By Patterson H.B. No. 2490 74R7765 RJA-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the creation, administration, and operation of the 1-3 Texas Development Bank to administer state-funded loan and loan 1-4 guarantee programs. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. DEFINITIONS. In this Act: 1-7 (1) "Board" means the board of the development bank. 1-8 (2) "Development bank" means the Texas Development 1-9 Bank. 1-10 SECTION 2. TEXAS DEVELOPMENT BANK. The Texas Development 1-11 Bank is an agency of the state. 1-12 SECTION 3. BOARD MEMBERSHIP. (a) The board is composed of 1-13 nine members as provided by this section. 1-14 (b) The commissioner of agriculture, the commissioner of the 1-15 General Land Office, and the comptroller of public accounts serve 1-16 as members of the board. Each of these officers may designate a 1-17 person to act on the board on behalf of the officer. 1-18 (c) The governor shall appoint four members of the board as 1-19 follows: 1-20 (1) one person who: 1-21 (A) is on a list supplied by the speaker of the 1-22 house of representatives; and 1-23 (B) represents a small, locally owned community 1-24 bank; 2-1 (2) one person who represents a banking financial 2-2 institution; 2-3 (3) one person who is: 2-4 (A) on a list supplied by the speaker of the 2-5 house of representatives; and 2-6 (B) an agriculture producer; and 2-7 (4) one person who represents the public finance 2-8 industry. 2-9 (d) The lieutenant governor shall appoint two members of the 2-10 board as follows: 2-11 (1) one person who is a small business owner; and 2-12 (2) one person who is a representative of a 2-13 historically underutilized business. 2-14 (e) An appointed member of the board serves at the pleasure 2-15 of the appointing official. 2-16 SECTION 4. PRESIDING OFFICER; MEETINGS. (a) The governor 2-17 shall select a presiding officer from the governor's appointees. 2-18 (b) The board shall meet at least monthly and at the call of 2-19 the presiding officer or of a majority of the members, as provided 2-20 by board rule. 2-21 SECTION 5. COMPENSATION; EXPENSES. A board member is not 2-22 entitled to receive compensation, but is entitled to reimbursement 2-23 of the member's travel expenses as provided in the General 2-24 Appropriations Act. 2-25 SECTION 6. APPLICATION OF OPEN RECORDS AND OPEN MEETINGS 2-26 LAW. (a) The development bank is subject to the open records law, 2-27 Chapter 552, Government Code, except that the financial records of 3-1 an individual are not a public record. 3-2 (b) The board is subject to the open meetings law, Chapter 3-3 551, Government Code, except that the board is not required to 3-4 conduct an open meeting to discuss the financial matters of an 3-5 individual. 3-6 SECTION 7. EXCLUSIVE AUTHORITY. (a) The development bank 3-7 has the exclusive authority to act as the administrator of 3-8 state-funded loan and loan guarantee programs, including approving 3-9 and servicing loans. The powers and duties of an entity required 3-10 by other law to administer a loan or loan guarantee program 3-11 relating to administering the program are transferred to the 3-12 development bank, and the entity shall transfer all records 3-13 relating to the program to the development bank. 3-14 (b) The authority provided by law for the issuance of bonds 3-15 and refunding bonds issued to fund programs administered by the 3-16 development bank is transferred to the development bank. The 3-17 development bank is subject to all rights, duties, and conditions 3-18 provided by law with respect to issuance of bonds by the entity 3-19 from which the authority is transferred. 3-20 SECTION 8. CHIEF OPERATING OFFICER; EMPLOYEES. (a) The 3-21 board shall employ a chief operating officer of the development 3-22 bank. The board may delegate to the officer any of the board's 3-23 powers and duties. 3-24 (b) The chief operating officer may employ persons necessary 3-25 for the proper management of the development bank. 3-26 SECTION 9. LENDING AUTHORITY. (a) The board by rule shall 3-27 establish a breakdown of lending authority within the development 4-1 bank. 4-2 (b) The chief operating officer shall establish the loan 4-3 authority of the development bank's employees within board rules. 4-4 SECTION 10. COST-BENEFIT ANALYSIS. Every fourth year, the 4-5 board in conjunction with the comptroller shall conduct a 4-6 cost-benefit analysis of the state-funded loan and loan guarantee 4-7 programs and shall report to the legislature at the regular session 4-8 convening in 1999 and every fourth year thereafter on the 4-9 effectiveness of the programs. 4-10 SECTION 11. EFFECTIVE DATE. This Act takes effect September 4-11 1, 1995. 4-12 SECTION 12. EMERGENCY. The importance of this legislation 4-13 and the crowded condition of the calendars in both houses create an 4-14 emergency and an imperative public necessity that the 4-15 constitutional rule requiring bills to be read on three several 4-16 days in each house be suspended, and this rule is hereby suspended.