By: Button, et al. H.B. No. 1277
COMMITTEE SUBSTITUTE FOR H.B. No. 1277By: Harris By: Harris
(In the Senate - Received from the House May 14, 2009;
May 15, 2009, read first time and referred to Committee on Economic
Development; May 25, 2009, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 5, Nays 0;
May 25, 2009, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the Texas Enterprise Fund, including the use of money
from the fund, the terms of a grant agreement, and the duties of a
grant recipient or entity that acquires a grant recipient.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) Money appropriated from the Texas
Enterprise Fund under Section 481.078, Government Code, for the
state fiscal biennium beginning September 1, 2009, and ending
August 31, 2011, may be used for incentives to retain businesses in
this state that are considering relocating to a location outside of
this state, including a location outside of the United States.
(b) This section expires January 1, 2012.
SECTION 2. Section 481.078, Government Code, is amended by
amending Subsection (c) and adding Subsection (m) to read as
follows:
(c) Except as provided by Subsection (d), the fund may be
used only for economic development, infrastructure development,
community development, job training programs, and business
incentives, including incentives to retain businesses in this state
that are considering relocating to a location outside of this
state, including a location outside of the United States, subject
to Subsection (m).
(m) This subsection applies only to a state fiscal biennium
on the first day of which the unemployment rate for this state, as
determined by the federal Bureau of Labor Statistics, is seven
percent or more. Money appropriated from the fund for a state
fiscal biennium to which this subsection applies may be used for
incentives to retain businesses in this state that are considering
relocating to a location outside of this state, including a
location outside of the United States.
SECTION 3. Section 481.078, Government Code, is amended by
adding Subsections (f-1) and (f-2) to read as follows:
(f-1) An entity that acquires, by merger, acquisition, or
other transfer, ownership or control of a grant recipient shall:
(1) report the change in ownership or control to the
governor; and
(2) comply with the terms and conditions of the grant
agreement entered into by the grant recipient and any other
requirement imposed on the grant recipient in connection with the
grant award.
(f-2) The grant agreement must include a provision
regarding the requirements of Subsection (f-1). A grant recipient
that is the subject of a merger, acquisition, or other transfer of
ownership or control shall include language in each contract
relating to the transfer that informs the acquiring entity of its
duties and obligations under Subsection (f-1).
SECTION 4. Sections 481.078(f-1) and (f-2), Government
Code, as added by this Act, apply only to an agreement that is
entered into on or after the effective date of this Act. An
agreement that is entered into before the effective date of this Act
is governed by the law in effect on the date the agreement was
entered into, and the former law is continued in effect for that
purpose.
SECTION 5. (a) Except as provided by Subsection (b) of this
section, this Act takes effect September 1, 2009.
(b) Section 2 of this Act takes effect September 1, 2011.
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