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.