HBA-NLM H.B. 3511 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3511
By: Marchant
Financial Institutions
4/5/1999
Introduced



BACKGROUND AND PURPOSE 

The issue of the allocation process of tax-exempt private activity bonds
was addressed during the 75th legislative session by the passing of
legislation to refine the subceilings that each category of issuer
receives. H.B. 3511 clarifies the process of allocation in regard to the
application procedures established by the bond review board.  In addition,
this bill requires an issuer receiving a carryforward designation to submit
to the board a fee in the amount of $1,000 or 0.025 percent of the amount
of the carryforward designation, whichever is greater. 

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 Subsection (a), Section 4, Chapter 1092, Acts of the
70th Legislature, Regular Session, 1987, Article 5190.9a, V.T.C.S., to
include among the required contents for an application in this section, a
statement by the issurer that bonds are not being issued for which there
exist transferred proceeds representing undexpended proceeds from a prior
issue or other evidence acceptable to the bond review board (board) as
described in program rules, to expend the unexpended proceeds by the later
of 12 monts after receipt of an application or December 31 of the program
year for which the application is being filed.  

SECTION 2.  Amends Section 12, Chapter 1092, Acts of the 70th Legislature,
Regular Session, 1987, Article 5190.9a, V.T.C.S., to require an issuer
receiving a carryforward designation to submit to the board a fee in the
amount of $1,000 or 0.025 percent of the amount of the carryforward
designation, whichever is greater.  Requires the fee to be submitted not
later than the fifth business day following the date of receipt of the
carryforward designation.   

SECTION 3.  (a) Provides that this Act takes effect August 1, 1999, except
as provided by                                   Subsection (b) of this
section. 

                        (b)  Provides that Section 2 of this Act takes
effect January 1, 2000. 

SECTION 4.  Emergency clause.