77R10011 JRD-F                           
         By Averitt                                            H.B. No. 3329
         Substitute the following for H.B. No. 3329:
         By Averitt                                        C.S.H.B. No. 3329
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to tax-exempt private activity bonds.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 1372.022, Government Code, is amended by
 1-5     adding Subsection (c) to read as follows:
 1-6           (c)  This section expires September 1, 2003.
 1-7           SECTION 2.  Subchapter B, Chapter 1372, Government Code, is
 1-8     amended by adding Section 1372.0235 to read as follows:
 1-9           Sec. 1372.0235.  DEDICATION OF PORTION OF STATE CEILING TO
1-10     TEXAS AGRICULTURAL FINANCE AUTHORITY. (a)  Until June 1, of that
1-11     portion of the state ceiling that is available exclusively for
1-12     reservations by issuers of qualified small issue bonds and
1-13     enterprise zone facility bonds, one-third is available exclusively
1-14     to the Texas Agricultural Finance Authority for the purpose of
1-15     issuing qualified small issue bonds and enterprise zone facility
1-16     bonds in rural areas of the state.
1-17           (b)  For purposes of this section, the governing body of the
1-18     Texas Agricultural Finance Authority determines what constitutes a
1-19     rural area of the state.
1-20           SECTION 3.  Section 1372.028(d), Government Code, is amended
1-21     to read as follows:
1-22           (d)  An issuer is not required to provide the statement
1-23     required by Subsection (c)(3)(F) if the issuer:
1-24                 (1)  is an issuer of a state-voted issue;
 2-1                 (2)  is the Texas Department of Housing and Community
 2-2     Affairs or the Texas Agricultural Finance Authority; or
 2-3                 (3)  provides evidence that one or more binding
 2-4     contracts have been entered into, or other evidence acceptable to
 2-5     the board as described by program rule, to spend the unexpended
 2-6     proceeds by the later of:
 2-7                       (A)  12 months after the date the board receives
 2-8     the application; or
 2-9                       (B)  December 31 of the program year for which
2-10     the application is filed.
2-11           SECTION 4.  (a)  In accordance with Section 311.031(c),
2-12     Government Code, which gives effect to a substantive amendment
2-13     enacted by the same legislature that codifies the amended statute,
2-14     the text of Section 1372.028(d), Government Code, as set out in
2-15     this Act, gives effect to changes made by Chapter 131, Acts of the
2-16     76th Legislature, Regular Session, 1999.
2-17           (b)  To the extent of any conflict, this Act prevails over
2-18     another Act of the 77th Legislature, Regular Session, 2001,
2-19     relating to nonsubstantive additions and corrections in enacted
2-20     codes.
2-21           SECTION 5.  This Act takes effect September 1, 2001.