1-1     By:  Ellis                                            S.B. No. 1527

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

 1-3     first time and referred to Committee on Intergovernmental

 1-4     Relations; April 3, 1997, reported favorably by the following vote:

 1-5     Yeas 10, Nays 0; April 3, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to establishing a home buyer education program.

 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-10           SECTION 1.  Subchapter K, Chapter 2306, Government Code, is

1-11     amended by adding Section 2306.253 to read as follows:

1-12           Sec. 2306.253.  HOME BUYER EDUCATION PROGRAM.  (a)  The

1-13     department shall develop and implement a statewide home buyer

1-14     education program designed to provide information and counseling to

1-15     prospective home buyers about the home buying process.  The

1-16     department shall implement the program by cooperating with the

1-17     Texas Agricultural Extension Service, the Real Estate Research

1-18     Center at Texas A&M University, other appropriate state agencies,

1-19     experienced providers of home buyer education, mortgage lenders,

1-20     the Federal National Mortgage Association, the Neighborhood

1-21     Reinvestment Corporation, and other appropriate organizations to

1-22     develop and provide a standard system of instruction, curriculum,

1-23     and counseling.

1-24           (b)  The department and the entities with which it is

1-25     cooperating shall make full use of existing training and

1-26     informational materials available from sources such as the federal

1-27     Department of Housing and Urban Development and the Neighborhood

1-28     Reinvestment Corporation.

1-29           (c)  To pay the costs of providing the information and

1-30     counseling to prospective home buyers in this state, the department

1-31     may use money available to the department for housing purposes that

1-32     the department is not prohibited from spending on the home buyer

1-33     education program, including:

1-34                 (1)  the amount of administrative or service fees the

1-35     department receives from the issuance or refunding of bonds that

1-36     exceeds the amount the department needs to pay its overhead costs

1-37     in administering its bond programs; and

1-38                 (2)  money the department receives from other entities

1-39     by gift or grant or under a contract.

1-40           (d)  The department annually shall report to the legislature

1-41     the number of home loans made in this state during the previous

1-42     year to persons and families of low income, of moderate income, and

1-43     of high income.

1-44           SECTION 2.  The Texas Department of Housing and Community

1-45     Affairs shall implement throughout the state the home buyer

1-46     education program established under Section 2306.253, Government

1-47     Code, as added by this Act, not later than January 31, 1999.

1-48           SECTION 3.  The importance of this legislation and the

1-49     crowded condition of the calendars in both houses create an

1-50     emergency and an imperative public necessity that the

1-51     constitutional rule requiring bills to be read on three several

1-52     days in each house be suspended, and this rule is hereby suspended,

1-53     and that this Act take effect and be in force from and after its

1-54     passage, and it is so enacted.

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