| 1 | 1 | | 86R13777 GRM-F |
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| 2 | 2 | | By: Miles S.B. No. 2173 |
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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 establishing a program to assist small businesses by |
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| 8 | 8 | | increasing access to capital. |
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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. Chapter 481, Government Code, is amended by |
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| 11 | 11 | | adding Subchapter CC to read as follows: |
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| 12 | 12 | | SUBCHAPTER CC. SMALL BUSINESS CAPITAL ACCESS PROGRAM |
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| 13 | 13 | | Sec. 481.451. DEFINITIONS. In this subchapter: |
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| 14 | 14 | | (1) "Capital access loan" has the meaning assigned by |
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| 15 | 15 | | Section 481.401. |
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| 16 | 16 | | (2) "Community development financial institution" has |
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| 17 | 17 | | the meaning assigned by 12 U.S.C. Section 4702. |
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| 18 | 18 | | (3) "Default rate" means the percentage of loans made |
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| 19 | 19 | | that did not meet the payment terms during a period specified by the |
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| 20 | 20 | | bank. |
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| 21 | 21 | | (4) "Program" means the small business capital access |
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| 22 | 22 | | program established under this subchapter. |
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| 23 | 23 | | (5) "Small business" has the meaning assigned by |
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| 24 | 24 | | Section 481.401. |
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| 25 | 25 | | Sec. 481.452. PROGRAM FUNDING; PURPOSE. (a) The program |
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| 26 | 26 | | shall be funded by direct appropriation. |
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| 27 | 27 | | (b) The program shall expand access to capital for small |
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| 28 | 28 | | businesses to create jobs in this state. |
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| 29 | 29 | | Sec. 481.453. PROGRAM ADMINISTRATION. The community |
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| 30 | 30 | | development financial institution administering the program shall |
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| 31 | 31 | | provide capital access loans to small businesses that face barriers |
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| 32 | 32 | | in accessing capital. The institution administering the program |
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| 33 | 33 | | shall give special emphasis to small businesses that have |
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| 34 | 34 | | difficulty in accessing capital. |
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| 35 | 35 | | Sec. 481.454. OVERSIGHT. (a) A community development |
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| 36 | 36 | | financial institution participating in the program shall report |
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| 37 | 37 | | quarterly to the bank: |
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| 38 | 38 | | (1) the names of businesses that have received capital |
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| 39 | 39 | | access loans; |
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| 40 | 40 | | (2) the current balance of all outstanding loans made |
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| 41 | 41 | | under the program; |
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| 42 | 42 | | (3) the default rate on existing loans; and |
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| 43 | 43 | | (4) any other information the bank requires. |
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| 44 | 44 | | (b) A community development financial institution |
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| 45 | 45 | | participating in the program shall prepare a detailed financial |
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| 46 | 46 | | statement each quarter. |
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| 47 | 47 | | (c) A community development financial institution shall |
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| 48 | 48 | | allow the bank to inspect the institution's financial records on |
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| 49 | 49 | | request. |
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| 50 | 50 | | Sec. 481.455. PROGRAM REPORT. The bank shall issue an |
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| 51 | 51 | | annual status report on the program. The bank shall deliver its |
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| 52 | 52 | | report to the governor, the lieutenant governor, the speaker of the |
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| 53 | 53 | | house, and the standing committees of the legislature with primary |
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| 54 | 54 | | jurisdiction for small business and economic development. |
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| 55 | 55 | | SECTION 2. This Act takes effect immediately if it receives |
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| 56 | 56 | | a vote of two-thirds of all the members elected to each house, as |
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| 57 | 57 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 58 | 58 | | Act does not receive the vote necessary for immediate effect, this |
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| 59 | 59 | | Act takes effect September 1, 2019. |
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