| TO: | Honorable Steve Ogden, Chair, Senate Committee on Finance |
| FROM: | John S O'Brien, Director, Legislative Budget Board |
| IN RE: | SB334 by Fraser (Relating to the applicability of the constitutional limit on state debt payable from the general revenues of the state to bonds issued by the Texas Water Development Board.), As Introduced |
The bill would require the Executive Administrator of the Water Development Board to certify to the Bond Review Board the source of debt service on a proposed issuance of bonds by the Water Development Board. The bill would require the Bond Review Board to determine the portion of debt service that is to be paid from the General Revenue and subsequently what portion of the debt would be included in the Constitutional Debt Limit (CDL) calculation. The bill provides a mechanism for the Bond Review Board to remove previous issuances of the Water Development Board from the CDL if the previous issuance meets certain criteria.
Based on the analysis of the Water Development Board, the Bond Review Board, and the Office of the Attorney General, any anticipated additional work that would result from the passage of the bill could be reasonably absorbed within current resources.
The bill would take effect September 1, 2011.
| Source Agencies: | 302 Office of the Attorney General, 352 Bond Review Board, 580 Water Development Board
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| LBB Staff: | JOB, KK, AH
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