75R14624 E
By Sibley S.B. No. 932
Substitute the following for S.B. No. 932:
By Oliveira C.S.S.B. No. 932
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to abolishing the Texas Department of Commerce and the
1-3 Texas Agricultural Finance Authority and transferring the powers
1-4 and duties of the agencies to the newly created Texas Economic
1-5 Development Agency to administer state agency loan and loan
1-6 guarantee programs and to engage in capital formation initiatives
1-7 to further the state's economic and agricultural development goals.
1-8 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-9 ARTICLE 1. FINDINGS; PURPOSE; AGENCY GOALS; DEFINITIONS
1-10 SECTION 1.01. LEGISLATIVE FINDINGS. The legislature finds
1-11 that:
1-12 (1) the economic future of Texas and its citizens
1-13 depends on the ability of businesses to secure low-cost capital
1-14 that promotes the high-quality jobs that improve the living
1-15 standards of all Texans;
1-16 (2) the voters of Texas and the legislature have
1-17 created many programs within several state agencies that offer
1-18 hundreds of millions of dollars to assist businesses and
1-19 individuals to create jobs, sustain economic viability, own land,
1-20 and promote other activities deemed critical to Texas;
1-21 (3) having loan and grant programs spread through many
1-22 different agencies makes it very difficult for businesses and
1-23 individuals to access programs designed to assist them;
1-24 (4) these loan and grant programs represent a
2-1 substantial financial liability to the state's general revenue
2-2 fund;
2-3 (5) consolidating the current fragmented system will
2-4 improve the state's ability to control its liabilities and business
2-5 activities;
2-6 (6) economic and administrative efficiencies can be
2-7 gained by consolidating some of the loan and grant programs into
2-8 one agency;
2-9 (7) consumer access to the state's loan and grant
2-10 programs can be improved by consolidating some of the loan and
2-11 grant programs into one agency with one marketing effort offering
2-12 "one-stop shopping"; and
2-13 (8) the quality and efficiency of the programs can be
2-14 improved by consolidation.
2-15 SECTION 1.02. PURPOSE; AGENCY GOALS. (a) The Texas
2-16 Economic Development Agency created as provided by Article 4 of
2-17 this Act is a state agency created to operate a consolidated
2-18 economic development and lending agency, in particular through the
2-19 consolidation of loan, grant, and market programs aimed at
2-20 assisting business, helping governments assist business, and
2-21 servicing the lending needs of groups of individuals targeted by
2-22 the legislature essential to the well-being of Texas.
2-23 (b) The development agency with programs established by the
2-24 voters and the legislature shall meet the needs of:
2-25 (1) business for low-cost capital to develop and
2-26 promote new products and to expand markets;
2-27 (2) expanding, relocating, or developing businesses
3-1 for information on Texas' economic sectors, industries, markets,
3-2 and communities;
3-3 (3) communities to offer incentives, including
3-4 infrastructure improvements and tax relief, to attract new
3-5 businesses or expand or retain existing businesses;
3-6 (4) communities by facilitating and complementing the
3-7 development of economic incentive packages;
3-8 (5) the people of this state for a vibrant economy
3-9 capable of creating high-skill, high-wage jobs that pay a living
3-10 wage;
3-11 (6) the taxpayers of this state to ensure that tax and
3-12 bond revenues for economic development are spent and managed
3-13 effectively and efficiently; and
3-14 (7) the tourism industry in this state.
3-15 SECTION 1.03. DEFINITIONS. In this Act:
3-16 (1) "Board" means the board of the development agency.
3-17 (2) "Development agency" means the Texas Economic
3-18 Development Agency.
3-19 ARTICLE 2. ABOLITION OF TEXAS DEPARTMENT OF COMMERCE
3-20 SECTION 2.01. ABOLITION OF TEXAS DEPARTMENT OF COMMERCE.
3-21 Section 481.002, Government Code, is repealed and the Texas
3-22 Department of Commerce is abolished.
3-23 SECTION 2.02. TRANSFER OF PROPERTY. All money, records,
3-24 property, accounts, and equipment in the custody of the Texas
3-25 Department of Commerce shall be transferred to the custody of the
3-26 development agency on January 15, 1998.
3-27 SECTION 2.03. TRANSFERS. On January 15, 1998, all powers,
4-1 duties, functions, programs, funds, and activities of the Texas
4-2 Department of Commerce are transferred to the development agency.
4-3 SECTION 2.04. REFERENCES TO DEPARTMENT. A reference in law
4-4 to the Texas Department of Commerce is considered to be a reference
4-5 to the development agency.
4-6 SECTION 2.05. CONFLICT OF LAWS. If a provision of
4-7 Subchapter A, Chapter 481, Government Code, conflicts with a
4-8 provision of Article 4 of this Act, Article 4 of this Act controls.
4-9 SECTION 2.06. EFFECTIVE DATE. This article takes effect
4-10 January 15, 1998.
4-11 ARTICLE 3. ABOLITION OF TEXAS AGRICULTURAL FINANCE AUTHORITY
4-12 SECTION 3.01. ABOLITION OF TEXAS AGRICULTURAL FINANCE
4-13 AUTHORITY. Section 58.011(a), Agriculture Code, is repealed and
4-14 the Texas Agricultural Finance Authority is abolished.
4-15 SECTION 3.02. TRANSFER OF PROPERTY. All money, records,
4-16 property, accounts, and equipment in the custody of the Texas
4-17 Agricultural Finance Authority shall be transferred to the custody
4-18 of the development agency on May 1, 1998.
4-19 SECTION 3.03. TRANSFERS. On May 1, 1998, all powers,
4-20 duties, functions, programs, and activities of the Texas
4-21 Agricultural Finance Authority are transferred to the development
4-22 agency.
4-23 SECTION 3.04. SUCCESSOR AGENCY. The development agency is
4-24 the successor agency for purposes of statutory and constitutional
4-25 references to the Texas Agricultural Finance Authority. The
4-26 development agency has the powers and duties related to the
4-27 administration of the farm and ranch finance program fund formerly
5-1 assigned by the constitution and law to the Texas Agricultural
5-2 Finance Authority.
5-3 SECTION 3.05. CONFLICT OF LAWS. If a provision of
5-4 Subchapter B, Chapter 58, Agriculture Code, conflicts with a
5-5 provision of Article 4 of this Act, Article 4 of this Act controls.
5-6 SECTION 3.06. EFFECTIVE DATE. This article takes effect May
5-7 1, 1998.
5-8 ARTICLE 4. TEXAS ECONOMIC DEVELOPMENT AGENCY
5-9 SECTION 4.01. TEXAS ECONOMIC DEVELOPMENT AGENCY. The Texas
5-10 Economic Development Agency is an agency of the state.
5-11 SECTION 4.02. BOARD MEMBERSHIP. (a) The board is composed
5-12 of nine members as provided by this section.
5-13 (b) The governor shall appoint the members of the board.
5-14 Four of the appointments shall be made as follows:
5-15 (1) one person who is an agricultural producer;
5-16 (2) one person who is an economic development
5-17 professional who represents an economic development organization;
5-18 (3) one person who represents the tourism industry;
5-19 and
5-20 (4) one person who represents a small, locally owned
5-21 community bank.
5-22 (c) A member of the board serves for a term of two years
5-23 expiring on February 1 of each odd-numbered year.
5-24 SECTION 4.03. PRESIDING OFFICER; MEETINGS. (a) The
5-25 governor shall select a presiding officer from the board members.
5-26 (b) The board shall meet at least monthly and at the call of
5-27 the presiding officer or of a majority of the members, as provided
6-1 by board rule.
6-2 SECTION 4.04. COMPENSATION; EXPENSES. A board member is not
6-3 entitled to receive compensation but is entitled to reimbursement
6-4 of the member's travel expenses as provided in the General
6-5 Appropriations Act.
6-6 SECTION 4.05. APPLICATION OF OPEN RECORDS AND OPEN MEETINGS
6-7 LAW. (a) The development agency is a governmental body subject to
6-8 the open records law, Chapter 552, Government Code, except that the
6-9 financial records of an applicant or borrower are not public
6-10 information.
6-11 (b) The board is a governmental body subject to the open
6-12 meetings law, Chapter 551, Government Code, except that the board
6-13 is not required to conduct an open meeting to discuss the financial
6-14 matters of an applicant or borrower.
6-15 SECTION 4.06. EXCLUSIVE AUTHORITY. (a) On full
6-16 implementation of this Act, the development agency has the
6-17 exclusive authority to act as the administrator of state agency
6-18 loan and loan guarantee programs transferred by this Act, including
6-19 approving and servicing loans. Subject to Subsection (b) of this
6-20 section, the powers and duties relating to administering a program
6-21 of an entity required by other law to administer a loan or loan
6-22 guarantee program transferred by this Act are transferred to the
6-23 development agency, and the entity shall transfer all records
6-24 relating to the program to the development agency.
6-25 (b) Each entity from which a program is transferred by this
6-26 Act to the development agency shall execute with the development
6-27 agency a memorandum of understanding governing the transfer. The
7-1 transfer shall be accomplished in accordance with the memorandum.
7-2 (c) The Texas Economic Development Agency shall serve as the
7-3 administrator of all existing state agency loan and loan guarantee
7-4 programs transferred by this Act and all future state agency loan
7-5 and loan guarantee programs.
7-6 SECTION 4.07. CHIEF OPERATING OFFICER; EMPLOYEES. (a) The
7-7 board shall employ a chief operating officer of the development
7-8 agency. The board may delegate to the officer any of the board's
7-9 powers and duties.
7-10 (b) The chief operating officer may employ persons necessary
7-11 for the proper management of the development agency.
7-12 SECTION 4.08. LENDING AUTHORITY. (a) The board by rule
7-13 shall establish a breakdown of lending authority within the
7-14 development agency.
7-15 (b) The chief operating officer shall establish the loan
7-16 authority of the development agency's employees within board rules.
7-17 SECTION 4.09. SECONDARY MARKET PARTICIPATION. The
7-18 development agency may enter into participations to develop a
7-19 securitization program to sell into secondary markets.
7-20 SECTION 4.10. DEVELOPMENT AGENCY AUDIT. The development
7-21 agency shall provide for an annual audit of the financial condition
7-22 of the agency by:
7-23 (1) the state auditor; or
7-24 (2) a private auditing firm.
7-25 SECTION 4.11. PROGRAM MARKETING. The development agency may
7-26 adopt a policy to market the programs administered by the agency.
7-27 SECTION 4.12. MEMORANDUM OF UNDERSTANDING. The development
8-1 agency and the Texas Public Finance Authority shall jointly execute
8-2 a memorandum of understanding relating to the agency retaining
8-3 earnings that exceed the costs of bond retirement and costs of the
8-4 Texas Public Finance Authority.
8-5 SECTION 4.13. SUBSIDIARY. The development agency may form a
8-6 subsidiary as determined necessary by the agency.
8-7 SECTION 4.14. CASH MANAGEMENT. The board shall adopt a
8-8 written cash management policy and review it annually.
8-9 SECTION 4.15. TECHNICAL SERVICES. (a) An entity from which
8-10 a program is transferred by this Act shall perform, on request of
8-11 the development agency, technical services related to programs and
8-12 projects transferred from the entity to the development agency by
8-13 this Act.
8-14 (b) The development agency may contract with other entities
8-15 to perform the technical services.
8-16 SECTION 4.16. GIFTS AND GRANTS. The development agency may
8-17 accept gifts and grants from any private or public source.
8-18 SECTION 4.17. EARNINGS. The excess earnings from programs
8-19 administered by the development agency after payment of
8-20 administrative overhead and payment for debt retirement may be
8-21 pooled and used for any program administered by the agency or used
8-22 to create an economic emergency assistance fund.
8-23 SECTION 4.18. ECONOMIC EMERGENCY ASSISTANCE FUND. The board
8-24 may create an economic emergency assistance fund and adopt rules
8-25 regulating the fund and the use of money in the fund. The board
8-26 may deposit any earnings from programs administered by the
8-27 development agency into the economic emergency assistance fund.
9-1 SECTION 4.19. CONTRACTS WITH PRIVATE ENTITIES. The
9-2 development agency may contract with a private entity to perform an
9-3 activity related to a program transferred by this Act as long as
9-4 the activity is not solely a sovereign function of the state.
9-5 SECTION 4.20. EFFECTIVE DATE. This article takes effect
9-6 January 15, 1998.
9-7 ARTICLE 5. LEGISLATIVE OVERSIGHT COMMITTEE
9-8 SECTION 5.01. LEGISLATIVE OVERSIGHT COMMITTEE; SUNSET DATE.
9-9 (a) The Legislative Oversight Committee is composed of six members
9-10 as follows:
9-11 (1) three members must be members of the senate,
9-12 appointed by the lieutenant governor; and
9-13 (2) three members must be members of the house of
9-14 representatives, appointed by the speaker of the house of
9-15 representatives.
9-16 (b) The lieutenant governor shall appoint the initial
9-17 presiding officer for a term ending January 31, 1999, and the
9-18 speaker of the house of representatives shall appoint the successor
9-19 presiding officer for a term beginning February 1, 1999.
9-20 (c) The committee is subject to Chapter 325, Government Code
9-21 (Texas Sunset Act). Unless continued in existence as provided by
9-22 that chapter, the committee is abolished and this article expires
9-23 August 31, 1999.
9-24 SECTION 5.02. COMMITTEE POWERS AND DUTIES. (a) The
9-25 committee shall:
9-26 (1) meet quarterly with the board; and
9-27 (2) receive information regarding rules adopted by the
10-1 board or proposed for adoption by the board.
10-2 (b) The committee may request reports and other information
10-3 from the board relating to the operation of the board.
10-4 (c) The committee shall review the specific recommendations
10-5 for legislation proposed by the board.
10-6 SECTION 5.03. REPORT. (a) The committee shall file a
10-7 report with the governor, lieutenant governor, and speaker of the
10-8 house of representatives not later than December 31 of each
10-9 even-numbered year.
10-10 (b) The report must include:
10-11 (1) identification of any problems in the board's
10-12 administration of programs with recommended solutions for
10-13 commission and legislative action; and
10-14 (2) other recommendations for legislative action.
10-15 SECTION 5.04. EFFECTIVE DATE. This article takes effect
10-16 January 15, 1998.
10-17 ARTICLE 6. COMPTROLLER STUDY
10-18 SECTION 6.01. COMPTROLLER STUDY. (a) The comptroller shall
10-19 conduct a study to review the programs transferred to the
10-20 development agency by this Act. Based on the study, the
10-21 comptroller shall develop and make recommendations to the governor,
10-22 lieutenant governor, and speaker of the house of representatives
10-23 concerning the integrated structure of the development agency.
10-24 (b) Each state entity affected by the transfer of program
10-25 jurisdiction shall cooperate with the comptroller in formulating
10-26 and implementing a transition plan, including the development of
10-27 program transition plans and an interim operating budget and the
11-1 temporary assignment of staff as necessary to ensure an orderly
11-2 transition.
11-3 (c) The comptroller's report and recommendations for the
11-4 structure of the development agency and the transition of the
11-5 programs transferred shall be filed with the governor, lieutenant
11-6 governor, and speaker of the house of representatives not later
11-7 than January 15, 1998.
11-8 (d) After review of the comptroller's plan by the governor,
11-9 lieutenant governor, and speaker of the house of representatives,
11-10 the development agency shall, to the extent practicable, implement
11-11 the program transition in a manner consistent with the
11-12 comptroller's plan.
11-13 (e) Each state agency affected by the transfer of program
11-14 jurisdiction shall cooperate with the comptroller and the
11-15 development agency in formulating and implementing a transition
11-16 plan.
11-17 SECTION 6.02. EFFECTIVE DATE; EXPIRATION. This article
11-18 takes effect September 1, 1997, and expires August 31, 1999.
11-19 ARTICLE 7. TRANSFER OF CERTAIN PROPERTY, RECORDS,
11-20 OBLIGATIONS, FUNDS, FUNCTIONS, PROGRAMS, AND ACTIVITIES
11-21 TO DEVELOPMENT AGENCY
11-22 SECTION 7.01. TRANSFERS. On May 1, 1998, or an earlier date
11-23 provided by an interagency agreement with the affected entity, the
11-24 following functions, programs, and activities are transferred to
11-25 the development agency:
11-26 (1) from the Texas Department of Housing and Community
11-27 Affairs, the community and economic development grants program;
12-1 (2) from the General Land Office, the recycled
12-2 products market expansion program;
12-3 (3) from the Parks and Wildlife Department, the public
12-4 information program to communicate the state's natural and cultural
12-5 resource conservation message through various media, including
12-6 television, radio, newspapers, and magazines; and
12-7 (4) from the Texas Department of Transportation, the
12-8 travel information program, other than the operation of the
12-9 department's Travel Information Centers, to support and promote
12-10 tourism.
12-11 SECTION 7.02. AMENDMENT. Section 9B(a), Texas Public
12-12 Finance Authority Act (Article 601d, Vernon's Texas Civil
12-13 Statutes), is amended to read as follows:
12-14 (a) With respect to all bonds authorized to be issued by the
12-15 Texas National Guard Armory Board, Texas National Research
12-16 Laboratory Commission, Parks and Wildlife Department, and all
12-17 institutions of higher education authorized to issue bonds under
12-18 Chapter 55, Education Code, and with respect to all bonds
12-19 authorized to be issued by entities to fund programs administered
12-20 by the Texas Economic Development Agency, the authority has the
12-21 exclusive authority to act on behalf of those entities in issuing
12-22 bonds on their behalf. In connection with those issuances and with
12-23 the issuance of refunding bonds on behalf of those entities, the
12-24 authority is subject to all rights, duties, and conditions
12-25 surrounding issuance previously applicable to the issuing entity
12-26 under the statute authorizing the issuance. All references in an
12-27 authorizing statute to the entity on whose behalf the bonds are
13-1 being issued apply equally to the authority in its capacity as
13-2 issuer on behalf of the entity.
13-3 SECTION 7.03. EFFECTIVE DATE. This article takes effect
13-4 January 15, 1998.
13-5 ARTICLE 8. TRANSFER OF CERTAIN PROPERTY, RECORDS,
13-6 OBLIGATIONS, FUNDS, FUNCTIONS, PROGRAMS, AND ACTIVITIES
13-7 TO DEVELOPMENT AGENCY
13-8 SECTION 8.01. TRANSFERS. On May 1, 1998, the following
13-9 functions, programs, and activities are transferred to the
13-10 development agency from the Texas Agricultural Finance Authority:
13-11 (1) TAFA loan guarantee program;
13-12 (2) linked deposit program;
13-13 (3) microenterprise support program;
13-14 (4) young farmers endowment program; and
13-15 (5) farm and ranch finance program.
13-16 ARTICLE 9. TEXAS DEPARTMENT OF BANKING REPORT
13-17 SECTION 9.01. UNDERWRITING STANDARDS. (a) The Texas
13-18 Department of Banking shall examine loans in programs administered
13-19 by the development agency to determine the credit quality and value
13-20 of the loans.
13-21 (b) The Texas Department of Banking shall recommend
13-22 appropriate loan underwriting standards consistent with the
13-23 development agency's mission and programs.
13-24 (c) The Texas Department of Banking shall file a report of
13-25 the department's recommendations with the governor, lieutenant
13-26 governor, and speaker of the house of representatives not later
13-27 than August 1, 1998.
14-1 SECTION 9.02. EFFECTIVE DATE; EXPIRATION. This article
14-2 takes effect January 1, 1998, and expires January 1, 1999.
14-3 ARTICLE 10. AUDITOR EVALUATION
14-4 SECTION 10.01. AUDITOR EVALUATION. (a) The state auditor
14-5 shall evaluate the management and fiscal control systems of the
14-6 development agency and make any recommendation for improvement to
14-7 the governor, the legislature, and the development agency.
14-8 (b) The state auditor shall report the results of the
14-9 evaluation conducted under Subsection (a) of this section to the
14-10 governor and the legislature not later than December 1, 1998.
14-11 SECTION 10.02. EFFECTIVE DATE. This article takes effect
14-12 January 15, 1998.
14-13 ARTICLE 11. TRANSFER OF PERSONNEL
14-14 SECTION 11.01. TRANSFER OF PERSONNEL. A person employed by
14-15 a program transferred to the development agency by this Act becomes
14-16 an employee of the development agency on the date on which the
14-17 transfer of the program to the development agency is completed.
14-18 ARTICLE 12. AMENDMENT AND REPEAL OF CERTAIN FUNCTIONS,
14-19 POWERS, AND DUTIES OF THE TEXAS DEPARTMENT OF COMMERCE
14-20 SECTION 12.01. EFFECT OF CERTAIN AMENDMENTS. The amendment
14-21 by this article of a statute referring to the Texas Department of
14-22 Commerce or a division of the department does not affect the
14-23 abolition of that department by this Act.
14-24 SECTION 12.02. Section 481.082, Government Code, is amended
14-25 to read as follows:
14-26 Sec. 481.082. PURPOSE. (a) The legislature finds that:
14-27 (1) the health, safety, right to gainful employment,
15-1 and general welfare of the people of this state require as a public
15-2 purpose the promotion and development of new and expanded
15-3 enterprises; and
15-4 (2) communities in this state are at a critical
15-5 disadvantage in competing with communities in this state and other
15-6 states for the location or expansion of enterprises because of
15-7 available financial resources [the availability in all other states
15-8 of financing] and [other special] incentives.
15-9 (b) The purpose of this subchapter is to promote economic
15-10 development and employment in rural areas, which is a public
15-11 purpose.
15-12 (c) In administering this subchapter, the office of rural
15-13 affairs [department] shall ensure that assistance is provided to
15-14 improve economic development conditions and opportunity for
15-15 citizens in rural areas of this state [give first preference to
15-16 assistance to the food and fiber processing industries].
15-17 SECTION 12.03. Section 481.083(7), Government Code, is
15-18 amended to read as follows:
15-19 (7) "Rural area" means an area that is predominantly
15-20 rural in character and meets the conditions of a rural area, as
15-21 defined [designated] by the department [as a rural area].
15-22 SECTION 12.04. Section 481.0831, Government Code, is amended
15-23 by amending Subsection (b) and adding Subsection (c) to read as
15-24 follows:
15-25 (b) The office shall be headed by a rural affairs director[:]
15-26 [(1) implement the programs established under this
15-27 subchapter; and]
16-1 [(2) address the special needs of rural communities
16-2 and businesses and assist those communities and businesses].
16-3 (c) To be eligible to serve as the rural affairs director, a
16-4 person must have demonstrated a strong commitment to and
16-5 involvement in economic development activities in rural areas.
16-6 SECTION 12.05. Section 481.088, Government Code, is amended
16-7 to read as follows:
16-8 Sec. 481.088. GENERAL DUTIES OF OFFICE OF RURAL AFFAIRS
16-9 [DIRECTIVE]. [(a)] The office of rural affairs [executive
16-10 director] shall:
16-11 (1) serve as a principal point of contact for comments
16-12 and suggestions concerning state government policies and activities
16-13 that affect rural areas;
16-14 (2) provide advice to the governor and the legislature
16-15 regarding administrative requirements and legislation that affect
16-16 rural areas;
16-17 (3) develop proposals for changes in the policies and
16-18 activities of state agencies that will better serve the purposes of
16-19 this subchapter and communicate those proposals to the appropriate
16-20 agencies;
16-21 (4) cooperate with other public and private entities
16-22 that provide assistance to rural areas; and
16-23 (5) cooperate and provide assistance to public and
16-24 private agencies, businesses, and other organizations by:
16-25 (A) disseminating information about the programs
16-26 and services provided by the state that benefit rural areas; and
16-27 (B) informing the agencies, businesses, and
17-1 organizations of how to participate in or make use of the programs
17-2 and services that benefit rural areas. [conduct a detailed,
17-3 comprehensive analysis of the availability of federal, state, and
17-4 local government and private sector rural economic development
17-5 business outreach and data services in Texas. The analysis must
17-6 specifically examine the availability of:]
17-7 [(1) integrated computerized rural economic
17-8 development data banks that provide comprehensive economic data for
17-9 existing and prospective businesses in Texas; and]
17-10 [(2) business information outreach service offices or
17-11 centers that provide comprehensive technical assistance, research,
17-12 consulting services, training, and other business services to small
17-13 rural communities to help businesses prepare and implement economic
17-14 development business plans and assist new business start-up
17-15 projects in Texas.]
17-16 [(b) In conducting the analysis required by this section,
17-17 the executive director shall consult with the governor, economic
17-18 development officials, economic development experts in the private
17-19 sector, and the academic community in Texas.]
17-20 [(c) The cost of the analysis and establishment of the rural
17-21 economic development data base required by this section may be paid
17-22 from available funds in the fund in an amount not to exceed
17-23 $300,000.]
17-24 SECTION 12.06. Section 481.089, Government Code, is amended
17-25 to read as follows:
17-26 Sec. 481.089. SPECIFIC DUTIES OF OFFICE OF RURAL AFFAIRS
17-27 [CRITERIA]. To carry out the duties under Section 481.088, the
18-1 office of rural affairs shall:
18-2 (1) develop a rural resource guide and provide the
18-3 information to rural areas through print and electronic media;
18-4 (2) provide information to state agencies on the
18-5 effects of proposed policies or actions that affect rural areas;
18-6 (3) cosponsor meetings, to the extent practical, in
18-7 cooperation with public and private educational institutions to
18-8 disseminate information beneficial to rural areas;
18-9 (4) identify potential opportunities for businesses in
18-10 rural areas and assist these businesses to maximize those
18-11 opportunities;
18-12 (5) conduct an analysis of the available federal,
18-13 state, and local government and rural economic development business
18-14 outreach and data services in rural areas of this state by
18-15 examining the availability of:
18-16 (A) computerized economic development databases
18-17 that provide data for existing and prospective businesses and
18-18 communities in rural areas of this state; and
18-19 (B) business information outreach service
18-20 offices or centers that provide comprehensive technical assistance,
18-21 research, consulting services, training, and other services to
18-22 businesses in rural areas; and
18-23 (6) perform any other functions necessary to carry out
18-24 the purposes of this subchapter. [(a) In assessing the
18-25 availability of rural economic development data services in Texas,
18-26 the executive director shall determine the capability of the data
18-27 banks to provide a socioeconomic profile of each trade area,
19-1 region, or sector that includes an inventory of the area's resource
19-2 base, the area's barriers to economic development, and an
19-3 assessment of the area's competitive position in the industrial
19-4 marketplace particularly in the area of production sharing.]
19-5 [(b) The executive director shall determine the ability of a
19-6 data bank to compile:]
19-7 [(1) population data for each community and county in
19-8 Texas;]
19-9 [(2) data on all retail businesses by locality,
19-10 county, and community, including information on sales, types of
19-11 products and services, employees, organizational forms, and
19-12 affiliations;]
19-13 [(3) information on all components of the health care
19-14 delivery system by community and county, including information on
19-15 physicians, hospitals, laboratories, specialized health care
19-16 providers, and institutions;]
19-17 [(4) information on all aspects of the transportation
19-18 system in Texas, including data on streets and highways, airline
19-19 and other air access and airports, freight lines, railroad access,
19-20 and limitations imposed through regulation, restrictions on
19-21 transportation of hazardous materials, bridges, landing facilities,
19-22 and the current condition of existing transportation facilities;]
19-23 [(5) a current inventory of all available industrial
19-24 facilities for lease or sale, including information regarding age,
19-25 type of construction, zoning, availability, cost, ability to
19-26 renovate, utilities, incentives, and similar data;]
19-27 [(6) information on all public and private utilities
20-1 available by community, area, and county, including information on
20-2 extension of public utilities into rural and nonmetropolitan areas,
20-3 and the ability of systems to support economic growth;]
20-4 [(7) information on police, fire, hazardous material
20-5 safety, and rescue services, including information on crime rates;]
20-6 [(8) information on all community, county, regional,
20-7 and state agencies and organizations, and information on what these
20-8 agencies and organizations can provide to existing and prospective
20-9 businesses in Texas;]
20-10 [(9) information on all primary and secondary
20-11 education programs and programs offered by institutions of higher
20-12 education by community, rural area, and county, including
20-13 information on vocational educational resources and general
20-14 demographic information on the student population;]
20-15 [(10) information on manufacturing facilities,
20-16 including information by community, county, and type of
20-17 manufacturer;]
20-18 [(11) information on financial institutions, including
20-19 size, amounts of deposits, loan policies, names of officers, and
20-20 other pertinent information to assist existing and prospective
20-21 economic development in rural areas of Texas;]
20-22 [(12) information weighing the relative strengths and
20-23 weaknesses of communities, counties, and other locations within
20-24 Texas regarding rural economic development opportunities;]
20-25 [(13) information regarding technology transfer
20-26 between federal, state, and local governments and private industry
20-27 in Texas;]
21-1 [(14) information regarding the flow of trade across
21-2 the border of the United States of America and the United Mexican
21-3 States and business opportunities for maquiladora operations and
21-4 other production sharing enterprises in Texas derived from the
21-5 border trade; and]
21-6 [(15) information on the development of special
21-7 economic models for regional economic forecasts for Texas.]
21-8 SECTION 12.07. Section 481.090, Government Code, is amended
21-9 to read as follows:
21-10 Sec. 481.090. STAFF AND POWERS OF OFFICE OF RURAL AFFAIRS
21-11 [BUSINESS SERVICE OUTREACH STUDY]. In administering this
21-12 subchapter, the department may:
21-13 (1) employ and set the compensation of personnel to
21-14 carry out the office of rural affairs' functions under this
21-15 subchapter; and
21-16 (2) consult with:
21-17 (A) experts and authorities in the fields of
21-18 rural development, economic development, and community development;
21-19 (B) individuals with regulatory, legal,
21-20 economic, or financial expertise, including members of the academic
21-21 community; and
21-22 (C) individuals who represent the public
21-23 interest [assessing the availability of business information
21-24 outreach service offices in Texas, the executive director shall
21-25 determine the capability of federal, state, and local government
21-26 and private sector programs in Texas, including programs that:]
21-27 [(1) provide a comprehensive array of data gathering,
22-1 consulting, and training business services to existing and
22-2 prospective businesses and industries with interest in locating
22-3 operations in Texas;]
22-4 [(2) serve as a liaison among existing small business
22-5 development centers, state agencies, vocational educational
22-6 agencies, other community economic development organizations, and
22-7 both existing and prospective new business interests;]
22-8 [(3) conduct studies, including target industry
22-9 studies, for determining the benefits and costs to be incurred by
22-10 locating a business or industry in Texas;]
22-11 [(4) develop special economic models for regional
22-12 economic forecasts for Texas;]
22-13 [(5) analyze, develop, and disseminate to the business
22-14 community new technologies in community infrastructure development,
22-15 including water conservation and purification systems, recycling
22-16 and waste treatment systems, solar and geothermal energy sources,
22-17 disposal technologies for industrial and medical hazardous
22-18 materials and waste, and landfill operations;]
22-19 [(6) share with the business community information on
22-20 new product and material developments available from institutions
22-21 of higher education and government research laboratories and
22-22 agencies of the federal government;]
22-23 [(7) facilitate industry and community production
22-24 networks that include cottage industries in manufacturing,
22-25 industrial machining, and injection molding and that include
22-26 community industrial manufacturing cooperatives involving multiple
22-27 businesses and communities; and]
23-1 [(8) interface with the rural economic development
23-2 data banks, the electronic data base of the department, and any
23-3 other appropriate data bases and make the data available to
23-4 existing and prospective businesses in Texas].
23-5 SECTION 12.08. Section 481.092, Government Code, is amended
23-6 to read as follows:
23-7 Sec. 481.092. ASSISTANCE OF GOVERNMENT AGENCIES [REVIEW].
23-8 Each state agency must, on request, furnish the office of rural
23-9 affairs with reports and other information necessary to carry out
23-10 the functions of this subchapter. [The comptroller shall review the
23-11 implementation of Sections 481.088-481.090 of this chapter and
23-12 assist in carrying out the assessment of programs and activities
23-13 authorized in those sections. The comptroller shall make periodic
23-14 written reports to the appropriate committees of the legislature
23-15 regarding the studies and analyses to be prepared by the executive
23-16 director.]
23-17 SECTION 12.09. Section 481.093, Government Code, is amended
23-18 to read as follows:
23-19 Sec. 481.093. FUNDING [GIFTS AND GRANTS]. The office of
23-20 rural affairs [department] may accept gifts, grants, and donations
23-21 from any source for the purposes of performing specific projects,
23-22 studies, or procedures or to provide assistance to small
23-23 businesses [this subchapter].
23-24 SECTION 12.10. Subchapter F, Chapter 481, Government Code,
23-25 is amended by adding Section 481.094 to read as follows:
23-26 Sec. 481.094. REPORTS. Not later than September 1 of each
23-27 even-numbered year, the department shall send to the governor and
24-1 the legislature a report containing specific information regarding
24-2 each of the functions performed by the office of rural affairs
24-3 under this subchapter, including suggestions regarding issues
24-4 critical to the rural areas of this state.
24-5 SECTION 12.11. The executive director of the Texas
24-6 Department of Commerce shall employ a rural affairs director as
24-7 required by Section 481.0831, Government Code, as amended by this
24-8 article, not later than January 1, 1998.
24-9 SECTION 12.12. AMENDMENT. Section 481.102, Government Code,
24-10 is amended to read as follows:
24-11 Sec. 481.102. OFFICE OF SMALL BUSINESS ASSISTANCE. The
24-12 Office of Small Business Assistance is an office within the
24-13 department headed by a small business director. The office may
24-14 accept gifts, grants, and donations from sources other than the
24-15 state for the purpose of performing specific projects, studies, or
24-16 procedures or to provide assistance to small businesses.
24-17 SECTION 12.13. AMENDMENT. Section 481.103(a), Government
24-18 Code, is amended to read as follows:
24-19 (a) The office shall:
24-20 (1) examine the role of small and historically
24-21 underutilized businesses in the state's economy and the
24-22 contribution of small and historically underutilized businesses in
24-23 generating economic activity, expanding employment opportunities,
24-24 promoting exports, stimulating innovation and entrepreneurship, and
24-25 bringing new and untested products and services to the marketplace;
24-26 (2) serve as the principal focal point [advocate] in
24-27 the state for [on behalf of] small and historically underutilized
25-1 businesses by:
25-2 (A) providing to the legislature information on
25-3 the effects of proposed policies or actions;
25-4 (B) assisting state agencies in determining the
25-5 impact proposed rules have on small businesses as required by
25-6 Section 2006.002; and
25-7 (C) assisting the agencies in reducing the
25-8 adverse effect that rules have on small businesses, if appropriate
25-9 [and provide advice in the consideration of administrative
25-10 requirements and legislation that affect small and historically
25-11 underutilized businesses];
25-12 (3) evaluate the effectiveness of efforts of state
25-13 agencies and other entities to assist small and historically
25-14 underutilized businesses and make appropriate recommendations to
25-15 the legislature and state agencies to assist the development and
25-16 strengthening of small and historically underutilized businesses;
25-17 (4) identify [specific instances in which] regulations
25-18 that inhibit small and historically underutilized business
25-19 development and to the extent possible identify conflicting state
25-20 policy goals;
25-21 (5) determine the availability of financial and other
25-22 resources to small and historically underutilized businesses and
25-23 recommend methods for:
25-24 (A) increasing the availability of equity
25-25 capital and other forms of financial assistance to small and
25-26 historically underutilized businesses;
25-27 (B) generating markets for the goods and
26-1 services of small and historically underutilized businesses;
26-2 (C) providing more effective education,
26-3 training, and management and technical assistance to small and
26-4 historically underutilized businesses; and
26-5 (D) providing assistance to small and
26-6 historically underutilized businesses in complying with federal,
26-7 state, and local laws;
26-8 (6) identify [describe] the reasons for small and
26-9 historically underutilized business successes and failures,
26-10 ascertain the related factors that are particularly important in
26-11 this state, and recommend actions for increasing the success rate
26-12 of small and historically underutilized businesses;
26-13 (7) serve as a focal point for receiving comments
26-14 [complaints] and suggestions concerning state government policies
26-15 and activities that affect small and historically underutilized
26-16 businesses;
26-17 (8) [assist with the resolution of problems among
26-18 state agencies and small and historically underutilized businesses;]
26-19 [(9)] develop and suggest [advocate] proposals for
26-20 changes in state policies and activities that adversely affect
26-21 small and historically underutilized businesses;
26-22 (9) [(10)] provide to [legislative committees and]
26-23 state agencies information on the effects of proposed policies or
26-24 actions that affect small and historically underutilized
26-25 businesses;
26-26 (10) [(11)] enlist the assistance of public and
26-27 private agencies, businesses, and other organizations in
27-1 disseminating information about state programs and services that
27-2 benefit small and historically underutilized businesses and
27-3 information regarding means by which small and historically
27-4 underutilized businesses can use those programs and services;
27-5 (11) [(12)] provide information and assistance
27-6 relating to establishing, operating, or expanding small and
27-7 historically underutilized businesses;
27-8 (12) [(13)] establish and operate a statewide
27-9 toll-free telephone service providing small and historically
27-10 underutilized businesses with ready access to the services offered
27-11 by the office;
27-12 (13) [(14)] assist small and historically
27-13 underutilized businesses by:
27-14 (A) identifying:
27-15 (i) sources of financial assistance for
27-16 those businesses; and
27-17 (ii) financial barriers to those
27-18 businesses;
27-19 (B) working with relevant organizations to
27-20 identify [establishing] financing programs [for those businesses]
27-21 that aid small businesses in overcoming financial barriers;
27-22 (C) matching those businesses with sources of
27-23 financial assistance and credit enhancement; and
27-24 (D) assisting those businesses with the
27-25 preparation of applications for government loans, loan guarantees,
27-26 and credit enhancement programs [from governmental or private
27-27 sources];
28-1 (14) [(15)] sponsor meetings, to the extent
28-2 practicable in cooperation with public and private educational
28-3 institutions, to provide training and disseminate information
28-4 beneficial to small and historically underutilized businesses;
28-5 (15) [(16)] assist small and historically
28-6 underutilized businesses in their dealings with federal, state, and
28-7 local governmental agencies and provide information regarding
28-8 governmental requirements affecting small and historically
28-9 underutilized businesses;
28-10 (16) [(17)] perform research, studies, and analyses of
28-11 matters affecting the interests of small and historically
28-12 underutilized businesses;
28-13 (17) [(18) develop and implement programs to encourage
28-14 governmental agencies, public sector business associations, and
28-15 other organizations to provide useful services to small and
28-16 historically underutilized businesses;]
28-17 [(19)] use available resources within the state, such
28-18 as small business development centers, educational institutions,
28-19 and nonprofit associations, to coordinate the provision of
28-20 management and technical assistance to small and historically
28-21 underutilized businesses in a systematic manner;
28-22 (18) [(20)] publish newsletters, brochures, and other
28-23 documents containing information useful to small and historically
28-24 underutilized businesses;
28-25 (19) [(21)] identify successful small and historically
28-26 underutilized business assistance programs provided by other states
28-27 and determine the feasibility of adapting those programs for
29-1 implementation in this state;
29-2 (20) [(22)] establish an outreach program to make the
29-3 existence of the office known to small and historically
29-4 underutilized businesses and potential clients throughout the
29-5 state;
29-6 (21) [(23)] adopt rules necessary to carry out this
29-7 subchapter;
29-8 (22) [(24)] identify potential business opportunities
29-9 for small and historically underutilized businesses in areas of
29-10 this state that are economically distressed, including areas of
29-11 high unemployment and areas with high levels of poverty, [the
29-12 border region] and develop programs to maximize those
29-13 opportunities;
29-14 (23) [(25)] identify potential business opportunities
29-15 for small and historically underutilized businesses in rural areas
29-16 of this state and develop programs to maximize those opportunities;
29-17 [and]
29-18 (24) enlist the cooperation and assistance of public
29-19 and private agencies, businesses, and other organizations in
29-20 disseminating information about the programs and services provided
29-21 by the state that benefit small businesses and how small businesses
29-22 can participate in or make use of those programs and services;
29-23 (25) defer to the small business stationary source
29-24 assistance program as defined by Section 382.0365, Health and
29-25 Safety Code, on advocacy and technical assistance related to
29-26 environmental programs that regulate small businesses; and
29-27 (26) perform any other functions necessary to carry
30-1 out the purposes of this subchapter.
30-2 SECTION 12.14. AMENDMENT. Subchapter G, Chapter 481,
30-3 Government Code, is amended by adding Section 481.109 to read as
30-4 follows:
30-5 Sec. 481.109. ASSISTANCE TO GOVERNMENTAL AGENCIES. Each
30-6 department, agency, and instrumentality of state government is
30-7 authorized and directed to furnish the office with reports and
30-8 other information as necessary to carry out the functions of this
30-9 subchapter.
30-10 SECTION 12.15. AMENDMENT. Section 2006.002, Government
30-11 Code, is amended by adding Subsection (f) to read as follows:
30-12 (f) To reduce the adverse impact of rules on
30-13 micro-businesses, a state agency may adopt provisions concerning
30-14 micro-businesses similar to those outlined in Subsection (b) for
30-15 small businesses.
30-16 SECTION 12.16. AMENDMENT. Section 481.155, Government Code,
30-17 is amended to read as follows:
30-18 Sec. 481.155. GRANTS. (a) The executive director may award
30-19 grants for projects that meet the requirements of this chapter. It
30-20 is the intent of the legislature that, to the greatest extent
30-21 practicable, money from the smart jobs fund shall be spent in all
30-22 areas of the state. The executive director may award a grant or a
30-23 combination of grants in any fiscal year to a single employer in
30-24 excess of $1 million or at a rate greater than 10 percent of the
30-25 annual wages of the new or existing job being created or retained
30-26 with the grant only if:
30-27 (1) the employer locates or expands in an enterprise
31-1 zone;
31-2 (2) the employer locates or expands in an adversely
31-3 affected defense-dependent community;
31-4 (3) the employer locates or expands in an area having
31-5 an unemployment rate 1-1/2 times or greater than the statewide
31-6 average at the time of the application;
31-7 (4) the employer locates or expands in a county with a
31-8 population of less than 75,000;
31-9 (5) at least 25 percent of the employees hired or
31-10 retained by the employer are economically disadvantaged individuals
31-11 as defined by Section 2303.402(c); or
31-12 (6) the employer is a small business or a
31-13 micro-business.
31-14 (b) The executive director shall attempt to ensure that at
31-15 least 20 percent of the total dollar amount of grants awarded under
31-16 the program are awarded to minority employers.
31-17 (c) [(b)] The program is job-driven. A grant may not be
31-18 awarded unless each employer participating in the project certifies
31-19 that:
31-20 (1) a job or job opening exists or will exist at the
31-21 end of the project for which the grant is sought; and
31-22 (2) the job or job opening will be filled by a
31-23 participant in the project.
31-24 (d) [(c)] A grant may not be awarded for a project under
31-25 this section unless each employer participating in the project
31-26 certifies that the starting wage for a new job created through the
31-27 project will be equal to or greater than the prevailing wage for
32-1 that occupation in the local labor market area [greater than 66 2/3
32-2 percent of the state average weekly wage] and that the wage for a
32-3 job existing on the date that the project is scheduled to begin
32-4 will be increased to the greater of:
32-5 (1) three [10] percent for a small business or five
32-6 percent for a business that is not a small business over the wage
32-7 in effect on the day before the date on which the project is
32-8 scheduled to begin for that job; or
32-9 (2) 100 percent of the prevailing wage for that
32-10 occupation in the local labor market area [75 percent of the state
32-11 average weekly wage].
32-12 (e) [(d)] An employer may apply for a grant under this
32-13 chapter, and an employer who is a micro-business may request a
32-14 modification of the requirements provided by Subsection (d) and
32-15 Section 481.159(c), if:
32-16 (1) the employer is required to reduce or eliminate
32-17 the employer's work force because of reductions in overall
32-18 employment within an industry;
32-19 (2) [or] a substantial change in the skills required
32-20 to continue the employer's business exists because of technological
32-21 changes; or
32-22 (3) other reasonable factors, as determined by[. In
32-23 awarding a grant under this subsection,] the executive director,
32-24 exist [may modify the requirements of Subsection (c)].
32-25 (f) Grants awarded under this section [subsection] for which
32-26 the executive director has modified the requirements of Subsection
32-27 (d) [(c)] may not, in any fiscal year, exceed 10 percent of the
33-1 total dollar amount of grants awarded under the program in that
33-2 year.
33-3 (g) [(e)] Unless modified by the executive director under
33-4 rules adopted by the policy board, a grant may not be awarded for a
33-5 project unless each employer participating in the project certifies
33-6 that it will continue to spend on nonmanagerial training an amount
33-7 from private sources equal to the average amount spent by that
33-8 employer on such training for the most recent two-year period.
33-9 (h) [(f)] A grant may not be awarded for a project if the
33-10 project will impair existing contracts for services or collective
33-11 bargaining agreements, except that a project inconsistent with the
33-12 terms of a collective bargaining agreement may be undertaken with
33-13 the written concurrence of the collective bargaining unit and the
33-14 employer or employers who are parties to the agreement.
33-15 (i) [(g)] During each state fiscal year the executive
33-16 director shall attempt to ensure that at least 50 percent of the
33-17 total dollar amount of grants awarded under this section is awarded
33-18 to small businesses, as defined by Section 481.101.
33-19 (j) [(h)] In awarding a grant under this section, the
33-20 executive director shall give priority to a project that is located
33-21 in an enterprise zone as defined by Section 2303.003.
33-22 SECTION 12.17. AMENDMENT. Section 481.172, Government Code,
33-23 is amended to read as follows:
33-24 Sec. 481.172. DUTIES. The department shall:
33-25 (1) promote and advertise within the United States and
33-26 in foreign countries, by radio, television, newspaper, and other
33-27 means considered appropriate, tourism in this state by non-Texans,
34-1 including persons from foreign countries, and distribute
34-2 promotional materials through appropriate distribution channels
34-3 [agencies, including the United States Travel and Tourism Agency];
34-4 (2) encourage travel by Texans to this state's scenic,
34-5 historical, natural, agricultural, educational, recreational, and
34-6 other attractions;
34-7 (3) coordinate and stimulate orderly and accelerated
34-8 development of tourist attractions throughout this state;
34-9 (4) conduct a public relations campaign to create a
34-10 responsible and accurate national and international image of this
34-11 state;
34-12 (5) cooperate fully with the Parks and Wildlife
34-13 Department in all matters relating to promotion of tourism;
34-14 (6) cooperate with the Texas Department of
34-15 Transportation [Commission] in the administration of the Texas
34-16 Department of Transportation's [commission's] collateral program of
34-17 highway map distribution and operation of travel information
34-18 bureaus and other tourist-related functions of the Texas Department
34-19 of Transportation [commission]; and
34-20 (7) encourage communities, organizations, and
34-21 individuals [in this state] to cooperate with its program by their
34-22 activities and use of their own funds and collaborate with those
34-23 organizations and other governmental entities in the pursuit of
34-24 the objectives of this subchapter.
34-25 SECTION 12.18. AMENDMENT. Section 481.221, Government Code,
34-26 is amended to read as follows:
34-27 Sec. 481.221. DEFINITIONS. In this subchapter:
35-1 (1) [(2)] "Executive director" means the executive
35-2 director of the department or the executive director's designee.
35-3 (2) [(3)] "Fund" means the product development fund.
35-4 [(4) "Office" means the Office of Advanced Technology
35-5 within the Texas Department of Commerce.]
35-6 (3) [(5)] "Product" means an invention, product,
35-7 device, technique, or process, without regard to whether a patent
35-8 has or could be granted, that is or may be exploitable
35-9 commercially. The term does not refer to pure research but
35-10 includes products, devices, techniques, or processes that have
35-11 advanced beyond the theoretical stage and have or are readily
35-12 capable of having a commercial application.
35-13 (4) [(6)] "Venture financing" means a revolving loan,
35-14 loan guarantee, or equity investment from the Texas product
35-15 development fund to a person for use in the development of new or
35-16 improved products.
35-17 SECTION 12.19. REPEALER. Chapter 146, Education Code, is
35-18 repealed.
35-19 SECTION 12.20. REPEALER. Section 481.061, Government Code,
35-20 is repealed.
35-21 SECTION 12.21. REPEALER. Subchapters R, T, U, and V,
35-22 Chapter 481, Government Code, are repealed.
35-23 SECTION 12.22. REPEALER. Chapter 483, Government Code, is
35-24 repealed.
35-25 ARTICLE 13. BOARD APPOINTMENT; EMERGENCY
35-26 SECTION 13.01. APPOINTMENT OF INITIAL TEXAS ECONOMIC
35-27 DEVELOPMENT AGENCY BOARD MEMBERS. The governor shall appoint the
36-1 initial members of the board of the development agency in a timely
36-2 manner so that a quorum of the board has qualified for office not
36-3 later than January 15, 1998. The term of office of each of the
36-4 initial board members expires February 1, 1999.
36-5 SECTION 13.02. EMERGENCY. The importance of this
36-6 legislation and the crowded condition of the calendars in both
36-7 houses create an emergency and an imperative public necessity that
36-8 the constitutional rule requiring bills to be read on three several
36-9 days in each house be suspended, and this rule is hereby suspended.