Texas 2021 - 87th Regular

Texas Senate Bill SB678 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 678
	1	+	By: Alvarado, et al. S.B. No. 678
	2	+	(Button)
2	3
3	4
	5	+	A BILL TO BE ENTITLED
4	6		AN ACT
5	7		relating to the creation of the small business disaster recovery
6	8		loan program.
7	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	10		SECTION 1. Chapter 481, Government Code, is amended by
9	11		adding Subchapter cc to read as follows:
10	12		SUBCHAPTER CC. SMALL BUSINESS DISASTER RECOVERY LOAN PROGRAM
11	13		Sec. 481.601. DEFINITIONS. In this subchapter:
12	14		(1) "Disaster declaration" means a declaration by the
13	15		governor of a state of disaster under Section 418.014.
14	16		(2) "Fund" means the small business disaster recovery
15	17		revolving fund created under Section 481.606.
16	18		(3) "Small business" has the meaning assigned by
17	19		Section 481.401.
18	20		(4) "Trust company" means the Texas Treasury
19	21		Safekeeping Trust Company.
20	22		Sec. 481.602. SMALL BUSINESS DISASTER RECOVERY LOAN
21	23		PROGRAM. (a) The office by rule shall establish a loan program to
22	24		use money from the fund established under this subchapter to
23	25		provide financial assistance to small businesses affected by a
24	26		disaster.
25	27		(b) The office may provide financial assistance from the
26	28		fund only:
27	29		(1) in the form of a loan to an eligible small business
28	30		that is located in an area under a disaster declaration; and
29	31		(2) during the period for which the disaster
30	32		declaration is in effect.
31	33		(c) The office shall credit to the fund all principal and
32	34		interest payments on a loan from the fund.
33	35		Sec. 481.603. ELIGIBILITY FOR LOAN. The office by rule
34	36		shall establish the eligibility requirements for a loan to a small
35	37		business under this subchapter. The requirements must include that
36	38		the small business:
37	39		(1) is in good standing under the laws of this state;
38	40		(2) does not owe delinquent taxes to a taxing unit of
39	41		this state;
40	42		(3) has suffered physical damage or economic injury as
41	43		a result of the event leading to the disaster declaration; and
42	44		(4) has paid in full any previous loans received under
43	45		this subchapter.
44	46		Sec. 481.604. USES OF LOAN. An eligible small business may
45	47		only use a loan received under this subchapter to pay the small
46	48		business's payroll costs, including costs related to the
47	49		continuation of health care benefits for the small business's
48	50		employees.
49	51		Sec. 481.605. APPLICATION FOR LOAN. The office shall
50	52		develop and implement an application process for an eligible small
51	53		business to receive a loan under this subchapter.
52	54		Sec. 481.606. SMALL BUSINESS DISASTER RECOVERY REVOLVING
53	55		FUND. (a) The small business disaster recovery revolving fund is
54	56		a special fund outside the state treasury to be used by the office,
55	57		without further legislative appropriation, for the purpose of
56	58		providing financial assistance to small businesses in response to a
57	59		disaster declaration as provided by this subchapter. The office
58	60		shall administer the fund. The office may establish separate
59	61		accounts in the fund. The fund and the fund's accounts are kept and
60	62		held by the trust company in escrow and in trust for and in the name
61	63		of the office. The office has legal title to money and investments
62	64		in the fund until money is disbursed from the fund as provided by
63	65		this subchapter and office rules.
64	66		(b) Money deposited to the credit of the fund may be used
65	67		only as provided by this subchapter.
66	68		(c) The fund consists of:
67	69		(1) money transferred or deposited to the credit of
68	70		the fund by law, including money from any source transferred or
69	71		deposited to the credit of the fund at the office's discretion as
70	72		authorized by law;
71	73		(2) the proceeds of any fee or tax imposed by this
72	74		state that by statute is dedicated for deposit to the credit of the
73	75		fund;
74	76		(3) any other revenue that the legislature by statute
75	77		dedicates for deposit to the credit of the fund; and
76	78		(4) investment earnings and interest earned on amounts
77	79		credited to the fund.
78	80		Sec. 481.607. MANAGEMENT AND INVESTMENT OF FUND. (a) The
79	81		trust company shall hold and invest the fund, and any accounts
80	82		established in the fund, for and in the name of the office, taking
81	83		into account the purposes for which money in the fund may be used.
82	84		The fund may be co-invested with the state treasury pool.
83	85		(b) The overall objective for the investment of the fund is
84	86		to maintain sufficient liquidity to meet the needs of the fund while
85	87		striving to preserve the purchasing power of the fund. It is the
86	88		intent of the legislature that the fund remain available in
87	89		perpetuity for the purposes of this subchapter.
88	90		(c) The trust company has any power necessary to accomplish
89	91		the purposes of managing and investing the assets of the fund. In
90	92		managing the assets of the fund, through procedures and subject to
91	93		restrictions the trust company considers appropriate, the trust
92	94		company may acquire, exchange, sell, supervise, manage, or retain
93	95		any kind of investment that a prudent investor, exercising
94	96		reasonable care, skill, and caution, would acquire or retain in
95	97		light of the purposes, terms, distribution requirements, and other
96	98		circumstances of the fund then prevailing, taking into
97	99		consideration the investment of all the assets of the fund rather
98	100		than a single investment.
99	101		(d) The trust company may recover the costs incurred in
100	102		managing and investing the fund only from the earnings of the fund.
101	103		(e) The trust company annually shall report to the office
102	104		with respect to the investment of the fund. The trust company shall
103	105		contract with a certified public accountant to conduct an
104	106		independent audit of the fund annually and shall present the
105	107		results of each annual audit to the office. This subsection does
106	108		not affect the state auditor's authority to conduct an audit of the
107	109		fund under Chapter 321.
108	110		(f) The trust company shall adopt an investment policy that
109	111		is appropriate for the fund. The trust company shall present the
110	112		investment policy to the investment advisory board established
111	113		under Section 404.028. The investment advisory board shall submit
112	114		to the trust company recommendations regarding the policy.
113	115		(g) The office annually shall provide to the trust company a
114	116		forecast of the cash flows into and out of the fund. The office
115	117		shall provide updates to the forecasts as appropriate to ensure
116	118		that the trust company is able to achieve the objective specified by
117	119		Subsection (b).
118	120		(h) The trust company shall disburse money from the fund as
119	121		directed by the office.
120	122		Sec. 481.608. RULES. The office shall adopt rules
121	123		necessary to implement this subchapter.
122	124		Sec. 481.609. REPORT. Not later than December 1 of each
123	125		even-numbered year, the office shall prepare and submit to the
124	126		governor, the lieutenant governor, and each member of the
125	127		legislature a report that includes:
126	128		(1) the balance of the fund as of the date of the
127	129		report;
128	130		(2) the total dollar amount of disbursements from the
129	131		fund during the two-year period preceding that date; and
130	132		(3) a general description of each small business for
131	133		which an applicant was awarded a loan from the fund during the
132	134		two-year period preceding that date.
133	135		SECTION 2. The Texas Economic Development and Tourism
134	136		Office and the Texas Treasury Safekeeping Trust Company are
135	137		required to implement a provision of this Act only if the
136	138		legislature appropriates money specifically for that purpose. If
137	139		the legislature does not appropriate money specifically for that
138	140		purpose, the office and the trust company may, but are not required
139	141		to, implement a provision of this Act using other appropriations
140	142		that are available for that purpose.
141	143		SECTION 3. This Act takes effect September 1, 2021.
142		-	______________________________ ______________________________
143		-	President of the Senate Speaker of the House
144		-	I hereby certify that S.B. No. 678 passed the Senate on
145		-	April 28, 2021, by the following vote: Yeas 24, Nays 7.
146		-	______________________________
147		-	Secretary of the Senate
148		-	I hereby certify that S.B. No. 678 passed the House on
149		-	May 25, 2021, by the following vote: Yeas 109, Nays 37, one
150		-	present not voting.
151		-	______________________________
152		-	Chief Clerk of the House
153		-	Approved:
154		-	______________________________
155		-	Date
156		-	______________________________
157		-	Governor