1-1     By:  Ellis                                            S.B. No. 1502

 1-2           (In the Senate - Filed March 13, 1997; March 20, 1997, read

 1-3     first time and referred to Committee on Finance; April 9, 1997,

 1-4     reported adversely, with favorable Committee Substitute by the

 1-5     following vote:  Yeas 10, Nays 0; April 9, 1997, sent to printer.)

 1-6     COMMITTEE SUBSTITUTE FOR S.B. No. 1502                    By:  West

 1-7                            A BILL TO BE ENTITLED

 1-8                                   AN ACT

 1-9     relating to the transfer of certain money into the housing trust

1-10     fund.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Section 2306.205, Government Code, is amended by

1-13     adding Subsection (f) to read as follows:

1-14           (f)  In addition to other amounts transferred into the

1-15     housing trust fund under this section, and subject to Subsection

1-16     (e), the department shall transfer into the fund the amount of any

1-17     issuance fees, asset oversight fees, and servicing fees the

1-18     department receives in relation to the administration of its

1-19     501(c)(3) bond program that exceeds the amount needed by the

1-20     department to pay its operating and overhead costs and fund

1-21     reserves, which may include an insurance reserve or credit

1-22     enhancement reserve, established by the board in administering the

1-23     program.  In this subsection, "501(c)(3) bond program" means:

1-24                 (1)  the department's issuance of bonds the proceeds of

1-25     which the department is obligated to lend only to an organization

1-26     described in Section 501(c)(3) of the Internal Revenue Code of 1986

1-27     (26 U.S.C., Section 501(c)(3)) that is exempt from federal income

1-28     taxation under Section 501(a) of the Internal Revenue Code of 1986

1-29     (26 U.S.C., Section 501(a)(3)); and

1-30                 (2)  the loans made by the department with the proceeds

1-31     of those bonds and the department's administration of those loans.

1-32           SECTION 2.  The importance of this legislation and the

1-33     crowded condition of the calendars in both houses create an

1-34     emergency and an imperative public necessity that the

1-35     constitutional rule requiring bills to be read on three several

1-36     days in each house be suspended, and this rule is hereby suspended,

1-37     and that this Act take effect and be in force from and after its

1-38     passage, and it is so enacted.

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