SRC-PNG S.B. 1622 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 1622
By: Lucio
Border Affairs - Special
4/14/1999
As Filed


DIGEST 

Currently, under Texas law, a housing trust fund exists.  This bill revises
certain provisions regarding the housing trust fund. 

PURPOSE

As proposed, S.B. 1622 revises provisions concerning the housing trust fund.

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 2306.201, Government Code, to provide that the
housing trust fund (fund) be placed with the Texas Treasury Safekeeping
Trust Company or with a depository selected in conformance with the terms
of a bond indenture.  Provides that the fund consists of proceeds of
general obligation bonds issued as provided by the board under Section
2306.352, among other sources. 

SECTION 2. Amends Section 2306.202(b), Government Code, to provide that use
of the fund is limited to providing payment for costs associated with
general obligation bonds issued as provided by the governing board of the
Texas Department of Housing and Community Affairs under Section 2306.352.   

SECTION 3. Amends Section 2306.352(a), Government Code, to make a
conforming change. 

SECTION 4. Amends Section 2306.471, Government Code, to prohibit the net
effective interest rate on general obligation bonds issued under this
section from exceeding the maximum rate allowable under Chapter 3, Article
717k-2, V.T.C.S.  Makes a conforming change. 

SECTION 5. Amends Section 2(h), Article 5190.9a, V.T.C.S., to provide that
$100,000,000, rather than $20,000,000, in total cumulative reservations for
years 2000 and 2001, is available to the Texas Department of Housing and
Community Affairs until August 25 of each of those years from that portion
of the state ceiling that is available exclusively for reservations by
issuers of state-voted issues, for the purpose of augmenting the housing
trust fund, in addition to the amounts provided in Subsections (b)(2), (c),
and (d) of this section.  Deletes text concerning the state ceiling for
reservations by issuers of qualified mortgage bonds for the purpose of
issuing qualified mortgage bonds until August 25.  Makes conforming and
nonsubstantive changes. 

SECTION 6. Effective date: January 1, 2000, if the constitutional amendment
proposed by SJR 35, 76th Legislature, Regular Session, 1999, is approved by
the voters.  Provides that this Act has no effect if that amendment is not
approved by the voters. 

SECTION 7. Emergency clause.