83R10033 JJT-D
By: Cortez H.B. No. 1959
A BILL TO BE ENTITLED
AN ACT
relating to the retirement of certain state debt.
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. DEBT RETIREMENT FUND AND PROGRAM
Sec. 1231.151. DEFINITIONS. In this subchapter:
(1) "Fund" means the debt retirement fund.
(2) "Office" means the bond finance office.
Sec. 1231.152. DEBT RETIREMENT FUND. (a) The debt
retirement fund is a special fund in the state treasury outside the
general revenue fund.
(b) The fund consists of money transferred to the fund at
the direction of the legislature and any gift or grant made to the
board for the purposes of the fund.
(c) Money may be appropriated from the fund only for the
purpose of calling or purchasing for the purpose of retiring a
public security evidencing a state debt other than a
self-supporting debt.
Sec. 1231.153. FUND ADMINISTRATION. (a) The fund is
administered by the board in coordination with the office.
(b) The board may authorize the comptroller to disburse
money from the fund in any amount or manner necessary to achieve the
purposes of this subchapter.
Sec. 1231.154. CALLING PUBLIC SECURITIES; PURCHASES FOR
RETIREMENT. (a) The board in coordination with the office each
fiscal year shall estimate:
(1) the net present value of the savings to the state
that would result from calling all outstanding public securities
evidencing state debts other than self-supporting debts that are
eligible to be called during that fiscal year; and
(2) the costs of calling those public securities
during that fiscal year.
(b) The comptroller shall disburse money from the fund in
the proper amounts to the proper persons for cash defeasances of
public securities as the board directs. The board shall prioritize
cash defeasance of public securities that have the highest ratio of
net present value savings to cost of the defeasance.
(c) The board in coordination with the office may direct the
comptroller to disburse money from the fund to purchase on the open
market outstanding public securities evidencing state debts other
than self-supporting debts if the board determines that the ratio
of net present value savings to cost of purchase represents a
greater benefit to this state than retiring public securities as
provided by Subsection (b). The comptroller shall hold a public
security purchased under this subsection in the state treasury and
direct the payments on the bonds to the general revenue fund.
SECTION 2. This Act takes effect September 1, 2013.