SRC-CTC C.S.S.B. 1798 77(R)BILL ANALYSIS


Senate Research CenterC.S.S.B. 1798
By: Bivins
Education
4/12/2001
Committee Report (Substituted)


DIGEST AND PURPOSE 

C.S.S.B. 1798 creates the Teachers' Home Loan Program (program) in the
Department of Housing and Community Affairs (department).  A portion of the
state revenue bond ceiling is dedicated to the department for the purpose
of issuing qualified mortgage bonds to teachers in this state who qualify
for the 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 Chapter 1372B, Government Code, by adding Section
1372.0221, as follows: 

Sec. 1372.0221.  DEDICATION OF PORTION OF STATE CEILING TO TEACHER HOME
LOAN PROGRAM. Provides that, until August 25, twenty percent of that
portion of the state ceiling that is available exclusively for the Texas
Department of Housing and Community Affairs (department) for the purpose of
issuing qualified mortgage bonds is set aside for one year for the
Teachers' Home Loan Program (program) established under Chapter 2306GG
(Teachers' Home Loan Program), Government Code. 

SECTION 2.  Amends Chapter 2306, Government Code, by adding Subchapter GG,
as follows: 

SUBCHAPTER GG.  TEACHERS' HOME LOAN PROGRAM

Sec. 2306.801.  DEFINITIONS.  Defines "home," "lending institution,"
"loan," "program," and "teacher." 

Sec. 2306.802.  TEACHERS' HOME LOAN PROGRAM.  Requires the department to
establish a program to provide eligible teachers with low-interest home
mortgage loans.  Sets forth the requirements for a teacher to be eligible
for a loan under this subchapter. 

Sec. 2306.803.  FUNDING.  Authorizes the department to solicit and accept
funding for the program from certain sources. 

Sec. 2306.804.  ADMINISTRATION.  Requires the department to administer the
Teachers' Home Loan Program in accordance with this subchapter.  Authorizes
the department to contract with other agencies of the state or with private
entities to determine whether applicants qualify as teachers under this
subchapter or otherwise to administer all or part of this subchapter.
Authorizes the governing board of the department (board) to set and collect
from each applicant any fees the board considers reasonable and necessary
to cover the expenses of administering the program.  Requires the board to
adopt certain rules. 

 Sec. 2306.805.  LOAN STRUCTURING.  Requires the department to ensure that
a loan under this subchapter is structured in a way that complies with any
requirements associated with the source of the funds used for the loan. 

 Sec. 2306.806.  EXPIRATION.  Provides that this subchapter expires
September 1, 2012. 

SECTION 3.  Requires the department to aggressively pursue funding for the
program required by Chapter 2306GG, Government Code, as added by this Act,
aggressively market and advertise the program to teachers in this state,
and implement the program required by that subchapter not later than
September 1, 2002. 

SECTION 4.  Effective date: upon passage or September 1, 2001.

SUMMARY OF COMMITTEE CHANGES

Amends As Filed S.B. 1798 as follows:

SECTION 1.  Amends proposed text pertaining to the dedication of  a portion
of the state ceiling for the Teachers' Home Loan Program. 

SECTION 2.  Removes the definitions of "department" and "board."  Redefines
"lending institution," "loan," "program," and "teacher."  Adds proposed
text pertaining to the establishment, funding, administration, and
expiration of the Teachers' Home Loan Program. 

SECTION 3.  Sets forth certain actions required of the Texas Department of
Housing and Community Affairs. 

SECTION 4.  Redesignates SECTION 3 as SECTION 4.