HBA-TYH S.J.R. 34 76(R) BILL ANALYSIS Office of House Bill AnalysisS.J.R. 34 By: Lucio Financial Institutions 5/11/1999 Engrossed BACKGROUND AND PURPOSE Currently, the state maintains a housing trust fund through the Texas Department of Housing and Community Affairs to assist certain people to acquire and maintain homes. As proposed, S.J.R. 34 requires the submission to the voters of a constitutional amendment to authorize issuance of $30 million in general obligation bonds to provide funds to finance owner-built housing for low-income persons. 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 Article III, Texas Constitution, by adding Section 49-k, as follows: Sec. 49-k. (a) Permits the legislature by general law to authorize the Texas Department of Housing and Community Affairs (department) to issue and sell up to $30 million in general obligation bonds of the state. Requires the bonds to be called "Texas Housing Bonds" and to be issued and sold in forms and denominations, on terms, at times, in the manner, at places, and in installments the department determines. Requires the bonds to bear a rate or rates of interest the department determines, except that the legislature by general law is required to set the maximum net effective interest rate to be borne by the bonds. (b) Requires the obligation of the department or its successor under the agreements to make payments with respect to principal of or interest on the bonds to also constitute a general obligation of the state. (c) Requires all money from the sale of the bonds to be deposited in the department's housing trust fund administered by the department to finance a program of owner-built housing for low-income persons. Requires expenses of issuance of the bonds and administration of the fund to be paid from the fund. (d) Appropriates, out of the first money coming into the treasury in each fiscal year, an amount sufficient to pay the principal of and interest on the bonds, including principal and interest payments made by department under bond enhancement agreements. SECTION 2. Requires this proposed constitutional amendment to be submitted to the voters at an election to be held November 2, 1999. Sets forth the required language for the ballot.