BILL ANALYSIS


                                                        H.B. 2490
                                       By: Patterson (Armbrister)
                                                    State Affairs
                                                          5-22-95
                              Senate Committee Report (Unamended)
BACKGROUND

The number of state-funded direct loans and loan guarantee programs
has grown considerably over the past two years.  The Legislative
Council recently studied the total number of agencies with loan
authority and the number of established loan programs.  According
to the review, 22 state agencies manage over 60 direct loan and
loan-guarantee programs.  These programs are designed to address
the needs of diverse constituencies through programs ranging from
the purchase of farm and ranch land and veterans' housing to
funding higher education.

PURPOSE

As proposed, H.B. 2490 requires an audit to be conducted of each
state agency that provides loans, loan guarantees, or capital
enhancing programs to determine the feasibility of combining the
administration of all the programs.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. CERTAIN LOAN PROGRAM AUDITS.  (a) Requires the
comptroller, in conjunction with the state auditor and the Banking
Department of Texas, to audit each state agency that provides
loans, loan guarantees, or other capital enhancing programs to
determine the feasibility of combining the administration of the
programs.  Requires the review to consider the efficiency of
current programs and the potential for improvement under a
consolidation.

     (b) Authorizes the state auditor to bill an affected agency
     for reimbursement of the costs of services for the audit.
     
     (c) Requires the audit to be completed by August 1, 1996.
     
     (d) Requires the comptroller, in conjunction with the auditor
     and the review of the Legislative Audit Committee, to
     determine the scope and level of the audit.
     
     (e) Subjects the audit records to the open records law,
     Chapter 552, Government Code, except that the financial
     records of an applicant or borrower are not a public record.
     
     (f) Requires the comptroller to report the audit results to
     the governor, lieutenant governor, and speaker of the house.
SECTION 2. Effective date: September 1, 1995.

SECTION 3. Emergency clause.