By Bivins S.B. No. 1791
77R9063 SGA-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation, funding, and operation of a teachers'
1-3 housing assistance program.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter B, Chapter 1372, Government Code, is
1-6 amended by adding Section 1372.0221 to read as follows:
1-7 Sec. 1372.0221. DEDICATION OF PORTION OF STATE CEILING TO
1-8 VETERANS' LAND BOARD. Until August 25, of that portion of the state
1-9 ceiling that is available exclusively for reservations by issuers
1-10 of qualified mortgage bonds, two percent is available exclusively
1-11 to the Veterans' Land Board for the purpose of issuing qualified
1-12 mortgage bonds in connection with the teachers' housing assistance
1-13 program established under Chapter 165, Natural Resources Code.
1-14 SECTION 2. Title 7, Natural Resources Code, is amended by
1-15 adding Chapter 165 to read as follows:
1-16 CHAPTER 165. TEACHERS' HOUSING ASSISTANCE PROGRAM
1-17 SUBCHAPTER A. GENERAL PROVISIONS
1-18 Sec. 165.001. DEFINITIONS. (a) In this chapter:
1-19 (1) "Board" means the Veterans' Land Board.
1-20 (2) "Bonds" means general obligation bonds or revenue
1-21 bonds issued by the board for the purpose of funding the program.
1-22 (3) "Fund" means the teachers' housing assistance
1-23 fund.
1-24 (4) "Home" means a dwelling in this state in which a
2-1 teacher intends to reside as the teacher's principal residence.
2-2 (5) "Lending institution" means a bank, trust company,
2-3 savings bank, national banking association, savings and loan
2-4 association, building and loan association, mortgage banker,
2-5 mortgage company, credit union, life insurance company, or other
2-6 financial institution that customarily provides service or aids in
2-7 the financing of mortgages on single-family residential housing, if
2-8 that financial institution has been approved for participation in
2-9 the program by the board. The term includes a holding company for
2-10 any of the financial institutions described by this subdivision.
2-11 (6) "Loan" means a teachers' housing assistance loan:
2-12 (A) made or acquired by the board under this
2-13 chapter; and
2-14 (B) secured by a mortgage on a teacher's home.
2-15 (7) "Program" means the teachers' housing assistance
2-16 program.
2-17 (8) "Teacher" means a person who:
2-18 (A) is a classroom teacher as defined by Section
2-19 5.001, Education Code;
2-20 (B) has resided in this state for the five-year
2-21 period preceding the date the person files an application for a
2-22 loan under this chapter; and
2-23 (C) on the date the person files an application
2-24 for a loan under this chapter, is residing in this state.
2-25 (9) "Teachers' housing assistance fund" means the
2-26 teachers' housing assistance fund established under Section 49-b,
2-27 Article III, Texas Constitution.
3-1 (b) Notwithstanding Subsection (a)(8), the board by rule may
3-2 change the definition of "teacher" as necessary or appropriate to
3-3 protect the best interests of the program.
3-4 Sec. 165.002. DEPOSIT OF MONEY IN TEACHERS' HOUSING
3-5 ASSISTANCE FUND. Except as otherwise provided by law, money
3-6 received for the fund shall be deposited in the state treasury in
3-7 the fund.
3-8 Sec. 165.003. ADMINISTRATION. (a) The board shall
3-9 administer the teachers' housing assistance fund and the teachers'
3-10 housing assistance program in accordance with this chapter.
3-11 (b) The board may contract with other agencies of the state
3-12 or with private entities to determine whether applicants qualify as
3-13 teachers under this chapter or otherwise to administer all or part
3-14 of this chapter.
3-15 (c) The board may set and collect fees the board considers
3-16 reasonable and necessary from each applicant to cover the expenses
3-17 of administering the program. The board shall deposit those fees
3-18 in the state treasury in the fund.
3-19 (d) The board shall adopt rules governing:
3-20 (1) the administration of the fund and program;
3-21 (2) the making or acquiring of teachers' housing
3-22 assistance loans;
3-23 (3) the criteria for approving lending institutions;
3-24 (4) the use of insurance on the loans and the homes
3-25 financed under the program, as considered appropriate by the board
3-26 to provide additional security for the loans;
3-27 (5) the verification of occupancy of the home by the
4-1 teacher as the teacher's principal residence; and
4-2 (6) the terms of any contract made with any lending
4-3 institution for processing, originating, servicing, or
4-4 administering the loans.
4-5 (e) In determining the terms of any contracts for the
4-6 origination or servicing of loans, the board shall review the
4-7 prudent lending practices prevalent in the residential mortgage
4-8 lending industry and shall follow those practices to the maximum
4-9 extent practicable.
4-10 (f) The board shall determine the quality and type of homes
4-11 to be financed under the teachers' housing assistance program.
4-12 (g) The board shall maintain a list of approved lending
4-13 institutions and shall review and revise the list as necessary at
4-14 least annually.
4-15 (h) With respect to loans made under the program, the board
4-16 shall file semiannually with the bond review board established
4-17 under Chapter 1231, Government Code, a report on the performance of
4-18 the loans. The bond review board shall review the reports filed by
4-19 the board under this subsection to assess the performance of loans
4-20 made under the program. The filing dates and the contents of the
4-21 reports must comply with any rules adopted by the bond review
4-22 board.
4-23 Sec. 165.004. INVESTMENTS OF CERTAIN MONEY IN TEACHERS'
4-24 HOUSING ASSISTANCE FUND. Money in the fund that is not immediately
4-25 committed for a purpose for which the fund may be used may be
4-26 invested by the board in investments authorized for the teachers'
4-27 housing assistance fund.
5-1 Sec. 165.005. CUSTODY AND INVESTMENT OF ASSETS PENDING
5-2 TRANSACTIONS. With the approval of the comptroller, the board, in
5-3 managing the assets of the fund, pending the completion of an
5-4 investment transaction, may:
5-5 (1) select one or more commercial banks, depository
5-6 trust companies, or other entities to serve as a custodian of the
5-7 cash or securities of the fund; and
5-8 (2) authorize the custodian to invest cash held under
5-9 Subdivision (1) in the investments determined by the board.
5-10 Sec. 165.006. LENDING SECURITIES. (a) In managing the
5-11 assets of the fund, the board may:
5-12 (1) select one or more commercial banks, depository
5-13 trust companies, or other entities to serve as a custodian of the
5-14 securities of the fund; and
5-15 (2) authorize the custodian to lend the securities
5-16 held under Subdivision (1) as provided by this section and by rules
5-17 adopted by the board.
5-18 (b) To be eligible to lend securities under this section, a
5-19 custodian selected by the board under Subsection (a) must be
5-20 experienced in the operation of a fully secured securities loan
5-21 program and must:
5-22 (1) maintain adequate capital in the prudent judgment
5-23 of the board to assure the safety of the securities;
5-24 (2) execute an indemnification agreement satisfactory
5-25 in form and content to the board fully indemnifying the board
5-26 against loss resulting from the custodian's operation of a
5-27 securities loan program for the fund's securities; and
6-1 (3) require any securities broker or dealer to whom
6-2 the custodian lends securities of the fund to deliver to, and
6-3 maintain with, the custodian collateral in the form of cash, United
6-4 States government securities, or letters of credit that are issued
6-5 by banks rated as to investment quality not less than A or its
6-6 equivalent by a nationally recognized investment rating firm in an
6-7 amount equal to at least 100 percent of the market value, from time
6-8 to time, of the loaned securities.
6-9 Sec. 165.007. SALE OF LOANS. Notwithstanding any other
6-10 provision of this chapter, the board may sell at public or private
6-11 sale, with or without public bidding, any or all of the loans in
6-12 the fund. Proceeds from the sale shall be deposited in the fund
6-13 and otherwise applied in the manner provided by this chapter,
6-14 except that at the direction of the board the sale proceeds may be
6-15 used by the board, together with other available money, to
6-16 discharge, pay, or redeem, in whole or in part, outstanding bonds
6-17 issued by the board under this chapter.
6-18 (Sections 165.008-165.010 reserved for expansion
6-19 SUBCHAPTER B. TEACHERS' HOUSING ASSISTANCE PROGRAM
6-20 Sec. 165.011. LOANS. (a) The board shall make or acquire
6-21 loans with money from the teachers' housing assistance fund in
6-22 accordance with this chapter and the rules adopted by the board.
6-23 (b) To qualify for a loan under this chapter, a person must
6-24 be a teacher at the time the person applies for the loan.
6-25 (c) The final principal payment on any loan under this
6-26 chapter shall be made not later than the 40th anniversary of the
6-27 date the loan was made. The board shall determine the maximum
7-1 principal amount of loans to any teacher that may be outstanding at
7-2 any time.
7-3 (d) To minimize losses on the nonpayment of loans by
7-4 teachers, the board shall obtain insurance covering:
7-5 (1) at least 50 percent of all losses anticipated in
7-6 connection with teacher payment defaults on loans secured by first
7-7 or second mortgages, based on the advice of one or more qualified
7-8 consultants to the board as to the potential losses that may be
7-9 reasonably expected on the loans as determined by analysis,
7-10 including actual experience in the residential mortgage lending
7-11 industry on similar types of mortgage loans; or
7-12 (2) at least 50 percent of the outstanding principal
7-13 amount of all loans.
7-14 (e) All fees to be charged to a teacher receiving a loan
7-15 under this chapter must be approved by the board. The board may
7-16 enter into contracts with lending institutions to assist in
7-17 processing, originating, servicing, or administering loans under
7-18 this chapter. Any fees and expenses incurred in connection with a
7-19 loan, including the cost of insurance, may be charged to the
7-20 teacher and made a part of the teacher's payments.
7-21 (f) The board by rule may determine the number of loans that
7-22 a teacher may receive under this chapter.
7-23 Sec. 165.012. PAMPHLETS. (a) The board shall publish
7-24 pamphlets summarizing the requirements of this chapter and relevant
7-25 board rules.
7-26 (b) The board shall make the pamphlets available to any
7-27 interested teacher, teachers' organization, and other person in the
8-1 state.
8-2 (c) The board may contract with any appropriate entity to
8-3 publish the pamphlets.
8-4 Sec. 165.013. INTEREST RATE. A loan under this chapter shall
8-5 bear a fixed, variable, floating, or other rate or rates of
8-6 interest determined by the board. The board may set the interest
8-7 rate or rates to provide a margin over the rate paid by the board
8-8 on the bonds issued under this chapter. The difference between the
8-9 cost of the money to the board and the interest rate or rates
8-10 charged to a teacher may be used in whole or in part to defray the
8-11 expense of administering the program. To assure the maximum
8-12 benefit of the program to the teacher, the board shall adopt rules
8-13 relative to the fees, charges, and interest rates charged by the
8-14 lending institutions on the financing of the home with money other
8-15 than from the fund and shall limit to the maximum extent
8-16 practicable the fees, charges, and interest rates to those
8-17 collected by the lending institution in the normal course of the
8-18 insitution's residential mortgage lending business.
8-19 Sec. 165.014. SECURITY FOR THE LOAN. Money may not be
8-20 disbursed in connection with a loan under this chapter unless the
8-21 loan is secured by a mortgage, deed of trust, or other lien on the
8-22 home. A mortgage retained by or a deed of trust to the board or
8-23 any other lien may be a participation in a lien securing any other
8-24 loan for the purchase of the property. Payments to retire the loan
8-25 shall be made at times determined by the board.
8-26 Sec. 165.015. INITIAL PAYMENT OR EQUITY. The board may
8-27 require an initial payment on a loan or may require an investment
9-1 in the home by the teacher in an amount or amounts set by the
9-2 board's rules under this chapter.
9-3 Sec. 165.016. TIME LIMITATION ON TRANSFER. (a) A teacher
9-4 may not lease, transfer, sell, or convey in whole or in part any
9-5 interest in a home against which there is a mortgage, deed of
9-6 trust, or any other lien securing a loan under this chapter unless
9-7 the teacher has:
9-8 (1) occupied the home as the teacher's principal
9-9 residence for a period of three years beginning on the date of the
9-10 purchase of the home; and
9-11 (2) complied with the requirements of this chapter and
9-12 the rules of the board.
9-13 (b) After the conclusion of the three-year period, a home
9-14 may be transferred, sold, or conveyed subject to any lien securing
9-15 a loan under this chapter at any time if all mature interest,
9-16 principal, and taxes have been paid, the requirements of this
9-17 chapter and rules of the board have been met, and the approval of
9-18 the board has been obtained.
9-19 (c) The board may waive the time limitation of Subsection
9-20 (a):
9-21 (1) on the death, bankruptcy, financial incapacity, or
9-22 divorce of the teacher;
9-23 (2) if a teacher is forced to move because of a change
9-24 in employment or because the home is condemned for a reason not
9-25 attributable to the teacher; or
9-26 (3) at any other time the board considers a waiver to
9-27 be in the best interest of the program.
10-1 (d) If the requirements of Subsection (a) fail to be met
10-2 and the board does not waive the time limitation as provided by
10-3 Subsection (c), the board by rule may provide for the escalation of
10-4 the interest rate on the loan to a higher rate of interest, the
10-5 acceleration of all principal and interest on the loan, or any
10-6 other remedy the board considers appropriate.
10-7 Sec. 165.017. FORECLOSURE AND RESALE. The board shall adopt
10-8 rules and procedures for the foreclosure and resale of homes
10-9 financed with a loan under this chapter.
10-10 Sec. 165.018. INTEREST RATE ON DELINQUENT PRINCIPAL AND
10-11 INTEREST. Principal and interest that become delinquent shall bear
10-12 interest at a rate fixed by the board.
10-13 Sec. 165.019. ENFORCEMENT OF FORFEITURE AND PROTECTION OF
10-14 RIGHTS. The board may request the attorney general to take, and the
10-15 attorney general shall take, any action necessary to protect the
10-16 rights of the state and the teachers' housing assistance fund in a
10-17 matter concerning the program.
10-18 (Sections 165.020-165.030 reserved for expansion
10-19 SUBCHAPTER C. BONDS
10-20 Sec. 165.031. ISSUANCE AND SALE OF BONDS; DISPOSITION OF
10-21 PROCEEDS. (a) By appropriate action, the board may provide by
10-22 resolution for the issuance and sale of negotiable general
10-23 obligation bonds or revenue bonds authorized by the constitution.
10-24 The proceeds of the bonds are a part of the fund.
10-25 (b) The board may use money in the fund attributable to
10-26 bonds issued to provide money for the fund to pay all costs of
10-27 issuance of the bonds, including costs, fees, and expenses of the
11-1 type the board is authorized to pay from the teachers' housing
11-2 assistance fund in connection with the issuance of the teachers'
11-3 housing assistance bonds.
11-4 Sec. 165.032. INSTALLMENTS. The board may issue bonds in one
11-5 or several installments.
11-6 Sec. 165.033. INTEREST RATE. The bonds shall bear the rate
11-7 of interest prescribed by the board.
11-8 Sec. 165.034. PAYMENT AND MATURITY OF BONDS. (a) The bonds
11-9 are payable as provided by the board and shall mature serially or
11-10 otherwise not later than the 40th anniversary of the date of their
11-11 issuance.
11-12 (b) The board may make the bonds redeemable or subject to
11-13 tender for purchase before maturity at the price and under the
11-14 terms fixed by the board in the resolution providing for the
11-15 issuance and sale of the bonds.
11-16 Sec. 165.035. FORM, DENOMINATION, AND PLACE OF PAYMENT OF
11-17 BONDS. The board shall determine the terms of the bonds and the
11-18 form of the bonds, including the forms of interest coupons attached
11-19 to the bonds, if any, and shall fix the denomination of the bonds
11-20 and the place for payment of the principal of and interest on the
11-21 bonds.
11-22 Sec. 165.036. MANNER OF EXECUTION. (a) The bonds are to be
11-23 executed by and on behalf of the board and the state in the manner
11-24 provided by Subsection (b).
11-25 (b) The presiding officer and the secretary of the board
11-26 must sign the bonds. The seal of the board must be impressed on
11-27 the bonds. In addition, the bonds must be signed by the governor
12-1 and attested by the secretary of state with the state seal
12-2 impressed on the bonds.
12-3 Sec. 165.037. SIGNATURES AND SEALS. (a) The resolution
12-4 authorizing the issuance of an installment or series of bonds may
12-5 prescribe the extent to which facsimile signatures and facsimile
12-6 seals may be used instead of manual signatures and manually
12-7 impressed seals in executing the bonds and attached coupons.
12-8 (b) Interest coupons may be signed with the facsimile
12-9 signatures of the presiding officer and secretary of the board.
12-10 (c) If an officer whose manual or facsimile signature
12-11 appears on a bond or whose facsimile signature appears on a coupon
12-12 ceases to be an officer before the bonds are delivered, the
12-13 signature remains valid and sufficient for all purposes as if the
12-14 officer had remained in office until the delivery of the bonds.
12-15 Sec. 165.038. APPROVAL BY ATTORNEY GENERAL. Before the bonds
12-16 are delivered to the purchasers, the attorney general shall examine
12-17 the record relating to the bonds. If the record demonstrates that
12-18 the bonds have been issued in accordance with the constitution and
12-19 this chapter, the attorney general shall approve the bonds.
12-20 Sec. 165.039. REGISTRATION WITH COMPTROLLER. After the bonds
12-21 are approved by the attorney general, they must be registered with
12-22 the comptroller.
12-23 Sec. 165.040. VALIDITY OF BONDS. (a) After the bonds are
12-24 approved by the attorney general and registered with the
12-25 comptroller, they are valid and binding obligations in every
12-26 action, suit, or proceeding in which their validity is questioned.
12-27 General obligation bonds issued by the board are obligations of the
13-1 state.
13-2 (b) In each action brought to enforce collection of the
13-3 bonds or rights incident to the bonds, the court shall admit the
13-4 certificate of approval by the attorney general or certified copy
13-5 of that certificate as evidence of the validity of the bonds.
13-6 (c) The validity of the bonds is subject to challenge only
13-7 on the basis of forgery or fraud.
13-8 Sec. 165.041. BONDS AS NEGOTIABLE INSTRUMENTS. Bonds issued
13-9 under this chapter have all qualities and incidents of negotiable
13-10 instruments under state law.
13-11 Sec. 165.042. NOTICE FOR BIDS ON BONDS. If the board
13-12 authorizes the issuance of a series of bonds and decides to call
13-13 for bids, the board shall publish in a recognized financial journal
13-14 of general circulation an appropriate notice at least once before
13-15 the 10th day preceding the date of the sale.
13-16 Sec. 165.043. SECURITY FOR BID. The board may require
13-17 bidders to accompany their bids with exchange or bank cashier's
13-18 checks in an amount considered adequate by the board to be a
13-19 forfeit guaranteeing the acceptance and payment for bonds covered
13-20 by the bids and accepted by the board.
13-21 Sec. 165.044. SALE OF BONDS. Bonds may be sold at public or
13-22 private sale at prices and on terms determined by the board.
13-23 Sec. 165.045. REPLACEMENT BONDS. The board may provide for
13-24 replacement of bonds that are mutilated, lost, or destroyed.
13-25 Sec. 165.046. REFUNDING BONDS. The board may provide by
13-26 resolution for issuance of refunding bonds for the purpose of
13-27 refunding outstanding bonds issued under this chapter together with
14-1 accrued interest on the bonds.
14-2 Sec. 165.047. BONDS AS INVESTMENTS AND SECURITY. (a) Bonds
14-3 issued under this chapter are legal and authorized investments for
14-4 banks, savings banks, trust companies, building and loan
14-5 associations, insurance companies, fiduciaries, trustees,
14-6 guardians, and the sinking funds of municipalities, counties,
14-7 school districts, and other political subdivisions and public
14-8 agencies of the state.
14-9 (b) The bonds are legal and sufficient security for the
14-10 deposits in the amount of the par value of the bonds.
14-11 Sec. 165.048. TAXATION OF BONDS. The bonds are exempt from
14-12 any tax by the state and by municipalities, counties, school
14-13 districts, and other political subdivisions and public agencies of
14-14 the state.
14-15 Sec. 165.049. PAYMENT OF PRINCIPAL AND INTEREST. The
14-16 comptroller shall pay the principal on bonds as the bonds mature
14-17 and the interest on bonds as the interest becomes payable. The
14-18 comptroller shall make payments at the place of payment designated
14-19 on the bonds.
14-20 Sec. 165.050. CONSTITUTIONAL APPROPRIATIONS. (a) If, during
14-21 the existence of the fund or during the time any general obligation
14-22 bonds are payable from the fund, the board determines that there
14-23 will not be sufficient money in the fund during the following
14-24 biennium available to pay principal of or interest on the general
14-25 obligation bonds or both principal and interest that are to come
14-26 due and to be paid from the fund during the following biennium, the
14-27 comptroller shall transfer to the fund in amounts sufficient to pay
15-1 the general obligations the first money coming into the state
15-2 treasury not otherwise appropriated by the constitution.
15-3 (b) The comptroller shall use the appropriated money to pay
15-4 the general obligations only if, at the time the principal or
15-5 interest or both actually become due, there is not sufficient money
15-6 in the fund available to pay the amount due.
15-7 Sec. 165.051. PURCHASE AND DESTRUCTION OF BONDS. (a) The
15-8 board may use money in the fund to purchase on the open market any
15-9 bonds the board has issued and sold to provide money for the fund.
15-10 Any debt represented by those bonds is considered canceled on
15-11 purchase by the board under this section.
15-12 (b) The comptroller shall mutilate, burn, or otherwise
15-13 destroy bonds purchased by the board under this section. The
15-14 comptroller shall certify the destruction of the bonds to the board
15-15 under the seal of office.
15-16 (c) Interest may not be paid on those bonds after their
15-17 purchase by the board.
15-18 Sec. 165.052. BOND ENHANCEMENT AGREEMENTS. (a) The board
15-19 may at any time enter into one or more bond enhancement agreements
15-20 that the board determines to be necessary or appropriate to place
15-21 the obligation of the board, as represented by the bonds, in whole
15-22 or in part, on the interest rate, currency, cash flow, or other
15-23 basis desired by the board. Bond enhancement agreements may
15-24 include, on terms approved by the board, interest rate swap
15-25 agreements, currency swap agreements, forward payment conversion
15-26 agreements, agreements providing for payments based on levels of or
15-27 changes in interest rates or currency exchange rates, agreements to
16-1 exchange cash flows or a series of payments, or agreements,
16-2 including options, puts, or calls, to hedge payment, currency,
16-3 rate, spread, or other exposure. A bond enhancement agreement is
16-4 an agreement for professional services and must contain the terms
16-5 and be for the period that the board approves. The fees and
16-6 expenses of the board in connection with the issuance of bonds and
16-7 the making of loans may be paid from money in the related fund,
16-8 provided that any payments due from the board under a bond
16-9 enhancement agreement, other than fees and expenses, that relate to
16-10 the payment of debt service on bonds constitute payments of
16-11 principal of and interest on the bonds.
16-12 (b) The resolution of the board authorizing a bond
16-13 enhancement agreement may authorize one or more designated officers
16-14 or employees of the board to act on behalf of the board in entering
16-15 into and delivering the bond enhancement agreement and in
16-16 determining or setting the counterparty and terms of the bond
16-17 enhancement agreement specified in the resolution, except that the
16-18 resolution must set the maximum amount and term for the bond
16-19 enhancement agreement.
16-20 (c) Unless the board elects otherwise in the board's
16-21 approval of a bond enhancement agreement, the bond enhancement
16-22 agreement is not a credit agreement for purposes of Chapter 1371,
16-23 Government Code, regardless of whether the bonds relating to the
16-24 bond enhancement agreement were issued in part under that law.
16-25 SECTION 3. Section 404.094(d), Government Code, is amended to
16-26 read as follows:
16-27 (d) A state agency that receives money from securities
17-1 transactions under applicable law, including Chapter 815 or 825,
17-2 Government Code, Chapter 161, 162, [or] 164, or 165, Natural
17-3 Resources Code, Chapter 43, Education Code, and the Texas Statewide
17-4 Emergency Services Retirement Act (Article 6243e.3, Vernon's Texas
17-5 Civil Statutes), with the comptroller's approval may, as an
17-6 alternative to the deposit of the funds as provided by Subsection
17-7 (a), net funds received against purchases of securities occurring
17-8 within one business day. Any proceeds received and available for
17-9 reinvestment that are not reinvested within one business day of
17-10 receipt shall be deposited in the state treasury as provided by
17-11 Subsection (a). An agency authorized to net securities
17-12 transactions under this section is subject to the accounting and
17-13 reporting procedures established by the comptroller.
17-14 SECTION 4. Section 2256.004(a), Government Code, is amended
17-15 to read as follows:
17-16 (a) This subchapter does not apply to:
17-17 (1) a public retirement system as defined by Section
17-18 802.001;
17-19 (2) state funds invested as authorized by Section
17-20 404.024;
17-21 (3) an institution of higher education having total
17-22 endowments of at least $95 million in book value on May 1, 1995;
17-23 (4) funds invested by the Veterans' Land Board as
17-24 authorized by Chapter 161, 162, [or] 164, or 165, Natural Resources
17-25 Code;
17-26 (5) registry funds deposited with the county or
17-27 district clerk under Chapter 117, Local Government Code; or
18-1 (6) a deferred compensation plan that qualifies under
18-2 either Section 401(k) or 457 of the Internal Revenue Code of 1986
18-3 (26 U.S.C. Section 1 et seq.), as amended.
18-4 SECTION 5. This Act takes effect January 1, 2002, but only if
18-5 the constitutional amendment proposed by the 77th Legislature,
18-6 Regular Session, 2001, creating the teachers' housing assistance
18-7 program and fund is approved by the voters. If that amendment is
18-8 not approved by the voters, this Act has no effect.