By Romo H.B. No. 2726
74R7821 RJA-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to tax-exempt private activity bonds.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 1, Chapter 1092, Acts of the 70th
1-5 Legislature, Regular Session, 1987 (Article 5190.9a, Vernon's Texas
1-6 Civil Statutes), is amended by amending Subdivision (14) and adding
1-7 Subdivision (20) to read as follows:
1-8 (14) "Qualified small issue bond" has the meaning
1-9 given that term under Section 144(a) of the code<, and,
1-10 additionally, shall mean any bond authorized under the code
1-11 subsequent to March 1, 1993, for economic development purposes,
1-12 which requires an allocation of state ceiling>.
1-13 (20) "Tax-exempt enterprise zone facility bonds" has
1-14 the meaning given that term under Section 1394 of the code.
1-15 SECTION 2. Sections 2(b) and (e), Chapter 1092, Acts of the
1-16 70th Legislature, Regular Session, 1987 (Article 5190.9a, Vernon's
1-17 Texas Civil Statutes), are amended to read as follows:
1-18 (b) Prior to September 1, (1) 28 percent of the state
1-19 ceiling is available exclusively for reservations by issuers of
1-20 qualified mortgage bonds, (2) 17.5 percent of the state ceiling is
1-21 available exclusively for reservations by issuers of state-voted
1-22 issues for the purpose of issuing a state-voted issue, (3) 7.5
1-23 percent of the state ceiling is available exclusively for
1-24 reservations by issuers of qualified small issue bonds and
2-1 tax-exempt enterprise zone facility bonds, (4) five percent of the
2-2 state ceiling is available exclusively for reservations by issuers
2-3 of qualified residential rental project issues; and (5) 42 percent
2-4 of the state ceiling is available exclusively for reservations by
2-5 all other issuers of bonds requiring an allocation.
2-6 (e) Notwithstanding the provisions of Subsection (f) of this
2-7 section, if any particular type of <qualified mortgage bonds or
2-8 qualified small issue> bonds do not qualify on January 2 of any
2-9 year for treatment as tax-exempt obligations under the provisions
2-10 of the code, then the provisions of Subsection (b)(1), (2), <or>
2-11 (3), (4), or (5) of this section, <or both,> as applicable, shall
2-12 be of no effect for such year, and the portion of the state ceiling
2-13 that is available exclusively for reservations by issuers of the
2-14 type of applicable <qualified mortgage bonds or qualified small
2-15 issue> bonds<, or both, as applicable,> shall be reallocated
2-16 proportionately by March 1 for reservations by each other category
2-17 of issuers under Subsection (b) of this section.
2-18 SECTION 3. Sections 3(d) and (f), Chapter 1092, Acts of the
2-19 70th Legislature, Regular Session, 1987 (Article 5190.9a, Vernon's
2-20 Texas Civil Statutes), are amended to read as follows:
2-21 (d) An application for a reservation may not be submitted
2-22 and a reservation may not be granted after December 1 <14>.
2-23 (f) An issuer may refuse to accept a reservation if the
2-24 amount of state ceiling available is less than the amount for which
2-25 the issuer applied under Section 4 of this Act. An issuer may
2-26 refuse to accept a reservation for any amount if the reservation is
2-27 granted after September 23. The amount of available state ceiling
3-1 is subject to the grant of a reservation to each succeeding issuer
3-2 eligible to receive a reservation of that available state ceiling
3-3 in the order of priority determined in accordance with this Act.
3-4 An issuer's refusal to accept a reservation does not affect the
3-5 issuer's order of priority determined in accordance with this Act
3-6 for a subsequent receipt of a reservation.
3-7 SECTION 4. Section 7(d), Chapter 1092, Acts of the 70th
3-8 Legislature, Regular Session, 1987 (Article 5190.9a, Vernon's Texas
3-9 Civil Statutes), is amended to read as follows:
3-10 (d) Not later than the fifth business day after the day on
3-11 which the bonds are closed, the issuer shall submit to the board:
3-12 (1) a written notice stating the delivery date of the
3-13 bonds and the principal amount of the bonds issued; and
3-14 (2) a certified copy of the document authorizing the
3-15 bonds and other documents relating to the issuance of the bonds,
3-16 including a statement of the bonds:
3-17 (A) principal amount;
3-18 (B) interest rate or formula by which the
3-19 interest rate is calculated;
3-20 (C) maturity schedule; and
3-21 (D) purchaser or purchasers.
3-22 SECTION 5. Section 12, Chapter 1092, Acts of the 70th
3-23 Legislature, Regular Session, 1987 (Article 5190.9a, Vernon's Texas
3-24 Civil Statutes), is amended to read as follows:
3-25 Sec. 12. Fee. An application for a reservation or
3-26 carryforward designation must be accompanied by a nonrefundable fee
3-27 in the amount of $500. The issuer shall submit to the board a
4-1 closing fee in the amount of $1,000 or 0.025 percent of the
4-2 principal amount of the bonds certified as provided by Section
4-3 6(a)(2) of this Act, whichever is greater. One-third of the fee
4-4 shall be submitted not later than the 35th day after an issue's
4-5 reservation date, and the remaining portion of the fee at the time
4-6 of closing. An issuer exchanging a portion of the state ceiling
4-7 for mortgage credit certificates shall submit to the board a
4-8 closing fee in the amount of $1,000 or 0.0125 percent of the amount
4-9 of the state ceiling reserved, whichever is greater. One-third of
4-10 the fee shall be submitted not later than the 35th day after an
4-11 issue's reservation date, and the remaining portion of the fee at
4-12 the time of closing. The board shall deposit the proceeds of the
4-13 fees in the General Revenue Fund. <The legislature shall
4-14 appropriate to the board the amount equal to the amount collected
4-15 as fees under this Act to be used by the board in administering
4-16 this Act.>
4-17 SECTION 6. Effective January 1, 1996, Sections 3(a), (b),
4-18 and (c), Chapter 1092, Acts of the 70th Legislature, Regular
4-19 Session, 1987 (Article 5190.9a, Vernon's Texas Civil Statutes), are
4-20 amended to read as follows:
4-21 (a) For any one project, no issuer:
4-22 (1) prior to September 1, shall receive reservations
4-23 in excess of:
4-24 (A) $25,000,000 for issuers described by Section
4-25 2(b)(1) of this Act other than the housing finance division of the
4-26 Texas Department of Housing and Community Affairs;
4-27 (B) $50,000,000 for issuers described by Section
5-1 2(b)(2) of this Act other than the Texas Higher Education
5-2 Coordinating Board;
5-3 (C) an amount as limited by the code for issuers
5-4 described by Section 2(b)(3) of this Act;
5-5 (D) $15,000,000 for issuers described by Section
5-6 2(b)(4) of this Act; and
5-7 (E) $25,000,000 for issuers described by Section
5-8 2(b)(5) of this Act; <$50,000,000, except for the housing finance
5-9 division of the Texas Department of Housing and Community Affairs
5-10 and the Texas Higher Education Coordinating Board;> and
5-11 (2) prior to November 1, shall receive reservations in
5-12 excess of $100,000,000.
5-13 (b) The maximum amount of the state ceiling which may be
5-14 reserved by a housing finance corporation for the issuance of
5-15 qualified mortgage bonds may not exceed $50 times the local
5-16 population of such housing finance corporation, except (1) if the
5-17 local population is 200,000 or more but less than 300,000, the
5-18 maximum amount of the state ceiling which may be reserved may not
5-19 exceed $75 times that local population, (2) if the local population
5-20 is 100,000 or more but less than 200,000, the maximum amount of the
5-21 state ceiling which may be reserved may not exceed $100 times the
5-22 local population, and (3) if the local population is less than
5-23 100,000, the maximum amount of the state ceiling which may be
5-24 reserved prior to the foregoing dates may not exceed $150 times the
5-25 local population. Anything to the contrary notwithstanding, no
5-26 housing finance corporation shall receive an allocation for the
5-27 issuance of qualified mortgage bonds in excess of $25,000,000
6-1 <$30,000,000>.
6-2 (c) The board shall not grant a reservation of a portion of
6-3 the state ceiling to any issuer prior to January 10. If two or
6-4 more issuers apply for a reservation of state ceiling in a category
6-5 described in Subsections (b)(2), (b)(3), (b)(4), and (b)(5) of
6-6 Section 2 of this Act on or before January 10, reservations within
6-7 that category shall be granted from the state ceiling available in
6-8 that category in an order determined by the board by lot. If two
6-9 or more housing finance corporations apply for a reservation of
6-10 state ceiling in the category described by Section 2(b)(1) of this
6-11 Act on or before January 10, reservations within that category
6-12 shall be granted from the state ceiling available in that category
6-13 according to the following categories of priority: (1) the first
6-14 category of priority shall include those applications for a
6-15 reservation filed by housing finance corporations which filed an
6-16 application for a reservation on behalf of the same local
6-17 population prior to September 1 of the previous calendar year, but
6-18 which did not receive a reservation during such year; (2) the
6-19 second category of priority shall include those applications for a
6-20 reservation filed by housing finance corporations to which state
6-21 ceiling could not be made available by August 31 for that calendar
6-22 year because of the application of Section 4(b) of this Act; (3)
6-23 the third category of priority shall include those applications for
6-24 a reservation not included in the first and second categories of
6-25 priority; and (4) within each category or priority, reservations
6-26 shall be granted in reverse calendar year order of the most recent
6-27 closing of qualified mortgage bonds by each housing finance
7-1 corporation, with the most recent closing being the last to receive
7-2 a reservation and with those housing finance corporations that have
7-3 never received a reservation for mortgage revenue bonds being the
7-4 first to receive a reservation, and, in the case of closings
7-5 occurring on the same date, reservations shall be granted in an
7-6 order determined by the board by lot. All applications for a
7-7 reservation filed after January 10 by any issuer for the issuance
7-8 of bonds shall be accepted by the board in their order of receipt.
7-9 A priority under (1) of an issuer composed of more than one
7-10 jurisdiction is not affected by the issuer's loss of a sponsoring
7-11 governmental unit and that unit's population base if the dollar
7-12 amount of the application has not increased.
7-13 SECTION 7. Effective January 1, 1996, Section 4, Chapter
7-14 1092, Acts of the 70th Legislature, Regular Session, 1987 (Article
7-15 5190.9a, Vernon's Texas Civil Statutes), is amended by adding
7-16 Subsection (c) to read as follows:
7-17 (c) The board may not accept applications for more than one
7-18 project located at, or related to, a business operation at a
7-19 particular site in any one calendar year.
7-20 SECTION 8. The importance of this legislation and the
7-21 crowded condition of the calendars in both houses create an
7-22 emergency and an imperative public necessity that the
7-23 constitutional rule requiring bills to be read on three several
7-24 days in each house be suspended, and this rule is hereby suspended,
7-25 and that this Act take effect and be in force from and after its
7-26 passage, and it is so enacted.