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.
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