SRC-JXG S.B. 1155 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1155
By: Carona
Intergovernmental Relations
3/25/1999
As Filed


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 would change the date an
application for reservation for tax-exempt debt is filed to the board, and
would require a fee in the amount of $1,000 to be paid to the board. 

PURPOSE

As proposed, 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 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-voted issue or the
Texas Department of Housing and Community Affairs, 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 Bond Review Board (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 2. 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 3. Effective date: September 1, 1999, except as provided by
Subsection (b) of this section. 

SECTION 4. Emergency clause.