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A BILL TO BE ENTITLED
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AN ACT
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relating to the approval and issuance of tax and revenue |
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anticipation notes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 404.124, Government Code, is amended by |
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amending Subsections (a) and (b) and adding Subsection (b-1) to |
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read as follows: |
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(a) Before issuing notes the comptroller shall submit to the |
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committee a general revenue cash flow shortfall forecast, based on |
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the comptroller's most recent anticipated revenue estimate. The |
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forecast must contain a detailed report of estimated revenues and |
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expenditures for each month and each major revenue and expenditure |
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category and must demonstrate the maximum general revenue cash flow |
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shortfall that may be predicted. The committee shall hold a public |
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hearing to solicit testimony on the forecast, including testimony |
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on this state's overall economic condition, as soon as practicable |
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after receiving the forecast. |
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(b) Based on the forecast and testimony provided at the |
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hearing required by Subsection (a), the committee may approve the |
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issuance of notes, subject to Subsections (b-1) and (c), and the |
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maximum outstanding balance of notes in any fiscal year. The |
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outstanding balance may not exceed the maximum temporary cash |
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shortfall forecast by the comptroller for any period in the fiscal |
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year. The comptroller may not issue notes in excess of the amount |
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approved. |
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(b-1) The committee's approval of the issuance of notes |
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granted under Subsection (b) expires on the 61st day after the date |
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the hearing conducted under Subsection (a) concludes. The |
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comptroller may not issue notes on or after the 61st day unless the |
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comptroller submits another general revenue cash flow shortfall |
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forecast to the committee and the committee subsequently grants |
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approval for the issuance of the notes in accordance with the |
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procedure required by Subsections (a) and (b). Each subsequent |
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approval expires on the 61st day after the date the hearing on which |
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the approval was based concludes. |
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SECTION 2. This Act takes effect September 1, 2011. |