By Haywood S.B. No. 709 75R1055 RJA-F A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to reports of long-term state capital improvement projects 1-3 and credit programs financed through state debt. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. DEFINITIONS. In this Act: 1-6 (1) "Appropriated funds" means funds appropriated by 1-7 the legislature in the general appropriations act or in another 1-8 legislative act. 1-9 (2) "Board" means the Legislative Budget Board. 1-10 (3) "Capital project" or "credit program" means an 1-11 expenditure of state funds of at least two million dollars for the 1-12 acquisition or improvement of a fixed asset of the state or for a 1-13 program, such as student loans or business loans, designed to 1-14 increase the productivity of businesses and residents of this 1-15 state. 1-16 SECTION 2. CAPITAL PROJECTS; CREDIT PROGRAMS. The following 1-17 are capital projects or credit programs for purposes of this Act, 1-18 but the board may identify and include others: 1-19 (1) a building or infrastructure project, including a 1-20 real property purchase, to be built and owned by the state; 1-21 (2) a purchase of equipment as determined by the 1-22 board; 1-23 (3) a program administered by the state that provides 1-24 financial assistance to students of public institutions of higher 2-1 education in this state; 2-2 (4) a major building or infrastructure maintenance 2-3 project involving a facility owned by the state as determined by 2-4 the board; 2-5 (5) construction and maintenance of public school 2-6 facilities or acquisition of telecommunications and computer 2-7 equipment for use in public schools; 2-8 (6) major construction or maintenance needs of the 2-9 state highway system as determined by the board; 2-10 (7) a program administered by the state to provide 2-11 public assistance for the construction, lease, or maintenance of 2-12 residential housing, including housing for the general public and 2-13 housing for veterans; 2-14 (8) a program administered by the state to finance the 2-15 development or enhancement of water resources; and 2-16 (9) any program administered by the state to finance 2-17 agricultural business in this state. 2-18 SECTION 3. REPORT ON PROJECTED PROJECTS AND PROGRAMS. 2-19 (a) Not later than January 1 of each even-numbered year, the board 2-20 shall submit to the legislature and the governor a biennial report 2-21 on the projected capital projects and credit programs of the state 2-22 agencies listed in Section 4 of this Act. 2-23 (b) The report must cover a six-year period beginning with 2-24 the fiscal year that begins the September 1 following the date the 2-25 report is due under Subsection (a) and must include: 2-26 (1) a description of each of the project or program 2-27 needs for each state agency; 3-1 (2) cost estimates for financing each of the projects 3-2 or programs through appropriations, general obligation bonds, 3-3 revenue bonds, and lease purchase agreements; 3-4 (3) estimated cost of servicing the debt for each 3-5 project or program and the source for funding the debt service; 3-6 (4) estimated useful life of each project or program; 3-7 (5) aggregate potential debt to be incurred for the 3-8 six-year period; 3-9 (6) aggregate potential debt service costs for the 3-10 six-year period; 3-11 (7) the state's potential debt rating as recognized by 3-12 a national debt rating service; and 3-13 (8) other information considered relevant by the 3-14 board. 3-15 (c) The board shall limit the report to an analysis of items 3-16 traditionally financed by state debt or likely to be financed by 3-17 state debt based on past financing of similar items. 3-18 (d) The board shall resubmit the report to the legislature 3-19 and the governor not later than the following January 1, in which 3-20 the board may, but need not, update the report. 3-21 SECTION 4. COVERED STATE AGENCIES. (a) The report must 3-22 include information on the projected capital projects and credit 3-23 programs of the following state agencies: 3-24 (1) Texas Department of Transportation; 3-25 (2) Higher Education Coordinating Board and public 3-26 institutions of higher education; 3-27 (3) General Services Commission; 4-1 (4) Texas Education Agency; 4-2 (5) Texas Department of Housing and Community Affairs; 4-3 (6) Veterans' Land Board; 4-4 (7) Texas Department of Agriculture; 4-5 (8) Texas Water Development Board; 4-6 (9) Department of Information Resources; 4-7 (10) Texas Department of Criminal Justice; 4-8 (11) Texas Youth Commission; 4-9 (12) Texas Department of Mental Health and Mental 4-10 Retardation; and 4-11 (13) Texas National Guard Armory Board. 4-12 (b) The board may review existing capital plans and 4-13 documents for long-term capital projects and credit programs of the 4-14 agencies listed in Subsection (a). 4-15 SECTION 5. ASSISTANCE OF STATE ENTITIES. (a) The board may 4-16 request the assistance of the Bond Review Board, Texas Public 4-17 Finance Authority, Criminal Justice Policy Council, and the Office 4-18 of the Comptroller of Public Accounts in the collection of 4-19 information or preparation of the report. 4-20 (b) An entity requested to assist under Subsection (a) of 4-21 this section shall: 4-22 (1) submit information, reports, plans, and 4-23 documentation; 4-24 (2) answer inquiries; and 4-25 (3) cooperate in the preparation of a report. 4-26 SECTION 6. EFFECTIVE DATE. This Act takes effect September 4-27 1, 1997. The Legislative Budget Board shall submit the initial 5-1 report required by this Act not later than January 1, 1998. 5-2 SECTION 7. EMERGENCY. The importance of this legislation 5-3 and the crowded condition of the calendars in both houses create an 5-4 emergency and an imperative public necessity that the 5-5 constitutional rule requiring bills to be read on three several 5-6 days in each house be suspended, and this rule is hereby suspended.