| 1 | 1 | | By: Strama H.B. No. 4325 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the creation of a Sunny Day Fund to attract competitive |
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| 7 | 7 | | federal grants to Texas under the American Recovery and |
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| 8 | 8 | | Reinvestment Act. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Section 481, Government Code, is amended by |
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| 11 | 11 | | adding section 481.100 to read as follows: |
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| 12 | 12 | | Sec. 481.100 TEXAS RECOVERY AND REINVESTMENT FUND ("SUNNY |
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| 13 | 13 | | DAY FUND") |
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| 14 | 14 | | (a) The Texas Recovery and Reinvestment Fund is a dedicated |
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| 15 | 15 | | account in the Texas Economic Stabilization Fund. |
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| 16 | 16 | | (b) The following amounts shall be deposited in the fund: |
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| 17 | 17 | | (1) $1 billion from the Economic Stabilization Fund; |
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| 18 | 18 | | (2) any amounts appropriated by the legislature for |
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| 19 | 19 | | the fund for purposes described by this section; |
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| 20 | 20 | | (3) interest earned on the investment of money in the |
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| 21 | 21 | | fund; and |
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| 22 | 22 | | (4) gifts, grants, and other donations received for |
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| 23 | 23 | | the fund. |
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| 24 | 24 | | (c) The fund shall be used to provide matching grants to |
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| 25 | 25 | | entities who successfully receive competitive grants for |
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| 26 | 26 | | investments in Texas from the United States government pursuant to |
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| 27 | 27 | | the American Recovery and Reinvestment Act. |
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| 28 | 28 | | (d) Subject to the availability of funds, the governor's |
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| 29 | 29 | | office shall award a grant from the Texas Recovery and Reinvestment |
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| 30 | 30 | | Fund to any applicant who receives a competitive grant for |
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| 31 | 31 | | investments in Texas from the United States government pursuant to |
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| 32 | 32 | | the American Recovery and Reinvestment Act. |
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| 33 | 33 | | (e) In the event that qualifying applicants request more |
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| 34 | 34 | | than the amount of available funds for state grants under this |
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| 35 | 35 | | statute, priority shall be based on the date of the award of a |
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| 36 | 36 | | competitive federal grant to the applicant. |
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| 37 | 37 | | (f) The grant awarded shall be a dollar amount equal to |
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| 38 | 38 | | one-third of the total amount awarded to the applicant by: |
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| 39 | 39 | | (1) the United States government in the form of a |
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| 40 | 40 | | competitive grant pursuant to the American Recovery and |
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| 41 | 41 | | Reinvestment Act, and |
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| 42 | 42 | | (2) any private entity or entities awarded for the |
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| 43 | 43 | | same purpose as the federal award identified in subsection |
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| 44 | 44 | | 481.100(e)(1). |
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| 45 | 45 | | (g) The administration of the fund is considered to be a |
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| 46 | 46 | | trusteed program within the office of the governor. |
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| 47 | 47 | | (h) Before awarding a grant under this section, the governor |
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| 48 | 48 | | may enter into a written agreement with the entity to be awarded the |
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| 49 | 49 | | grant money specifying that: |
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| 50 | 50 | | (1) if all or any portion of the amount of the grant is |
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| 51 | 51 | | used to build a capital improvement: |
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| 52 | 52 | | (A) the state retains a lien or other interest in |
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| 53 | 53 | | the capital improvement in proportion to the percentage of the |
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| 54 | 54 | | grant amount used to pay for the capital improvement; and |
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| 55 | 55 | | (B) the recipient of the grant shall, if the |
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| 56 | 56 | | capital improvement is sold: |
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| 57 | 57 | | (i) repay to the state the grant money used |
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| 58 | 58 | | to pay for the capital improvement, with interest at the rate and |
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| 59 | 59 | | according to the other terms provided by the agreement; and |
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| 60 | 60 | | (ii) share with the state a proportionate |
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| 61 | 61 | | amount of any profit realized from the sale; and |
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| 62 | 62 | | (2) if, as of a date certain provided in the agreement, |
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| 63 | 63 | | the grant recipient has not used grant money awarded under this |
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| 64 | 64 | | section for the purposes for which the grant was intended, the |
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| 65 | 65 | | recipient shall repay that amount and any related interest to the |
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| 66 | 66 | | state at the agreed rate and on the agreed terms. |
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| 67 | 67 | | (i) The Texas Recovery and Reinvestment Fund shall cease to |
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| 68 | 68 | | exist on December 31, 2010 and all remaining amounts within the fund |
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| 69 | 69 | | shall be returned to the Texas Economic Stabilization Fund on that |
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| 70 | 70 | | date. |
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| 71 | 71 | | SECTION 2. This Act takes effect September 1, 2009. |
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