BILL ANALYSIS C.S.H.B. 3079 By: Gallego 04-07-95 Committee Report (Substituted) BACKGROUND The bill amends Section 2306.201 of the Government Code to 1) allow but not require that the Housing Trust Fund be placed with the Texas Treasury Safekeeping Trust Company and 2) expand allowable sources for Housing Trust Fund revenue. The bill also changes Section 2306.202 to expand allowable uses of the fund and places a cap on net effective interest rate on general obligation bonds issued by the Department of Housing and Community Affairs. PURPOSE To expand allowable sources and uses of the Housing Trust Fund. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1: Amends Subchapter I, Chapter 2306, Section 2306.210, of the Government Code by removing requirement that the Housing Trust Fund be placed only with the Texas Treasury Safekeeping Trust Company. Expands composition of the fund to include proceeds from general obligation bonds, and investments income. SECTION 2: Amends Subchapter I, Chapter 2306, Section 2306.202 of the Government Code by removing language directing that the Housing Trust Fund work through the housing finance division of the Texas Department of Housing and Community Affairs. Authorizes the Texas Department of Housing and Community Affairs to acquire property to endow the fund. Qualifies use of fund for assistance to individuals and families of low and very low income to be "in proportion to the source of funds." Authorizes use of fund for payment of costs related to issuance of general obligation bonds. Authorizes use of fund to the Texas Department of Housing and Community Affairs or state nonprofit housing corporation to acquire suitable headquarters or other real property to benefit the Housing Trust Fund. SECTION 3: Amends Subchapter V, Chapter 2306, Section 2306.471 of the Government Code by mandating that the net effective interest rate on general obligation bonds issued by the Texas Department of Housing and Community Affairs not exceed rates allowable pursuant to Article 717k-2, Revised Statutes. SECTION 4: Effective date. SECTION 5: Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE There are no substantive differences between the substitute and the original bill. The substitute is a council draft. SUMMARY OF COMMITTEE ACTION The committee considered HB 3079 in a public hearing on April 10, 1995. The committee considered a committee substitute for the bill which was adopted without objection. The following person testified in favor of the bill: Rep. Gallego; The following person testified neutrally on the bill: Henry Flores representing the Texas Department of Housing and Community Affairs. The bill was reported favorably as substituted, with the recommendation that it do pass and be printed, by a record vote of: 7 Ayes, 0 Nays, 0 PNV, 2 Absent.