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A BILL TO BE ENTITLED
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AN ACT
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relating to the applicability of the constitutional limit on state |
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debt payable from the general revenues of the state to bonds issued |
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by the Texas Water Development Board. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 17.003, Water Code, is amended by adding |
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Subsections (c), (d), and (e) to read as follows: |
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(c) In requesting approval for the issuance of bonds under |
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this chapter, the executive administrator shall certify to the bond |
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review board the debt service on the bonds that is reasonably |
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expected to be paid from: |
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(1) the general revenues of the state; and |
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(2) revenue sources other than the general revenues of |
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the state. |
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(d) The bond review board shall determine the portion of the |
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debt service on bonds to be issued by the board under this chapter |
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that is state debt payable from the general revenues of the state, |
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in accordance with the findings made by the board in the resolution |
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authorizing the issuance of the bonds and the certification |
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provided by the executive administrator under Subsection (c). |
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(e) Bonds issued under this chapter that are designed to be |
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paid from the general revenues of the state shall cease to be |
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considered bonds payable from those revenues if: |
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(1) the bonds are backed by insurance or another form |
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of guarantee that ensures payment from a source other than the |
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general revenues of the state; or |
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(2) the board demonstrates to the satisfaction of the |
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bond review board that the bonds no longer require payment from the |
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general revenues of the state and the bond review board so certifies |
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to the Legislative Budget Board. |
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SECTION 2. This Act takes effect September 1, 2011. |