By:  Lucio, Truan                                     S.B. No. 1622
              Shapleigh, Madla
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the housing trust fund.
 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-3           SECTION 1.  Section 2306.201, Government Code, is amended to
 1-4     read as follows:
 1-5           Sec. 2306.201.  Housing Trust Fund.  (a)  The housing trust
 1-6     fund is a fund:
 1-7                 (1)  administered by the department through the housing
 1-8     finance division; and
 1-9                 (2)  placed with the Texas Treasury Safekeeping Trust
1-10     Company or with a depository selected in conformance with the terms
1-11     of a bond indenture.
1-12           (b)  The fund consists of:
1-13                 (1)  appropriations or transfers made to the fund;
1-14                 (2)  unencumbered fund balances;
1-15                 (3)  public or private gifts or grants;
1-16                 (4)  investment income; [and]
1-17                 (5)  proceeds of general obligation bonds issued as
1-18     provided by the board under Section 2306.352; and
1-19                 (6)  funds from any other source.
1-20           SECTION 2.  Subsection (b), Section 2306.202, Government
1-21     Code, is amended to read as follows:
1-22           (b)  Use of the fund is limited to providing:
1-23                 (1)  assistance for individuals and families of low and
1-24     very low income;
 2-1                 (2)  technical assistance and capacity building to
 2-2     nonprofit organizations engaged in developing housing for
 2-3     individuals and families of low and very low income; [and]
 2-4                 (3)  security for repayment of revenue bonds issued to
 2-5     finance housing for individuals and families of low and very low
 2-6     income; and
 2-7                 (4)  payment for costs associated with general
 2-8     obligation bonds issued as provided by the board under Section
 2-9     2306.352.
2-10           SECTION 3.  Subsection (a), Section 2306.352, Government
2-11     Code, is amended to read as follows:
2-12           (a)  The board by resolution may provide for the issuance of
2-13     negotiable general obligation bonds as authorized by the Texas
2-14     Constitution.
2-15           SECTION 4.  Section 2306.471, Government Code, is amended to
2-16     read as follows:
2-17           Sec. 2306.471.  General Obligation Bonds. (a)  General
2-18     obligation bonds issued by the board under Section 2306.352 and
2-19     approved and registered under this chapter are general obligations
2-20     of the state.
2-21           (b)  The net effective interest rate on general obligation
2-22     bonds issued under this section may not exceed the maximum rate
2-23     allowable under Chapter 3, Acts of the 61st Legislature, Regular
2-24     Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes).
2-25           SECTION 5.  This Act takes effect January 1, 2000, but only
2-26     if the constitutional amendment proposed by S.J.R. No. 35, 76th
 3-1     Legislature, Regular Session, 1999, is approved by the voters.  If
 3-2     that amendment is not approved by the voters, this Act has no
 3-3     effect.
 3-4           SECTION 6.  This Act takes effect only if a specific
 3-5     appropriation for the implementation of this Act is provided in
 3-6     H.B. No. 1 (General Appropriations Act), Acts of the 76th
 3-7     Legislature, Regular Session, 1999.  If no specific appropriation
 3-8     is provided in H.B. No. 1, the General Appropriations Act, this Act
 3-9     has no effect.
3-10           SECTION 7.  The importance of this legislation and the
3-11     crowded condition of the calendars in both houses create an
3-12     emergency and an imperative public necessity that the
3-13     constitutional rule requiring bills to be read on three several
3-14     days in each house be suspended, and this rule is hereby suspended.