By Marchant H.C.R. No. 211 75R12063 SMC-F HOUSE CONCURRENT RESOLUTION 1-1 WHEREAS, Private activity tax-exempt bonds finance many 1-2 worthy projects with a public benefit such as environmental 1-3 infrastructure projects, including sewage facilities, solid waste 1-4 disposal facilities, and hazardous waste disposal facilities, 1-5 industrial development projects, student loans, and low-income 1-6 housing projects; and 1-7 WHEREAS, In 1986 the United States Congress imposed a 1-8 state-by-state volume cap on the issuance of private activity 1-9 tax-exempt bonds, with a cap of $75 per person per year for Texas; 1-10 and 1-11 WHEREAS, In 1988 the cap was lowered to $50 per person and 1-12 has not increased, even with the passage of time and inflation; and 1-13 WHEREAS, Many worthy projects with a public benefit, such as 1-14 environmental infrastructure projects undertaken by private firms, 1-15 industrial development projects, low-income housing projects, and 1-16 others, are not going forward due to the lack of available 1-17 financing; and 1-18 WHEREAS, While taxable financing may be available, the cost 1-19 of such financing can make a project uneconomic because most of 1-20 these projects do not provide a positive rate of return; and 1-21 WHEREAS, The allocation of these bonds in Texas has been 1-22 oversubscribed each year since 1988, and last year applications 1-23 exceeded allocations by 211 percent, with two out of three 1-24 applicants in the nondedicated category being denied a tax-exempt 2-1 bond under the lottery system of allocation because of a shortage 2-2 of funds; and 2-3 WHEREAS, Demand for private activity bond cap allocation will 2-4 certainly continue to increase, given Texas' growing economy, but 2-5 the $50 per person allocation will decrease in real value over 2-6 time, increasing demand relative to the available ceiling; and 2-7 WHEREAS, Unless congress increases the volume cap and 2-8 provides an inflation adjustment for the future, there will be 2-9 fewer and fewer projects that will receive financing; and 2-10 WHEREAS, As entities decide to delay or cancel planned 2-11 investments, economic growth will necessarily slow, causing ripple 2-12 effects throughout the economy; and 2-13 WHEREAS, Legislation has been introduced in the Congress of 2-14 the United States that would increase the volume caps and index 2-15 them for inflation in the future; now, therefore, be it 2-16 RESOLVED, That the 75th Legislature of the State of Texas 2-17 hereby respectfully request the Congress of the United States to 2-18 pass legislation that would increase the volume caps; and, be it 2-19 further 2-20 RESOLVED, That the congress be specifically requested to 2-21 ensure that inflation in the future be addressed in any legislation 2-22 on this issue; and, be it further 2-23 RESOLVED, That the congress be specifically requested to 2-24 ensure that funds for this program that are not used by other 2-25 states be allowed to be allocated to oversubscribed states such as 2-26 Texas; and, be it further 2-27 RESOLVED, That the Texas secretary of state forward official 3-1 copies of this resolution to the president of the United States, to 3-2 the speaker of the house of representatives and the president of 3-3 the senate of the United States Congress, and to all the members of 3-4 the Texas delegation to the congress with the request that this 3-5 resolution be officially entered in the Congressional Record as a 3-6 memorial to the Congress of the United States of America.