By Hill H.B. No. 2575
75R7234 KKA-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the operation of the Texas Housing Corporation.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 2306.201(b), Government Code, is amended
1-5 to read as follows:
1-6 (b) The fund consists of:
1-7 (1) appropriations or transfers made to the fund;
1-8 (2) unencumbered fund balances; [and]
1-9 (3) public or private gifts or grants; and
1-10 (4) amounts received from the Texas Housing
1-11 Corporation under Section 2306.557.
1-12 SECTION 2. Section 2306.554, Government Code, is amended to
1-13 read as follows:
1-14 Sec. 2306.554. BOARD OF DIRECTORS. (a) The board of
1-15 directors of the corporation consists of nine members appointed by
1-16 the governor with the advice and consent of the senate [The members
1-17 of the board serve as the board of directors of the corporation].
1-18 (b) The governor shall appoint a presiding officer from the
1-19 members of the board of directors of the corporation.
1-20 (c) Members of the board of directors of the corporation
1-21 hold office for staggered terms of six years, with the terms of
1-22 three members expiring on February 1 of each odd-numbered year.
1-23 SECTION 3. Subchapter Y, Chapter 2306, Government Code, as
1-24 added by Chapter 76, Acts of the 74th Legislature, Regular Session,
2-1 1995, is amended by adding Sections 2306.5541-2306.5543 to read as
2-2 follows:
2-3 Sec. 2306.5541. EXECUTIVE DIRECTOR. (a) The director of
2-4 the department serves as executive director of the corporation.
2-5 (b) The executive director shall submit monthly financial
2-6 statements to the board of directors of the corporation.
2-7 Sec. 2306.5542. CHIEF FINANCIAL OFFICER. The board of
2-8 directors of the corporation shall employ a chief financial officer
2-9 for the corporation.
2-10 Sec. 2306.5543. PERSONNEL POLICIES. The board of directors
2-11 of the corporation shall develop and implement personnel policies
2-12 relating to employee conflicts of interest that are substantially
2-13 similar to comparable policies that govern state employees.
2-14 SECTION 4. Section 2306.555, Government Code, is amended by
2-15 amending Subsection (a) and adding Subsections (d)-(f) to read as
2-16 follows:
2-17 (a) The corporation has the powers and is subject to the
2-18 limitations provided for the department under this chapter,
2-19 including provisions relating to property acquisition and
2-20 ownership.
2-21 (d) The corporation may apply for funding for special
2-22 programs from the department. In applying for funding, the
2-23 corporation is subject to all procedures and requirements
2-24 applicable to other applicants. Money received under this
2-25 subsection is not a transfer of money subject to approval by the
2-26 Legislative Budget Board under Section 2306.562.
2-27 (e) The corporation may issue qualified 501(c)(3) bonds
3-1 under Section 145, Internal Revenue Code of 1986 (26 U.S.C.
3-2 Section 145).
3-3 (f) The corporation may service mortgages held by the
3-4 corporation.
3-5 SECTION 5. Subchapter Y, Chapter 2306, Government Code, as
3-6 added by Chapter 76, Acts of the 74th Legislature, Regular Session,
3-7 1995, is amended by adding Section 2306.5555 to read as follows:
3-8 Sec. 2306.5555. PUBLIC ACCESS. The board of directors of
3-9 the corporation shall develop and implement policies that provide
3-10 the public with a reasonable opportunity to appear before the board
3-11 of directors and to speak on any issue under the jurisdiction of
3-12 the corporation.
3-13 SECTION 6. Section 2306.557, Government Code, is amended to
3-14 read as follows:
3-15 Sec. 2306.557. DISTRIBUTION OF EARNINGS. Any part of
3-16 earnings remaining after payment of expenses may not inure to any
3-17 person except that the corporation shall deposit these earnings in
3-18 the housing trust fund [to the credit of the general revenue fund
3-19 for the benefit of the department] if the corporation's board of
3-20 directors determines that sufficient provision has been made for
3-21 the full payment of the expenses, bonds, and other obligations of
3-22 the corporation.
3-23 SECTION 7. Subchapter Y, Chapter 2306, Government Code, as
3-24 added by Chapter 76, Acts of the 74th Legislature, Regular Session,
3-25 1995, is amended by adding Sections 2306.560-2306.564 to read as
3-26 follows:
3-27 Sec. 2306.560. FINANCIAL MANAGEMENT SYSTEM; RESTRICTED
4-1 CAPITAL FUND. (a) The corporation shall establish and maintain a
4-2 financial management system in accordance with generally accepted
4-3 accounting principles, as prescribed by the Financial Accounting
4-4 Standards Board.
4-5 (b) The financial management system shall provide for the
4-6 separate accounting and reporting of:
4-7 (1) all money received by the corporation from the
4-8 department and all disbursements, receipts, interest earnings, and
4-9 other proceeds arising from money received from the department; and
4-10 (2) all other money held by the corporation.
4-11 (c) The corporation shall establish and maintain a
4-12 restricted capital fund for money provided by the department or
4-13 this state. The capital fund shall reflect the accumulated total
4-14 of department and state investment in the corporation after
4-15 accounting for amounts returned to the state through deposits to
4-16 the housing trust fund.
4-17 Sec. 2306.561. AUDIT. (a) On or before March 1 of each
4-18 year, a certified public accountant with experience in auditing
4-19 mortgage firms and financial institutions shall audit the
4-20 corporation's books and accounts and file a copy of the audit with
4-21 the governor and the Legislative Budget Board.
4-22 (b) The state auditor shall review an audit after the audit
4-23 is completed by the certified public accountant.
4-24 (c) The corporation shall pay for the audit.
4-25 Sec. 2306.562. LEGISLATIVE OVERSIGHT. (a) The department
4-26 may not transfer money or staff to the corporation unless the
4-27 transfer is approved by the Legislative Budget Board.
5-1 (b) In connection with approving transfers under Subsection
5-2 (a), the Legislative Budget Board shall monitor and evaluate the
5-3 corporation's performance, budget, and staff size.
5-4 Sec. 2306.563. REPORT ON SERVICES. (a) The corporation
5-5 shall report to the department information on services provided by
5-6 the corporation. The information shall identify the:
5-7 (1) income, family size, race, and geographical
5-8 location of persons receiving services; and
5-9 (2) type and level of service provided to those
5-10 persons.
5-11 (b) The department shall include information provided under
5-12 Subsection (a) in the annual report required by Section 2306.072.
5-13 Sec. 2306.564. APPLICATION OF OTHER LAWS. The board of
5-14 directors of the corporation is subject to the open meetings law,
5-15 Chapter 551, and the corporation is subject to the open records
5-16 law, Chapter 552.
5-17 SECTION 8. (a) As soon as possible after the effective date
5-18 of this Act, the governor shall appoint the members of the board of
5-19 directors of the Texas Housing Corporation. The governor shall
5-20 appoint three members to serve terms expiring on February 1, 1999,
5-21 three members to serve terms expiring on February 1, 2001, and
5-22 three members to serve terms expiring on February 1, 2003.
5-23 (b) When a majority of the board appointed by the governor
5-24 under Subsection (a) of this section qualifies for office:
5-25 (1) the members of the board of the Texas Department
5-26 of Housing and Community Affairs cease to serve as members of the
5-27 board of directors of the Texas Housing Corporation; and
6-1 (2) the board appointed by the governor assumes
6-2 management of the corporation.
6-3 SECTION 9. This Act takes effect September 1, 1997.
6-4 SECTION 10. The importance of this legislation and the
6-5 crowded condition of the calendars in both houses create an
6-6 emergency and an imperative public necessity that the
6-7 constitutional rule requiring bills to be read on three several
6-8 days in each house be suspended, and this rule is hereby suspended.