By:  Lucio                                            S.B. No. 1622
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                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.  Section 2306.202(b), Government Code, is amended
1-21     to read as follows:
1-22           (b)  Use of the fund is limited to providing:
 2-1                 (1)  assistance for individuals and families of low and
 2-2     very low income;
 2-3                 (2)  technical assistance and capacity building to
 2-4     nonprofit organizations engaged in developing housing for
 2-5     individuals and families of low and very low income; [and]
 2-6                 (3)  security for repayment of revenue bonds issued to
 2-7     finance housing for individuals and families of low and very low
 2-8     income; and
 2-9                 (4)  payment for costs associated with general
2-10     obligation bonds issued as provided by the board under Section
2-11     2306.352.
2-12           SECTION 3.  Section 2306.352(a), Government Code, is amended
2-13     to read as follows:
2-14           (a)  The board by resolution may provide for the issuance of
2-15     negotiable general obligation bonds as authorized by the Texas
2-16     Constitution.
2-17           SECTION 4.  Section 2306.471, Government Code, is amended to
2-18     read as follows:
2-19           Sec. 2306.471.  General Obligation Bonds. (a)  General
2-20     obligation bonds issued by the board under Section 2306.352 and
2-21     approved and registered under this chapter are general obligations
2-22     of the state.
2-23           (b)  The net effective interest rate on general obligation
2-24     bonds issued under this section may not exceed the maximum rate
2-25     allowable under Chapter 3, Acts of the 61st Legislature, Regular
2-26     Session, 1969 (Article 717k-2, Vernon's Texas Civil Statutes)
 3-1           SECTION 5.  Section 2(h), Chapter 1092, Acts of the 70th
 3-2     Legislature, Regular Session, 1987 (Article 5190.9a, Vernon's Texas
 3-3     Civil Statutes) is amended to read as follows:
 3-4           (h)  In addition to the amounts [amount] provided in
 3-5     Subsections (b)(2), (c), and [Subsection] (d) of this section,
 3-6     $100,000,000 [$20,000,000] in total cumulative reservations [for
 3-7     each year] for the years 2000 [1996] and 2001 [1997] is available
 3-8     to the Texas Department of Housing and Community Affairs until
 3-9     August 25 of each of those years from that portion of the state
3-10     ceiling that is available exclusively for reservations by issuers
3-11     of state-voted issues, for the purpose of augmenting the housing
3-12     trust fund [qualified mortgage bonds for the purpose of issuing
3-13     qualified mortgage bonds until August 25].
3-14           SECTION 6.  This Act takes effect on January 1, 2000, but
3-15     only if the constitutional amendment proposed by S.J.R. No. 35,
3-16     76th Legislature, Regular Session, 1999, is approved by the voters.
3-17     If that amendment is not approved by the voters, this Act has no
3-18     effect.
3-19           SECTION 7.  The importance of this legislation and the
3-20     crowded condition of the calendars in both houses create an
3-21     emergency and an imperative public necessity that the
3-22     constitutional rule requiring bills to be read on three several
3-23     days in each house be suspended, and this rule is hereby suspended.