SRC-JLB S.B. 1663 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1663
By: Lindsay
Government Organization
4/7/2003
As Filed


DIGEST 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 PABs from the federal
government based on population.  As proposed, S.B. 1663 adjusts the
program to meet the state's public needs in a more equitable and
comprehensive manner. 

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 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, is amended, as
follows: 
 
Sec. 1372.027.  PUBLICATION OF AVAILABLE STATE CEILING.  Requires 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, as follows:
 
Sec. 1372.031.  PRIORITIES FOR RESERVATIONS AMONG CERTAIN ISSUERS.
Requires the board, subject to Section 1372.0321, 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, as follows:
 
Sec. 1372.040.  RESERVATION BY CERTAIN ISSUERS OF QUALIFIED MORTGAGE BONDS
OF MONEY FOR MORTGAGES FOR CERTAIN PERSONS. Requires 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:  September 1, 2003.  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.