86R12673 SRA-F
By: Frullo, Howard H.B. No. 2968
A BILL TO BE ENTITLED
AN ACT
relating to procedures for the issuance of certain private activity
bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1372.024(b), Government Code, is amended
to read as follows:
(b) The amount removed under Subsection (a) may not exceed
10 [eight] percent of the state ceiling.
SECTION 2. 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) $40 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) $100 [$50] million, if the issuer is an issuer of a
state-voted issue, other than the Texas Higher Education
Coordinating Board, or $200 [$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 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) an [the] amount as prescribed by Section [in
Sections] 1372.033(d)[, (e), and (f)], if the issuer is an issuer
authorized by Section 53B.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 3. Sections 1372.042(b) and (c), Government Code,
are amended to read as follows:
(b) An issuer of state-voted issues or an issuer of
qualified mortgage revenue bonds shall close on the bonds for which
the reservation was granted not later than the 240th [180th] day
after the reservation date.
(c) Notwithstanding Subsections (a), (a-1), and (b), if the
120-day period, the 150-day period, or the 240-day [180-day]
period, as applicable, expires on or after December 24 of the year
in which the reservation was granted, the issuer shall close on the
bonds before December 24, except that if the applicable period
expires after December 31 of that year, the issuer may notify the
board in writing before December 24 of the issuer's election to
carry forward the reservation and of the issuer's expected bond
closing date. In compliance with the requirements of Section
146(f), Internal Revenue Code of 1986, the board shall file in a
timely manner a carryforward election with respect to any bonds
expected to close after December 31 to permit the bonds to close by
the expected date, except that the board may not file the
carryforward election after February 15 of the year following the
year in which the reservation was granted. The grant of the
reservation for the balance of the 120-day period, the 150-day
period, or the 240-day [180-day] period, as applicable, is
automatically and immediately reinstated on the board's filing of a
carryforward election with respect to the reservation.
SECTION 4. This Act takes effect September 1, 2019.