By Patterson H.B. No. 2343
74R6656 LJR-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to state loan guarantees for certain businesses.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapter D, Chapter 481, Government Code, is
1-5 amended by adding Section 481.0591 to read as follows:
1-6 Sec. 481.0591. GUARANTEE-TO-RESERVE RATIO. (a) The
1-7 department may guarantee loans as provided by Section 481.059 in an
1-8 amount that exceeds the amount available in the fund. Loan
1-9 guarantees may not exceed the guarantee-to-reserve ratio set by the
1-10 policy board under Subsection (b).
1-11 (b) The policy board by rule shall adopt a
1-12 guarantee-to-reserve ratio that determines the amount of loan
1-13 guarantees that may be made that exceed the amount available in the
1-14 fund. The ratio of guarantees to the amount of money available in
1-15 the fund may not exceed three to one.
1-16 (c) The policy board shall review the guarantee-to-reserve
1-17 ratio annually and adjust the ratio as appropriate. In reviewing
1-18 the guarantee-to-reserve ratio, the policy board shall consider the
1-19 payment experience of the loans and any recommendations of the
1-20 state auditor as provided by Subsection (d).
1-21 (d) The state auditor shall review the loan guarantee
1-22 program and payment activity and make recommendations based on that
1-23 review to the policy board about the program and the
1-24 guarantee-to-reserve ratio. A recommendation to the policy board
2-1 shall be made not later than September 1 of each year.
2-2 SECTION 2. Section 481.0842(b), Government Code, is amended
2-3 to read as follows:
2-4 (b) The policy board by rule shall adopt a
2-5 guarantee-to-reserve ratio that determines the amount of loan
2-6 guarantees that may be made that exceed the amount available in the
2-7 fund. The ratio of guarantees to the amount of money available in
2-8 the fund may not exceed three <two> to one.
2-9 SECTION 3. The importance of this legislation and the
2-10 crowded condition of the calendars in both houses create an
2-11 emergency and an imperative public necessity that the
2-12 constitutional rule requiring bills to be read on three several
2-13 days in each house be suspended, and this rule is hereby suspended,
2-14 and that this Act take effect and be in force from and after its
2-15 passage, and it is so enacted.