By: J. Davis of Harris H.B. No. 3578
A BILL TO BE ENTITLED
AN ACT
relating to the allocation of Texas Economic Development Bank
resources.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter BB, Section 481, Government Code, is
amended by adding Section 481.415 to read as follows:
SECTION 481.415. ALLOCATION OF BANK RESOURCES
Sec. 481.415. ALLOCATION OF BANK RESOURCES.
Notwithstanding other provisions in this subchapter, the bank may
allocate resources, including money held in, or due to, the Capital
Access Fund account in the General Revenue fund, to bank programs
specified in Section 489.108, Government Code and Chapter 489,
Subchapter D, Texas Government Code. The bank is specifically
authorized to transfer funds held and deposited to the Capital
Access Fund to the Product Development Fund created in Section
489.211, Government Code and the Small Business Incubator Fund
created in Section 489.212, Government Code. Funds transferred by
the bank be used by the bank, without further limitation, to make
loans to a small or medium-sized business or to a nonprofit
organization; be used by the business, governmental or nonprofit
organization for any project, activity, or enterprise in this state
that fosters economic development; or be held in reserve accounts
created as a condition for the extension of financial assistance by
the bank.
SECTION 2. Chapter 489, Government Code, is amended as
follows:
Sec. 489.211. TEXAS PRODUCT DEVELOPMENT FUND. (a) The
Texas product development fund is a revolving fund in the state
treasury.
(b) The product fund is composed of proceeds of bonds issued
under this subchapter, financing application fees, loan
repayments, guarantee fees, royalty receipts, dividend income,
money appropriated by the legislature for authorized purposes of
the product fund, amounts received by the state from loans, loan
guarantees, and equity investments made under this subchapter,
amounts received by the state from federal grants or other sources,
amounts transferred from the Capital Access Fund pursuant to
Section 481.415, Government Code, and any other amounts received
under this subchapter and required by the bank to be deposited in
the product fund. The product fund contains a program account, an
interest and sinking account, and other accounts that the bank
authorizes to be created and maintained. Money in the product fund
is available for use by the board under this subchapter. Investment
earnings under the product fund must be transferred to the fund
created under Section 489.105. Notwithstanding any other provision
of this subchapter, any money in the product fund may be used for
debt service.
(c) Money in the program account of the product fund, minus
the costs of issuance of bonds under this subchapter and necessary
costs of administering the product fund, may be used only to provide
financing to aid in the development and production, including the
commercialization, of new or improved products in this state. The
bank shall provide financing from the product fund on the terms and
conditions that the bank determines to be reasonable, appropriate,
and consistent with the purposes and objectives of the product fund
and this subchapter, for the purpose of aiding in the development
and production of new or improved products in this state.
Sec. 489.212. SMALL BUSINESS INCUBATOR FUND. (a) The Texas
small business incubator fund is a revolving fund in the state
treasury.
(b) The small business fund is composed of proceeds of bonds
issued under this subchapter, financing application fees, loan
repayments, guarantee fees, royalty receipts, dividend income,
money appropriated by the legislature for authorized purposes of
the small business fund, amounts received by the state from loans,
loan guarantees, and equity investments made under this subchapter,
amounts received by the state from federal grants or other sources,
amounts transferred from the Capital Access Fund pursuant to
Section 481.415, Government Code, and any other amounts received
under this subchapter and required by the bank to be deposited in
the small business fund. The small business fund contains a project
account, an interest and sinking account, and other accounts that
the bank authorizes to be created and maintained. Money in the small
business fund is available for use by the board under this
subchapter. Investment earnings under the small business fund must
be transferred to the fund created under Section 489.105.
Notwithstanding any other provision of this subchapter, any money
in the small business fund may be used for debt service.
(c) Money in the project account of the small business fund,
minus the costs of issuance of bonds under this subchapter and
necessary costs of administering the small business fund, may be
used only to provide financing to foster and stimulate the
development of small businesses in this state. The bank shall
provide financing from the small business fund on the terms and
conditions that the bank determines to be reasonable, appropriate,
and consistent with the purposes and objectives of the small
business fund and this subchapter, for the purpose of fostering and
stimulating the development of new or existing small businesses in
this state.
SECTION 3. This Act takes effect September 1, 2013.