Office of House Bill AnalysisH.B. 2988
By: Gutierrez
Financial Institutions


Under current law, 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.  House Bill 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.  


It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 


House Bill 2988 amends the Natural Resources Code to require general
obligation bonds (bonds) issued by the Veterans' Land Board (board) for the
purposes of funding the Veterans' Land Program and Veterans' Housing
Assistance Program to be signed and executed as provided in the board's
resolution or order authorizing the issuance of the bonds.  The bill
removes the requirement that the bonds be  signed by the chairman and the
executive secretary of the board,  impressed with the seal of the board,
and signed by the governor and attested by the secretary of state. 

The bill authorizes the resolution of the board authorizing the sale of any
or all of the veterans' housing assistance loans (loans) to designate one
or more officers or employees of the board to act on behalf of the board in
conducting the sale of the loans and in determining or setting the
purchaser of the loans and terms of the purchase agreement for the loans,
provided that the resolution must set 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 principal amount of such loans. 


September 1, 2001.