BWM H.B. 1617 75(R)BILL ANALYSIS


FINANCIAL INSTITUTIONS
H.B. 1617
By: Hill
3-14-97
Committee Report (Unamended)


BACKGROUND 

Article 5190.9a, of the revised civil statutes, is contained in Title 83,
Labor, of the revised civil statutes.  It was enacted in 1987 for purposes
of compliance with the federal Tax Reform Act of 1986.  This federal
legislation establishes a "state ceiling" on the states, based on
population, for tax-exempt "private activity bonds" issued for
quasi-governmental purposes.  The allocation for Texas among local issuers
is determined by the state Bond Review Board upon application made
annually.  

PURPOSE

This bill would reallocate, by statute, the state's ceiling according to
existing specified purposes including mortgage bonds, state-wide issues,
enterprise zones, residential rental projects, and residual purposes. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1. Amends article 5190.9a to reallocate the "state ceiling" for
the issuance of private            activity bonds: 
  qualified mortgage bonds: 30.5% (formerly 28%)
  state-voted issues:              15%    (formerly 17.5%)
  enterprise zone facilities:    7.5%  (unchanged)
  residential rental projects:  10%    (formerly 5%)
  general residual reserve:     37%   (formerly 42%)

SECTION 2. Effective date: January 1, 1998.

SECTION 3. Emergency clause.