By Gallego                                            H.B. No. 3066
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to private activity bonds.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 2, Article 5190.9a, Revised Statutes, is
    1-5  amended to read as follows:
    1-6        Sec. 2.(a) The state ceiling for each calendar year is
    1-7  allocated to issuers that issue private activity bonds.  Except as
    1-8  provided by Section 3 of this Act, reservations are granted in the
    1-9  order or receipt by the board of an application for a reservation,
   1-10  regardless of the amount of the issue.
   1-11        (b)  Prior to September 1, (1) except as provided in
   1-12  subsection (c) of this section, 28 percent of the state ceiling is
   1-13  available exclusively for reservations by issuers of qualified
   1-14  mortgage bonds, (2) 17.5 percent of the state ceiling is available
   1-15  exclusively for reservations by issuers of state-voted issues, (3)
   1-16  7.5 percent of the state ceiling is available exclusively for
   1-17  reservations by issuers of qualified small issue bonds, (4) five
   1-18  percent of the state ceiling is available exclusively for
   1-19  reservations by issuers of qualified residential rental project
   1-20  issues; and (5) 42 percent of the state ceiling is available
   1-21  exclusively for reservations by all other issuers of bonds
   1-22  requiring an allocation.
   1-23        (c)  Of that portion of the state ceiling that is available
    2-1  exclusively for reservations by issuers of qualified mortgage
    2-2  bonds, one-third of said portion shall be made available
    2-3  exclusively to the <housing finance division of the> Texas
    2-4  Department of Housing and Community Affairs for the purpose of
    2-5  issuing qualified mortgage bonds or qualified residential rental
    2-6  project issues until August 25.
    2-7        (d)  On and after September 1, that portion of the state
    2-8  ceiling available for reservations shall become available to any
    2-9  issuer for any bonds requiring an allocation, subject to the
   2-10  provisions of Section 3 of this Act.
   2-11        (e)  <Notwithstanding the provisions of Subsection (f) of
   2-12  this section,> If qualified mortgage bonds, qualified residential
   2-13  rental project issues, or qualified small issue bonds do not
   2-14  qualify on January 2 of any year for treatment as tax-exempt
   2-15  obligations under the provisions of the code, then the provisions
   2-16  of Subsection (b)(1) or (3) of this section, or both, as
   2-17  applicable, shall be of no effect for such year, and the portion of
   2-18  the state ceiling that is available exclusively for reservations by
   2-19  issuers of qualified mortgage bonds, qualified residential rental
   2-20  project issues, or qualified small issue bonds, or both, as
   2-21  applicable, shall be reallocated proportionately by March 1 for
   2-22  reservations by each other category of issuers under Subsection (b)
   2-23  of this section.
   2-24        (f)  Subsection (e) of this section does not apply to
   2-25  qualified mortgage bonds or qualified residential rental project
    3-1  issues made available exclusively to the <housing finance division
    3-2  of the> Texas Department of Housing and Community Affairs under
    3-3  Subsection (c) of this section.
    3-4        SECTION 2.  Section 4, Article 5190.9a, Revised Statutes, is
    3-5  amended to read as follows:
    3-6        Sec. 4.  (a)  An application for a reservation may be filed
    3-7  by an issuer on or after January 2 and must be on a form prescribed
    3-8  by the board and signed by a member or officer of the issuer and
    3-9  must state:
   3-10              (1)  the maximum amount of the bonds in the issue
   3-11  requiring an allocation pursuant to Section 146 of the code;
   3-12              (2)  the purpose of the bonds or a functional
   3-13  description of the project, including the identification of the
   3-14  user of the proceeds or project financed thereby;
   3-15              (3)  whether the bonds are qualified bonds;
   3-16              (4)  if the bonds are qualified bonds, the paragraph of
   3-17  Section 141(e)(1) of the code  that applies, and if Section
   3-18  141(e)(1)(A) of the code  applies, the paragraph of Section 142(a)
   3-19  of the code  that applies;
   3-20              (5)  if the bonds are not qualified bonds, that Section
   3-21  141(b)(5) of the code  applies, or in the case of transition rule
   3-22  projects, the paragraph of the Tax Reform Act of 1986 that applies;
   3-23              (6)  a statement by the issuer, other than an issuer of
   3-24  a state-voted issue, or the Texas Department of Housing and
   3-25  Community Affairs, that bonds are not being issued for the same
    4-1  stated purpose for which the issuer has received sufficient
    4-2  carryforward during a prior year or for which there exists
    4-3  unexpended proceeds from a prior issue or issues of bonds issued by
    4-4  the same issuer, unless such issuer provides evidence that a
    4-5  binding contract or binding contracts have been entered into to
    4-6  expend the unexpended proceeds within 12 months after the date of
    4-7  receipt by the board of an application for a reservation; and
    4-8              (7)  other information that the board may require.
    4-9        (b)  The board shall not reserve a portion of the state
   4-10  ceiling for an issuer, other than an issuer of a state-voted issue,
   4-11  or the Texas Department of Housing and Community Affairs, to whom
   4-12  proceeds are available from other bonds issued by or on behalf of
   4-13  such issuer for the same stated purpose for which such issuer is
   4-14  applying for reservation, except as otherwise provided for in
   4-15  Subsection (a)(6) of this section.
   4-16        SECTION 3.  The importance of this legislation and the
   4-17  crowded condition of the calendar's in both houses create an
   4-18  emergency and an imperative public necessity that the
   4-19  constitutional rule requiring bills to be read on three several
   4-20  days in each house be suspended, and this Act take effect and be in
   4-21  force from and after its passage, and it is so enacted.