Enrolled Bill Summary

Senate Bill 15 authorizes the Texas Department of Economic Development to use unencumbered appropriations in the Smart Jobs Fund to award grants to local governmental entities for business location incentives. The bill requires the department to develop procedures or adopt rules to implement the incentives and appropriates $15 million remaining in the Smart Jobs Fund to finance them during fiscal years 2003 and 2004. If the department is abolished on September 1, 2003, via the Texas Sunset Act, the bill requires the unexpended balance to be transferred to an agency designated by the governor to implement the bill. The bill requires the department to enter into a written agreement with a potential grant recipient specifying that the state must retain a proportional interest in any capital improvement paid for with grant funds. If the capital improvement later is sold or if the local entity does not spend the funds by a date specified in the agreement, the agreement must require the grant recipient to reimburse the state with interest.