85R9026 CLG-D
By: Miles S.B. No. 795
A BILL TO BE ENTITLED
AN ACT
relating to use of the money from the Texas Enterprise Fund to
benefit certain historically underutilized businesses.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 481.078, Government Code, is amended by
adding Subsections (m), (n), and (o) to read as follows:
(m) To encourage the development and location of
historically underutilized businesses in this state, the governor
shall make grants from the fund:
(1) to recipients that are historically underutilized
businesses in this state that commit to using the grants to create
additional jobs; or
(2) to recipients that are historically underutilized
businesses from outside the state that commit to relocate to this
state.
(n) The governor shall ensure, to the extent there are a
sufficient number of qualified applicants described by Subsection
(m), that the percentage of the total dollar amount of grants
awarded each state fiscal year to recipients described by that
subsection is not less than the percentage of the total dollar
amount of contracts awarded by state agencies to historically
underutilized businesses, as defined by Section 2161.001, during
the applicable state fiscal year as reported by the comptroller in
the consolidated report required under Section 2161.121.
(o) For purposes of this section:
(1) "Historically underutilized business" means:
(A) a corporation formed for the purpose of
making a profit in which 51 percent or more of all classes of the
shares of stock or other equitable securities are owned by one or
more economically disadvantaged persons who have a proportionate
interest and actively participate in the corporation's control,
operation, and management;
(B) a sole proprietorship created for the purpose
of making a profit that is completely owned, operated, and
controlled by an economically disadvantaged person;
(C) a partnership formed for the purpose of
making a profit in which 51 percent or more of the assets and
interest in the partnership are owned by one or more economically
disadvantaged persons who have a proportionate interest and
actively participate in the partnership's control, operation, and
management; or
(D) a joint venture in which each entity in the
venture is a historically underutilized business, as determined
under another paragraph of this subdivision.
(2) "Economically disadvantaged person" has the
meaning assigned by Section 2161.001.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2017.