By: Watson, et al. S.B. No. 1657
(Miller of Fort Bend)
A BILL TO BE ENTITLED
AN ACT
relating to approval of the issuance of tax and revenue
anticipation notes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 404.121(4), Government Code, is amended
to read as follows:
(4) "Tax and revenue anticipation notes" and "notes"
mean notes issued under this section, including any commercial
paper notes and any obligations under credit agreements entered
into by the comptroller in connection with the issuance of the
notes.
SECTION 2. Section 404.124, Government Code, is amended by
amending Subsections (b) and (b-1) and adding Subsection (b-2) to
read as follows:
(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), (b-2), 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) Except as provided in Subsection (b-2), the [The]
committee's approval of the issuance of notes granted under
Subsection (b) expires on the 91st day after the date the hearing
conducted under Subsection (a) concludes. The comptroller may not
issue notes on or after the 91st 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
91st [61st] day after the date the hearing on which the approval was
based concludes.
(b-2) The committee's approval of the issuance of
commercial paper notes expires on the last day of the fiscal year
for which the tax and revenue anticipation notes are approved,
providing for the issuance and rollover of commercial paper notes
during that fiscal year. All commercial paper notes must mature and
be paid in full in accordance with Section 404.123(d).
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2015.