BILL ANALYSIS


                                                        H.B. 3079
                                              By: Gallego (Ellis)
                                                          Finance
                                                         05-22-95
                                Senate Committee Report (Amended)
BACKGROUND

Current law does not allow the Housing Trust Fund to be placed with
the Texas Treasury Safekeeping Trust Company and limits the
allowable sources for Housing Trust Fund revenue.

PURPOSE

As proposed, H.B. 3079 expands allowable sources and uses of the
Housing Trust Fund.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 2306.201, Government Code, as follows:

     Sec.  2306.201.  HOUSING TRUST FUND.  (a)  Authorizes the
     housing trust fund (fund) to be placed with the Texas Treasury
     Safekeeping Trust Company.  Deletes referenced to the housing
     finance division.
     
     (b)  Expands the composition of the fund to include proceeds
       from general obligation bonds and investment income.
       
       SECTION 2.   Amends Section 2306.202, Government Code, as follows: 

     Sec.  2306.201.  USE OF HOUSING TRUST FUND.  (a)  Makes
     conforming changes.
     
     (b)  Limits the fund to certain uses.
         SECTION 3. Amends Section 2306.471, Government Code, to prohibit
the net effective interest rate on the general bonds from exceeding
the rate allowed under Article 717k-2, V.T.C.S.

SECTION 4. Effective date:  September 1, 1995.

SECTION 5. Emergency clause.