84R4460 CLG-D
 
  By: Ashby H.B. No. 2667
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the abolishment of certain programs and funds
  administered by the Texas Economic Development Bank.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The following laws are repealed:
               (1)  Subchapter N, Chapter 481, Government Code;
               (2)  Subchapter BB, Chapter 481, Government Code;
               (3)  Subchapter D, Chapter 489, Government Code; and
               (4)  Chapter 503, Local Government Code.
         SECTION 2.  Section 447.013, Government Code, is amended by
  amending Subsection (i) and adding Subsection (j) to read as
  follows:
         (i)  A recipient of a grant or loan under this section is
  encouraged to purchase goods and services from small businesses and
  historically underutilized businesses[, as those terms are defined
  by Section 481.191, Government Code].
         (j)  For the purposes of Subsection (i):
               (1)  "Historically underutilized business" means:
                     (A)  a corporation formed for the purpose of
  making a profit in which at least 51 percent of all classes of the
  shares of stock or other equitable securities is owned by one or
  more persons who are members of certain groups, including black
  Americans, Hispanic Americans, women, Asian Pacific Americans, and
  American Indians;
                     (B)  a sole proprietorship formed for the purpose
  of making a profit that is 100 percent owned, operated, and
  controlled by a person described by Paragraph (A);
                     (C)  a partnership formed for the purpose of
  making a profit in which 51 percent of the assets and interest in
  the partnership is owned by one or more persons described by
  Paragraph (A). Those persons must have proportionate interest and
  demonstrate active participation in the control, operation, and
  management of the partnership's affairs; or
                     (D)  a joint venture in which each entity in the
  joint venture is a historically underutilized business under this
  subdivision.
               (2)  "Small business" means a corporation,
  partnership, sole proprietorship, or other legal entity that:
                     (A)  is domiciled in this state;
                     (B)  is formed to make a profit;
                     (C)  is independently owned and operated; and
                     (D)  employs fewer than 100 full-time employees.
         SECTION 3.  Section 489.105(b), Government Code, is amended
  to read as follows:
         (b)  The fund consists of:
               (1)  appropriations for the implementation and
  administration of this chapter;
               (2)  [investment earnings under the capital access fund
  established under Section 481.402;
               [(3)  fees charged under Subchapter BB, Chapter 481;
               [(4)]  interest earned on the investment of money in
  the fund;
               (3) [(5)]  fees charged under this chapter;
               (4) [(6)]  investment earnings from the programs
  administered by the bank;
               (5) [(7)]  amounts transferred under Section
  2303.504(b), as amended by Article 2, Chapter 1134, Acts of the 77th
  Legislature, Regular Session, 2001; and
               (6)  [(8)     investment earnings under the Texas product
  development fund under Section 489.211;
               [(9)     investment earnings under the Texas small
  business incubator fund under Section 489.212; and
               [(10)]  any other amounts received by the state under
  this chapter.
         SECTION 4.  Section 489.108, Government Code, is amended to
  read as follows:
         Sec. 489.108.  PROGRAMS, SERVICES, AND FUNDS UNDER BANK'S
  DIRECTION. Notwithstanding any other law, the bank shall perform
  the duties and functions of the office with respect to the following
  programs, services, and funds:
               (1)  [the Texas Small Business Industrial Development
  Corporation established under Chapter 503, Local Government Code;
               [(2)     the capital access program established under
  Section 481.405;
               [(3)]  the Texas leverage fund;
               (2) [(4)     the linked deposit program established under
  Section 481.193;
               [(5)]  the enterprise zone program established under
  Chapter 2303;
               (3) [(6)]  the industrial revenue bond program;
               (4) [(7)]  the defense economic readjustment zone
  program established under Chapter 2310;
               (5) [(8)]  the Empowerment Zone and Enterprise
  Community grant program established under Section 481.025; and
               (6) [(9)]  the renewal community program.
         SECTION 5.  Section 39.909(a), Utilities Code, is amended to
  read as follows:
         (a)  In this section:
               (1)  "Small [, "small] business" means a corporation,
  partnership, sole proprietorship, or other legal entity that:
                     (A)  is domiciled in this state;
                     (B)  is formed to make a profit;
                     (C)  is independently owned and operated; and
                     (D)  employs fewer than 100 full-time employees.
               (2)  "Historically [and "historically] underutilized
  business" means:
                     (A)  a corporation formed for the purpose of
  making a profit in which at least 51 percent of all classes of the
  shares of stock or other equitable securities is owned by one or
  more persons who are members of certain groups, including black
  Americans, Hispanic Americans, women, Asian Pacific Americans, and
  American Indians;
                     (B)  a sole proprietorship formed for the purpose
  of making a profit that is 100 percent owned, operated, and
  controlled by a person described by Paragraph (A);
                     (C)  a partnership formed for the purpose of
  making a profit in which 51 percent of the assets and interest in
  the partnership is owned by one or more persons described by
  Paragraph (A). Those persons must have proportionate interest and
  demonstrate active participation in the control, operation, and
  management of the partnership's affairs; or
                     (D)  a joint venture in which each entity in the
  joint venture is a historically underutilized business under this
  subdivision [have the meanings assigned by Section 481.191,
  Government Code].
         SECTION 6.  Section 52.256(a), Utilities Code, is amended to
  read as follows:
         (a)  In this section:
               (1)  "Small [, "small] business" means a corporation,
  partnership, sole proprietorship, or other legal entity that:
                     (A)  is domiciled in this state;
                     (B)  is formed to make a profit;
                     (C)  is independently owned and operated; and
                     (D)  employs fewer than 100 full-time employees.
               (2)  "Historically [and "historically] underutilized
  business" means:
                     (A)  a corporation formed for the purpose of
  making a profit in which at least 51 percent of all classes of the
  shares of stock or other equitable securities is owned by one or
  more persons who are members of certain groups, including black
  Americans, Hispanic Americans, women, Asian Pacific Americans, and
  American Indians;
                     (B)  a sole proprietorship formed for the purpose
  of making a profit that is 100 percent owned, operated, and
  controlled by a person described by Paragraph (A);
                     (C)  a partnership formed for the purpose of
  making a profit in which 51 percent of the assets and interest in
  the partnership is owned by one or more persons described by
  Paragraph (A). Those persons must have proportionate interest and
  demonstrate active participation in the control, operation, and
  management of the partnership's affairs; or
                     (D)  a joint venture in which each entity in the
  joint venture is a historically underutilized business under this
  subdivision [have the meanings assigned by Section 481.191,
  Government Code].
         SECTION 7.  (a) The Texas Economic Development Bank shall
  reject any application for a linked deposit loan submitted to the
  bank before the effective date of this Act for which a linked
  deposit has not been made in accordance with Subchapter N, Chapter
  481, Government Code, as that subchapter existed immediately before
  being repealed by this Act.
         (b)  Notwithstanding the repeal by this Act of Subchapter N,
  Chapter 481, Government Code, Subchapter N is continued in effect
  for the limited purpose of allowing the Texas Economic Development
  Bank to administer linked deposits made before the effective date
  of this Act and to pursue the bank's remedies under that subchapter
  if:
               (1)  a recipient of a loan to which a deposit is linked
  defaults on the loan; or
               (2)  a lending institution that makes a loan for which a
  linked deposit is made fails to comply with that subchapter.
         SECTION 8.  On the effective date of this Act the Texas
  Economic Development Bank shall allocate any unencumbered balance
  of the capital access fund to programs administered by the bank
  under Section 489.108, Government Code, as amended by this Act.
         SECTION 9.  (a) Notwithstanding the repeal by this Act of
  Subchapter D, Chapter 489, Government Code, Subchapter D is
  continued in effect for the limited purpose of allowing the Texas
  Economic Development Bank to:
               (1)  administer any outstanding loans entered into
  under that subchapter before the effective date of this Act; and
               (2)  satisfy any bond obligations or pay any other
  obligations, contractual or otherwise, incurred under that
  subchapter before the effective date of this Act.
         (b)  After all the obligations described by Subsection
  (a)(2) of this section have been paid or satisfied, the Texas
  Economic Development Bank shall allocate any remaining balances of
  the Texas product development fund and the Texas small business
  incubator fund to programs administered by the bank under Section
  489.108, Government Code, as amended by this Act.
         SECTION 10.  As soon as practicable after the effective date
  of this Act, the Texas Economic Development Bank shall send to the
  comptroller for deposit in the general revenue fund any revenue or
  other money of the Texas Small Business Industrial Development
  Corporation held in financial institutions as provided by Section
  503.055, Local Government Code, as that section existed immediately
  before that section's repeal by this Act.
         SECTION 11.  This Act takes effect September 1, 2015.