82R1823 SMH-F
By: Fraser S.B. No. 334
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), and (e) to read as follows:
(c) In requesting approval for the issuance of bonds under
this chapter, the executive administrator shall certify to the bond
review board the debt service on the bonds that is reasonably
expected to be paid from:
(1) the general revenues of the state; and
(2) revenue sources other than the general revenues of
the state.
(d) The bond review board shall determine the portion of the
debt service on bonds to be issued by the board under this chapter
that 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 (c).
(e) 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.