H.B. No. 3578
 
 
 
 
AN ACT
  relating to the allocation and transfer of money from the capital
  access fund by the Texas Economic Development Bank.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter BB, Chapter 481, Government Code, is
  amended by adding Section 481.415 to read as follows:
         Sec. 481.415.  ALLOCATION AND TRANSFER OF MONEY FROM CAPITAL
  ACCESS FUND. (a) Notwithstanding any other provision of this
  subchapter, the bank may allocate money held in or due to the
  capital access fund to programs administered by the bank under
  Section 489.108 or Subchapter D, Chapter 489.  The bank may transfer
  money from the capital access fund to the Texas product development
  fund or the Texas small business incubator fund.
         (b)  Notwithstanding Subchapter D, Chapter 489, the bank may
  use money transferred under Subsection (a) to make loans to small or
  medium-sized businesses, governmental entities, or nonprofit
  organizations.  A business, governmental entity, or nonprofit
  organization that receives a loan under this subsection may:
               (1)  use the money for any project, activity, or
  enterprise in this state that fosters economic development; or
               (2)  hold the money in a reserve account created as a
  condition of the extension of the loan.
         SECTION 2.  Section 489.211(b), Government Code, is amended
  to read as follows:
         (b)  The product fund is composed of proceeds of bonds issued
  under this subchapter, financing application fees, loan
  repayments, guarantee fees, royalty receipts, dividend income,
  money appropriated by the legislature for authorized purposes of
  the product fund, amounts received by the state from loans, loan
  guarantees, and equity investments made under this subchapter,
  amounts received by the state from federal grants or other sources,
  amounts transferred from the capital access fund under Section
  481.415, and any other amounts received under this subchapter and
  required by the bank to be deposited in the product fund. The
  product fund contains a program account, an interest and sinking
  account, and other accounts that the bank authorizes to be created
  and maintained. Money in the product fund is available for use by
  the board under this subchapter. Investment earnings under the
  product fund must be transferred to the fund created under Section
  489.105. Notwithstanding any other provision of this subchapter,
  any money in the product fund may be used for debt service.
         SECTION 3.  Section 489.212(b), Government Code, is amended
  to read as follows:
         (b)  The small business fund is composed of proceeds of bonds
  issued under this subchapter, financing application fees, loan
  repayments, guarantee fees, royalty receipts, dividend income,
  money appropriated by the legislature for authorized purposes of
  the small business fund, amounts received by the state from loans,
  loan guarantees, and equity investments made under this subchapter,
  amounts received by the state from federal grants or other sources,
  amounts transferred from the capital access fund under Section
  481.415, and any other amounts received under this subchapter and
  required by the bank to be deposited in the small business fund.
  The small business fund contains a project account, an interest and
  sinking account, and other accounts that the bank authorizes to be
  created and maintained. Money in the small business fund is
  available for use by the board under this subchapter. Investment
  earnings under the small business fund must be transferred to the
  fund created under Section 489.105. Notwithstanding any other
  provision of this subchapter, any money in the small business fund
  may be used for debt service.
         SECTION 4.  This Act takes effect September 1, 2013.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 3578 was passed by the House on May 2,
  2013, by the following vote:  Yeas 145, Nays 2, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 3578 on May 24, 2013, by the following vote:  Yeas 141, Nays 4,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 3578 was passed by the Senate, with
  amendments, on May 22, 2013, by the following vote:  Yeas 31, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor