SRC-DBM S.B. 762 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 762
By: Duncan
Finance
3/18/1999
As Filed


DIGEST 

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.  S.B. 762
would prohibit more than $6 million from being placed in linked deposits.  

PURPOSE

As proposed, S.B. 762 limits the amount of funds placed in linked deposits.

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

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.