BWM H.B. 876 75(R)BILL ANALYSIS


FINANCIAL INSTITUTIONS
H.B. 876
By: Naishtat
3-11-97
Committee Report (Amended)



BACKGROUND 

As indicated in the Comptroller's report, Disturbing the Peace, there are
more than 70 state loan and loan guarantee programs, ranging from
education loans and grants to business development programs.  In most
cases, the agencies that administer the programs require different
applications for each program.   Most of the programs were created at
different times by the legislature and all have different requirements,
including different eligibility rules, credit underwriting requirements,
and purposes. 

PURPOSE

As filed, HB 876 would create an interagency committee to develop a
standardized application process for loan and loan guarantee programs.
The bill would require each chief executive officer to appoint an agency
employee to the interagency committee. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  DEFINITIONS.

SECTION 2.  COMMITTEE TO DEVELOP STANDARD LANGUAGE.  Requires each chief
executive officer of a state agency that administers loan or loan
guarantee programs to  appoint an employee to an interagency committee.
Specifies duties and meeting    requirements for the interagency
committee. 

SECTION 3.  REPORTS.  Requires the committee to report its findings and
recommendations to  the governor, lieutenant governor and speaker of the
house by December 31, 1998. 

SECTION 4.  Expiration date of January 1, 1999.

SECTION 5.  Emergency clause.

EXPLANATION OF AMENDMENTS

COMMITTEE AMENDMENT #1:  Committee Amendment #1 simply omits the Texas
Higher Education Board from inclusion in the definition of a "state
agency" in the bill, thus excepting the Texas Higher Education Board from
the interagency committee.