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.