81R9534 JJT-F
By: Lucio S.B. No. 2294
A BILL TO BE ENTITLED
AN ACT
relating to the administration and allocation of private activity
bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1372.004, Government Code, is amended to
read as follows:
Sec. 1372.004. RULES; TEMPORARY RULES. (a) The board may
adopt rules necessary to accomplish the purposes of this chapter.
(b) The board may adopt temporary rules regarding bonds
described by Section 1372.022(a) as necessary to facilitate the
purpose of any federal legislation related to bonds of those kinds
that is enacted on or after the 60th day of a legislative session
and the temporary rules are effective regardless of any provision
of this chapter in conflict or inconsistent with the temporary
rules. Temporary rules adopted under this subsection expire on the
later of the following dates:
(1) the effective date of a law enacted by the
legislature on the subject of bonds described by Section
1372.022(a) in the first regular or special legislative session
that convenes before or after the temporary rules are adopted; or
(2) the final day of the next regular legislative
session that convenes after the temporary rules are adopted.
SECTION 2. Section 1372.026(c), Government Code, is amended
to read as follows:
(c) For purposes of this section, the local population of a
housing finance corporation is the population of the local
government or local governments on whose behalf a housing finance
corporation is created. If two local governments that have a
population of at least 50,000 [20,000] each and that have
overlapping territory have created housing finance corporations
that have the power to issue bonds to provide financing for home
mortgages, the population of the housing finance corporation
created on behalf of the larger local government is computed by
subtracting from the population of the larger local government the
population of the part of the smaller local government that is
located in the larger local government. The reduction of
population provided by this subsection is not required if the
smaller local government assigns its authority to issue bonds,
based on its population, to the larger local government.
SECTION 3. Section 1372.0261, Government Code, is amended
by amending Subsections (c) and (d) and adding Subsection (e) to
read as follows:
(c) If a housing finance corporation's utilization
percentage is less than 80 [95] 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.
(d) A housing finance corporation may not be penalized under
Subsection (c) if:
(1) the corporation fails to use:
(A) bond proceeds recycled from previous
allocations of the state ceiling; or
(B) taxable bond proceeds; or
(2) as the result of an issuance of bonds, the
corporation's utilization percentage is 80 [95] percent or greater.
(e) A housing finance corporation may not be penalized under
Subsection (c) in a program year if, by December 31 of the preceding
program year, an amount equal to or less than 50 percent of the
aggregate state ceiling available for reservations by issuers of
qualified mortgage bonds under Section 1372.022(a)(1):
(1) has been used in connection with bond issues that
have closed on or before that date; or
(2) has had carryforward elections filed on or before
that date.
SECTION 4. Section 1372.037(a), Government Code, is amended
to read as follows:
(a) Except as provided by Subsection (b), before August 15
the board may not grant for any single project a reservation for
that year that is greater than:
(1) $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 $25 [$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 5. This Act takes effect September 1, 2009.