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.