BILL ANALYSIS


                                                     C.S.S.B. 377
                                                   By: Armbrister
                                                    State Affairs
                                                         05-12-95
                                   Committee Report (Substituted)
BACKGROUND

Currently, there is no procedure for auditing agencies which have
loan and loan guarantee programs in the state.  

PURPOSE

As proposed, C.S.S.B. 377 creates the Texas Development Bank to
administer state agency loan and loan guarantee programs and to
engage in capital formation initiatives to further the state's
economic and community development goals of job creation and
retention.

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.  Sets forth the information
the comptroller, in conjunction  with the state auditor and the
Texas Department of Banking, is required to determine regarding
each state agency loan and loan guarantee program.

     (b)  Authorizes the state auditor to bill an affected agency
     for reimbursement of the costs of services for the audit
     required by this section.
     
     (c)  Requires the comptroller to complete the audit not later
     than January 1, 1996.
     
     (d)  Requires the comptroller, in conjunction with the state
     auditor, to establish the scope and level of the audit under
     this section after review by the Legislative Audit Committee.
     
     (e)  Provides that the audit records are subject to the open
     records law, Chapter 552, Government Code, as provided by
     other law, except that the financial records of an applicant
     or borrower are not a public record.
SECTION 2. Effective date: September 1, 1995.

SECTION 3. Emergency clause.