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.