By: J. Davis of Harris (Senate Sponsor - Hancock) H.B. No. 3578
(In the Senate - Received from the House May 6, 2013;
May 8, 2013, read first time and referred to Committee on Economic
Development; May 16, 2013, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 5, Nays 0;
May 16, 2013, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 3578 By: Hancock
A BILL TO BE ENTITLED
AN ACT
relating to the allocation and transfer of money from the capital
access fund by the Texas Economic Development Bank.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter BB, Chapter 481, Government Code, is
amended by adding Section 481.415 to read as follows:
Sec. 481.415. ALLOCATION AND TRANSFER OF MONEY FROM CAPITAL
ACCESS FUND. (a) Notwithstanding any other provision of this
subchapter, the bank may allocate money held in or due to the
capital access fund to programs administered by the bank under
Section 489.108 or Subchapter D, Chapter 489. The bank may transfer
money from the capital access fund to the Texas product development
fund or the Texas small business incubator fund.
(b) Notwithstanding Subchapter D, Chapter 489, the bank may
use money transferred under Subsection (a) to make loans to small or
medium-sized businesses, governmental entities, or nonprofit
organizations. A business, governmental entity, or nonprofit
organization that receives a loan under this subsection may:
(1) use the money for any project, activity, or
enterprise in this state that fosters economic development; or
(2) hold the money in a reserve account created as a
condition of the extension of the loan.
SECTION 2. Section 489.211(b), Government Code, is amended
to read as follows:
(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 under Section
481.415, 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.
SECTION 3. Section 489.212(b), Government Code, is amended
to read as follows:
(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 under Section
481.415, 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.
SECTION 4. This Act takes effect September 1, 2013.
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