82R1920 KLA-D
 
  By: Watson S.B. No. 706
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the approval and issuance of tax and revenue
  anticipation notes.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 404.124, Government Code, is amended by
  amending Subsections (a) and (b) and adding Subsection (b-1) to
  read as follows:
         (a)  Before issuing notes the comptroller shall submit to the
  committee a general revenue cash flow shortfall forecast, based on
  the comptroller's most recent anticipated revenue estimate. The
  forecast must contain a detailed report of estimated revenues and
  expenditures for each month and each major revenue and expenditure
  category and must demonstrate the maximum general revenue cash flow
  shortfall that may be predicted. The committee shall hold a public
  hearing to solicit testimony on the forecast, including testimony
  on this state's overall economic condition, as soon as practicable
  after receiving the forecast.
         (b)  Based on the forecast and testimony provided at the
  hearing required by Subsection (a), the committee may approve the
  issuance of notes, subject to Subsections (b-1) and (c), and the
  maximum outstanding balance of notes in any fiscal year. The
  outstanding balance may not exceed the maximum temporary cash
  shortfall forecast by the comptroller for any period in the fiscal
  year. The comptroller may not issue notes in excess of the amount
  approved.
         (b-1)  The committee's approval of the issuance of notes
  granted under Subsection (b) expires on the 61st day after the date
  the hearing conducted under Subsection (a) concludes. The
  comptroller may not issue notes on or after the 61st day unless the
  comptroller submits another general revenue cash flow shortfall
  forecast to the committee and the committee subsequently grants
  approval for the issuance of the notes in accordance with the
  procedure required by Subsections (a) and (b). Each subsequent
  approval expires on the 61st day after the date the hearing on which
  the approval was based concludes.
         SECTION 2.  This Act takes effect September 1, 2011.