Bill Text: TX SB1858 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to private activity bonds.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2019-03-18 - Referred to Higher Education [SB1858 Detail]
Download: Texas-2019-SB1858-Introduced.html
86R9391 SRA-F | ||
By: Menéndez | S.B. No. 1858 |
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relating to private activity bonds. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 1372.002(a), Government Code, is amended | ||
to read as follows: | ||
(a) For purposes of this chapter, a project is: | ||
(1) an eligible facility or facilities that are | ||
proposed to be financed, in whole or in part, by an issue of | ||
qualified residential rental project bonds; | ||
(2) in connection with an issue of qualified mortgage | ||
bonds [ |
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assistance to qualified mortgagors [ |
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any part of the jurisdiction of the issuer; or | ||
(3) an eligible facility or facilities that are | ||
proposed to be financed, in whole or in part, by an issue of bonds | ||
other than bonds described by Subdivision (1) or (2). | ||
SECTION 2. Section 1372.022(a), Government Code, is amended | ||
to read as follows: | ||
(a) If the state ceiling is computed on the basis of $75 per | ||
capita or a greater amount, before August 15 of each year: | ||
(1) 32.25 [ |
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available exclusively for reservations by issuers of qualified | ||
mortgage bonds; | ||
(2) 10.0 [ |
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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) 26.25 [ |
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available exclusively for reservations by issuers of qualified | ||
residential rental project bonds; and | ||
(5) [ |
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exclusively for reservations by any other issuer of bonds that | ||
require an allocation. | ||
SECTION 3. Sections 1372.0231(g) and (i), Government Code, | ||
are amended to read as follows: | ||
(g) On or after March [ |
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available reservations to housing finance corporations described | ||
by Subsection (a) based on uniform state service regions or any | ||
segments of those regions. | ||
(i) Before March [ |
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amount of the state ceiling set aside under Subsection (a)(2) only | ||
among uniform state service regions with respect to which an issuer | ||
has submitted an application for a reservation of the state ceiling | ||
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SECTION 4. Section 1372.026, Government Code, is amended to | ||
read as follows: | ||
Sec. 1372.026. LIMITATION ON AMOUNT OF STATE CEILING | ||
AVAILABLE TO HOUSING FINANCE CORPORATIONS. (a) The maximum amount | ||
of the state ceiling that may be reserved before July [ |
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a housing finance corporation for the issuance of qualified | ||
mortgage bonds may not exceed the amount computed as follows: | ||
(1) if the local population of the jurisdiction that | ||
is served by the housing finance corporation is 300,000 or more, $36 | ||
million plus the product of the amount by which the local population | ||
exceeds 300,000 multiplied by $40; | ||
(2) if the local population of the jurisdiction that | ||
is served by the housing finance corporation is 200,000 or more but | ||
less than 300,000, $32 million plus the product of the amount by | ||
which the local population exceeds 200,000 multiplied by $40; | ||
(3) if the local population of the jurisdiction that | ||
is served by the housing finance corporation is 100,000 or more but | ||
less than 200,000, $24 million plus the product of the amount by | ||
which the local population exceeds 100,000 multiplied by $80; or | ||
(4) if the local population of the jurisdiction that | ||
is served by the housing finance corporation is less than 100,000, | ||
the product of the local population multiplied by $240. | ||
(b) A housing finance corporation may not receive an | ||
allocation for the issuance of qualified mortgage bonds in an | ||
amount that exceeds the greater of: | ||
(1) $50 [ |
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(2) 1.70 percent of the state ceiling. | ||
(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 each have a | ||
population of at least 50,000 or 0.18 percent of the population that | ||
was used to determine the state ceiling, whichever is greater, | ||
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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 5. Section 1372.037, Government Code, is amended to | ||
read as follows: | ||
Sec. 1372.037. LIMITATIONS ON GRANTING OF RESERVATIONS FOR | ||
INDIVIDUAL PROJECTS. (a) Except as provided by Subsection (b), | ||
before July 15 with respect to a reservation application for | ||
qualified mortgage revenue bonds and qualified residential rental | ||
project issues, and before August 15 with respect to any other | ||
reservation application, the board may not grant for any single | ||
project a reservation for that year that is greater than: | ||
(1) [ |
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qualified mortgage bonds, other than the Texas Department of | ||
Housing and Community Affairs or the Texas State Affordable Housing | ||
Corporation, the greater of: | ||
(A) $50 million; or | ||
(B) 1.70 percent of the available state ceiling; | ||
(2) [ |
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state-voted issue, other than the Texas Higher Education | ||
Coordinating Board, the greater of: | ||
(A) $100 million; or | ||
(B) 3.40 percent of the available state ceiling; | ||
(3) [ |
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issue is the Texas Higher Education Coordinating Board, the greater | ||
of: | ||
(A) $200 million; or | ||
(B) 6.80 percent of the available state ceiling; | ||
(4) if the issuer is an issuer of qualified small issue | ||
bonds and enterprise zone facility bonds, [ |
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which the Internal Revenue Code limits issuers of [ |
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(5) [ |
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qualified residential rental project [ |
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(A) $50 million; or | ||
(B) 1.70 percent of the available state ceiling; | ||
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(6) [ |
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bonds that require an allocation, the greater of: | ||
(A) $100 million; or | ||
(B) 3.40 percent of the available state ceiling. | ||
(b) In addition to a reservation under Subsection (a)(2), | ||
the board may grant to the Texas Water Development Board a | ||
reservation for not more than the greater of: | ||
(1) $100 million; or | ||
(2) 3.40 percent of the available state ceiling for a | ||
water development issue. | ||
SECTION 6. Section 1372.042(a-1), Government Code, is | ||
amended to read as follows: | ||
(a-1) An issuer of qualified residential rental project | ||
bonds shall close on the bonds for which the reservation was granted | ||
not later than the 180th [ |
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an issuer of qualified residential rental project bonds fails to | ||
close on the bonds for which a reservation was granted, the issuer | ||
shall pay the full closing fee provided by Section 1372.006(b) if | ||
the application is not withdrawn before the 120th day after the | ||
reservation date. | ||
SECTION 7. Section 1372.043, Government Code, is amended to | ||
read as follows: | ||
Sec. 1372.043. CANCELLATION OF RESERVATION ON ISSUER'S | ||
FAILURE TO TIMELY CLOSE ON BONDS. If an issuer does not close on the | ||
issuer's bonds as required by Section 1372.042: | ||
(1) the reservation for the issue is canceled; and | ||
(2) for the period beginning on the reservation date | ||
and ending on the 180th [ |
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the 210th day after the reservation date if the issuer is an issuer | ||
of qualified mortgage bonds: | ||
(A) no issuer may submit an application for a | ||
reservation for the same project; and | ||
(B) the issuer is eligible for a carryforward | ||
designation for the project only as provided by Subchapter C. | ||
SECTION 8. Sections 1372.069(b) and (c), Government Code, | ||
are amended to read as follows: | ||
(b) An issuer that applies for a carryforward designation | ||
may not apply later in the same year for a reservation for the same | ||
project, unless the carryforward application is withdrawn. | ||
(c) An issuer may not apply for the carryforward designation | ||
of an amount that is greater than the greater of: | ||
(1) $50 million; or | ||
(2) 1.70 percent of the available state ceiling. | ||
SECTION 9. Sections 1372.001(14) and 1372.033, Government | ||
Code, are repealed. | ||
SECTION 10. This Act takes effect September 1, 2019. |