The bill, S.B. No. 319, proposes the establishment of a state debt retirement account within the general revenue fund, which will be managed by the comptroller. It outlines specific procedures for allocating state revenue to this account, particularly when the comptroller reduces transfers to the economic stabilization fund or credits interest to general revenue. The bill mandates that funds in the state debt retirement account can only be used to pay the principal or interest on state bonds, notes, or other obligations.

Additionally, the bill stipulates that if there are no outstanding debts, any remaining funds in the state debt retirement account must be allocated to the nondedicated portion of the general revenue fund, and the comptroller is prohibited from making further allocations to the debt retirement account. However, these remaining funds can be appropriated for any general governmental purpose. The act is set to take effect on September 1, 2025.

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