| 1 | 1 | | 84R3412 AJZ-F |
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| 2 | 2 | | By: Reynolds H.B. No. 880 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to creating a disadvantaged business assistance program to |
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| 8 | 8 | | be operated by the Texas Department of Transportation. |
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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. Subchapter I, Chapter 201, Transportation Code, |
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| 11 | 11 | | is amended by adding Section 201.7025 to read as follows: |
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| 12 | 12 | | Sec. 201.7025. DISADVANTAGED BUSINESS ASSISTANCE PROGRAM. |
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| 13 | 13 | | (a) The commission by rule may establish a program for assisting |
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| 14 | 14 | | businesses that are identified as disadvantaged businesses under |
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| 15 | 15 | | the program established under Section 201.702. |
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| 16 | 16 | | (b) The department may establish, as an account in the state |
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| 17 | 17 | | highway fund, a revolving fund to provide financing to foster and |
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| 18 | 18 | | stimulate the development of the businesses. The revolving fund may |
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| 19 | 19 | | be composed of financing application fees, loan repayments, |
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| 20 | 20 | | guarantee fees, dividend income, donations, contributions, or |
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| 21 | 21 | | money appropriated by the legislature for purposes for which the |
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| 22 | 22 | | fund may be used, amounts received by the state from federal grants |
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| 23 | 23 | | or other sources, and any other amounts received under this section |
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| 24 | 24 | | and required by the department to be deposited in the revolving |
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| 25 | 25 | | fund. Money that is dedicated for another purpose, including money |
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| 26 | 26 | | that is required to be used for public roadways by the Texas |
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| 27 | 27 | | Constitution or federal law, may not be deposited in the revolving |
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| 28 | 28 | | fund. Interest earned on the money in the revolving fund shall be |
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| 29 | 29 | | credited to the revolving fund. |
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| 30 | 30 | | (c) Money in the revolving fund established under this |
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| 31 | 31 | | section may be used only to provide financing, including loans, to |
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| 32 | 32 | | foster and stimulate the development of businesses that are |
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| 33 | 33 | | identified as disadvantaged businesses under the program |
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| 34 | 34 | | established under Section 201.702 and for the purposes of that |
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| 35 | 35 | | program, particularly to help remove barriers to the participation |
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| 36 | 36 | | of disadvantaged businesses in department contracts and to assist |
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| 37 | 37 | | the development of those businesses so that they are able to compete |
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| 38 | 38 | | successfully in the marketplace without program assistance. |
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| 39 | 39 | | (d) Financing from the revolving fund established under |
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| 40 | 40 | | this section must be on terms and conditions that the department |
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| 41 | 41 | | determines to be reasonable, appropriate, and consistent with the |
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| 42 | 42 | | purposes and objectives of this section and the program established |
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| 43 | 43 | | under Section 201.702. |
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| 44 | 44 | | (e) The commission shall adopt rules governing the terms and |
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| 45 | 45 | | conditions of the financing, specifically including requirements |
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| 46 | 46 | | for appropriate security or collateral, equity interest, and the |
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| 47 | 47 | | rights and remedies of the department in the event of a default on a |
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| 48 | 48 | | loan. The rules must include a requirement that applicants report |
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| 49 | 49 | | to the department on the use of money distributed from the fund. |
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| 50 | 50 | | (f) A claim of the state for a payment owed to the state |
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| 51 | 51 | | under this section by a person who has been provided financing under |
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| 52 | 52 | | this section is considered a state debt for purposes of Section |
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| 53 | 53 | | 403.055, Government Code. |
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| 54 | 54 | | SECTION 2. This Act takes effect immediately if it receives |
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| 55 | 55 | | a vote of two-thirds of all the members elected to each house, as |
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| 56 | 56 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 57 | 57 | | Act does not receive the vote necessary for immediate effect, this |
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| 58 | 58 | | Act takes effect September 1, 2015. |
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