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A BILL TO BE ENTITLED
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AN ACT
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relating to the computation of the state debt limit. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 1231, Government Code, is amended by |
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adding Subchapter G to read as follows: |
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SUBCHAPTER G. LIMIT ON STATE DEBT PAYABLE FROM GENERAL REVENUE FUND |
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Sec. 1231.151. DEFINITIONS. In this subchapter: |
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(1) "Maximum annual debt service" means the limitation |
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on annual debt service imposed by Section 49-j(a), Article III, |
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Texas Constitution. |
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(2) "State debt payable from the general revenue fund" |
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has the meaning assigned by Section 49-j(b), Article III, Texas |
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Constitution. |
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(3) "Unissued debt" means state debt payable from the |
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general revenue fund that has been authorized but not issued. |
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Sec. 1231.152. COMPUTATION OF DEBT LIMIT. In computing the |
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annual debt service in a state fiscal year on state debt payable |
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from the general revenue fund for purposes of determining whether |
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additional state debt may be authorized without exceeding the |
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maximum annual debt service, the board may employ any assumptions |
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related to unissued debt that the board determines are necessary to |
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reflect common or standard debt issuance practices authorized by |
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law, including assumptions regarding: |
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(1) interest rates; |
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(2) debt maturity; and |
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(3) debt service payment structures. |
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Sec. 1231.153. REPORT ON COMPUTATION. (a) The board shall |
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publish during each state fiscal year a report providing a detailed |
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description of the method used to compute the annual debt service in |
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that fiscal year on state debt payable from the general revenue fund |
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for purposes of determining whether additional state debt may be |
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authorized. The report must describe: |
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(1) the debt service included in the computation, |
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including debt service on issued and unissued debt; |
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(2) the assumptions on which the debt service on |
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unissued debt was based; and |
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(3) any other factors required by law that affect the |
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computation. |
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(b) The board may publish the report required by this |
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section as a component of any other report required by law, |
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including the annual report required by Section 1231.102, or as an |
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independent report. The board shall make the report available to |
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the public. |
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SECTION 2. The Bond Review Board shall publish the initial |
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report required by Section 1231.153, Government Code, as added by |
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this Act, during the state fiscal year beginning September 1, 2011. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |