HBA-ALS C.S.H.B. 2040 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2040 By: Turner, Bob Land & Resource Management 4/1/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE In 1983, the legislature granted the Veterans Land Board (VLB) authority to make low-interest home mortgage loans to Texas veterans by creating the Veterans Housing Assistance Program (the VLB was already authorized to make loans to veterans for the purchase of land). Under current law, VLB is prohibited from setting the maximum principal loan amount at an amount over $45,000. There is a concern that veterans are unable to take advantage of these types of loans because the maximum loan amount is not enough to purchase a home on the current market. In addition, current law prohibits a veteran from using this program or the VLB land loan program more than once. The purpose of this bill is to increase the incentives to veteran to utilize these loan programs and to allow the programs to be used more than once. C.S.H.B. 2040 grants VLB authority to determine the number of tracts that a veteran can purchase under this chapter. This bill requires the board to set the maximum principal loan amount made to a veteran at an amount not to exceed the maximum amount allowable for a loan obtained through the United States Department of Veterans Affairs. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Veterans Land Board in SECTION 1 (Section 162.236, Natural Resources Code) and SECTION 2 (Section 162.011, Natural Resources Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 161.236, Natural Resources Code, to provide that the Veterans Land Board (VLB) may promulgate rules to determine the number of tracts of land that a veteran may purchase under this chapter. Deletes language prohibiting a veteran from purchasing more than one tract of land under this chapter. SECTION 2. Section 162.011, Natural Resources Code, by amending Subsection (c) and adding Subsection (f), as follows: (c) Requires VLB to determine the maximum principal amount of loans that may be outstanding at any time by any one veteran. Prohibits the amount allocable to any one home mortgage loan from exceeding the maximum amount allowable for a similar home mortgage loan by the United States Department of Veterans Affairs or any successor agency. Deletes language prohibiting a loan under this chapter from exceeding $45,000. (f) Authorizes VLB by rule to determine, from time to time, the number of loans that a veteran may receive under this chapter. SECTION 3. Emergency clause. Effective date: upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute modifies the original bill to conform to Legislative Council format and make other nonsubstantive changes.