Enrolled Bill Summary

            House Bill 64 amends the Government Code to require the Texas Department of Economic Development to establish a community investment program in which the department makes grants or interest-free loans to, or purchases stock of, eligible community development investors, who then make loans to or invest in businesses that are located in distressed areas of the state and that cannot otherwise qualify for conventional bank loans. The act establishes requirements and guidelines for the program, including provisions for the use of money, eligible investments, collaborative efforts, limitations relating to the loans and to equity investments, and ownership of income. The act requires each community development investor to submit a report to the executive director of the department that details the status of each investment or loan made under the program. In addition, the act requires that a participation agreement must provide for an annual audit of all amounts received by the community development investor under the program.