SRC-SEW S.B. 1760 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1760
77R9805 SGA-FBy: Lucio
Intergovernmental Relations
3/28/2001
As Filed


DIGEST AND PURPOSE 

Currently, the Housing Trust Fund is the sole program funded by the State
of Texas to help provide affordable housing units for low and very
low-income households.  Historically, the fund has not received much
funding from the state.  Current funding sources consist of appropriations
or transfers made to the fund, unencumbered fund balances, and public and
private gifts or grants.  However, housing demands in Texas outweigh the
funding that has been provided by the state to address those demands.  As
proposed, S.B. 1760 increases the amount of money available to the fund
through a general obligation bond issuance. 

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 2306.201, Government Code, to provide that the
housing trust fund is a fund placed with the Texas Treasury Safekeeping
Trust Company or with a depository selected in conformance with the terms
of a bond indenture.  Provides that the fund consists of proceeds of
general obligation bonds issued as provided by the governing board (board)
of the Texas Department of Housing and Community Affairs (department) under
Section 2306.352.   

SECTION 2.  Amends Section 2306.202(b), Government Code, to provide that
use of the fund is limited to providing payment for costs associated with
general obligation bonds issued as provided by the board under Section
2306.352. 

SECTION 3.  Amends Section 2306.352(a), Government Code, to authorize the
board by resolution to provide for the issuance of negotiable general
obligation bonds as authorized by the Texas Constitution. 

SECTION 4.  Amends Section 2306.471, Government Code, as follows:

(a) Provides that general obligation bonds issued by the board under
Section 2306.352 and approved and registered under this chapter are general
obligations of the state. 

(b) Prohibits the net effective interest rate on general obligation bonds
issued under this section from exceeding the maximum rate allowable under
Chapter 1204 (Interest Rate), Government Code. 

SECTION 5.  Provides that this Act takes effect January 1, 2002, provided
that the accompanying S.J.R. becomes law; however, if the accompanying
S.J.R. does not become law, this Act has no effect. 
 
SECTION 6.  Provides that this Act takes effect only if a specific
appropriation for the implementation of this Act is provided in the General
Appropriations Act enacted by the 77th Legislature, Regular  Session, 2001;
however, if no specific appropriation is provided in the General
Appropriations Act, this Act has no effect.