Bill Text: TX SB421 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to the computation of the state debt limit.
Spectrum: Partisan Bill (Democrat 1-0)
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. |