82R1920 KLA-D
By: Watson S.B. No. 706
A BILL TO BE ENTITLED
AN ACT
relating to the approval and issuance of tax and revenue
anticipation notes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 404.124, Government Code, is amended by
amending Subsections (a) and (b) and adding Subsection (b-1) to
read as follows:
(a) Before issuing notes the comptroller shall submit to the
committee a general revenue cash flow shortfall forecast, based on
the comptroller's most recent anticipated revenue estimate. The
forecast must contain a detailed report of estimated revenues and
expenditures for each month and each major revenue and expenditure
category and must demonstrate the maximum general revenue cash flow
shortfall that may be predicted. The committee shall hold a public
hearing to solicit testimony on the forecast, including testimony
on this state's overall economic condition, as soon as practicable
after receiving the forecast.
(b) Based on the forecast and testimony provided at the
hearing required by Subsection (a), the committee may approve the
issuance of notes, subject to Subsections (b-1) and (c), and the
maximum outstanding balance of notes in any fiscal year. The
outstanding balance may not exceed the maximum temporary cash
shortfall forecast by the comptroller for any period in the fiscal
year. The comptroller may not issue notes in excess of the amount
approved.
(b-1) The committee's approval of the issuance of notes
granted under Subsection (b) expires on the 61st day after the date
the hearing conducted under Subsection (a) concludes. The
comptroller may not issue notes on or after the 61st day unless the
comptroller submits another general revenue cash flow shortfall
forecast to the committee and the committee subsequently grants
approval for the issuance of the notes in accordance with the
procedure required by Subsections (a) and (b). Each subsequent
approval expires on the 61st day after the date the hearing on which
the approval was based concludes.
SECTION 2. This Act takes effect September 1, 2011.