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.