75R11171 GCH-D
By Greenberg H.B. No. 3511
Substitute the following for H.B. No. 3511:
By Giddings C.S.H.B. No. 3511
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to state bond debt management and capital budget planning.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Chapter 1078, Acts of the 70th Legislature,
1-5 Regular Session, 1987 (Article 717k-7, Vernon's Texas Civil
1-6 Statutes), is amended by adding Sections 7B and 8A to read as
1-7 follows:
1-8 Sec. 7B. STATE DEBT MANAGEMENT PLAN. (a) The board shall
1-9 develop a comprehensive state debt management plan for each fiscal
1-10 biennium for the effective control of debt issuance to meet the
1-11 state's increasing needs for programs and capital, to protect
1-12 taxpayers from high rates of taxation imposed to service debt, and
1-13 to protect and enhance the state's bond rating.
1-14 (b) The board shall establish a mission, goals, and
1-15 objectives for the plan. The plan, when implemented, should be
1-16 used to assist the board in making determinations under Section 3
1-17 of this Act and provide information to issuers of bonds, the
1-18 legislature, and taxpayers to enable those groups to make sound
1-19 financing decisions and control debt issuance.
1-20 (c) The plan should consider:
1-21 (1) statutory debt limit restrictions and debt
1-22 capacity;
1-23 (2) goals and projections of future debt and debt
1-24 service costs;
2-1 (3) strategies for financing or refunding existing
2-2 debt; and
2-3 (4) adoption of a formal written debt policy.
2-4 (d) In developing the plan, the board shall compare debt
2-5 indicators in this state and Aaa-rated states. The board may
2-6 compare any ratios, including the following:
2-7 (1) tax-supported debt per capita and total debt per
2-8 capita;
2-9 (2) tax-supported debt as a percentage of personal
2-10 income and total debt as a percentage of personal income;
2-11 (3) tax-supported debt as a percentage of real
2-12 property valuation and total debt as a percentage of real property
2-13 valuation;
2-14 (4) tax-supported debt as a percentage of annual
2-15 revenue and expenditures and total debt as a percentage of annual
2-16 revenue and expenditures; and
2-17 (5) state personal income per capita.
2-18 Sec. 8A. STATE BIENNIAL CAPITAL BUDGET. (a) The board
2-19 shall establish a comprehensive biennial state capital budget in
2-20 cooperation with the Legislative Budget Board to assist in future
2-21 debt management, improve the state's bond rating, and inform the
2-22 legislature of the possible budget impact of planned expenditures
2-23 on the state's debt capacity. A capital budget should forecast
2-24 spending for all anticipated state projects requiring capital
2-25 expenditures for:
2-26 (1) land acquisition;
2-27 (2) construction of buildings and other facilities;
3-1 (3) renovations of buildings and other facilities
3-2 estimated to exceed $1 million in the aggregate for a single state
3-3 agency or institution of higher education; or
3-4 (4) major information resources projects estimated to
3-5 exceed $1 million.
3-6 (b) The capital budget shall include analyses of financing
3-7 options and procedures to monitor debt management.
3-8 (c) To assist the board in developing a comprehensive
3-9 capital budget under this section, each state agency and
3-10 institution of higher education biennially shall provide
3-11 information relating to planned capital projects and financing
3-12 options for the next fiscal biennium, including:
3-13 (1) a description of each project or acquisition;
3-14 (2) the cost of each project;
3-15 (3) the anticipated useful life of each project;
3-16 (4) an estimate of when capital will be needed for
3-17 each project;
3-18 (5) a proposed source of funds for each project;
3-19 (6) a proposed type of financing;
3-20 (7) the estimated annual operating costs of the
3-21 project when completed; and
3-22 (8) any additional related information requested by
3-23 the board.
3-24 (d) Each state agency and institution of higher education
3-25 shall provide the information required by Subsection (c) of this
3-26 section to the Legislative Budget Board and the budget division of
3-27 the governor's office in a form required by those entities. The
4-1 information shall be submitted as part of each agency's or
4-2 institution's legislative appropriations request. The Legislative
4-3 Budget Board shall provide the submitted information to the board.
4-4 (e) The board shall file a preliminary debt management plan
4-5 and capital budget, based on the information submitted by state
4-6 agencies and institutions of higher education, with the governor,
4-7 the lieutenant governor, the speaker of the house of
4-8 representatives, and the Legislative Budget Board not later than
4-9 December 31 of each even-numbered year. The board shall file a
4-10 revised debt management plan and capital budget, based on the
4-11 budget recommendations of the Legislative Budget Board, with the
4-12 governor, the lieutenant governor, the speaker of the house of
4-13 representatives, and the Legislative Budget Board not later than
4-14 January 31 of each odd-numbered year.
4-15 SECTION 2. The importance of this legislation and the
4-16 crowded condition of the calendars in both houses create an
4-17 emergency and an imperative public necessity that the
4-18 constitutional rule requiring bills to be read on three several
4-19 days in each house be suspended, and this rule is hereby suspended.