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.