84R4460 CLG-D
By: Ashby H.B. No. 2667
A BILL TO BE ENTITLED
AN ACT
relating to the abolishment of certain programs and funds
administered by the Texas Economic Development Bank.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The following laws are repealed:
(1) Subchapter N, Chapter 481, Government Code;
(2) Subchapter BB, Chapter 481, Government Code;
(3) Subchapter D, Chapter 489, Government Code; and
(4) Chapter 503, Local Government Code.
SECTION 2. Section 447.013, Government Code, is amended by
amending Subsection (i) and adding Subsection (j) to read as
follows:
(i) A recipient of a grant or loan under this section is
encouraged to purchase goods and services from small businesses and
historically underutilized businesses[, as those terms are defined
by Section 481.191, Government Code].
(j) For the purposes of Subsection (i):
(1) "Historically underutilized business" means:
(A) a corporation formed for the purpose of
making a profit in which at least 51 percent of all classes of the
shares of stock or other equitable securities is owned by one or
more persons who are members of certain groups, including black
Americans, Hispanic Americans, women, Asian Pacific Americans, and
American Indians;
(B) a sole proprietorship formed for the purpose
of making a profit that is 100 percent owned, operated, and
controlled by a person described by Paragraph (A);
(C) a partnership formed for the purpose of
making a profit in which 51 percent of the assets and interest in
the partnership is owned by one or more persons described by
Paragraph (A). Those persons must have proportionate interest and
demonstrate active participation in the control, operation, and
management of the partnership's affairs; or
(D) a joint venture in which each entity in the
joint venture is a historically underutilized business under this
subdivision.
(2) "Small business" means a corporation,
partnership, sole proprietorship, or other legal entity that:
(A) is domiciled in this state;
(B) is formed to make a profit;
(C) is independently owned and operated; and
(D) employs fewer than 100 full-time employees.
SECTION 3. Section 489.105(b), Government Code, is amended
to read as follows:
(b) The fund consists of:
(1) appropriations for the implementation and
administration of this chapter;
(2) [investment earnings under the capital access fund
established under Section 481.402;
[(3) fees charged under Subchapter BB, Chapter 481;
[(4)] interest earned on the investment of money in
the fund;
(3) [(5)] fees charged under this chapter;
(4) [(6)] investment earnings from the programs
administered by the bank;
(5) [(7)] amounts transferred under Section
2303.504(b), as amended by Article 2, Chapter 1134, Acts of the 77th
Legislature, Regular Session, 2001; and
(6) [(8) investment earnings under the Texas product
development fund under Section 489.211;
[(9) investment earnings under the Texas small
business incubator fund under Section 489.212; and
[(10)] any other amounts received by the state under
this chapter.
SECTION 4. Section 489.108, Government Code, is amended to
read as follows:
Sec. 489.108. PROGRAMS, SERVICES, AND FUNDS UNDER BANK'S
DIRECTION. Notwithstanding any other law, the bank shall perform
the duties and functions of the office with respect to the following
programs, services, and funds:
(1) [the Texas Small Business Industrial Development
Corporation established under Chapter 503, Local Government Code;
[(2) the capital access program established under
Section 481.405;
[(3)] the Texas leverage fund;
(2) [(4) the linked deposit program established under
Section 481.193;
[(5)] the enterprise zone program established under
Chapter 2303;
(3) [(6)] the industrial revenue bond program;
(4) [(7)] the defense economic readjustment zone
program established under Chapter 2310;
(5) [(8)] the Empowerment Zone and Enterprise
Community grant program established under Section 481.025; and
(6) [(9)] the renewal community program.
SECTION 5. Section 39.909(a), Utilities Code, is amended to
read as follows:
(a) In this section:
(1) "Small [, "small] business" means a corporation,
partnership, sole proprietorship, or other legal entity that:
(A) is domiciled in this state;
(B) is formed to make a profit;
(C) is independently owned and operated; and
(D) employs fewer than 100 full-time employees.
(2) "Historically [and "historically] underutilized
business" means:
(A) a corporation formed for the purpose of
making a profit in which at least 51 percent of all classes of the
shares of stock or other equitable securities is owned by one or
more persons who are members of certain groups, including black
Americans, Hispanic Americans, women, Asian Pacific Americans, and
American Indians;
(B) a sole proprietorship formed for the purpose
of making a profit that is 100 percent owned, operated, and
controlled by a person described by Paragraph (A);
(C) a partnership formed for the purpose of
making a profit in which 51 percent of the assets and interest in
the partnership is owned by one or more persons described by
Paragraph (A). Those persons must have proportionate interest and
demonstrate active participation in the control, operation, and
management of the partnership's affairs; or
(D) a joint venture in which each entity in the
joint venture is a historically underutilized business under this
subdivision [have the meanings assigned by Section 481.191,
Government Code].
SECTION 6. Section 52.256(a), Utilities Code, is amended to
read as follows:
(a) In this section:
(1) "Small [, "small] business" means a corporation,
partnership, sole proprietorship, or other legal entity that:
(A) is domiciled in this state;
(B) is formed to make a profit;
(C) is independently owned and operated; and
(D) employs fewer than 100 full-time employees.
(2) "Historically [and "historically] underutilized
business" means:
(A) a corporation formed for the purpose of
making a profit in which at least 51 percent of all classes of the
shares of stock or other equitable securities is owned by one or
more persons who are members of certain groups, including black
Americans, Hispanic Americans, women, Asian Pacific Americans, and
American Indians;
(B) a sole proprietorship formed for the purpose
of making a profit that is 100 percent owned, operated, and
controlled by a person described by Paragraph (A);
(C) a partnership formed for the purpose of
making a profit in which 51 percent of the assets and interest in
the partnership is owned by one or more persons described by
Paragraph (A). Those persons must have proportionate interest and
demonstrate active participation in the control, operation, and
management of the partnership's affairs; or
(D) a joint venture in which each entity in the
joint venture is a historically underutilized business under this
subdivision [have the meanings assigned by Section 481.191,
Government Code].
SECTION 7. (a) The Texas Economic Development Bank shall
reject any application for a linked deposit loan submitted to the
bank before the effective date of this Act for which a linked
deposit has not been made in accordance with Subchapter N, Chapter
481, Government Code, as that subchapter existed immediately before
being repealed by this Act.
(b) Notwithstanding the repeal by this Act of Subchapter N,
Chapter 481, Government Code, Subchapter N is continued in effect
for the limited purpose of allowing the Texas Economic Development
Bank to administer linked deposits made before the effective date
of this Act and to pursue the bank's remedies under that subchapter
if:
(1) a recipient of a loan to which a deposit is linked
defaults on the loan; or
(2) a lending institution that makes a loan for which a
linked deposit is made fails to comply with that subchapter.
SECTION 8. On the effective date of this Act the Texas
Economic Development Bank shall allocate any unencumbered balance
of the capital access fund to programs administered by the bank
under Section 489.108, Government Code, as amended by this Act.
SECTION 9. (a) Notwithstanding the repeal by this Act of
Subchapter D, Chapter 489, Government Code, Subchapter D is
continued in effect for the limited purpose of allowing the Texas
Economic Development Bank to:
(1) administer any outstanding loans entered into
under that subchapter before the effective date of this Act; and
(2) satisfy any bond obligations or pay any other
obligations, contractual or otherwise, incurred under that
subchapter before the effective date of this Act.
(b) After all the obligations described by Subsection
(a)(2) of this section have been paid or satisfied, the Texas
Economic Development Bank shall allocate any remaining balances of
the Texas product development fund and the Texas small business
incubator fund to programs administered by the bank under Section
489.108, Government Code, as amended by this Act.
SECTION 10. As soon as practicable after the effective date
of this Act, the Texas Economic Development Bank shall send to the
comptroller for deposit in the general revenue fund any revenue or
other money of the Texas Small Business Industrial Development
Corporation held in financial institutions as provided by Section
503.055, Local Government Code, as that section existed immediately
before that section's repeal by this Act.
SECTION 11. This Act takes effect September 1, 2015.