Senate Research Center   H.B. 2988
77R9897 JJT-FBy: Gutierrez (Haywood)
Veteran Affairs & Military Installations


Currently, general obligation bonds (bonds) of the State of Texas issued by
the Veterans' Land Board (board) in connection with the Veterans' Land
Program and the Veterans' Housing Assistance Program require the signatures
of the chairman and executive secretary of the board and the governor.  The
requirement of the governor's signature may cause problems in obtaining
timely execution of the bonds and related documents because of the often
unpredictable nature of the governor's schedule.  In addition, the board is
currently required to approve the specific terms, including documentation
in substantially final form, relating to any veterans' housing assistance
loans.  This requirement may prove to be burdensome and unwieldy when
pricing a loan sale, because the pricing must be coordinated with a board
meeting.  This may eliminate the ability to respond quickly to favorable
market conditions. Furthermore, unfavorable developments at the scheduled
time of pricing may either force the board to accept the pricing 
or to postpone the pricing until some future date.  H.B. 2988 authorizes
the board, on an issue by issue basis, to determine the manner in which
bonds issued by it are to be executed and provides that the governor's
signature is no longer required on such bonds.   


This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 


SECTION 1.  Amends Section 161.116(b), Natural Resources Code, to require
bonds to be signed and executed as the Veterans' Land Board (board)
provides in the resolution or order authorizing the issuance of the bonds.
Deletes existing text relating to certain state officials signing the

SECTION 2.  Amends Section 162.005, Natural Resources Code, to authorize
the board, in the resolution of the board that authorizes the sale of any
or all of the loans in the fund, to also authorize one or more designated
officers or employees of the board to act on the board's behalf in certain
circumstances.  Requires a resolution that authorizes an officer or
employee of the board to act on the board's behalf as provided by this
section to establish the maximum principal amount of the loans to be sold
and the minimum sales price of the loans to be sold, expressed as a
percentage of the principal amount of the loans. 

SECTION 3.  Amends Section 162.036(b), Natural Resources Code, to make
conforming changes. 

SECTION 4.  Effective date: September 1, 2001.