2003S0571-1 03/10/03


By:  Averitt, Lindsay                                             S.B. No. 1663


A BILL TO BE ENTITLED

AN ACT

relating to private activity bonds.                                           
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subsections (c) and (f), Section 1372.0231, 
Government Code, are amended to read as follows:
	(c)  With respect to the amount of the state ceiling set 
aside under Subsection (a)(2), the board shall 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 
[Section 143(j), Internal Revenue Code of 1986].
	(f)  In each area described by Subsection (d) or (e), the 
board shall grant reservations based on the priority levels of 
proposed projects as described by Section 1372.0321 [1372.032].
	SECTION 2.  Subsection (a), Section 1372.024, Government 
Code, is amended to read as follows:
	(a)  If, before January 2, applications received for 
reservations for state-voted issues total more than eight [13] 
percent of the available state ceiling for that program year, the 
percentage of state-voted ceiling requested that is more than eight 
[13] percent of the state ceiling:
		(1)  is removed from the state ceiling available to 
other issuers on January 2; and
		(2)  is available for those applications for 
reservations for state-voted issues.
	SECTION 3.  Section 1372.027, Government Code, is amended to 
read as follows:
	Sec. 1372.027.  PUBLICATION OF AVAILABLE STATE CEILING.  The 
board shall publish at least weekly on its Internet site [biweekly 
in the Texas Register]:
		(1)  a statement of the amount of the available state 
ceiling;              
		(2)  a list of the issues that have received a 
reservation since the preceding publication, including the amount 
of each reservation; and 
		(3)  a list of the issues that had previously received a 
reservation that have closed since the preceding publication.
	SECTION 4.  Subsection (b), Section 1372.028, Government 
Code, is amended to read as follows:
	(b)  An issuer may apply for a reservation for a program year 
not earlier than October 5 [10] of the preceding year.  An issuer 
may not submit an application for a program year after December 1 of 
that year.
	SECTION 5.  Section 1372.031, Government Code, is amended to 
read as follows:
	Sec. 1372.031.  PRIORITIES FOR RESERVATIONS AMONG CERTAIN 
ISSUERS.  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, the board shall grant 
reservations in that category in the order determined by the board 
by lot.
	SECTION 6.  Subsection (b), Section 1372.036, Government 
Code, is amended to read as follows:
	(b)  Beginning [If, after] June 1 [and before August 25], 
partial reservations may be offered once to each applicant in each 
[any portion of the state ceiling in a] 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 [from which issuers 
were granted reservations becomes available in that category:
		[(1)  those amounts of the state ceiling shall be 
aggregated; and
		[(2)  the board shall grant reservations from that 
category on August 25].
	SECTION 7.  Section 1372.040, Government Code, is amended to 
read as follows:
	Sec. 1372.040.  RESERVATION BY CERTAIN ISSUERS OF QUALIFIED 
MORTGAGE BONDS OF MONEY FOR MORTGAGES FOR CERTAIN PERSONS.  An 
issuer of qualified mortgage bonds, other than the Texas Department 
of Housing and Community Affairs or the Texas State Affordable 
Housing Corporation, shall 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.  This Act takes effect September 1, 2003.  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.