H.B. 2055 78(R)    BILL ANALYSIS


H.B. 2055
By: Christian
Financial Institutions
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Current law requires the Texas Bond Review Board to review and approve all
bonds, installment sales, and lease-purchases issued by state agencies and
universities when they have a principal greater than $250,000 or a term
longer than five years.  Securities may be exempted  from the review and
approval process if the Texas Bond Review Board determines it is
unnecessary or impractical for it to review them. 

Section 1372.0231, Government Code allocates 75 percent of the state
ceiling available for multifamily housing mortgage revenue bonds to local
housing finance corporations.  The remaining 25 percent is allocated to
the Texas Department of Housing and Community Affairs (TDHCA). Bonds
issued by the local housing finance corporations require only the approval
of the relevant local corporation's board of directors.  Bonds issued by
TDHCA must be approved by both TDHCA's board of directors and the Texas
Bond Review Board.  This duplicative approval process is unnecessary and
adds cost to the state and the applicant. 

H.B. 2055 exempts revenue bonds available exclusively to TDHCA for
reservation of qualified residential retail project bonds from the Texas
Bond Review Board's review and approval process.  

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency, or
institution. 

ANALYSIS

H.B. 2055 amends Section 1231.041, Government Code to exempt a revenue
bond available exclusively to TDHCA for reservation of qualified
residential rental project (multifamily housing) bonds from the review and
approval process of the Texas Bond Review Board. 

EFFECTIVE DATE

September 1, 2003