Tex. Gov't Code Section 404.124
Shortfall Forecast; Committee Approval

(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 receive invited 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), (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 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 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 (Notes Authorized)(d).

(c)

The committee may determine whether the notes will be sold on a negotiated or competitive bid basis. If the committee determines that competitive bids are appropriate, the underwriter of any notes issued under this section shall be selected by the solicitation of sealed bids and an appropriate bid notice shall be published at least one time in one or more recognized financial publications of general circulation published within the state and one or more recognized financial publications of general circulation published outside the state. Unless all bids are rejected, the underwriter shall be selected from the bids received. The comptroller may not sell the notes in a manner not approved.
Acts 1987, 70th Leg., ch. 147, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1995, 74th Leg., ch. 426, Sec. 30, eff. June 9, 1995; Acts 1997, 75th Leg., ch. 1423, Sec. 7.8, eff. Sept. 1, 1997.
Amended by:
Acts 2011, 82nd Leg., 1st C.S., Ch. 4 (S.B. 1), Sec. 34.05, eff. September 28, 2011.
Acts 2015, 84th Leg., R.S., Ch. 430 (S.B. 1657), Sec. 2, eff. June 10, 2015.

Source: Section 404.124 — Shortfall Forecast; Committee Approval, https://statutes.­capitol.­texas.­gov/Docs/GV/htm/GV.­404.­htm#404.­124 (accessed Jun. 5, 2024).

404.001
Definitions 404.0011
Transfer of Treasurer’s Powers and Duties 404.013
Rules 404.021
Eligible Institutions 404.022
Applications 404.023
Designation 404.024
Authorized Investments 404.026
Eleemosynary Funds 404.027
Liquidity 404.028
Investment Advisory Board 404.031
Collateral Requirements 404.032
Deposits 404.033
Withdrawals and Remittances 404.041
Trustee 404.043
Security Officers 404.045
Receipt of Money 404.046
Payment from Treasury 404.047
Accounts 404.048
Report 404.049
Money in Treasury 404.050
Delivery to Successor 404.051
Money Returned to County or Municipality 404.052
Obligations of Municipalities, Districts, and Political Subdivisions 404.054
Daily Totals 404.055
Time and Demand Deposits 404.056
Information Concerning Warrants 404.057
Warrants Payable Accounts 404.058
Outstanding Warrants 404.059
General Ledger Accounts 404.060
Priority of Warrants 404.062
Undetermined Remittances 404.063
Violation 404.064
Office Fees 404.065
Cash Balancing 404.066
Ledger 404.067
Safekeeping 404.068
State Regulatory Agencies Safekeeping and Pledged Collateral 404.069
Trust Funds 404.070
Validity of Voided Warrants 404.071
Disposition of Interest on Investments 404.072
Examination by State Auditor 404.073
Funds Outside Treasury 404.091
Short Title 404.092
Definition 404.093
Applicability of Subchapter 404.094
Funds to Be Deposited in Treasury 404.095
Electronic Transfer of Certain Payments 404.096
Rapid Deposits, Transactions, and Transfers Required 404.097
Deposit of Funds Recovered by Litigation or Settlement 404.101
Definitions 404.102
Creation of Trust Company 404.103
Powers 404.104
Duties of Comptroller 404.105
Capital or Reserve 404.106
Earnings 404.107
Fees 404.108
Trust Company Investment Advisory Board 404.109
Restrictions on Advisory Board Appointment, Membership, and Employment 404.110
Removal of Advisory Board Members 404.111
Advisory Board Member Training 404.112
Compensation 404.113
Meetings 404.114
Investment Management 404.115
Personnel 404.116
Liability Insurance for Certain Board Members, Officials, and Staff 404.121
Definitions 404.122
Cash Management Committee 404.123
Notes Authorized 404.124
Shortfall Forecast 404.125
Issuance of Notes 404.126
Fund Transfers 404.0211
Conflict of Interest 404.0212
Depository Rating Under Certain Federal Law 404.0221
Eligible Collateral 404.0241
Investment of Certain Economic Stabilization Fund Balances 404.0245
Crude Oil and Natural Gas Futures Contracts
Green check means up to date. Up to date

Accessed:
Jun. 5, 2024

§ 404.124’s source at texas​.gov