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.