By:  Bivins                                           S.B. No. 1798
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation, funding and operation of a teacher's
 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     TEACHER HOME LOAN PROGRAM.  Until the first year anniversary of the
 1-9     date of issuance, of that portion of the state ceiling that is
1-10     available exclusively to the Department of Housing and Community
1-11     Affairs for issuance of qualified single family mortgage revenue
1-12     bonds, ten percent of the resulting bond proceeds will be made
1-13     available exclusively to the Teacher Home Loan Program under
1-14     Subchapter GG, Chapter 2306, Government Code.
1-15           SECTION 2.  Chapter 2306, Government Code, is amended by
1-16     adding Subchapter GG to read as follows:
1-17                  SUBCHAPTER GG.  TEACHER HOME LOAN PROGRAM
1-18           Sec. 2306.801.  DEFINITIONS.  (a)  In this subchapter:
1-19                 (1)  "Department" means the Department of Housing and
1-20     Community Affairs.
1-21                 (2)  "Bonds" means general obligation bonds or revenue
1-22     bonds issued by the board for the purpose of funding the program.
1-23                 (3)  "Home" means a dwelling in this state in which a
 2-1     teacher intends to reside as the teacher's principal residence.
 2-2                 (4)  "Lending institution" means an institution defined
 2-3     by 2306.149, Government Code.
 2-4                 (5)  "Loan" means a teachers' housing assistance loan:
 2-5                       (A)  made or acquired by the board under this
 2-6     chapter; and
 2-7                       (B)  secured by a mortgage on a teacher's home.
 2-8                 (6)  "Program" means the Teachers' Home Loan Program
 2-9     established under this subchapter.
2-10                 (7)  "Teacher" means a person who:
2-11                       (A)  is a classroom teacher as defined by Section
2-12     5.001, Education Code;
2-13                       (B)  has resided in this state for the five-year
2-14     period preceding the date the person files an application for a
2-15     loan under this chapter; and
2-16                       (C)  on the date the person files an application
2-17     for a loan under this chapter, is residing in this state.
2-18           (b)  Notwithstanding Subsection (a)(8), the department by
2-19     rule may change the definition of "teacher" as necessary or
2-20     appropriate to protect the best interests of the program.
2-21           Sec. 2306.802.  ADMINISTRATION.  (a)  The department shall
2-22     establish and administer the Teachers' Home Loan Program in
2-23     accordance with this subchapter.
2-24           SECTION 3.  This Act takes effect immediately if it receives
2-25     a vote of two-thirds of all the members elected to each house, as
2-26     provided by Section 39, Article III, Texas Constitution.  If this
 3-1     Act does not receive the vote necessary for immediate effect, this
 3-2     Act takes effect September 1, 2001.