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.