SRC-JXG S.B. 1155 76(R)BILL ANALYSIS Senate Research CenterS.B. 1155 By: Carona Intergovernmental Relations 7/6/1999 Enrolled DIGEST Currently, tax-exempt debt is restricted in the private purposes for which it can be issued and the amount, in each state during each calendar year, and is calculated as $50 per capita each year or a "state ceiling" or "volume cap." Texas requires an application for a reservation for a particular taxexempt debt program; and the program to be administered by the Bond Review Board (board). S.B. 1155 will change the date an application for reservation for tax-exempt debt is filed to the board, and will require a fee in the amount of $1,000 to be paid to the board. PURPOSE As enrolled, S.B. 1155 changes the date and fee of an application for reservation is filed for allocation of funds for the tax-exempt debt program. RULEMAKING AUTHORITY This bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Sections 2(b) and (e), Article 5190.9a, V.T.C.S., as follows: (b) Sets forth certain percentages of the state ceiling available for reservations. (e) Requires that portion of the state ceiling available for reservations to become available for qualified residential rental project issues in the manner described by SECTION 3(h) of this Act, on and after August15 but before September 1. SECTION 2. Amends Section 3, Article 5190.9a, V.T.C.S., by adding Subsections (h) and (i), as follows: (h) Provides that first priority for any reservations by issuers of qualified residential rental project issues is given to projects in which 100 percent of the residential units in the projects are under the restriction that the maximum allowable rents are 30 percent of 50 percent of the area median family income minus an allowance for utility costs authorized under the federal low-income housing tax credit program. Provides that second priority is given to projects in which 100 percent of the residential units in the projects are under the restriction that the maximum allowable rents are 30 percent of 60 percent of the area median family income minus an allowance for utility costs authorized under the federal low-income housing tax credit program. Provides that third priority is given to any other qualified residential rental project. (i) Prohibits the Bond Review Board (board) from reserving a portion of the state ceiling for a first or second priority project described by Subsection (h) of this section unless the board receives evidence that an application has been filed with Texas Department of Housing and Community Affairs (TDHCA) for the low-income housing tax credit that is available for multifamily transactions that are at least 51 percent financed by tax-exempt private activity bonds. SECTION 3. Amends Section 4a, Article 5190.9a, V.T.C.S., to require an application for a reservation for a particular program year to state a statement by the issuer, other than an issuer of a state-vote issue or TDHCA, that bonds are not being issued for the same stated purpose for which the issuer has received sufficient carryforward during a prior year or for which there exists unexpended proceeds from, including transferred proceeds representing unexpended proceeds from, a prior issue or issues of bonds issued by the same issuer, or based on the issuer's population, unless such issuer provides evidence that a binding contract or binding contracts have been entered into, or other evidence acceptable to the board as described in program rules, to expend the unexpended proceeds by the later of 12 months after the date of receipt by the board of an application for a reservation or December 31 of the program year for which the application is being filed. Makes a conforming change. SECTION 4. Amends Section 7(d), Article 5190.9a, V.T.C.S., to require the issuer to submit to the board if the project is a first or second priority project described by Section 3(h) of this Act, evidence from TDHCA that an award of low-income housing tax credits has been approved for the project, no later than the fifth business day after the day on which the bonds are closed. Makes conforming changes. SECTION 5. Amends Section 12, Article 5190.9a, V.T.C.S., to require an issuer receiving a carryforward designation to submit to the board a fee in the amount of $1,000 or 0.025 percent of the amount of the carryforward designation, whichever is greater. Requires the fee to be submitted no later than the fifth business day following the date of receipt of the carryforward designation. SECTION 6. (a) Effective date: September 1, 1999, except as provided by Subsection (b) of this section. (b) Effective date for SECTIONS 5, 2(b)(e), 3, and 7(d): January 1, 2000. SECTION 7. Emergency clause.