meaning of any constitutional or statutory provision whatsoever; (O) Nothing in this part shall be construed to allow the governing board of the authority to pledge unilaterally the full faith and credit and unlimited taxing power of any metropolitan government, county, city or town as surety to the payment of the authority's bonds or to impose unilaterally an ad valorem tax in any metropolitan government, county, city or town; (5) To delineate and create a special district in all or portions of the areas of the regional transportation authority for the purposes of facilitating the raising of revenues to be dedicated to the authority for the implementation of the authority's plan within the special district. A special district may be created only in those areas of the authority that have or are planned to have a benefit from services being provided by the authority and shall be permitted to include multiple metropolitan governments, counties, cities and towns. An authority may create more than one (1) special district and special districts may overlap. Local governments, by majority vote of their governing bodies, shall have the right to opt out of a special district created by the board of an authority prior to the levy of any tax or assessment within the special district; (6) To accept funds from taxes or assessments levied by local governments served by the authority or act of the general assembly in order to provide funding for the plan adopted by the authority pursuant to § 64-8-206(a) . The act of the general assembly may be initiated upon either: (A) A formal request made by local governing bodies within the authority in the form of a local resolution; or (B) The receipt of the certified results of a nonbinding advisory election. For such an election to be held, the governing body is authorized to direct the county election commission in the affected local governments to place the question on the ballot to be submitted to the voters in the affected local governments on the matter of general and vital concern of whether a particular tax or assessment with a certain rate should be levied within a special district of the authority by means of the general assembly in order to obtain the advice and direction of the voters as to such matters. The expense of any special election held within the territory of the special district of the authority shall be borne by the authority. The results of the election shall be advisory and nonbinding; and (7) To petition its participating local governments to levy any tax or assessment authorized by law for state, county or municipal purposes and not prohibited by the Tennessee constitution and dedicate the proceeds of such tax or assessment to the authority. Any city or county government levying a tax pursuant to this subdivision (7) may limit the levy of the tax to the area included within the special district created by the regional transportation authority. Any local government levying a tax pursuant to this subdivision (7) may make the levy subject to approval by the qualified voters in the area subject to the tax in accordance with § 2-3-204 in the following manner: (A) (i) Any ordinance or resolution of a participating local government levying the tax under authority of this part shall not become operative until approved in an election provided under this subdivision (7) in such local government; (ii) The county election commission shall hold an election on the question pursuant to § 2-3-204 , providing options to vote "FOR" or "AGAINST" the ordinance or resolution, after the receipt of a certified copy of such ordinance or resolution, and a majority vote of those voting in the election shall determine whether the ordinance or resolution is to be operative; and (iii) If the majority vote is for the ordinance or resolution, it shall be deemed to be operative on the date that the county election commission makes its official canvass of the election returns; provided, however, that no tax shall be collected under any such ordinance or resolution until the first day of a month occurring at least thirty (30) days after the operative date; (B) (i) If a county legislative body adopts a resolution to levy the tax at the same rate that is operative in a city or town in the county, the election under this section to determine whether the county tax is to be operative shall be open only to the voters residing outside of the city or town. If the county tax is at a higher rate than the rate of the city or town tax, the election shall also be open to the voters of the city or town; and (ii) Should any county or city or town hold an election under this subdivision (7), and the ordinance or resolution is rejected, no other election on the tax or assessment shall be held by the county, city or town for a period of six (6) months from the date of the holding of the prior election.

Legislative History

Acts 2009 , ch. 362, § 1; 2012 , ch. 835, § 2.