Bill Text: TX HB1959 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to the retirement of certain state debt.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-03-18 - Left pending in subcommittee [HB1959 Detail]
Download: Texas-2013-HB1959-Introduced.html
83R10033 JJT-D | ||
By: Cortez | H.B. No. 1959 |
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relating to the retirement of certain state debt. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 1231, Government Code, is amended by | ||
adding Subchapter G to read as follows: | ||
SUBCHAPTER G. DEBT RETIREMENT FUND AND PROGRAM | ||
Sec. 1231.151. DEFINITIONS. In this subchapter: | ||
(1) "Fund" means the debt retirement fund. | ||
(2) "Office" means the bond finance office. | ||
Sec. 1231.152. DEBT RETIREMENT FUND. (a) The debt | ||
retirement fund is a special fund in the state treasury outside the | ||
general revenue fund. | ||
(b) The fund consists of money transferred to the fund at | ||
the direction of the legislature and any gift or grant made to the | ||
board for the purposes of the fund. | ||
(c) Money may be appropriated from the fund only for the | ||
purpose of calling or purchasing for the purpose of retiring a | ||
public security evidencing a state debt other than a | ||
self-supporting debt. | ||
Sec. 1231.153. FUND ADMINISTRATION. (a) The fund is | ||
administered by the board in coordination with the office. | ||
(b) The board may authorize the comptroller to disburse | ||
money from the fund in any amount or manner necessary to achieve the | ||
purposes of this subchapter. | ||
Sec. 1231.154. CALLING PUBLIC SECURITIES; PURCHASES FOR | ||
RETIREMENT. (a) The board in coordination with the office each | ||
fiscal year shall estimate: | ||
(1) the net present value of the savings to the state | ||
that would result from calling all outstanding public securities | ||
evidencing state debts other than self-supporting debts that are | ||
eligible to be called during that fiscal year; and | ||
(2) the costs of calling those public securities | ||
during that fiscal year. | ||
(b) The comptroller shall disburse money from the fund in | ||
the proper amounts to the proper persons for cash defeasances of | ||
public securities as the board directs. The board shall prioritize | ||
cash defeasance of public securities that have the highest ratio of | ||
net present value savings to cost of the defeasance. | ||
(c) The board in coordination with the office may direct the | ||
comptroller to disburse money from the fund to purchase on the open | ||
market outstanding public securities evidencing state debts other | ||
than self-supporting debts if the board determines that the ratio | ||
of net present value savings to cost of purchase represents a | ||
greater benefit to this state than retiring public securities as | ||
provided by Subsection (b). The comptroller shall hold a public | ||
security purchased under this subsection in the state treasury and | ||
direct the payments on the bonds to the general revenue fund. | ||
SECTION 2. This Act takes effect September 1, 2013. |