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.