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A BILL TO BE ENTITLED
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AN ACT
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relating to the retirement of certain state debt. |
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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. DEBT RETIREMENT FUND AND PROGRAM |
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Sec. 1231.151. DEFINITIONS. In this subchapter: |
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(1) "Fund" means the debt retirement fund. |
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(2) "Office" means the bond finance office. |
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Sec. 1231.152. DEBT RETIREMENT FUND. (a) The debt |
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retirement fund is a special fund in the state treasury outside the |
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general revenue fund. |
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(b) The fund consists of money transferred to the fund at |
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the direction of the legislature and any gift or grant made to the |
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board for the purposes of the fund. |
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(c) Money may be appropriated from the fund only for the |
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purpose of calling or purchasing for the purpose of retiring a |
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public security evidencing a state debt other than a |
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self-supporting debt. |
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Sec. 1231.153. FUND ADMINISTRATION. (a) The fund is |
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administered by the board in coordination with the office. |
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(b) The board may authorize the comptroller to disburse |
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money from the fund in any amount or manner necessary to achieve the |
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purposes of this subchapter. |
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Sec. 1231.154. CALLING PUBLIC SECURITIES; PURCHASES FOR |
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RETIREMENT. (a) The board in coordination with the office each |
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fiscal year shall estimate: |
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(1) the net present value of the savings to the state |
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that would result from calling all outstanding public securities |
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evidencing state debts other than self-supporting debts that are |
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eligible to be called during that fiscal year; and |
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(2) the costs of calling those public securities |
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during that fiscal year. |
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(b) The comptroller shall disburse money from the fund in |
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the proper amounts to the proper persons for cash defeasances of |
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public securities as the board directs. The board shall prioritize |
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cash defeasance of public securities that have the highest ratio of |
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net present value savings to cost of the defeasance. |
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(c) The board in coordination with the office may direct the |
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comptroller to disburse money from the fund to purchase on the open |
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market outstanding public securities evidencing state debts other |
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than self-supporting debts if the board determines that the ratio |
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of net present value savings to cost of purchase represents a |
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greater benefit to this state than retiring public securities as |
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provided by Subsection (b). The comptroller shall hold a public |
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security purchased under this subsection in the state treasury and |
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direct the payments on the bonds to the general revenue fund. |
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SECTION 2. This Act takes effect September 1, 2013. |