1-1  By:  Armbrister                                        S.B. No. 377
    1-2        (In the Senate - Filed April 18, 1995; April 18, 1995, read
    1-3  first time and referred to Committee on State Affairs; May 8, 1995,
    1-4  reported adversely, with favorable Committee Substitute by the
    1-5  following vote:  Yeas 12, Nays 0; May 8, 1995, sent to printer.)
    1-6  COMMITTEE SUBSTITUTE FOR S.B. No. 377               By:  Armbrister
    1-7                         A BILL TO BE ENTITLED
    1-8                                AN ACT
    1-9  relating to state agency loan and loan guarantee programs.
   1-11        SECTION 1.  CERTAIN LOAN PROGRAM AUDITS.  (a)  The
   1-12  comptroller of public accounts, in conjunction with the state
   1-13  auditor and the Texas Department of Banking, shall audit each state
   1-14  agency loan and loan guarantee program to determine the:
   1-15              (1)  personnel costs and other administrative costs
   1-16  associated with the program;
   1-17              (2)  cost versus benefit of the program;
   1-18              (3)  loan expertise of management in the agency
   1-19  administering the program;
   1-20              (4)  adequacy of program delivery systems;
   1-21              (5)  privatization potential of loan systems;
   1-22              (6)  underwriting standards used for the program;
   1-23              (7)  geographical distribution of loans in the program;
   1-24              (8)  degree of participation with financial
   1-25  institutions and other lender organizations;
   1-26              (9)  demographic distribution of loan recipients;
   1-27              (10)  default and past due rates of loans in the
   1-28  program; and
   1-29              (11)  disposition of loan proceeds.
   1-30        (b)  The state auditor may bill an affected agency for
   1-31  reimbursement of the costs of services for the audit required by
   1-32  this section.
   1-33        (c)  The comptroller of public accounts shall complete the
   1-34  audit not later than August 1, 1996.
   1-35        (d)  The comptroller of public accounts, in conjunction with
   1-36  the Office of the State Auditor, shall establish the scope and
   1-37  level of the audit under this section after review by the
   1-38  Legislative Audit Committee.
   1-39        (e)  The audit records are subject to the open records law,
   1-40  Chapter 552, Government Code, as provided by other law, except that
   1-41  the financial records of an applicant or borrower are not a public
   1-42  record.
   1-43        SECTION 2.  EFFECTIVE DATE.  This Act takes effect September
   1-44  1, 1995.
   1-45        SECTION 3.  EMERGENCY.  The importance of this legislation
   1-46  and the crowded condition of the calendars in both houses create an
   1-47  emergency and an imperative public necessity that the
   1-48  constitutional rule requiring bills to be read on three several
   1-49  days in each house be suspended, and this rule is hereby suspended.
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