Texas 2019 - 86th Regular

Texas House Bill HB2206 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	86R24624 JAM-D
2		-	By: Howard, Frullo H.B. No. 2206
3		-	Substitute the following for H.B. No. 2206:
4		-	By: Howard C.S.H.B. No. 2206
	1	+	86R3476 MM-F
	2	+	By: Howard H.B. No. 2206
5	3
6	4
7	5		A BILL TO BE ENTITLED
8	6		AN ACT
9		-	relating to private activity bonds.
	7	+	relating to alternative education loans and qualified student loan
	8	+	bonds.
10	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11		-	SECTION 1. Sections 1372.001(1) and (2), Government Code,
12		-	are amended to read as follows:
13		-	(1) "Additional state ceiling" means authorization
14		-	under federal law for the issuance of bonds that are tax-exempt
15		-	private activity bonds subject to the limits imposed by Section
16		-	146, Internal Revenue Code (26 U.S.C. Section 146), in an amount in
17		-	addition to the state ceiling[, including the additional tax-exempt
18		-	private activity bonds authorized by Section 3021 of the Housing
19		-	and Economic Recovery Act of 2008 (Pub. L. No. 110-289)].
20		-	(2) "Bonds" means all obligations, including bonds,
21		-	certificates, or notes, that are:
22		-	(A) authorized to be issued by:
23		-	(i) the constitution or a statute of this
24		-	state; or
25		-	(ii) the charter of a home-rule
26		-	municipality; and
27		-	(B) either:
28		-	(i) subject to the limitations of Section
29		-	146, Internal Revenue Code (26 U.S.C. Section 146); or
30		-	(ii) with respect to Subchapter D,
31		-	otherwise entitled to a federal subsidy only if designated for the
32		-	exemption, credit, or other subsidy, or allocated a portion of a
33		-	limited amount of obligations for which the exemption, credit, or
34		-	other subsidy is authorized, by this state or an applicable
35		-	official or by an issuer to which this state or the applicable
36		-	official has made an allocation, including exemptions, credits, and
37		-	other subsidies authorized by[:
38		-	[(a) the Heartland Disaster Tax
39		-	Relief Act of 2008 (Pub. L. No. 110-343), regarding Hurricane Ike
40		-	disaster area bonds;
41		-	[(b) the American Recovery and
42		-	Reinvestment Act of 2009 (Pub. L. No. 111-5); or
43		-	[(c)] any [other] federal law
44		-	authorizing a federal subsidy.
45		-	SECTION 2. Sections 1372.002(a) and (c), Government Code,
46		-	are amended to read as follows:
47		-	(a) For purposes of this chapter, a project is:
48		-	(1) an eligible facility or facilities that are
49		-	proposed to be financed, in whole or in part, by an issue of
50		-	qualified residential rental project bonds;
51		-	(2) in connection with an issue of qualified mortgage
52		-	bonds [or qualified student loan bonds], the providing of financial
53		-	assistance to qualified mortgagors [or students] located in all or
54		-	any part of the jurisdiction of the issuer; [or]
55		-	(3) in connection with an issue of qualified student
56		-	loan bonds:
57		-	(A) if the issuer is the Texas Higher Education
58		-	Coordinating Board, the provision of financial assistance to
59		-	students; or
60		-	(B) if an issuer is authorized by Section 53B.47,
61		-	Education Code, the provision of guaranteed student loans or
62		-	alternative education loans that satisfy the requirements of
63		-	Section 53B.47(b), Education Code; or
64		-	(4) an eligible facility or facilities that are
65		-	proposed to be financed, in whole or in part, by an issue of bonds
66		-	other than bonds described by Subdivision (1), [or] (2), or (3).
67		-	(c) For purposes of Subsection (a)(1), an application under
68		-	this chapter may include either the rehabilitation or new
69		-	construction, or both the rehabilitation and new construction, of
70		-	qualified residential rental facilities located at multiple sites
71		-	and with respect to which 51 percent or more of the residential
72		-	units are located:
73		-	(1) in a county with a population of less than 100,000
74		-	[75,000]; or
75		-	(2) in a county in which the median income is less than
76		-	the median income for the state, provided that the units are located
77		-	in that portion of the county that is not included in a metropolitan
78		-	statistical area containing one or more projects that are proposed
79		-	to be financed, in whole or in part, by an issuance of bonds.
80		-	SECTION 3. Section 1372.006(a), Government Code, is amended
81		-	to read as follows:
82		-	(a) An application for a reservation under Subchapter B or a
83		-	carryforward designation under Subchapter C must be accompanied by
84		-	a nonrefundable fee in the amount of $500, except that:
85		-	(1) for projects that include multiple facilities
86		-	authorized under Section 1372.002(e), the application must be
87		-	accompanied by a nonrefundable fee in an amount of $500 for each
88		-	facility included in the application for the project;
89		-	(2) for issuers of qualified residential rental
90		-	project bonds the application must be accompanied by a
91		-	nonrefundable fee of $5,000, of which the board shall retain $1,000
92		-	to offset the costs of the private activity bond allocation program
93		-	and the administration of that program and of which the board shall
94		-	transfer $4,000 through an interagency agreement to the Texas
95		-	Department of Housing and Community Affairs for use in the
96		-	affordable housing research and information program as provided by
97		-	Section 2306.259; and
98		-	(3) for a [combined] project that includes multiple
99		-	qualified residential rental projects authorized under Section
100		-	1372.002(f), the application must be accompanied by a nonrefundable
101		-	fee in an amount of $5,000 for each qualified residential rental
102		-	project included in the application for the [combined] project,
103		-	with a maximum total fee of $25,000. The [the total amount of which
104		-	the] board shall retain 20 percent to offset the costs of the
105		-	private activity bond allocation program and the administration of
106		-	that program. The [and of which the] board shall transfer 80
107		-	percent through an interagency agreement to the Texas Department of
108		-	Housing and Community Affairs for use in the affordable housing
109		-	research and information program as provided by Section 2306.259.
110		-	SECTION 4. Section 1372.022(a), Government Code, is amended
111		-	to read as follows:
112		-	(a) If the state ceiling is computed on the basis of $75 per
113		-	capita or a greater amount, before August 15 of each year:
114		-	(1) 32.25 [28.0] percent of the state ceiling is
115		-	available exclusively for reservations by issuers of qualified
116		-	mortgage bonds;
117		-	(2) 10.0 [8] percent of the state ceiling is available
118		-	exclusively for reservations by issuers of state-voted issues;
119		-	(3) 2.0 percent of the state ceiling is available
120		-	exclusively for reservations by issuers of qualified small issue
121		-	bonds and enterprise zone facility bonds;
122		-	(4) 26.25 [22.0] percent of the state ceiling is
123		-	available exclusively for reservations by issuers of qualified
124		-	residential rental project bonds; and
125		-	(5) [10.5 percent of the state ceiling is available
126		-	exclusively for reservations by issuers of qualified student loan
127		-	bonds authorized by Section 53B.47, Education Code, that are
128		-	nonprofit corporations able to issue a qualified scholarship
129		-	funding bond as defined by Section 150(d)(2), Internal Revenue Code
130		-	(26 U.S.C. Section 150(d)(2)); and
131		-	[(6)] 29.5 percent of the state ceiling is available
132		-	exclusively for reservations by any other issuer of bonds that
133		-	require an allocation.
134		-	SECTION 5. Section 1372.0231(b), Government Code, as
135		-	amended by Chapters 1329 (S.B. 1664) and 330 (S.B. 264), Acts of the
136		-	78th Legislature, Regular Session, 2003, is reenacted and amended
137		-	to read as follows:
138		-	(b) With respect to the amount of the state ceiling set
139		-	aside under Subsection (a)(1), the board shall grant reservations
140		-	at the direction of the Texas Department of Housing and Community
141		-	Affairs as provided by Section 2306.359 and in a manner that ensures
142		-	that[:
143		-	[(1)] the set-aside amount is used for proposed
144		-	projects that are located throughout the state[; and
145		-	[(2) not more than 50 percent of the set-aside amount
146		-	is used for proposed projects that are located in qualified census
147		-	tracts as defined by Section 143(j), Internal Revenue Code of
148		-	1986].
149		-	SECTION 6. Sections 1372.0231(d), (g), and (i), Government
150		-	Code, are amended to read as follows:
151		-	(d) Except as provided by Subsection (i), before March [May]
152		-	1, the board shall apportion the amount of the state ceiling set
153		-	aside under Subsection (a)(2) among the uniform state service
154		-	regions according to the percentage of the state's population that
155		-	resides in each of those regions.
156		-	(g) On or after March [May] 1, the board may not grant
157		-	available reservations to housing finance corporations described
158		-	by Subsection (a) based on uniform state service regions or any
159		-	segments of those regions.
160		-	(i) Before March [May] 1, the board shall apportion the
161		-	amount of the state ceiling set aside under Subsection (a)(2) only
162		-	among uniform state service regions with respect to which an issuer
163		-	has submitted an application for a reservation of the state ceiling
164		-	[on or] before March 1.
165		-	SECTION 7. Sections 1372.024(a) and (b), Government Code,
166		-	are amended to read as follows:
167		-	(a) If, before January 2, applications received for
168		-	reservations for state-voted issues total more than 10 [eight]
169		-	percent of the available state ceiling for that program year, the
170		-	percentage of state-voted ceiling requested that is more than 10
171		-	[eight] percent of the state ceiling:
172		-	(1) is removed from the state ceiling available to
173		-	other issuers on January 2; and
174		-	(2) is available for those applications for
175		-	reservations for state-voted issues.
176		-	(b) The amount removed under Subsection (a) may not exceed
177		-	10 [eight] percent of the state ceiling.
178		-	SECTION 8. Section 1372.026(b), Government Code, is amended
179		-	to read as follows:
180		-	(b) A housing finance corporation may not receive an
181		-	allocation for the issuance of qualified mortgage bonds in an
182		-	amount that exceeds the greater of:
183		-	(1) $50 [$40] million; or
184		-	(2) 1.70 percent of the state ceiling.
185		-	SECTION 9. Sections 1372.0261(d) and (g), Government Code,
186		-	are amended to read as follows:
187		-	(d) A housing finance corporation may not be penalized under
188		-	Subsection (c) if:
189		-	(1) the corporation fails to use:
190		-	(A) bond proceeds recycled from previous
191		-	allocations of the state ceiling; or
192		-	(B) taxable bond proceeds; [or]
193		-	(2) as the result of an issuance of bonds, the
194		-	corporation's utilization percentage is 80 percent or greater; or
195		-	(3) the application is received after July 14.
196		-	(g) An issuer that has carryforward available from the
197		-	additional state ceiling [created by the Housing and Economic
198		-	Recovery Act of 2008 (Pub. L. No. 110-289)] is not restricted by
199		-	project limits for the state ceiling. An issuer who uses the
200		-	carryforward to issue qualified mortgage bonds or mortgage credit
201		-	certificates is not subject to the utilization percentage
202		-	calculation in determining the amount of the issuer's reservation
203		-	request.
204		-	SECTION 10. Section 1372.0281, Government Code, is amended
205		-	to read as follows:
206		-	Sec. 1372.0281. INFORMATION REQUIRED OF ISSUERS OF CERTAIN
207		-	QUALIFIED STUDENT LOAN BONDS. (a) An issuer of qualified student
208		-	loan bonds authorized by Section 53B.47 [53.47], Education Code,
209		-	shall provide to the board together with its application for a
210		-	reservation information required by board rule.
211		-	(b) The board may require an issuer described by Subsection
212		-	(a) to provide information with its application, or to supplement
213		-	the application with information, that includes:
214		-	(1) financial statements;
215		-	(2) portfolio amounts;
216		-	(3) default rates;
217		-	(4) descriptions of how bond proceeds [student loans]
218		-	are being used or spent; and
219		-	(5) other information required by the board [about the
220		-	issuer's client agencies].
221		-	SECTION 11. Sections 1372.031(a) and (b), Government Code,
222		-	are amended to read as follows:
223		-	(a) Except as provided by Subsection (b) and subject to
224		-	Sections 1372.0321, 1372.0231, and 1372.035(c), if, on or before
225		-	October 20, more than one issuer in a category described by Section
226		-	1372.022(a)(2), (3), (4), or (5) [(6)] applies for a reservation of
227		-	the state ceiling for the next program year, the board shall grant
228		-	reservations in that category in the order determined by the board
229		-	by lot.
230		-	(b) Until August 1 of the program year, within the category
231		-	described by Section 1372.022(a)(5) [1372.022(a)(6)], the board
232		-	shall grant priority to the Texas Economic Development Bank for
233		-	projects that the Texas Economic Development and Tourism Office
234		-	determines meet the governor's criteria for funding from the Texas
235		-	Enterprise Fund. Notwithstanding the priority, the Texas Economic
236		-	Development Bank may not receive an amount greater than one-sixth
237		-	of the portion of the state ceiling available under Section
238		-	1372.022(a)(5) [1372.022(a)(6)] on January 1 of the program year.
239		-	SECTION 12. Sections 1372.033(a), (d), and (g), Government
240		-	Code, are amended to read as follows:
241		-	(a) In this section, "qualified nonprofit corporation" [:
242		-	[(1) "Qualified nonprofit corporation"] has the
243		-	meaning assigned by Section 53B.02(11), Education Code.
244		-	[(2) "Student loan bond allocation" means the total
245		-	amount of the allocation for private activity bonds under Section
246		-	1372.022(a)(5) for a program year divided by the number of
247		-	qualified nonprofit corporation applicants that comply with all
248		-	applicable application requirements for that year.]
249		-	(d) Each qualified nonprofit corporation that applies for a
250		-	student loan bond allocation in compliance with all applicable
251		-	application requirements for a program year is entitled to receive
252		-	a student loan bond allocation prioritized in the order that the
253		-	application was received by the board for that year.
254		-	(g) A qualified nonprofit corporation that receives a
255		-	student loan bond allocation may not:
256		-	(1) transfer the allocation to another entity; or
257		-	(2) loan to another entity, other than a qualified
258		-	borrower, [student] proceeds of bonds issued under the allocation.
259		-	SECTION 13. Section 1372.037(a), Government Code, is
260		-	amended to read as follows:
261		-	(a) Before [Except as provided by Subsection (b), before]
262		-	August 15 the board may not grant for any single project a
263		-	reservation for that year that is greater than:
264		-	(1) [$40 million,] if the issuer is an issuer of
265		-	qualified mortgage bonds, other than the Texas Department of
266		-	Housing and Community Affairs or the Texas State Affordable Housing
267		-	Corporation, the greater of:
268		-	(A) $50 million; or
269		-	(B) 1.70 percent of the available state ceiling;
270		-	(2) [$50 million,] if the issuer is an issuer of a
271		-	state-voted issue, other than the Texas Higher Education
272		-	Coordinating Board, the greater of:
273		-	(A) $100 million; or
274		-	(B) 3.40 percent of the available state ceiling;
275		-	(3) [or $75 million,] if the issuer of a state-voted
276		-	issue is the Texas Higher Education Coordinating Board, the greater
277		-	of:
278		-	(A) $200 million; or
279		-	(B) 6.80 percent of the available state ceiling;
280		-	(4) if the issuer is an issuer of qualified small issue
281		-	bonds and enterprise zone facility bonds, [(3)] the amount to
282		-	which the Internal Revenue Code limits issuers of [qualified small
283		-	issue bonds and enterprise zone facility bonds, if the issuer is an
284		-	issuer of] those bonds;
285		-	(5) [(4) the lesser of $20 million or 15 percent of
286		-	the amount set aside for reservation by issuers of qualified
287		-	residential rental project bonds,] if the issuer is an issuer of
288		-	qualified residential rental project [those] bonds, the greater of:
289		-	(A) $50 million; or
290		-	(B) 1.70 percent of the available state ceiling;
291		-	[(5) the amount as prescribed in Sections 1372.033(d),
292		-	(e), and (f), if the issuer is an issuer authorized by Section
293		-	53B.47, Education Code, to issue qualified student loan bonds;] or
294		-	(6) [$50 million,] if the issuer is any other issuer of
295		-	bonds that require an allocation, the greater of:
296		-	(A) $100 million; or
297		-	(B) 3.40 percent of the available state ceiling.
298		-	SECTION 14. Sections 1372.042(a), (a-1), (b), and (c),
299		-	Government Code, are amended to read as follows:
300		-	(a) An issuer other than an issuer of qualified residential
301		-	rental project bonds, an issuer of state-voted issues, a qualified
302		-	nonprofit corporation issuer of qualified student loan bonds, or an
303		-	issuer of qualified mortgage bonds shall close on the bonds for
304		-	which the reservation was granted not later than the 150th [120th]
305		-	day after the reservation date.
306		-	(a-1) An issuer of qualified residential rental project
307		-	bonds shall close on the bonds for which the reservation was granted
308		-	not later than the 180th [150th] day after the reservation date. If
309		-	an issuer of qualified residential rental project bonds fails to
310		-	close on the bonds for which a reservation was granted, the issuer
311		-	shall pay the full closing fee provided by Section 1372.006(b) if
312		-	the application is not withdrawn before the 150th [120th] day after
313		-	the reservation date.
314		-	(b) An issuer of state-voted issues, a qualified nonprofit
315		-	corporation issuer of qualified student loan bonds, or an issuer of
316		-	qualified mortgage revenue bonds shall close on the bonds for which
317		-	the reservation was granted not later than the 210th [180th] day
318		-	after the reservation date.
319		-	(c) Notwithstanding Subsections (a), (a-1), and (b), if the
320		-	150-day [120-day] period, the 180-day [150-day] period, or the
321		-	210-day [180-day] period, as applicable, expires on or after
322		-	December 24 of the year in which the reservation was granted, the
323		-	issuer shall close on the bonds before December 24, except that if
324		-	the applicable period expires after December 31 of that year, the
325		-	issuer may notify the board in writing before December 24 of the
326		-	issuer's election to carry forward the reservation and of the
327		-	issuer's expected bond closing date. In compliance with the
328		-	requirements of Section 146(f), Internal Revenue Code of 1986, the
329		-	board shall file in a timely manner a carryforward election with
330		-	respect to any bonds expected to close after December 31 to permit
331		-	the bonds to close by the expected date, except that the board may
332		-	not file the carryforward election after February 15 of the year
333		-	following the year in which the reservation was granted. The grant
334		-	of the reservation for the balance of the 150-day [120-day] period,
335		-	the 180-day [150-day] period, or the 210-day [180-day] period, as
336		-	applicable, is automatically and immediately reinstated on the
337		-	board's filing of a carryforward election with respect to the
338		-	reservation.
339		-	SECTION 15. Section 1372.043, Government Code, is amended
340		-	to read as follows:
341		-	Sec. 1372.043. CANCELLATION OF RESERVATION ON ISSUER'S
342		-	FAILURE TO TIMELY CLOSE ON BONDS. If an issuer does not close on the
343		-	issuer's bonds as required by Section 1372.042:
344		-	(1) the reservation for the issue is canceled; and
345		-	(2) for the period beginning on the reservation date
346		-	and ending on the 150th day, the 180th day, or the 210th day after
347		-	the reservation date, as applicable under Section 1372.042, or on
348		-	the 210th day after the reservation date if the issuer is an issuer
349		-	of qualified mortgage bonds:
350		-	(A) no issuer may submit an application for a
351		-	reservation for the same project; and
352		-	(B) the issuer is eligible for a carryforward
353		-	designation for the project only as provided by Subchapter C.
354		-	SECTION 16. Section 1372.069, Government Code, is amended
355		-	by amending Subsection (c) and adding Subsection (e) to read as
356		-	follows:
357		-	(c) An issuer may [not] apply for the carryforward
358		-	designation of an amount that is not more [greater] than the greater
359		-	of:
360		-	(1) $50 million; or
361		-	(2) 1.70 percent of the available state ceiling.
362		-	(e) A carryforward designation granted under this section
363		-	must comply with the Internal Revenue Code of 1986.
364		-	SECTION 17. Section 1372.073, Government Code, is amended
365		-	to read as follows:
366		-	Sec. 1372.073. DESIGNATION BY BOARD OF UNENCUMBERED STATE
367		-	CEILING. Notwithstanding any other provision of this chapter, the
368		-	board on the last business day of the year may assign as
369		-	carryforward to a state agency or to an issuer that was created to
370		-	act on behalf of this state [agencies] at the [their] request of the
371		-	issuer and in the order received any state ceiling that is not
372		-	reserved or designated as carryforward and for which no application
373		-	for carryforward is pending.
374		-	SECTION 18. Subchapter C, Chapter 1372, Government Code, is
375		-	amended by adding Section 1372.074 to read as follows:
376		-	Sec. 1372.074. REASSIGNMENT OF CARRYFORWARD DESIGNATION.
377		-	(a) After one year from the initial carryforward designation, an
378		-	issuer may elect to reassign all or part of the carryforward
379		-	designation to a new project if the issuer provides:
380		-	(1) the designation on a form described by Section
381		-	1372.070;
382		-	(2) a written request signed by an authorized
383		-	representative of the issuer;
384		-	(3) the issuing board resolution authorizing the
385		-	carryforward designation reassignment with an original signature
386		-	by an officer of the issuer;
387		-	(4) applicable fees under Section 1372.006;
388		-	(5) an opinion of legal counsel stating that the
389		-	carryforward designation reassignment does not conflict with
390		-	Section 146, Internal Revenue Code of 1986; and
391		-	(6) any other information required by the board.
392		-	(b) A new project that is reassigned a carryforward
393		-	designation under this section must close within the time period
394		-	allowed by the Internal Revenue Code of 1986.
395		-	(c) An unutilized carryforward designation available after
396		-	a project closes on a carryforward designation under Section
397		-	1372.069 may be used by the issuer for other projects subject to
398		-	Subsection (b) and Section 1372.061(b).
399		-	SECTION 19. Sections 53B.02(2) and (7), Education Code, are
	10	+	SECTION 1. Sections 53B.02(2) and (7), Education Code, are
400	11		amended to read as follows:
401	12		(2) "Alternative education loan" means a loan other
402	13		than a guaranteed student loan that is made to a student, a former
403	14		student, or any other person [or] for the benefit of the [a] student
404	15		or former student for the purpose of financing or refinancing all or
405	16		part of the student's or former student's cost of attendance at an
406	17		accredited institution. The term includes:
407	18		(A) indebtedness that meets the definition of a
408	19		qualified education loan under Section 221(d)(1), Internal Revenue
409	20		Code of 1986; and
410	21		(B) indebtedness used to refinance indebtedness
411	22		that meets the definition of a qualified education loan under
412	23		Section 221(d)(1), Internal Revenue Code of 1986.
413	24		(7) "Cost of attendance" means all costs of a student
414		-	or former student incurred in connection with that student's or
415		-	~~former student's [a]~~ program of study at an accredited institution,
416		-	~~as determined by the~~ institution, including tuition and
417		-	~~instructional fees, the cost of~~ room and board, books, computers,
418		-	~~and supplies, and other related~~ fees, charges, and expenses.
419		-	SECTION 20. Sections 53B.47(b), (d), and (h), Education
	25	+	or former student incurred in connection with that student's [a]
	26	+	program of study at an accredited institution, as determined by the
	27	+	institution, including tuition and instructional fees, the cost of
	28	+	room and board, books, computers, and supplies, and other related
	29	+	fees, charges, and expenses.
	30	+	SECTION 2. Sections 53B.47(b), (d), and (h), Education
420	31		Code, are amended to read as follows:
421	32		(b) An authority may cause money to be expended to make or
422	33		purchase for its account guaranteed student loans that are
423	34		guaranteed by the Texas Guaranteed Student Loan Corporation, other
424	35		guaranteed student loans, or alternative education loans that are
425		-	executed by or on behalf of students or former students who:
426		-	(1) are residents of this state; or
427		-	(2) have been admitted to attend or who attended an
	36	+	executed by or on behalf of students or former students [who]:
	37	+	(1) who are residents of this state; or
	38	+	(2) who have been admitted to attend or who attended an
428	39		accredited institution within this state.
429	40		(d) The authority, as a municipal corporation of the state,
430	41		is charged with a portion of the responsibility of the state to
431	42		provide educational opportunities in keeping with all applicable
432	43		state and federal laws. This [Nothing in this] section may not
433	44		[shall] be construed as a prohibition against establishing policies
434	45		to limit the purchase of guaranteed student loans or alternative
435	46		education loans executed by or on behalf of students or former
436	47		students who are attending or who attended [attending] school in a
437	48		certain geographical area or by or on behalf of students or former
438	49		students who are residents of the area.
439	50		(h) An alternative education loan may be made under this
440	51		section only by or on behalf of a qualified alternative education
441	52		loan lender. An alternative education loan may not be in an amount
442		-	~~that exceeds~~ the ~~amount permitted under Section 144(b)(1)(B),~~
443		-	~~Internal Revenue Code~~ of ~~1986~~ [~~in excess of~~ the ~~difference between~~
444		-	the ~~cost of attendance and the amount of~~ other ~~student assistance to~~
445		-	~~the student, other than loans under~~ Section 428B(a)(1), Higher
446		-	~~Education Act of 1965 (20 U.S.C. Section~~ 1078-2) (relating to
447		-	~~parent loans), for which the student borrower~~ may be eligible]. An
448		-	~~alternative education loan covered by this~~ subsection is subject to
449		-	~~Chapter 342, Finance Code, as applicable,~~ except that:
	53	+	in excess of the difference between the cost of attendance and the
	54	+	amount of other student-based [student] assistance for which the
	55	+	borrower may be eligible [to the student], other than loans under
	56	+	Section 428B(a)(1), Higher Education Act of 1965 (20 U.S.C. Section
	57	+	1078-2) (relating to parent loans)[, for which the student borrower
	58	+	may be eligible]. An alternative education loan covered by this
	59	+	subsection is subject to Chapter 342, Finance Code, as applicable,
	60	+	except that:
450	61		(1) the maximum interest rate on the loan may not
451	62		exceed the rate permitted under Subchapter A, Chapter 303, Finance
452	63		Code; and
453	64		(2) application and origination fees may be agreed to
454	65		by the parties and assessed at the inception of the loan, provided
455	66		that if any such fees constitute additional interest under
456	67		applicable law, the effective rate of interest agreed to over the
457	68		stated term of the loan may not exceed the rate allowed by
458	69		Subchapter A, Chapter 303, Finance Code, and accrued unpaid
459	70		interest may be added to unpaid principal at the beginning of the
460	71		agreed repayment period at the borrower's option and in accordance
461	72		with the terms of the agreement for purposes of determining the
462	73		total principal amount due at the inception of the repayment
463	74		period.
464		-	SECTION 21. The following provisions of the Government Code
465		-	are repealed:
466		-	(1) Section 1372.001(18);
467		-	(2) Sections 1372.0231(c) and (e); and
468		-	(3) Section 1372.037(b).
469		-	SECTION 22. The change in law made by this Act to Chapter
	75	+	SECTION 3. Section 1372.002(a), Government Code, is amended
	76	+	to read as follows:
	77	+	(a) For purposes of this chapter, a project is:
	78	+	(1) an eligible facility or facilities that are
	79	+	proposed to be financed, in whole or in part, by an issue of
	80	+	qualified residential rental project bonds;
	81	+	(2) in connection with an issue of qualified mortgage
	82	+	bonds or qualified student loan bonds, the providing of financial
	83	+	assistance to qualified borrowers if those borrowers are
	84	+	[mortgagors or students] located in all or any part of the
	85	+	jurisdiction of the issuer; or
	86	+	(3) an eligible facility or facilities that are
	87	+	proposed to be financed, in whole or in part, by an issue of bonds
	88	+	other than bonds described by Subdivision (1) or (2).
	89	+	SECTION 4. Section 1372.033(g), Government Code, is amended
	90	+	to read as follows:
	91	+	(g) A qualified nonprofit corporation that receives a
	92	+	student loan bond allocation may not:
	93	+	(1) transfer the allocation to another entity; or
	94	+	(2) loan to another entity, other than a qualified
	95	+	borrower, [student] proceeds of bonds issued under the allocation.
	96	+	SECTION 5. The change in law made by this Act to Chapter
470	97		1372, Government Code, applies to the allocation of the available
471		-	state ceiling under that chapter beginning with the ~~2020~~ program
	98	+	state ceiling under that chapter beginning with the 2019 program
472	99		year.
473		-	SECTION 23. This Act takes effect September 1, 2019.
	100	+	SECTION 6. This Act takes effect September 1, 2019.