Public Chapter 537

HOUSE BILL NO. 1804

By Representatives McDaniel, Wood, Stamps, Davis

Substituted for: Senate Bill No. 1943

By Senators Atchley, Henry, McNally, Koella, Ramsey, Carter, Gilbert, Person, Elsea, Crowe

AN ACT to amend Tennessee Code Annotated, Title 13, Chapter 23, relative to the Tennessee Housing Development Agency.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

SECTION 1. Tennessee Code Annotated, Section 13-23-401, is amended by adding the following as new subsections:

( ) Notwithstanding the provisions of this section to the contrary, at year end of the fiscal year ending June 30, 1998, an amount not to exceed sixty-five million dollars ($65,000,000) of the unexpended balance of the funds in the assets fund may, at the discretion of the Commissioner of Finance and Administration, be transferred to the State General Fund. It is hereby declared to be the legislative intent that the transfer authorized herein shall be mitigated to the fullest extent possible pursuant to the applicable provisions contained in the General Appropriation Act for the year ending June 30, 1998.

( ) Beginning in the fiscal year beginning July 1, 1998, funds received by the agency pursuant to Tennessee Code Annotated, section 13-23-402(a)(2) and Tennessee Code Annotated, Section 13-23-402(a)(3), in excess of ten million dollars ($10,000,000) each fiscal year shall be transferred to the assets fund until the assets fund has a fiscal year end balance of fifty million dollars ($50,000,000); thereafter, no such funds shall be transferred to the assets fund but shall be applied in accordance with Tennessee Code Annotated, Section 13-23-403.

SECTION 2. Tennessee Code Annotated, Section 13-23-402 is amended by adding the following as a new subsection:

( ) Notwithstanding the provisions of subsection (a) of this section, for the fiscal years ending June 30, 1997, and June 30, 1998, all allocations of tax revenues directed to the agency by subsections (a)(2) and (a)(3) of this section in excess of six million dollars ($6,000,000) each fiscal year shall be reallocated to the State General Fund; thereafter, no such reallocation shall be made.

SECTION 3. Tennessee Code Annotated, Section 13-23-403, is amended by deleting subdivision (a)(2) in its entirety and by renumbering subsequent subdivisions accordingly.

SECTION 4. Tennessee Code Annotated, Section 13-23-403, is amended by deleting subsection (c) in its entirety and by renumbering subsequent subsections accordingly.

SECTION 5. Tennessee Code Annotated, Section 13-23-404, is amended by adding the following as a new subsection:

( ) Notwithstanding the provisions of subsection (a) of this section, at year end of the fiscal year ending June 30, 1998, all of the unexpended balance of funds in the housing program reserve fund shall be transferred to the State General Fund. Once these funds have been transferred, the housing program reserve fund shall be abolished and Tennessee Code Annotated, Section 13-23-404, shall be repealed.

SECTION 6. This act shall take effect upon becoming law, the public welfare requiring it.