LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION May 19, 2011 TO: Honorable Steve Ogden, Chair, Senate Committee on Finance FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB1732 by Ritter (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), Committee Report 2nd House, Substituted No significant fiscal implication to the State is anticipated. The bill would exempt water financial assistance bonds that have been authorized but not issued from the Constitutional Debt Limit (CDL) until the legislature makes an appropriation from the General Revenue Fund to pay the debt service on the bonds. The bill would also require the Executive Administrator of the Water Development Board to certify to the Bond Review Board the source of debt service on a proposed issuance of bonds by the Water Development Board. The bill would require the Bond Review Board to determine the portion of debt service that is to be paid from the General Revenue and subsequently what portion of the debt would be included in the CDL calculation. The bill provides a mechanism for the Bond Review Board to remove previous issuances of the Water Development Board from the CDL if the previous issuance meets certain criteria.Based on the analysis of the Water Development Board, the Bond Review Board, and the Office of the Attorney General, any anticipated additional work that would result from the passage of the bill could be reasonably absorbed within current resources. The bill would take effect September 1, 2011. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies:352 Bond Review Board, 580 Water Development Board, 302 Office of the Attorney General LBB Staff: JOB, KK, ZS, AH, SZ
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
May 19, 2011
TO: Honorable Steve Ogden, Chair, Senate Committee on Finance FROM: John S O'Brien, Director, Legislative Budget Board IN RE:HB1732 by Ritter (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), Committee Report 2nd House, Substituted
TO: Honorable Steve Ogden, Chair, Senate Committee on Finance
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: HB1732 by Ritter (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), Committee Report 2nd House, Substituted
Honorable Steve Ogden, Chair, Senate Committee on Finance
Honorable Steve Ogden, Chair, Senate Committee on Finance
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
HB1732 by Ritter (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), Committee Report 2nd House, Substituted
HB1732 by Ritter (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), Committee Report 2nd House, Substituted
No significant fiscal implication to the State is anticipated.
No significant fiscal implication to the State is anticipated.
The bill would exempt water financial assistance bonds that have been authorized but not issued from the Constitutional Debt Limit (CDL) until the legislature makes an appropriation from the General Revenue Fund to pay the debt service on the bonds. The bill would also require the Executive Administrator of the Water Development Board to certify to the Bond Review Board the source of debt service on a proposed issuance of bonds by the Water Development Board. The bill would require the Bond Review Board to determine the portion of debt service that is to be paid from the General Revenue and subsequently what portion of the debt would be included in the CDL calculation. The bill provides a mechanism for the Bond Review Board to remove previous issuances of the Water Development Board from the CDL if the previous issuance meets certain criteria.Based on the analysis of the Water Development Board, the Bond Review Board, and the Office of the Attorney General, any anticipated additional work that would result from the passage of the bill could be reasonably absorbed within current resources. The bill would take effect September 1, 2011.
The bill would exempt water financial assistance bonds that have been authorized but not issued from the Constitutional Debt Limit (CDL) until the legislature makes an appropriation from the General Revenue Fund to pay the debt service on the bonds. The bill would also require the Executive Administrator of the Water Development Board to certify to the Bond Review Board the source of debt service on a proposed issuance of bonds by the Water Development Board. The bill would require the Bond Review Board to determine the portion of debt service that is to be paid from the General Revenue and subsequently what portion of the debt would be included in the CDL calculation. The bill provides a mechanism for the Bond Review Board to remove previous issuances of the Water Development Board from the CDL if the previous issuance meets certain criteria.Based on the analysis of the Water Development Board, the Bond Review Board, and the Office of the Attorney General, any anticipated additional work that would result from the passage of the bill could be reasonably absorbed within current resources.
The bill would take effect September 1, 2011.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 352 Bond Review Board, 580 Water Development Board, 302 Office of the Attorney General
352 Bond Review Board, 580 Water Development Board, 302 Office of the Attorney General
LBB Staff: JOB, KK, ZS, AH, SZ
JOB, KK, ZS, AH, SZ