This website will be unavailable from Friday, April 26, 2024 at 6:00 p.m. through Monday, April 29, 2024 at 7:00 a.m. due to data center maintenance.

  87R10661 MWC-F
 
  By: Ordaz Perez H.B. No. 3271
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to establishing a program to assist micro-businesses by
  increasing access to capital.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 481, Government Code, is amended by
  adding Subchapter CC to read as follows:
  SUBCHAPTER CC. MICRO-BUSINESS CAPITAL ACCESS PROGRAM
         Sec. 481.451.  DEFINITIONS. In this subchapter:
               (1)  "Capital access loan" has the meaning assigned by
  Section 481.401.
               (2)  "Community development financial institution" has
  the meaning assigned by 12 U.S.C. Section 4702.
               (3)  "Default rate" means the percentage of loans made
  that did not meet the payment terms during a period specified by the
  bank.
               (4)  "Micro-business" has the meaning assigned by
  Section 481.405(f).
               (5)  "Program" means the micro-business capital access
  program established under this subchapter.
         Sec. 481.452.  PROGRAM FUNDING; PURPOSE. (a) The program
  shall be funded by direct appropriation.
         (b)  The program shall expand access to capital for
  micro-businesses to create jobs in this state.
         Sec. 481.453.  PROGRAM ADMINISTRATION. The community
  development financial institution administering the program shall
  provide capital access loans to micro-businesses that face barriers
  in accessing capital.  The institution administering the program
  shall give special emphasis to micro-businesses that have
  difficulty in accessing capital.
         Sec. 481.454.  OVERSIGHT. (a) A community development
  financial institution participating in the program shall report
  quarterly to the bank:
               (1)  the names of micro-businesses that have received
  capital access loans;
               (2)  the current balance of all outstanding loans made
  under the program;
               (3)  the default rate on existing loans; and
               (4)  any other information the bank requires.
         (b)  A community development financial institution
  participating in the program shall prepare a detailed financial
  statement each quarter.
         (c)  A community development financial institution shall
  allow the bank to inspect the institution's financial records on
  request.
         Sec. 481.455.  PROGRAM REPORT. The bank shall issue an
  annual status report on the program. The bank shall deliver its
  report to the governor, the lieutenant governor, the speaker of the
  house, and the standing committees of the legislature with primary
  jurisdiction over micro-businesses and economic development.
         SECTION 2.  Section 481.405, Government Code, is amended by
  amending Subsection (e) and adding Subsection (f) to read as
  follows:
         (e)  To qualify as a capital access loan, a loan must:
               (1)  be made to a micro-business, small business, or
  medium-sized business or to a nonprofit organization;
               (2)  be used by the business or nonprofit organization
  for any project, activity, or enterprise in this state that fosters
  economic development; and
               (3)  meet any other criteria provided by this
  subchapter.
         (f)  In this section, "micro-business" means a corporation,
  partnership, sole proprietorship, or other legal entity that:
               (1)  is domiciled in this state or has at least 51
  percent of its employees located in this state;
               (2)  is formed to make a profit;
               (3)  is independently owned and operated; and
               (4)  has not more than 20 employees.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2021.