By: Johnson H.B. No. 3560
A BILL TO BE ENTITLED
AN ACT
relating to transferring a certain percentage of the Texas
Enterprise Fund to the capital access fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 481.078, Government Code, is amended by
adding Subsection (n) to read as follows:
(n) Notwithstanding any other section of this subchapter,
the following amounts shall be transferred from the Texas
Enterprise Fund to the capital access fund under Subchapter BB:
(1) for the state fiscal biennium beginning September
1, 2016, ten percent of the remaining unencumbered balance of the
Texas Enterprise Fund as of September 2, 2016; and
(2) for each subsequent state fiscal biennium in which
ten percent of the remaining unencumbered balance of the Texas
Enterprise Fund as of the second day of the state fiscal biennium is
greater than the sum of the amount in the capital access fund plus
the amount of contributions made by the bank into reserve accounts
under Subchapter BB, an amount equivalent to the difference between
ten percent of the remaining unencumbered balance of the Texas
Enterprise Fund and the sum of the amount in the capital access fund
plus the amount of contributions made by the bank into reserve
accounts under Subchapter BB.
SECTION 2. Section 481.405, Government Code, is amended by
adding Subsection (c-1) to read as follows:
(c-1) For the purposes of determining the eligibility of a
financial institution to participate in the program under
subsection (c), the bank shall use a methodology that prioritizes
financial institutions located in areas designated as enterprise
zones under Chapter 2303, Government Code.
SECTION 3. Section 481.404, Government Code, is amended to
read as follows:
Sec. 481.404. POWERS OF BANK IN ADMINISTERING CAPITAL
ACCESS FUND. (a) In administering the fund, the bank has the powers
necessary to carry out the purposes of this subchapter, including
the power to:
(1) make, execute, and deliver contracts,
conveyances, and other instruments necessary to the exercise of its
powers;
(2) invest money at the bank's discretion in
obligations determined proper by the bank, and select and use
depositories for its money;
(3) employ personnel and counsel and pay the persons
from money in the fund legally available for that purpose; and
(4) impose and collect fees and charges in connection
with any transaction and provide for reasonable penalties for
delinquent payment of fees or charges.
(b) The bank may not transfer money out of the capital
access fund except to carry out the purposes of this subchapter.
SECTION 4. Section 481.415, Government Code, is repealed.
SECTION 5. 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 6. 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 7. This Act takes effect September 1, 2015.