By: Ritter (Senate Sponsor - Hinojosa) H.B. No. 1732
(In the Senate - Received from the House April 7, 2011;
April 14, 2011, read first time and referred to Committee on
Finance; May 20, 2011, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 9, Nays 1;
May 20, 2011, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 1732 By: Hinojosa
A BILL TO BE ENTITLED
AN ACT
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.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 17.003, Water Code, is amended by adding
Subsections (c), (d), (e), and (f) to read as follows:
(c) Water financial assistance bonds that have been
authorized but have not been issued are not considered to be state
debt payable from the general revenue fund for purposes of Section
49-j, Article III, Texas Constitution, until the legislature makes
an appropriation from the general revenue fund to the board to pay
the debt service on the bonds.
(d) In requesting approval for the issuance of bonds under
this chapter, the executive administrator shall certify to the bond
review board whether the bonds are reasonably expected to be paid
from:
(1) the general revenues of the state; or
(2) revenue sources other than the general revenues of
the state.
(e) The bond review board shall verify whether debt service
on bonds to be issued by the board under this chapter is state debt
payable from the general revenues of the state, in accordance with
the findings made by the board in the resolution authorizing the
issuance of the bonds and the certification provided by the
executive administrator under Subsection (d).
(f) Bonds issued under this chapter that are designed to be
paid from the general revenues of the state shall cease to be
considered bonds payable from those revenues if:
(1) the bonds are backed by insurance or another form
of guarantee that ensures payment from a source other than the
general revenues of the state; or
(2) the board demonstrates to the satisfaction of the
bond review board that the bonds no longer require payment from the
general revenues of the state and the bond review board so certifies
to the Legislative Budget Board.
SECTION 2. This Act takes effect September 1, 2011.
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