By: Chisum H.B. No. 551
73R2105 RJA-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the limitation on the amount of debt payable from the
1-3 general revenue fund.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 8(b), Chapter 1078, Acts of the 70th
1-6 Legislature, Regular Session, 1987 (Article 717k-7, Vernon's Texas
1-7 Civil Statutes), is amended to read as follows:
1-8 (b) For purposes of this section, "state debt payable from
1-9 the general revenue fund" means general obligation and revenue
1-10 bonds, including authorized but unissued bonds, and lease-purchase
1-11 agreements in an amount greater than $250,000, which bonds or lease
1-12 purchase agreements are designed to be repaid with the general
1-13 revenues of the state. <The term does not include bonds that,
1-14 although backed by the full faith or credit of the state, are
1-15 reasonably expected to be paid from other revenue sources and that
1-16 are not expected to create a general revenue draw. Bonds or lease
1-17 purchase agreements that pledge the full faith and credit of the
1-18 state will be considered to be reasonably expected to be paid from
1-19 other revenue sources if they are designed to receive revenues
1-20 other than state general revenues sufficient to cover their debt
1-21 service over the life of the bonds or agreement. In the event such
1-22 bonds or agreement, or any portion thereof, subsequently requires
1-23 use of the state's general revenue for payment, the bonds or
1-24 agreement, or such portion thereof, will be considered to be a
2-1 "state debt payable from the general revenue fund" within the
2-2 definition of this section, until one of the following events
2-3 occurs:>
2-4 <(1) the bonds or agreement are backed by insurance or
2-5 other form of guarantee that will ensure payment from other than
2-6 general revenue; or>
2-7 <(2) the issuer demonstrates to the satisfaction of
2-8 the bond review board that the bonds will no longer require a
2-9 general revenue draw, and the bond review board so certifies to the
2-10 Legislative Budget Board.>
2-11 SECTION 2. The importance of this legislation and the
2-12 crowded condition of the calendars in both houses create an
2-13 emergency and an imperative public necessity that the
2-14 constitutional rule requiring bills to be read on three several
2-15 days in each house be suspended, and this rule is hereby suspended,
2-16 and that this Act take effect and be in force from and after its
2-17 passage, and it is so enacted.