HBA-NIK S.B. 1509 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1509
By: Truan
Land & Resource Management
4/21/1999
Engrossed



BACKGROUND AND PURPOSE 

Currently, laws regulating a veteran's right to purchase land tracts do not
address the issue of existing outstanding indebtedness, and prohibit a
veteran from purchasing multiple tracts of land. S.B. 1509 creates a
prohibition concerning the amount allocable to a home mortgage loan,
changes the maximum amount for certain veteran's loans, and authorizes the
Veterans' Land Board to make multiple loans to a veteran under certain
conditions. 

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 Section 161.236, Natural Resources Code, to prohibit a
veteran from purchasing, and having outstanding indebtedness on, more than
one tract of land under this chapter at any time. 

SECTION 2. Amends Section 162.011, Natural Resources Code, by amending
Subsection (c) and adding Subsection (f), as follows: 

(c) Requires the Veterans' Land Board (board) to determine the maximum
principal amount of loans to any veteran that may be outstanding at any
time, provided that the amount allocable to a home mortgage loan is
prohibited from exceeding the amount allowable for that loan through the
United States Department of Veterans Affairs or a successor agency. Deletes
existing text providing that a loan under this chapter to a veteran to
finance the acquisition of a home may not exceed $45,000. 

(f) Authorizes the board to make more than one loan under this chapter to a
veteran if all previous loans made under this chapter (Veterans' Housing
Assistance Program) to the veteran have been repaid in full, and only one
home is financed under this chapter by the veteran at any time. 

SECTION 3. Emergency clause.
  Effective date: upon passage.