SRC-JEC S.B. 1343 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1343
By: Carona
Intergovernmental Relations
3/29/2001
As Filed


DIGEST AND PURPOSE 

Federal law limits the amount of tax-exempt financing that may be used to
benefit private entities or individuals each year and authorizes each state
to allocate these monies through a private activity bond allocation
program.  As proposed, S.B. 1343 sets forth new state ceiling provisions
for the private activity bond allocation program. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 1372.022, Government Code, by amending
Subsection (b) and adding Subsection (c), as follows: 

(b)  Sets forth reservations for which certain percentages of the state
ceiling are available, if the state ceiling is computed in a certain manner
before August 15 of each year. 

 (c)  Redesignates text from Subsection (b) as Subsection (c).

SECTION 2.  Amends Chapter 1372B, Government Code, by adding Section
1372.0231, as follows: 

Sec. 1372.0231.  DEDICATION OF PORTION OF STATE CEILING AVAILABLE FOR
QUALIFIED RESIDENTIAL RENTAL PROJECT BONDS.  Provides for the availability
and distribution of the portion of the state ceiling that is available
exclusively for reservations by issuers of qualified residential rental
project bonds to the Texas Department of Housing and Community Affairs and
to housing finance corporations, until August 15.  Provides that on or
after June 2 but before August 15, any available reservations for
residential rental project issues are required to be issued based on
priority, without regard to region, as described in Section 1372.032. 

SECTION 3.  Amends Section 1372.026, Government Code, to provide that the
maximum amount of the state ceiling that may be reserved before August 15,
rather than September 1, by a housing finance corporation for the issuance
of qualified mortgage bonds may not exceed a certain amount computed in a
certain manner.  Deletes language regarding a manner of computation and
certain amounts. 

SECTION 4.  Amends Chapter 1372B, Government Code, by adding Section
1372.0261, as follows: 

Sec. 1372.0261.  FAILURE OF A HOUSING FINANCE CORPORATION TO USE AMOUNT OF
STATE CEILING ALLOCATED.  (a)  Defines "utilization percentage."   

(b)  Provides that if a housing finance corporation's issue of bonds uses a
new allocation of the state ceiling, in combination with recycled state
ceiling and/or taxable bonds, the  first loans or certificates financed are
considered in computing the utilization percentage of the new allocation of
the state ceiling. 

(c)  Provides that if a housing finance corporation's utilization
percentage is less than 95 percent, the next time the corporation becomes
eligible for a reservation of the state ceiling, the maximum amount of the
state ceiling that may be reserved for the corporation is equal to the
product of certain amounts. 

(d)  Prohibits a housing finance corporation from being penalized under
Subsection (c) in certain instances. 

SECTION 5.  Amends Section 1372.031, Government Code, to delete Section
1372.002(a)(4) from the list of sections describing issuers regarding
priorities for reservations. 

SECTION 6.  Amends the heading to Section 1372.032, Government Code, to
read as follows: 

Sec. 1372.032.  PRIORITIES FOR RESERVATIONS AMONG ISSUERS OF QUALIFIES
(sic) MORTGAGE BONDS. 
 
SECTION 7.  (a)  Provides that, in accordance with Section 311.031(c),
Government Code, which gives effect to a substantive amendment enacted by
the same legislature that codifies the amended statute, the text of Section
1372.022(b),  Government Code, as set out in this Act, gives the effect to
changes made by Chapter 131, Acts of the 76th Legislature, Regular Session,
1999. 

(b)  Provides that, to the extent of any conflict, this Act prevails over
another Act of the 77th Legislature, Regular Session, 2001, relating to
nonsubstantive additions and corrections in enacted codes. 

SECTION 8.  Makes application of Section 1372.0261, Government Code, as
added by this Act, prospective to January  1, 2002. 

SECTION 9.  Effective date: September 1, 2001.