S.B. 1663 78(R)    BILL ANALYSIS


S.B. 1663
By: Lindsay
Urban Affairs
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

The Texas Private Activity Bond Program ("program") is a federal program
administered by the 
Texas Bond Review Board to assist in financing eligible privately-owned
public purpose 
projects. Projects must meet a public purpose to be eligible for private
activity bond ("PAB") 
financing. Each year, Texas receives a designated amount of PAB financing
from the federal 
government based on population. S.B. 1663 adjusts the program to meet the
state's public 
needs.

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. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Sections 1372.0231(c) and (f), Government Code, as
follows: 
 (c) Requires the Texas Bond Review Board ("board"), with respect to the
amount of the 
 state ceiling set aside under Subsection (a)(2), to grant reservations in
a manner that 
 ensures that not more than 50 percent of the set-aside amount is used for
proposed 
 projects that are located in qualified census tracts as defined by the
most recent 
 publication by the United States Department of Housing and Urban
Development. 

 (f) Requires the board, in each area described by Subsection (d) or (e),
to grant 
 reservations based on the priority levels of proposed projects as
described by Section 
 1372.0321.

SECTION 2.  Amends Section 1372.024(a), Government Code, to provide that
if, before January 
2, applications received for reservations for state-voted issues total
more than eight, rather than 
13, percent of the available state ceiling for that program year, the
percentage of state-voted 
ceiling requested that is more than eight, rather than 13, percent of the
state ceiling is removed 
from the state ceiling available to other issuers on January 2 and is
available for those 
applications for reservations for state-voted issues.

SECTION 3.  Amends Section 1372.027, Government Code, to require the board
to publish certain information at least weekly on its Internet site. 

SECTION 4.  Amends Section 1372.028(b), Government Code, to authorize an
issuer to apply 
for a reservation for a program year not earlier than October 5, rather
than October 10, of the 
preceding year.

SECTION 5. Amends Section 1372.031, Government Code, to require the board,
subject to Sections 1372.0321 and 1372.0231, if, on or before October 20,
more than one issuer in a category described by Section 1372.022(a)(2),
(3), (4), or (6) applies for a reservation of the state ceiling for the
next program year, to grant reservations in that category in the order
determined by the board by lot. 

SECTION 6. Amends Section 1372.036(b), Government Code, to authorize
partial reservations, 
beginning June 1, to be offered once to each applicant in each category
described by Section 
 1372.022(a) until an applicant in the category accepts the partial
reservation or until additional 
volume is returned in an amount sufficient to grant a full reservation.

SECTION 7. Amends Section 1372.040, Government Code, to require an issuer
of qualified mortgage bonds, other than the Texas Department of Housing
and Community Affairs or the Texas State Affordable Housing Corporation,
to reserve for six months 50 percent of the funds available for loans
outside the federally designated target areas to provide mortgages to
individuals and families with incomes below 80 percent of the applicable
median family income, as defined by Section 143(f)(4), Internal Revenue
Code (26 U.S.C. Section 143(f)(4)). 

SECTION 8. Effective date; provides that except for the changes in law
made by this Act to Sections 1372.0231(f), 1372.027, and 1372.036(b),
Government Code, the changes in law made by this Act apply only in
relation to a reservation of the state ceiling that will be granted on or
after January 1, 2004. 


EFFECTIVE DATE:  September 1, 2003.