By:  Lucio, et al.                                    S.B. No. 1760
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the housing trust fund.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Section 2306.201, Government Code, is amended to
 1-5     read as follows:
 1-6           Sec. 2306.201.  HOUSING TRUST FUND.  (a)  The housing trust
 1-7     fund is a fund:
 1-8                 (1)  administered by the department through the housing
 1-9     finance division; and
1-10                 (2)  placed with the Texas Treasury Safekeeping Trust
1-11     Company or with a depository selected in conformance with the terms
1-12     of a bond indenture.
1-13           (b)  The fund consists of:
1-14                 (1)  appropriations or transfers made to the fund;
1-15                 (2)  unencumbered fund balances;
1-16                 (3)  public or private gifts or grants;
1-17                 (4)  investment income, including all interest,
1-18     dividends, capital gains, or other income from the investment of
1-19     any portion of the fund;
1-20                 (5)  repayments received on loans made from the fund;
1-21     [and]
1-22                 (6)  proceeds of general obligation bonds issued as
1-23     provided by the board under Section 2306.352; and
1-24                 (7)  funds from any other source.
1-25           SECTION 2.  Subsection (b), Section 2306.202, Government
 2-1     Code, is amended to read as follows:
 2-2           (b)  Use of the fund is limited to providing:
 2-3                 (1)  assistance for individuals and families of low and
 2-4     very low income;
 2-5                 (2)  technical assistance and capacity building to
 2-6     nonprofit organizations engaged in developing housing for
 2-7     individuals and families of low and very low income; [and]
 2-8                 (3)  security for repayment of revenue bonds issued to
 2-9     finance housing for individuals and families of low and very low
2-10     income; and
2-11                 (4)  payment for costs associated with general
2-12     obligation bonds issued as provided by the board under Section
2-13     2306.352.
2-14           SECTION 3.  Subsection (a), Section 2306.352, Government
2-15     Code, is amended to read as follows:
2-16           (a)  The board by resolution may provide for the issuance of
2-17     negotiable general obligation bonds as authorized by the Texas
2-18     Constitution.
2-19           SECTION 4.  Section 2306.471, Government Code, is amended to
2-20     read as follows:
2-21           Sec. 2306.471.  GENERAL OBLIGATION BONDS.  (a)  General
2-22     obligation bonds issued by the board under Section 2306.352 and
2-23     approved and registered under this chapter are general obligations
2-24     of the state.
2-25           (b)  The net effective interest rate on general obligation
2-26     bonds issued under this section may not exceed the maximum rate
 3-1     allowable under Chapter 1204, Government Code.
 3-2           SECTION 5.  This Act takes effect January 1, 2002, but only
 3-3     if the constitutional amendment proposed by S.J.R. No. 50, 77th
 3-4     Legislature, Regular Session, 2001, is approved by the voters.  If
 3-5     that amendment is not approved by the voters, this Act has no
 3-6     effect.
 3-7           SECTION 6.  This Act takes effect only if a specific
 3-8     appropriation for the implementation of this Act is provided in the
 3-9     General Appropriations Act enacted by the 77th Legislature, Regular
3-10     Session, 2001.  If no specific appropriation is provided in the
3-11     General Appropriations Act, this Act has no effect.