85R9537 TSR-D By: Button H.B. No. 3364 A BILL TO BE ENTITLED AN ACT relating to the use of money from the Texas Enterprise Fund to reimburse grant recipients for certain expenses. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 481.078(c), Government Code, is amended to read as follows: (c) Except as provided by Subsections (d) and (d-1), the fund may be used only for: (1) economic development, infrastructure development, community development, job training programs, and business incentives; and (2) expense reimbursement for grant recipients under this section as provided by Section 481.081. SECTION 2. Subchapter E, Chapter 481, Government Code, is amended by adding Section 481.081 to read as follows: Sec. 481.081. TEXAS ENTERPRISE FUND: REIMBURSEMENT FOR CERTAIN EXPENSES INCURRED BY GRANT RECIPIENT. (a) In this section, "fund" means the Texas Enterprise Fund under Section 481.078. (b) The governor may use money in the fund to reimburse a grant recipient under Section 481.078 for a portion of the recipient's expenses that are incurred: (1) in the performance of the recipient's duties under that section; and (2) for the purchase of goods or services from a business whose headquarters are located in this state. (c) A grant recipient may apply for and receive reimbursement for expenses as provided by this section in an amount, as determined by office of the governor rule, not to exceed 15 percent of the total receipts for qualified expenditures the recipient submits to the office of the governor in accordance with this section. (d) The office of the governor shall adopt any rules the governor considers necessary for the administration and implementation of this section, including rules: (1) that establish criteria for expenditures that are eligible for reimbursement; (2) for forms and procedures for application and receipt requirements; and (3) that set the maximum amount of money that may be allocated from the fund for use as provided by this section. (e) A reimbursement for expenses under this section is contingent on the availability of money in the fund and subject to the discretion of the governor. SECTION 3. Not later than December 1, 2017, the office of the governor shall adopt rules necessary to implement Section 481.081, Government Code, as added by this Act. SECTION 4. Section 481.078(c), Government Code, as amended by this Act, and Section 481.081, Government Code, as added by this Act, apply only to a grant that is awarded on or after the effective date of this Act. A grant that is awarded before the effective date of this Act is governed by the law in effect on the date the grant was awarded, and the former law is continued in effect for that purpose. SECTION 5. This Act takes effect January 1, 2018.