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.