SRC-JLB S.B. 1660 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1660
By: Madla
Intergovernmental Relations
4/2/2003
As Filed


DIGEST AND PURPOSE 

Currently, the Texas Bond Review Board (board) is required to review and
approve all bonds, installment sales, and lease-purchases issued by state
agencies and universities with a principal greater than $250,000 or a term
greater than five years.  State issuers, to protect the proceeds of bond
sales, must submit to the board a detailed plan for administration and
disbursement of bond proceeds, investment provisions, and any specific
provisions for safety and security of the proceeds.  The Texas Department
of Housing and Community Affairs (TDHCA) acts as a conduit issuer for
multifamily housing mortgage revenue bonds and as such the bonds do not
constitute an obligation, debt, or liability of the state.  As proposed,
S.B. 1660 prohibits an entity, including a state agency, from issuing a
state security unless the security is a revenue bond available exclusively
to the TDHCA for reservation of qualified residential rental project
bonds. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 1231.041, Government Code, as follows:
 
Sec. 1231.041.  APPROVAL OF STATE SECURITY.  Prohibits an entity,
including a state agency, from issuing, among others, a state security
unless the security is a revenue bond available exclusively to the Texas
Department of Housing and Community Affairs for reservation of qualified
residential rental project bonds in the manner described by Section
1372.0231. 

SECTION 2.  Effective date:  September 1, 2003.