By: Carona S.B. No. 1155
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the allocation and reservation system for certain
1-2 tax-exempt private activity bonds.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsection (a), Section 4, Chapter 1092, Acts of
1-5 the 70th Legislature, Regular Session, 1987 (Article 5190.9a,
1-6 Vernon's Texas Civil Statutes), is amended to read as follows:
1-7 (a) An application for a reservation for a particular
1-8 program year may be filed by an issuer on or after October 10 of
1-9 the preceding year and must be on a form prescribed by the board
1-10 and signed by a member or officer of the issuer and must state:
1-11 (1) the maximum amount of the bonds in the issue
1-12 requiring an allocation pursuant to Section 146 of the code;
1-13 (2) the purpose of the bonds or a functional
1-14 description of the project, including the identification of the
1-15 user of the proceeds or project financed thereby;
1-16 (3) whether the bonds are qualified bonds;
1-17 (4) if the bonds are qualified bonds, the paragraph of
1-18 Section 141(e)(1) of the code that applies, and if Section
1-19 141(e)(1)(A) of the code applies, the paragraph of Section 142(a)
1-20 of the code that applies;
1-21 (5) if the bonds are not qualified bonds, that Section
1-22 141(b)(5) of the code applies, or in the case of transition rule
1-23 projects, the paragraph of the Tax Reform Act of 1986 that applies;
1-24 (6) a statement by the issuer, other than an issuer of
2-1 a state-voted issue or the Texas Department of Housing and
2-2 Community Affairs, that bonds are not being issued for the same
2-3 stated purpose for which the issuer has received sufficient
2-4 carryforward during a prior year or for which there exists
2-5 unexpended proceeds from, including transferred proceeds
2-6 representing unexpended proceeds from, a prior issue or issues of
2-7 bonds issued by the same issuer, or based on the issuer's
2-8 population, unless such issuer provides evidence that a binding
2-9 contract or binding contracts have been entered into, or other
2-10 evidence acceptable to the board as described in program rules, to
2-11 expend the unexpended proceeds by the later of [within] 12 months
2-12 after the date of receipt by the board of an application for a
2-13 reservation or December 31 of the program year for which the
2-14 application is being filed; and
2-15 (7) other information that the board may require.
2-16 SECTION 2. Section 12, Chapter 1092, Acts of the 70th
2-17 Legislature, Regular Session, 1987 (Article 5190.9a, Vernon's Texas
2-18 Civil Statutes), is amended to read as follows:
2-19 Sec. 12. FEE. An application for a reservation or
2-20 carryforward designation must be accompanied by a nonrefundable fee
2-21 in the amount of $500. The issuer shall submit to the board a
2-22 closing fee in the amount of $1,000 or 0.025 percent of the
2-23 principal amount of the bonds certified as provided by Section
2-24 6(a)(2) of this Act, whichever is greater. One-third of the fee
2-25 shall be submitted not later than the 35th day after an issue's
2-26 reservation date, and the remaining portion of the fee at the time
3-1 of closing. An issuer exchanging a portion of the state ceiling
3-2 for mortgage credit certificates shall submit to the board a
3-3 closing fee in the amount of $1,000 or 0.0125 percent of the amount
3-4 of the state ceiling reserved, whichever is greater. One-third of
3-5 the fee shall be submitted not later than the 35th day after an
3-6 issue's reservation date, and the remaining portion of the fee at
3-7 the time of closing. An issuer receiving a carryforward
3-8 designation shall submit to the board a fee in the amount of $1,000
3-9 or 0.025 percent of the amount of the carryforward designation,
3-10 whichever is greater. The fee shall be submitted not later than
3-11 the fifth business day following the date of receipt of the
3-12 carryforward designation. The board shall deposit the proceeds of
3-13 the fees in the General Revenue Fund.
3-14 SECTION 3. (a) This Act takes effect August 1, 1999, except
3-15 as provided by Subsection (b) of this section.
3-16 (b) Section 2 of this Act takes effect January 1, 2000.
3-17 SECTION 4. The importance of this legislation and the
3-18 crowded condition of the calendars in both houses create an
3-19 emergency and an imperative public necessity that the
3-20 constitutional rule requiring bills to be read on three several
3-21 days in each house be suspended, and this rule is hereby suspended,
3-22 and that this Act take effect and be in force according to its
3-23 terms, and it is so enacted.