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.