Texas 2009 - 81st Regular

Texas House Bill HB4133 Compare Versions

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1	1	81R30100 ATP-D
2	2	By: Swinford H.B. No. 4133
3	3	Substitute the following for H.B. No. 4133:
4	4	By: Solomons C.S.H.B. No. 4133
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the creation of the Texas Export Financial Assistance
10	10	Guarantee Program.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subtitle F, Title 4, Government Code, is amended
13	13	by adding Chapter 482 to read as follows:
14	14	CHAPTER 482. TEXAS EXPORT FINANCIAL ASSISTANCE GUARANTEE PROGRAM
15	15	SUBCHAPTER A. GENERAL PROVISIONS
16	16	Sec. 482.001. DEFINITIONS. In this chapter:
17	17	(1) "Financial institution" has the meaning assigned
18	18	by Section 31.002, Finance Code.
19	19	(2) "Fund" means the Texas export financial assistance
20	20	guarantee program fund.
21	21	(3) "Office" means the Texas Economic Development and
22	22	Tourism Office.
23	23	(4) "Participating financial institution" means an
24	24	eligible financial institution that makes loans guaranteed under
25	25	the program.
26	26	(5) "Program" means the Texas Export Financial
27	27	Assistance Guarantee Program established under this chapter.
28	28	(6) "Qualified export product" means a product
29	29	described by Section 482.051.
30	30	Sec. 482.002. PURPOSES; ESTABLISHMENT OF PROGRAM. (a) The
31	31	purposes of the program include:
32	32	(1) promoting Texas as an exporter in the
33	33	international arena;
34	34	(2) accelerating delivery of products manufactured in
35	35	Texas to international markets; and
36	36	(3) stimulating the economy of this state by creating
37	37	manufacturing jobs and tax bases.
38	38	(b) To accomplish the purposes described by Subsection (a),
39	39	the office shall establish the Texas Export Financial Assistance
40	40	Guarantee Program to guarantee a portion of loans made to eligible
41	41	manufacturers by participating financial institutions to
42	42	facilitate the manufacture of qualified products in Texas for
43	43	international export.
44	44	Sec. 482.003. ADMINISTRATION BY OFFICE OF ECONOMIC
45	45	DEVELOPMENT AND TOURISM; RULES. The office shall administer the
46	46	program under this chapter and shall adopt rules as necessary for
47	47	the administration of the program, including rules regarding the
48	48	use of money in the fund for administrative costs.
49	49	[Sections 482.004-482.050 reserved for expansion]
50	50	SUBCHAPTER B. MANUFACTURERS OF QUALIFIED EXPORT PRODUCTS
51	51	Sec. 482.051. QUALIFIED EXPORT PRODUCTS. A person may
52	52	obtain a loan guarantee under the program with respect to the
53	53	manufacture of a product if the product:
54	54	(1) is manufactured in Texas;
55	55	(2) will be exported to an international market; and
56	56	(3) relates to one or more of the following preferred
57	57	manufacturing industries:
58	58	(A) alternative energies;
59	59	(B) medical goods;
60	60	(C) green technologies;
61	61	(D) high fuel efficiency vehicles;
62	62	(E) water conservation and purification
63	63	technologies; or
64	64	(F) scientific goods.
65	65	Sec. 482.052. MANUFACTURER EXPERIENCE. A manufacturer may
66	66	obtain a loan guarantee under the program for costs associated with
67	67	the manufacture of a qualified export product only after the
68	68	manufacturer has been in the business of manufacturing the same or a
69	69	substantially similar product for at least two years.
70	70	Sec. 482.053. LETTER OF CREDIT AND OTHER FINANCIAL
71	71	REQUIREMENTS. (a) To obtain a loan guarantee under the program, a
72	72	manufacturer must provide to a participating financial institution
73	73	a letter of credit or other documentation evidencing a creditworthy
74	74	customer's undertaking to pay for the manufacturer's products.
75	75	(b) A financial institution may impose other requirements
76	76	on the manufacturer as the financial institution considers
77	77	necessary to conform to prudent lending practices.
78	78	Sec. 482.054. MAXIMUM AMOUNT TO BE FINANCED. (a) A loan to
79	79	be guaranteed under the program may finance an amount not to exceed
80	80	80 percent of the costs to be incurred in manufacturing the products
81	81	to be purchased under the letter of credit or other documentation
82	82	described by Section 482.053(a). A financial institution may
83	83	require that a manufacturer demonstrate that the manufacturer has
84	84	the ability to finance the remaining 20 percent of the products'
85	85	manufacturing costs.
86	86	(b) A participating financial institution may not lend any
87	87	single manufacturer more than $5 million for purposes of this
88	88	chapter.
89	89	Sec. 482.055. USE OF LOAN PROCEEDS. A manufacturer must use
90	90	the proceeds of a loan guaranteed under the program only to finance
91	91	the costs of manufacturing in this state a product for
92	92	international export.
93	93	Sec. 482.056. DURATION; REAPPLICATION. A manufacturer may
94	94	not receive any portion of the proceeds of a loan guaranteed under
95	95	the program after the fifth anniversary of the date on which the
96	96	manufacturer first received loan proceeds under the program unless
97	97	the manufacturer and financial institution reapply for the loan
98	98	guarantee in the same manner as a person who has not previously
99	99	applied for a loan guarantee under the program.
100	100	[Sections 482.057-482.100 reserved for expansion]
101	101	SUBCHAPTER C. LOAN GUARANTEE PROGRAM
102	102	Sec. 482.101. FINANCIAL INSTITUTION PARTICIPATION. (a)
103	103	The office shall by rule determine criteria for a financial
104	104	institution to apply for loan guarantees under the program.
105	105	(b) If multiple financial institutions are used by a single
106	106	manufacturer that applies to participate in the program, the office
107	107	shall designate one financial institution as the lead financial
108	108	institution that shall solely hold the state's guarantee.
109	109	Sec. 482.102. TERMS OF LOAN. A participating financial
110	110	institution shall set the terms of a loan to be guaranteed under the
111	111	program. The terms must conform to prudent banking practices.
112	112	Sec. 482.103. PERFORMANCE OF DUE DILIGENCE. A
113	113	participating financial institution shall perform due diligence
114	114	before making a loan to be guaranteed under the program. This state
115	115	is not required to perform due diligence before guaranteeing a loan
116	116	under the program.
117	117	Sec. 482.104. LOAN GUARANTEE APPROVAL; SUBMISSION TO
118	118	OFFICE. (a) Not later than the 30th day after the date on which a
119	119	participating financial institution receives a complete
120	120	application for a loan to be guaranteed under the program and all
121	121	necessary supporting documentation, including the letter of credit
122	122	or other documentation described by Section 482.053(a), the
123	123	financial institution must perform due diligence and approve or
124	124	deny the loan.
125	125	(b) As soon as practicable after approving a loan to be
126	126	guaranteed under the program, a participating financial
127	127	institution shall submit an application for a loan guarantee to the
128	128	office. The application for the loan guarantee must include the
129	129	completed loan application approved by the financial institution,
130	130	all supporting documentation, including the letter of credit or
131	131	other documentation described by Section 482.053(a), and any other
132	132	information or documentation required by office rule.
133	133	(c) Not later than the 10th business day after the date the
134	134	office receives a complete application for a loan guarantee, the
135	135	office shall determine whether to guarantee the loan.
136	136	Sec. 482.105. AMOUNT OF STATE GUARANTEE. (a) This state
137	137	may guarantee up to 50 percent of the amount of a loan made by a
138	138	participating financial institution under this chapter, except
139	139	that this state may guarantee a greater amount as provided by
140	140	Subsection (b).
141	141	(b) This state may guarantee a percentage of the amount of a
142	142	loan made by a participating financial institution under this
143	143	chapter that is equal to the percentage of raw materials obtained
144	144	from Texas sources used to manufacture the product, except that the
145	145	percentage of the loan amount guaranteed under this subsection may
146	146	not exceed 80 percent.
147	147	Sec. 482.106. SERVICE OF LOAN. A participating financial
148	148	institution shall service any loan made by the institution under
149	149	the program, collect payments on the loan, and pay this state
150	150	accordingly.
151	151	Sec. 482.107. FEE FOR GUARANTEE OF LOAN. (a) Every six
152	152	months, a participating financial institution shall pay to the
153	153	office a 25-basis-point fee applied to the outstanding balance of
154	154	the state's guaranteed portion of loans made by the financial
155	155	institution under the program.
156	156	(b) The office shall by rule prescribe the manner in which a
157	157	financial institution must pay the fee required under this section.
158	158	[Sections 482.108-482.150 reserved for expansion]
159	159	SUBCHAPTER D. ADMINISTRATION BY AND DUTIES OF OFFICE
160	160	Sec. 482.151. OFFICE REQUIREMENTS FOR PARTICIPATING
161	161	FINANCIAL INSTITUTIONS. The office shall:
162	162	(1) have final approval of any financial institutions
163	163	that apply for participation in the program;
164	164	(2) establish a structured application process for a
165	165	financial institution to apply for a guarantee under the program of
166	166	a loan made by the financial institution; and
167	167	(3) establish eligibility criteria for a financial
168	168	institution to participate in the program.
169	169	Sec. 482.152. ANNUAL AUDIT. The office shall perform an
170	170	annual audit of the program.
171	171	Sec. 482.153. BIENNIAL REPORT TO LEGISLATURE. Not later
172	172	than January 1 of each odd-numbered year, the office shall submit a
173	173	report on the program to the legislature. The report must include:
174	174	(1) the amounts of loans guaranteed under the program;
175	175	(2) the uses of loans guaranteed under the program;
176	176	(3) an assessment of whether the program has
177	177	accomplished the stated purposes of this chapter;
178	178	(4) the number of jobs created as a result of the
179	179	program; and
180	180	(5) the income, including tax revenue, received by
181	181	this state as a result of the program.
182	182	[Sections 482.154-482.200 reserved for expansion]
183	183	SUBCHAPTER E. TEXAS EXPORT FINANCIAL ASSISTANCE GUARANTEE PROGRAM
184	184	FUND
185	185	Sec. 482.201. ESTABLISHMENT OF FUND. (a) The Texas export
186	186	financial assistance guarantee program fund is a dedicated account
187	187	in the general revenue fund.
188	188	(b) The following amounts shall be deposited in the fund:
189	189	(1) any amounts appropriated by the legislature for
190	190	the fund;
191	191	(2) gifts, grants, and other donations received for
192	192	the fund; and
193	193	(3) income and interest earned on the investment of
194	194	money in the fund.
195	195	(c) The fund may be used only:
196	196	(1) to guarantee loans made as provided by this
197	197	chapter; and
198	198	(2) for the administration of the program.
199	199	SECTION 2. Section 481.078, Government Code, is amended by
200	200	adding Subsection (c-1) to read as follows:
201	201	(c-1) The fund may be used to support the Texas Export
202	202	Financial Assistance Guarantee Program to the extent that
203	203	sufficient amounts are unavailable in the Texas export financial
204	204	assistance guarantee program fund to make payments as required by a
205	205	guarantee made under Chapter 482 for a defaulted loan, the full
206	206	repayment of which is unrecoverable under the letter of credit or
207	207	other documentation described by Section 482.053(a) or from the
208	208	borrower's assets.
209	209	SECTION 3. This Act takes effect immediately if it receives
210	210	a vote of two-thirds of all the members elected to each house, as
211	211	provided by Section 39, Article III, Texas Constitution. If this
212	212	Act does not receive the vote necessary for immediate effect, this
213	213	Act takes effect September 1, 2009.