Bill Text: TX SB421 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to the computation of the state debt limit.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2011-03-17 - Left pending in committee [SB421 Detail]
Download: Texas-2011-SB421-Introduced.html
| 82R3134 KLA-D | ||
| By: West | S.B. No. 421 | |
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| relating to the computation of the state debt limit. | ||
| 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. LIMIT ON STATE DEBT PAYABLE FROM GENERAL REVENUE FUND | ||
| Sec. 1231.151. DEFINITIONS. In this subchapter: | ||
| (1) "Maximum annual debt service" means the limitation | ||
| on annual debt service imposed by Section 49-j(a), Article III, | ||
| Texas Constitution. | ||
| (2) "State debt payable from the general revenue fund" | ||
| has the meaning assigned by Section 49-j(b), Article III, Texas | ||
| Constitution. | ||
| (3) "Unissued debt" means state debt payable from the | ||
| general revenue fund that has been authorized but not issued. | ||
| Sec. 1231.152. COMPUTATION OF DEBT LIMIT. In computing the | ||
| annual debt service in a state fiscal year on state debt payable | ||
| from the general revenue fund for purposes of determining whether | ||
| additional state debt may be authorized without exceeding the | ||
| maximum annual debt service, the board may employ any assumptions | ||
| related to unissued debt that the board determines are necessary to | ||
| reflect common or standard debt issuance practices authorized by | ||
| law, including assumptions regarding: | ||
| (1) interest rates; | ||
| (2) debt maturity; and | ||
| (3) debt service payment structures. | ||
| Sec. 1231.153. REPORT ON COMPUTATION. (a) The board shall | ||
| publish during each state fiscal year a report providing a detailed | ||
| description of the method used to compute the annual debt service in | ||
| that fiscal year on state debt payable from the general revenue fund | ||
| for purposes of determining whether additional state debt may be | ||
| authorized. The report must describe: | ||
| (1) the debt service included in the computation, | ||
| including debt service on issued and unissued debt; | ||
| (2) the assumptions on which the debt service on | ||
| unissued debt was based; and | ||
| (3) any other factors required by law that affect the | ||
| computation. | ||
| (b) The board may publish the report required by this | ||
| section as a component of any other report required by law, | ||
| including the annual report required by Section 1231.102, or as an | ||
| independent report. The board shall make the report available to | ||
| the public. | ||
| SECTION 2. The Bond Review Board shall publish the initial | ||
| report required by Section 1231.153, Government Code, as added by | ||
| this Act, during the state fiscal year beginning September 1, 2011. | ||
| SECTION 3. This Act takes effect immediately if it receives | ||
| a vote of two-thirds of all the members elected to each house, as | ||
| provided by Section 39, Article III, Texas Constitution. If this | ||
| Act does not receive the vote necessary for immediate effect, this | ||
| Act takes effect September 1, 2011. | ||
