BILL ANALYSIS C.S.H.J.R. 98 By: Patterson 05-02-95 Committee Report (Substituted) BACKGROUND The number of state-funded direct loans and loan guarantee program 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, twenty-two state agencies manage over sixty 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 veteran's housing to funding higher education. PURPOSE HJR 98 is a companion document to HB 2490 which consolidates and streamlines some 60 loan guarantee programs from twenty-two state agencies into a single agency established solely for the purpose of administering state loan programs. RULEMAKING AUTHORITY It is the committee's opinion that this resolution does not expressly grant 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 52-c, as follows: Sec. 52-c. Provides for the centralization of all loan and loan guarantee programs of the state. The legislature may provide that all administrative services and the issuance of bonds may be performed by a single agency or by one or more agencies as the legislature determines. An authorization in this constitution to issue bonds for a loan or loan guarantee program, or to implement such a program is not affected by this provision except to the extent the legislature provides that the legislature provides otherwise. SECTION 2. Ballot language. Election date: November 7, 1995. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute adds language that allows the legislature to allow other agencies to perform the loan and loan guarantee programs, whereas the original had no such provision. SUMMARY OF COMMITTEE ACTION Pursuant to posting of public notice, the Committee on State Affairs convened in a public hearing on April 19, 1995 to consider HJR 98. The Chair laid out HJR 98 and recognized Rep. Black to explain the resolution. The Chair recognized Rep. Black to close. The Chair left HJR 98 pending. In a public hearing on April 24, 1995, the Chair laid out HJR 98. A complete committee substitute was considered. The substitute was adopted without objection. HJR 98 was reported favorably as substituted with the recommendation that it do pass and be printed which prevailed by a record vote of 13 ayes, 0 nays, 0 pnv, 2 absent.