By:  Ellis                                            S.B. No. 1547
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to private activity bonds.
    1-2        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-3        SECTION 1.  Section 2, Article 5190.9a, Revised Statutes, is
    1-4  amended to read as follows:
    1-5        Sec. 2.  (a)  The state ceiling for each calendar year is
    1-6  allocated to issuers that issue private activity bonds.  Except as
    1-7  provided by Section 3 of this Act, reservations are granted in the
    1-8  order or receipt by the board of an application for a reservation,
    1-9  regardless of the amount of the issue.
   1-10        (b)  Prior to September 1, (1) except as provided in
   1-11  subsection (c) of this section, 28 percent of the state ceiling is
   1-12  available exclusively for reservations by issuers of qualified
   1-13  mortgage bonds, (2) 17.5 percent of the state ceiling is available
   1-14  exclusively for reservations by issuers of state-voted issues,
   1-15  (3) 7.5 percent of the state ceiling is available exclusively for
   1-16  reservations by issuers of qualified small issue bonds, (4) five
   1-17  percent of the state ceiling is available exclusively for
   1-18  reservations by issuers of qualified residential rental project
   1-19  issues; and (5)  42 percent of the state ceiling is available
   1-20  exclusively for reservations by all other issuers of bonds
   1-21  requiring an allocation.
   1-22        (c)  Of that portion of the state ceiling that is available
   1-23  exclusively for reservations by issuers of qualified mortgage
    2-1  bonds, one-third of said portion shall be made available
    2-2  exclusively to the <housing finance division of the> Texas
    2-3  Department of Housing and Community Affairs for the purpose of
    2-4  issuing qualified mortgage bonds or qualified residential rental
    2-5  project issues until August 25.
    2-6        (d)  On and after September 1, that portion of the state
    2-7  ceiling available for reservations shall become available to any
    2-8  issuer for any bonds requiring an allocation, subject to the
    2-9  provisions of Section 3 of this Act.
   2-10        (e)  <Notwithstanding the provisions of Subsection (f) of
   2-11  this section,> If qualified mortgage bonds, qualified residential
   2-12  rental project issues, or qualified small issue bonds do not
   2-13  qualify on January 2 of any year for treatment as tax-exempt
   2-14  obligations under the provisions of the code, then the provisions
   2-15  of Subsection (b)(1) or (3) of this section, or both, as
   2-16  applicable, shall be of no effect for such year, and the portion of
   2-17  the state ceiling that is available exclusively for reservations by
   2-18  issuers of qualified mortgage bonds, qualified residential rental
   2-19  project issues, or qualified small issue bonds, or both, as
   2-20  applicable, shall be reallocated proportionately by March 1 for
   2-21  reservations by each other category of issuers under Subsection (b)
   2-22  of this section.
   2-23        (f)  Subsection (e) of this section does not apply to
   2-24  qualified mortgage bonds or qualified residential rental project
   2-25  issues made available exclusively to the <housing finance division
    3-1  of the> Texas Department of Housing and Community Affairs under
    3-2  Subsection (c) of this section.
    3-3        SECTION 2.  Section 4, Article 5190.9a, Revised Statutes, is
    3-4  amended to read as follows:
    3-5        Sec. 4.  (a)  An application for a reservation may be filed
    3-6  by an issuer on or after January 2 and must be on a form prescribed
    3-7  by the board and signed by a member or officer of the issuer and
    3-8  must state:
    3-9              (1)  the maximum amount of the bonds in the issue
   3-10  requiring an allocation pursuant to Section 146 of the code;
   3-11              (2)  the purpose of the bonds or a functional
   3-12  description of the project, including the identification of the
   3-13  user of the proceeds or project financed thereby;
   3-14              (3)  whether the bonds are qualified bonds;
   3-15              (4)  if the bonds are qualified bonds, the paragraph of
   3-16  Section 141(e)(1) of the code  that applies, and if Section
   3-17  141(e)(1)(A) of the code  applies, the paragraph of Section 142(a)
   3-18  of the code  that applies;
   3-19              (5)  if the bonds are not qualified bonds, that Section
   3-20  141(b)(5) of the code  applies, or in the case of transition rule
   3-21  projects, the paragraph of the Tax Reform Act of 1986 that applies;
   3-22              (6)  a statement by the issuer, other than an issuer of
   3-23  a state-voted issue, or the Texas Department of Housing and
   3-24  Community Affairs, that bonds are not being issued for the same
   3-25  stated purpose for which the issuer has received sufficient
    4-1  carryforward during a prior year or for which there exists
    4-2  unexpended proceeds from a prior issue or issues of bonds issued by
    4-3  the same issuer, unless such issuer provides evidence that a
    4-4  binding contract or binding contracts have been entered into to
    4-5  expend the unexpended proceeds within 12 months after the date of
    4-6  receipt by the board of an application for a reservation; and
    4-7              (7)  other information that the board may require.
    4-8        (b)  The board shall not reserve a portion of the state
    4-9  ceiling for an issuer, other than an issuer of a state-voted issue,
   4-10  or the Texas Department of Housing and Community Affairs, to whom
   4-11  proceeds are available from other bonds issued by or on behalf of
   4-12  such issuer for the same stated purpose for which such issuer is
   4-13  applying for reservation, except as otherwise provided for in
   4-14  Subsection (a)(6) of this section.
   4-15        SECTION 3.  The importance of this legislation and the
   4-16  crowded condition of the calendar's in both houses create an
   4-17  emergency and an imperative public necessity that the
   4-18  constitutional rule requiring bills to be read on three several
   4-19  days in each house be suspended, and this Act take effect and be in
   4-20  force from and after its passage, and it is so enacted.