HBA-EVB S.B. 762 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 762 By: Duncan Financial Institutions 4/24/1999 Engrossed BACKGROUND AND PURPOSE Currently, the Texas Department of Economic Development operates the Business Development Linked Deposit Program (BDLDP). The BDLDP is used to encourage commercial lending for the development of certain small businesses. The comptroller of public accounts places a linked deposit with eligible lending institutions that have received an approved loan application from an eligible borrower. Linked deposits are earning approximately 2.1 percent less than other state treasury returns. Current law prohibits more than $3 million from being placed in linked deposits. S.B. 762 increases the limit under Section 481.197 (Limitations in Program), Government Code, from $3 million to $6 million. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 481.197, Government Code, to prohibit more than $6 million, rather than $3 million, from being placed in linked deposits under this chapter. SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause.