81R9610 MTB-D

By: West S.B. No. 2064

A BILL TO BE ENTITLED

AN ACT

relating to the issuance of state and local government securities, including the powers and duties of the Bond Review Board and the issuance of private activity bonds.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 1231.062, Government Code, is amended by amending Subsection (a) and adding Subsection (d) to read as follows:

(a) Not later than December [October] 31 of each even-numbered year, the board shall submit to the legislature a statistical report relating to:

(1) state securities; and

(2) bonds and other debt obligations issued by local governments.

(d) The board may enter into a contract for the procurement of services related to the collection and maintenance of information on the indebtedness of local governments necessary to prepare the statistical report.

SECTION 2. Section 1231.063(c), Government Code, is amended to read as follows:

(c) Not later than February 15 [December 1] of each year, the board shall submit the annual study to:

(1) the governor;

(2) the comptroller;

(3) the presiding officer of each house of the legislature; and

(4) the Senate Committee on Finance and House Appropriations Committee.

SECTION 3. Section 1372.004, Government Code, is amended to read as follows:

Sec. 1372.004. RULES. The board may adopt rules:

(1) necessary to accomplish the purposes of this chapter; and

(2) to temporarily change the relative amounts of the state ceiling allocated and reserved under this chapter in response to an economic crisis or natural disaster.

SECTION 4. Section 1372.022, Government Code, is amended to read as follows:

Sec. 1372.022. AVAILABILITY OF STATE CEILING TO ISSUERS. (a) If the state ceiling is computed on the basis of $75 per capita or a greater amount, before July [August] 15 of each year:

(1) 28.0 percent of the state ceiling is available exclusively for reservations by issuers of qualified mortgage bonds;

(2) 8 percent of the state ceiling is available exclusively for reservations by issuers of state-voted issues;

(3) 2.0 percent of the state ceiling is available exclusively for reservations by issuers of qualified small issue bonds and enterprise zone facility bonds;

(4) 22.0 percent of the state ceiling is available exclusively for reservations by issuers of qualified residential rental project bonds;

(5) 10.5 percent of the state ceiling is available exclusively for reservations by issuers of qualified student loan bonds authorized by Section 53B.47 [53.47], Education Code, that are nonprofit corporations able to issue a qualified scholarship funding bond as defined by Section 150(d)(2), Internal Revenue Code (26 U.S.C. Section 150(d)(2)); and

(6) 29.5 percent of the state ceiling is available exclusively for reservations by any other issuer of bonds that require an allocation.

(b) On and after July [August] 15 but before September 1, that portion of the state ceiling available for reservations becomes available for all applications for reservations in the order determined by the board by lot, subject to Section 1372.0321. On and after September 1, that portion of the state ceiling available for reservations becomes available to any issuer for any bonds that require an allocation, subject to the provisions of this subchapter.

SECTION 5. Section 1372.0261, Government Code, is amended by amending Subsection (c) and adding Subsections (e), (f), and (g) to read as follows:

(c) If a housing finance corporation's utilization percentage is less than 95 percent but at least 25 percent, the next time the corporation becomes eligible for a reservation of the state ceiling, the maximum amount of the state ceiling that may be reserved for the corporation is equal to the amount for which the corporation would otherwise be eligible under Section 1372.026 multiplied by the utilization percentage of the corporation's last bond issue that used an allocation of the state ceiling.

(e) If a housing finance corporation's utilization percentage is less than 25 percent, the next time the corporation becomes eligible for a reservation of the state ceiling, the maximum amount of the state ceiling that may be reserved for the corporation is equal to the amount for which the corporation would otherwise be eligible under Section 1372.026 multiplied by 25 percent.

(f) If, for any program year, less than 50 percent of the amount set aside under Section 1372.026 is allocated, all utilization percentages are reset to 100 percent.

(g) An issuer that has carryforward available from the volume cap created by the Housing and Economic Recovery Act of 2008 (Pub. L. No. 110-289) is not restricted by project limits for the volume cap. An issuer who uses the carryforward to issue qualified mortgage bonds or mortgage credit certificates is not subject to the utilization percentage calculation in determining the amount of the issuer's reservation request.

SECTION 6. Section 1372.028(b), 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 of the preceding year. An issuer may not submit an application for a program year after November 15 [December 1] of that year.

SECTION 7. Section 1372.035(a), Government Code, is amended to read as follows:

(a) The board may not grant a reservation of a portion of the state ceiling for a program year before January 2 or after November 15 [December 1] of that year.

SECTION 8. Section 1372.037(a), Government Code, is amended to read as follows:

(a) Except as provided by Subsection (b), before July [August] 15 the board may not grant for any single project a reservation for that year that is greater than:

(1) $50 [$25] million, if the issuer is an issuer of qualified mortgage bonds, other than the Texas Department of Housing and Community Affairs or the Texas State Affordable Housing Corporation;

(2) $50 million, if the issuer is an issuer of a state-voted issue, other than the Texas Higher Education Coordinating Board, or $75 million, if the issuer is the Texas Higher Education Coordinating Board;

(3) the amount to which the Internal Revenue Code limits issuers of qualified small issue bonds and enterprise zone facility bonds, if the issuer is an issuer of those bonds;

(4) the lesser of $20 [$15] million or 15 percent of the amount set aside for reservation by issuers of qualified residential rental project bonds, if the issuer is an issuer of those bonds;

(5) the amount as prescribed in Sections 1372.033(d), (e), and (f), if the issuer is an issuer authorized by Section 53B.47 [53.47], Education Code, to issue qualified student loan bonds; or

(6) $50 million, if the issuer is any other issuer of bonds that require an allocation.

SECTION 9. Section 1372.042, Government Code, is amended by adding Subsection (e) to read as follows:

(e) In addition to any other fees required by this chapter, an issuer shall submit to the board a nonrefundable fee in the amount of $500 before receiving a carryforward designation under Subsection (c).

SECTION 10. Subchapter B, Chapter 1372, Government Code, is amended by adding Section 1372.045 to read as follows:

Sec. 1372.045. ASSIGNMENT BY BOARD OF CERTAIN AMOUNTS OF STATE CEILING. As an alternative to designation as carryforward under Subchapter C, the board may assign to one or more issuers:

(1) the amount of the state ceiling that is not reserved before December 15; and

(2) any amount of the state ceiling that:

(A) was reserved before December 15; and

(B) becomes available on or after that date because of the cancellation of a reservation.

SECTION 11. Section 1372.0235, Government Code, is repealed.

SECTION 12. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.