HBA-GUM H.B. 2350 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2350
By: Burnam
Urban Affairs
3/30/1999
Introduced



BACKGROUND AND PURPOSE 

Current law does not provide a true trust account for the Housing Trust
Fund (HTF) to draw upon in perpetuity.  Federal funding for low-income
housing dropped from 71.2 billion dollars in 1978 to 16.3 billion dollars
in 1997.  Texas governmental agencies, the housing industry, and housing
advocates believe that funding for HTF may be too low to meet the housing
needs of low-income Texans.  H.B. 2350 creates a true trust for HTF to draw
upon by appropriating 25 percent of the state's unclaimed property funds
(cash receipts only) every year into HTF Auxiliary Account within the
general revenue fund until 50 million dollars can be drawn in interest and
transferred to HTF each year. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter I, Chapter 2306, Government Code, by adding
Section 2306.208, as follows: 

Sec.  2306.208.  HOUSING TRUST FUND AUXILIARY ACCOUNT.  (a)  Provides that
the housing trust fund auxiliary account is an account in the general
revenue fund consisting of money transferred to the account under Section
74.602, Property Code (relating to the use of unclaimed money). 

(b)  Requires money in the account to be invested.  Prohibits the money
from being appropriated.   

(c)  Requires that, subject to subsequent transfer to the housing trust
fund under Subsection (d), interest earned on the account be credited to
the account. 

(d)  Requires the Comptroller of Public Accounts (comptroller) to transfer
once each fiscal year the interest credited to the account under Subsection
(c) to the credit of the housing trust fund. 

(e)  Requires the comptroller to transfer at the end of each fiscal
biennium the amount in the account in excess of the amount necessary to
generate 50 million dollars in interest to the credit of the undedicated
portion of the general revenue fund. 

(f)  Exempts the account from the application of Section 403.095 (Use of
Dedicated Revenue) of this code. 

SECTION 2.  Amends Section 74.602, Property Code, by adding Subsection (b),
to require the comptroller, each fiscal year after deducting funds
sufficient to pay anticipated expenses and claims of the unclaimed money
fund, to transfer 25 percent of the balance of the money in the unclaimed
money fund to the credit of the housing trust fund auxiliary account and
the remainder to the credit of the general revenue fund.  Makes conforming
changes. 
 
SECTION 3.  Effective date: September 1, 1999.

SECTION 4.  Emergency clause.