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