1-1 By: Carona S.B. No. 1155
1-2 (In the Senate - Filed March 10, 1999; March 11, 1999, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; April 6, 1999, reported favorably by the following vote:
1-5 Yeas 5, Nays 0; April 6, 1999, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the allocation and reservation system for certain
1-9 tax-exempt private activity bonds.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Subsection (a), Section 4, Chapter 1092, Acts of
1-12 the 70th Legislature, Regular Session, 1987 (Article 5190.9a,
1-13 Vernon's Texas Civil Statutes), is amended to read as follows:
1-14 (a) An application for a reservation for a particular
1-15 program year may be filed by an issuer on or after October 10 of
1-16 the preceding year and must be on a form prescribed by the board
1-17 and signed by a member or officer of the issuer and must state:
1-18 (1) the maximum amount of the bonds in the issue
1-19 requiring an allocation pursuant to Section 146 of the code;
1-20 (2) the purpose of the bonds or a functional
1-21 description of the project, including the identification of the
1-22 user of the proceeds or project financed thereby;
1-23 (3) whether the bonds are qualified bonds;
1-24 (4) if the bonds are qualified bonds, the paragraph of
1-25 Section 141(e)(1) of the code that applies, and if Section
1-26 141(e)(1)(A) of the code applies, the paragraph of Section 142(a)
1-27 of the code that applies;
1-28 (5) if the bonds are not qualified bonds, that Section
1-29 141(b)(5) of the code applies, or in the case of transition rule
1-30 projects, the paragraph of the Tax Reform Act of 1986 that applies;
1-31 (6) a statement by the issuer, other than an issuer of
1-32 a state-voted issue or the Texas Department of Housing and
1-33 Community Affairs, that bonds are not being issued for the same
1-34 stated purpose for which the issuer has received sufficient
1-35 carryforward during a prior year or for which there exists
1-36 unexpended proceeds from, including transferred proceeds
1-37 representing unexpended proceeds from, a prior issue or issues of
1-38 bonds issued by the same issuer, or based on the issuer's
1-39 population, unless such issuer provides evidence that a binding
1-40 contract or binding contracts have been entered into, or other
1-41 evidence acceptable to the board as described in program rules, to
1-42 expend the unexpended proceeds by the later of [within] 12 months
1-43 after the date of receipt by the board of an application for a
1-44 reservation or December 31 of the program year for which the
1-45 application is being filed; and
1-46 (7) other information that the board may require.
1-47 SECTION 2. Section 12, Chapter 1092, Acts of the 70th
1-48 Legislature, Regular Session, 1987 (Article 5190.9a, Vernon's Texas
1-49 Civil Statutes), is amended to read as follows:
1-50 Sec. 12. FEE. An application for a reservation or
1-51 carryforward designation must be accompanied by a nonrefundable fee
1-52 in the amount of $500. The issuer shall submit to the board a
1-53 closing fee in the amount of $1,000 or 0.025 percent of the
1-54 principal amount of the bonds certified as provided by Section
1-55 6(a)(2) of this Act, whichever is greater. One-third of the fee
1-56 shall be submitted not later than the 35th day after an issue's
1-57 reservation date, and the remaining portion of the fee at the time
1-58 of closing. An issuer exchanging a portion of the state ceiling
1-59 for mortgage credit certificates shall submit to the board a
1-60 closing fee in the amount of $1,000 or 0.0125 percent of the amount
1-61 of the state ceiling reserved, whichever is greater. One-third of
1-62 the fee shall be submitted not later than the 35th day after an
1-63 issue's reservation date, and the remaining portion of the fee at
1-64 the time of closing. An issuer receiving a carryforward
2-1 designation shall submit to the board a fee in the amount of $1,000
2-2 or 0.025 percent of the amount of the carryforward designation,
2-3 whichever is greater. The fee shall be submitted not later than
2-4 the fifth business day following the date of receipt of the
2-5 carryforward designation. The board shall deposit the proceeds of
2-6 the fees in the General Revenue Fund.
2-7 SECTION 3. (a) This Act takes effect August 1, 1999, except
2-8 as provided by Subsection (b) of this section.
2-9 (b) Section 2 of this Act takes effect January 1, 2000.
2-10 SECTION 4. The importance of this legislation and the
2-11 crowded condition of the calendars in both houses create an
2-12 emergency and an imperative public necessity that the
2-13 constitutional rule requiring bills to be read on three several
2-14 days in each house be suspended, and this rule is hereby suspended,
2-15 and that this Act take effect and be in force according to its
2-16 terms, and it is so enacted.
2-17 * * * * *