By: Armbrister S.B. No. 1265
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the abolition of the Texas Department of Commerce, and
1-2 the consolidation of economic development and tourism activities
1-3 from the Texas Department of Commerce and other agencies into the
1-4 Office of Economic Development and Tourism and a public-private
1-5 effort called "Partnership Texas."
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Title 4, Government Code, is amended by adding
1-8 Subtitle F to read as follows:
1-9 SUBTITLE F. ECONOMIC DEVELOPMENT AND TOURISM
1-10 CHAPTER 481. OFFICE OF ECONOMIC DEVELOPMENT AND TOURISM
1-11 SUBCHAPTER A. GENERAL PROVISIONS
1-12 Sec. 481.001. Definitions. In this subtitle:
1-13 (1) "Board" means the governing board of Partnership
1-14 Texas.
1-15 (2) "Bond" includes a note, draft, bill, warrant,
1-16 debenture, certificate, or other evidence of indebtedness.
1-17 (3) "Border region" means the area composed of the
1-18 counties of Brewster, Cameron, Culberson, Dimmit, El Paso, Hidalgo,
1-19 Hudspeth, Jeff Davis, Kinney, La Salle, Maverick, Presidio, Starr,
1-20 Terrell, Val Verde, Webb, Willacy, Zapata, and Zavala.
1-21 (4) "Office" means the Office of Economic Development
2-1 and Tourism.
2-2 (5) "Partnership" means Partnership Texas, a nonprofit
2-3 corporation.
2-4 Sec. 481.002. Establishment. The Office of Economic
2-5 Development and Tourism is established in the office of the
2-6 governor.
2-7 Sec. 481.003. Director. The governor shall appoint a
2-8 director of the Office of Economic Development and Tourism with the
2-9 advice and consent of the senate. The director may employ other
2-10 employees necessary to carry out the Office's duties.
2-11 Sec. 481.004. Purpose. The purpose of the Office is to
2-12 negotiate, execute and monitor performance contracts between the
2-13 state and the Partnership, or other appropriate state agencies or
2-14 entities, to fulfill the legislative intent of this subtitle in
2-15 support of economic and tourism development in Texas.
2-16 Sec. 481.005. Gifts and Grants. The Office may accept
2-17 gifts, grants, and other funds specifically designated by the donor
2-18 for the economic development of Texas.
2-19 Sec. 481.006. Audit; Report. The financial transactions of
2-20 the Office and the Partnership are subject to audit by the state
2-21 auditor in accordance with Chapter 321, Government Code. The
2-22 auditor shall include in the audit report a list of statutory
2-23 provisions authorizing financial transactions by the Office and the
2-24 Partnership under which transactions were made during the period
2-25 covered by the audit.
3-1 Sec. 481.007. Review of Bonds. (a) Bonds may not be issued
3-2 under this subtitle and proceeds of bonds issued under this
3-3 subtitle may not be used to finance a project, unless the issuance
3-4 has been reviewed and approved by the Bond Review.
3-5 (b) A member of the Bond Review Board may not be held liable
3-6 for damages resulting from the performance of the member's
3-7 functions under this section.
3-8 Sec. 481.008. Foreign Offices. (a) The office may contract
3-9 with the Partnership to maintain and operate offices in foreign
3-10 countries for the purposes of promoting investment that generates
3-11 jobs in Texas, exporting of Texas products, tourism, and
3-12 international relations for Texas. Notwithstanding any other
3-13 provision, the offices shall be named "The State of Texas" offices.
3-14 SUBCHAPTER B. GENERAL POWERS AND DUTIES OF THE OFFICE
3-15 Sec. 481.009. General Powers. (a) The Office may:
3-16 (1) adopt and enforce rules necessary to carry out
3-17 this subtitle;
3-18 (2) adopt and use an official seal;
3-19 (3) accept gifts, grants, or loans from and contract
3-20 with any entity;
3-21 (4) sue and be sued;
3-22 (5) acquire and convey property or an interest in
3-23 property;
3-24 (6) procure insurance and pay premiums on insurance of
3-25 any type, in accounts, and from insurers as the Office considers
4-1 necessary and advisable to accomplish any of the Office's purposes;
4-2 (7) hold patents, copyrights, trademarks, or other
4-3 evidence of protection or exclusively issued under the laws of the
4-4 United States, any state, or any nation and may enter into license
4-5 agreements with the Partnership and any third parties for the
4-6 receipt of fees, royalties, or other monetary or nonmonetary value;
4-7 (8) sell advertisements in any medium; and
4-8 (9) exercise any other power necessary to carry out
4-9 this subtitle.
4-10 (b) Except as otherwise provided by this subtitle, money
4-11 paid to the Office under this subtitle shall be deposited in
4-12 separate accounts in the general revenue fund.
4-13 (c) The Office shall deposit gifts, grants, and private
4-14 contributions in a separate account in the general revenue fund.
4-15 The money contributed shall be used to carry out the purposes of
4-16 the Office and, to the extent possible, the purposes specified by
4-17 the donors. The comptroller may invest and reinvest the money,
4-18 pending its use, in investments authorized by law for state funds
4-19 that the comptroller considers appropriate. Income and interest
4-20 earned shall be credited to the account.
4-21 Sec. 481.010. General Duties. (a) The Office shall:
4-22 (1) contract with the Partnership to perform the
4-23 Office's duties and implement and administer the programs under
4-24 this subtitle to the fullest extent allowed by the Texas
4-25 Constitution, to guide, stimulate, and promote the economic and
5-1 trade development of the state, and to guide, stimulate, and
5-2 promote the travel and leisure development of the state;
5-3 (2) monitor the activities of the Partnership and
5-4 other state agencies in order to avoid duplication and promote
5-5 coordinated and consistent implementation of programs in areas
5-6 including, but not limited to:
5-7 (A) tourism;
5-8 (B) international trade and investment;
5-9 (C) minority and small business development;
5-10 (D) rural and community development; and
5-11 (E) business recruitment, creation, retention,
5-12 and expansion;
5-13 (3) facilitate the direct involvement of the governor
5-14 and lieutenant governor in economic development projects designed
5-15 to create, expand, and retain Texas businesses and recruit
5-16 worldwide business;
5-17 (4) assist the governor, in cooperation with the
5-18 Partnership, in preparing a biennial report to the legislature on
5-19 the state of economic development in Texas which shall include the
5-20 identification of problems and the recommendation of solutions and
5-21 which shall be submitted to the lieutenant governor and the speaker
5-22 by December 31 of each even-numbered year;
5-23 (5) serve as the contract administrator for the state
5-24 with respect to contracts with the Partnership and any
5-25 direct-support organizations under this subtitle;
6-1 (6) enter into specific contracts with the Partnership
6-2 and other appropriate direct-support organizations to accomplish
6-3 the provisions of this subtitle and to carry out its duties; and
6-4 (7) prepare and submit as a separate budget entity a
6-5 unified budget request for tourism, trade, and economic development
6-6 for, and in conjunction with the Partnership and its board.
6-7 (b) To carry out its duties, the Office shall:
6-8 (1) promote this state as a location for business
6-9 activity and an attraction for tourism;
6-10 (2) prepare and administer a statewide business
6-11 development program designed to create job opportunities and
6-12 increase personal income throughout this state;
6-13 (3) prepare and administer a program of encouragement,
6-14 support, and development of small and minority business ownership
6-15 throughout this state;
6-16 (4) stimulate the expansion of international markets
6-17 for products and services from this state and encourage foreign
6-18 business development in this state;
6-19 (5) assist local governments with advisory and
6-20 technical services in matters relating to community and economic
6-21 development;
6-22 (6) provide financial aid to local governments for
6-23 programs authorized by law to receive the assistance;
6-24 (7) act as an information center and referral agency
6-25 for information of state and federal programs affecting business
7-1 and local government;
7-2 (8) conduct research on problems relating to community
7-3 and economic development of in this state;
7-4 (9) collect, publish, and disseminate information
7-5 useful to local governments and businesses, including data on
7-6 employment, housing, population characteristics, and land use
7-7 patterns in the state;
7-8 (10) encourage cooperation between local governments,
7-9 businesses, and the public if appropriate;
7-10 (11) advise and inform the governor and the
7-11 legislature concerning matters relating to community and economic
7-12 development and make recommendations for necessary action;
7-13 (12) coordinate the development of training programs
7-14 between appropriate state agencies and education institutions to
7-15 prepare this state's labor force to meet changing economic
7-16 circumstances;
7-17 (13) work with local governments, local economic
7-18 development organizations, and small business development centers
7-19 to develop a referral system to promote community and economic
7-20 development throughout this state;
7-21 (14) plan and implement a concerted, targeted effort
7-22 to more effectively address pressing economic problems and to
7-23 maximize the potential of the border region for the benefit of the
7-24 entire state;
7-25 (15) work with local community efforts to use federal
8-1 funds to meet community needs, particularly in providing social and
8-2 emergency services to residents of this state having low incomes;
8-3 and
8-4 (16) encourage maquiladora projects.
8-5 Sec. 481.011. Performance Standards. The Office shall
8-6 develop performance measures, standards, and sanctions for each
8-7 program for which it contracts with another entity under this
8-8 subtitle. The approved performance measures, standards, and
8-9 sanctions shall be included and made a part of each contract
8-10 entered into for delivery of programs authorized by this subtitle.
8-11 Sec. 481.012. Administration of Other Statutes. (a) The
8-12 Office shall perform the administrative duties formerly assigned to
8-13 the Texas Economic Development Commission, and more recently to the
8-14 Texas Department of Commerce, including duties prescribed under:
8-15 (1) the Act for Development of Employment, Industrial
8-16 and Health Resources of 1971 (Article 5190.1, Vernon's Texas Civil
8-17 Statutes);
8-18 (2) Chapter 696, Acts of the 69th Legislature, Regular
8-19 Session, 1985 (Article 5190.4a, Vernon's Texas Civil Statutes),
8-20 relating to industrial training programs; and
8-21 (3) the Development Corporation Act of 1979 (Article
8-22 5190.6, Vernon's Texas Civil Statutes).
8-23 (b) The Office shall perform the administrative duties
8-24 formerly assigned to the Texas Economic Development Commission and
8-25 the Enterprise Zone Board, and more recently to the Texas
9-1 Department of Commerce, under Chapter 2303.
9-2 (c) The Office shall perform the administrative duties
9-3 formerly assigned to the Texas Department of Housing and Community
9-4 Affairs, and more recently to the Texas Department of Commerce,
9-5 under Chapter 301, Labor Code, and the community development block
9-6 grant program.
9-7 (d) Any business or industry seeking employee training,
9-8 retraining, or manpower development services at public expense may
9-9 request assistance from the Office. The Office shall seek advice
9-10 from the Texas Higher Education Coordinating Board in identifying
9-11 the appropriate institution of higher education to provide such
9-12 services. The rules of the coordinating board concerning
9-13 out-of-district and off-campus courses developed to assist
9-14 industrial start-up and employee upgrading apply in providing those
9-15 services. The Office and the coordinating board shall ensure that
9-16 appropriate rules are developed to apply to any entities involved
9-17 in the delivery of education and training for industrial start-up
9-18 and employee upgrading that are not currently covered.
9-19 CHAPTER 482. PARTNERSHIP TEXAS
9-20 SUBCHAPTER A. GENERAL PROVISIONS
9-21 Sec. 482.001. Open Meetings. (a) The Partnership is
9-22 subject to Chapter 551, Government Code.
9-23 (b) The board shall file notice of each meeting of the board
9-24 in the same manner and in the same location as is required of a
9-25 state governmental body under Chapter 551, Government Code.
10-1 Sec. 482.002. Open Records. The board is subject to Chapter
10-2 552, Government Code.
10-3 Sec. 482.003. Application of Texas Non-profit Corporation
10-4 Act. The Texas Non-Profit Corporation Act (Article 1396-1.01 et
10-5 seq., Vernon's Texas Civil Statutes) applies to the Partnership to
10-6 the extent that the provisions of that Act are not inconsistent
10-7 with this subtitle.
10-8 SUBCHAPTER B. CREATION OF PARTNERSHIP
10-9 Sec. 482.004. Purpose of the Partnership. The purpose of
10-10 the Partnership is to carry out the public purposes of this
10-11 subtitle and is limited to the economic development of and the
10-12 promotion of tourism for Texas.
10-13 Sec. 482.005. Form of Partnership. (a) The Partnership is
10-14 a nonmember, nonstock corporation.
10-15 (b) The Partnership is nonprofit, and no part of its net
10-16 earnings remaining after payment of its expenses may inure to any
10-17 individual, firm, or corporation, except that if the board
10-18 determines that sufficient provision has been made for the full
10-19 payment of the expenses, bonds and other obligations of the
10-20 partnership, the additional net earnings of the Partnership shall
10-21 be deposited to the credit of the general revenue fund.
10-22 (c) The Partnership shall be created as a perpetual
10-23 corporation.
10-24 (d) Notwithstanding any provision of the Texas Non-profit
10-25 Corporation Act and the Texas Business Corporation Act, the
11-1 Partnership shall not be dissolved by a vote of the board.
11-2 (e) The Partnership shall not have any provision for the
11-3 regulation of the internal affairs of the corporation in its
11-4 articles of incorporation unless provided for by this chapter.
11-5 Sec. 482.006. Articles of Incorporation. The articles of
11-6 incorporation must state:
11-7 (1) that the name of the Partnership is Partnership
11-8 Texas, Inc.;
11-9 (2) that the Partnership is a nonprofit corporation;
11-10 (3) the duration of the Partnership is perpetual;
11-11 (4) that the specific purpose for which the
11-12 Partnership is organized is for the economic development of and the
11-13 promotion of tourism for the State of Texas and to carry out the
11-14 provisions of Subtitle F, Title 4, Government Code, on behalf of
11-15 the Office of Economic Development and Tourism in the Office of the
11-16 Governor;
11-17 (5) that the Partnership does not have any members and
11-18 is a nonstock corporation;
11-19 (6) the street address and name of the Secretary of
11-20 State of Texas as the Partnership's initial registered office and
11-21 its initial registered agent;
11-22 (7) the number of directors of the initial board as
11-23 provided for by this chapter and the name and address of each
11-24 director; and
11-25 (8) the name and street address of the Office of the
12-1 Governor as incorporator.
12-2 Sec. 482.007. Indemnification. The Partnership may
12-3 indemnify a director or officer of the Partnership for necessary
12-4 expenses and costs, including attorney's fees, incurred by the
12-5 director or officer in connection with any claim asserted against
12-6 the director or officer in a court action or otherwise for
12-7 negligence or misconduct.
12-8 Sec. 482.008. Exemption From Taxation. The Partnership may
12-9 engage exclusively in the performance of public charitable
12-10 functions and is exempt from all taxation by this state or a
12-11 municipality or other political subdivision of the state.
12-12 SUBCHAPTER C. GENERAL POWERS AND DUTIES OF THE PARTNERSHIP
12-13 Sec. 482.009. GENERAL POWERS. (a) The Partnership has the
12-14 powers provided by this subtitle to promote economic development
12-15 and tourism for Texas on behalf of the office and powers incidental
12-16 to or necessary for the performance of that purpose.
12-17 (b) The Partnership may contract with the Office,
12-18 legal counsel, financial advisors, or underwriters as its board
12-19 considers necessary.
12-20 Sec. 482.010. Bonds and Notes. (a) The Partnership may
12-21 issue bonds and notes to carry out its purpose.
12-22 (b) The bonds and notes may be issued under any power or
12-23 authority available to the Partnership, including the Bond
12-24 Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil
12-25 Statutes).
13-1 (c) A bond or note must state on its face that it is not an
13-2 obligation of the State of Texas.
13-3 Sec. 482.011. Approval of Bonds and Notes by Attorney
13-4 General.
13-5 (a) The Partnership shall submit a bond or note authorized
13-6 under Section 482.010 and a contract supporting its issuance to the
13-7 attorney general for examination.
13-8 (b) If the attorney general finds that the bond or note, and
13-9 any supporting contract are authorized under this subtitle, the
13-10 attorney general shall approve them.
13-11 (c) After approval by the attorney general, a bond, note, or
13-12 contract may not be contested for any reason.
13-13 Sec. 482.012. Assets on Dissolution.
13-14 On dissolution or liquidation of the Partnership, the title
13-15 to all assets, including funds and property, shall be transferred
13-16 to the Office.
13-17 Sec. 482.013. Report.
13-18 The Partnership shall file an annual report of the financial
13-19 activity of the Partnership with the Office, the governor,
13-20 lieutenant governor and speaker of the house. The annual report
13-21 shall be filed consistent with the date specified in the General
13-22 Appropriations Act and shall be prepared in accordance with
13-23 generally accepted accounting principles. The report must include
13-24 a statement of support, revenue, and expenses and change in fund
13-25 balances, a statement of functional expenses, and balance sheets
14-1 for all funds.
14-2 Sec. 482.014. Performance Measures. The board will develop
14-3 key performance measures to be broadly communicated and monitored
14-4 by the governor and the legislature. Such performance measures
14-5 could include jobs created and attracted, levels of wages,
14-6 attraction of new investments, exports, and other measures. One
14-7 key performance measure for the Partnership and its employees shall
14-8 be the ability to raise new private funds in support of economic
14-9 development. Contributions of in-kind services and material would
14-10 be an important component of this private funding.
14-11 Sec. 482.015. Funds. (a) Money paid to the Partnership
14-12 under this subtitle shall be deposited with the comptroller of
14-13 public accounts in the Texas Safekeeping Trust Company kept and
14-14 held in escrow and in trust by the comptroller for and on behalf of
14-15 the Partnership as funds held outside the treasury under Section
14-16 404.073, and the money contributed shall be used to carry out the
14-17 purposes of the Partnership and, to the extent possible, the
14-18 purposes specified by the donors. The comptroller may invest and
14-19 reinvest the money, in the fund pending its use, in investments
14-20 authorized by law for state funds that the comptroller considers
14-21 important.
14-22 SUBCHAPTER D. BOARD OF DIRECTORS AND STAFF
14-23 Sec. 482.016. Board. (a) The voting members of the board
14-24 consist of:
14-25 (1) the governor;
15-1 (2) the lieutenant governor;
15-2 (3) the comptroller;
15-3 (4) the commissioner of the General Land Office;
15-4 (5) the commissioner of the Department of Agriculture;
15-5 (6) the executive director of the Office of Housing
15-6 and Community Affairs;
15-7 (7) executive director of the Texas Workforce
15-8 Commission;
15-9 (8) the commissioner of the Texas Higher Education
15-10 Coordinating Board;
15-11 (9) the commissioner of the Texas Education Agency;
15-12 (10) the executive director of the Texas Department of
15-13 Transportation; and
15-14 (11) the executive director of Texas Parks and
15-15 Wildlife.
15-16 (b) The private-sector, appointed members of the board
15-17 consist of 12 members selected from a pool of nominees provided by
15-18 a nominating committee and are appointed as follows:
15-19 (1) Six members shall be appointed by the governor
15-20 with the advice and consent of the senate, at least three of whom
15-21 shall be appointed from a list of persons recommended by the
15-22 speaker of the house of representatives.
15-23 (2) Three members shall be appointed by the lieutenant
15-24 governor.
15-25 (3) Three members shall be appointed jointly by the
16-1 governor and the lieutenant governor with the advice and consent of
16-2 the senate and shall serve as vice chairs.
16-3 (4) The nominating committee is composed of one
16-4 representative from each of the following organizations:
16-5 (A) the Texas Economic Development Council;
16-6 (B) the Texas Association of Regional Councils;
16-7 (C) the Texas Association of Business and
16-8 Chambers of Commerce;
16-9 (D) the Texas Hotel/Motel Association;
16-10 (E) the Texas Convention and Visitors Bureaus
16-11 Association;
16-12 (F) the Texas Travel Industry Association;
16-13 (G) the Texas Farm Bureau; and
16-14 (H) the Texas AFL-CIO.
16-15 (5) For the initial board, each representative shall
16-16 nominate one person to the governor, lieutenant governor and
16-17 speaker for each board member position. For vacancies occurring
16-18 after the initial board, each representative shall nominate one
16-19 person per vacancy to the appropriate public officeholder.
16-20 (6) The governor and lieutenant governor shall make
16-21 their appointments so as to ensure that the private-sector board
16-22 includes at least three members with a background in business
16-23 development and at least three members with experience in the
16-24 tourism industry.
16-25 (7) Appointed members of the board serve for six-year
17-1 terms. The terms of one-third of the members expire on February 1
17-2 of each odd-numbered year.
17-3 (8) Appointments of the members of the board shall be
17-4 made without regard to the race, color, handicap, sex, religion,
17-5 age, or national origin of the appointees.
17-6 (c) The speaker of the Texas House of Representatives shall
17-7 serve on the board in an ex officio, nonvoting capacity.
17-8 Sec. 482.017. Board Officers. (a) The chairman of the
17-9 board is the governor.
17-10 (b) All the vice-chairs shall be appointed jointly by the
17-11 governor and the lieutenant governor in the positions as follows:
17-12 (1) one for business development;
17-13 (2) one for tourism; and
17-14 (3) one for funding and finance.
17-15 (c) All vice-chairs shall have the necessary skills
17-16 appropriate with their selected positions.
17-17 Sec. 482.018. Conflict of Interest. (a) A person may not
17-18 serve as a private-sector member of the board or be the executive
17-19 director or an employee of the Partnership if the person:
17-20 (1) is employed by, participates in the management of,
17-21 or is a paid consultant of a business entity that contracts with
17-22 the Partnership;
17-23 (2) owns or controls, directly or indirectly, more
17-24 than a 10 percent interest in a business entity or other
17-25 organization that contracts with the Partnership;
18-1 (3) uses or receives a substantial amount of tangible
18-2 goods, services, or funds from the Partnership, other than
18-3 compensation or reimbursement authorized by law for employee
18-4 salaries and benefits or for board membership, attendance, and
18-5 expenses; or
18-6 (4) is an officer, employee, or paid consultant of a
18-7 trade association of businesses that contracts with the
18-8 Partnership.
18-9 (b) A person may not serve as a private-sector member of the
18-10 board or be the executive director or an employee of the
18-11 Partnership if the person's spouse:
18-12 (1) participates in the management of or is a paid
18-13 consultant of a business entity that contracts with the
18-14 Partnership;
18-15 (2) owns or controls, directly or indirectly, more
18-16 than a 10 percent interest in a business entity or other
18-17 organization that contracts with the Partnership;
18-18 (3) uses or receives a substantial amount of tangible
18-19 goods, services, or funds from the Partnership; or
18-20 (4) is an officer, manager, or paid consultant of a
18-21 trade association of businesses that contracts with the
18-22 Partnership.
18-23 (c) For the purposes of this section, a trade association is
18-24 a nonprofit, cooperative, and voluntarily joined association of
18-25 business or professional competitors designed to assist its members
19-1 and its industry or profession in dealing with mutual business or
19-2 professional problems and in promoting their common interest.
19-3 (d) For the purposes of this section, a business entity is a
19-4 sole proprietorship, Partnership, firm, corporation, holding
19-5 company, joint stock company, receivership, trust, or any other
19-6 entity recognized in law through which business for profit is
19-7 conducted.
19-8 (e) A person may not be a member of the board or the
19-9 executive director or an employee of the Partnership if the person
19-10 is required to register as a lobbyist under Chapter 305, Government
19-11 Code, because of the person's activities for compensation on behalf
19-12 of a business entity that has an interest in a contract with the
19-13 Partnership or a profession related to the operation of the
19-14 Partnership.
19-15 Sec. 482.019. Officers; Compensation; Meetings. (a) The
19-16 board shall elect from among its members a secretary.
19-17 (b) The board shall meet at least quarterly.
19-18 (c) A member of the board may not receive compensation for
19-19 service on the board. A member is entitled to receive
19-20 reimbursement, subject to any applicable limitation on
19-21 reimbursement provided by the General Appropriations Act, for
19-22 actual and necessary expenses incurred in performing services as a
19-23 member of the board.
19-24 (d) The board shall develop and implement policies that
19-25 provide the public with a reasonable opportunity to appear before
20-1 the board and to speak on any issue under the jurisdiction of the
20-2 board.
20-3 Sec. 482.020. Executive Director. The board shall employ an
20-4 executive director to be chosen by a majority of the board members
20-5 who shall manage the day-to-day operations and employ other
20-6 employees necessary to carry out the board's duties.
20-7 Sec. 482.021. Economic Development Practitioners Advisory
20-8 Group. The board shall establish an economic development
20-9 practitioners advisory group to advise the executive director of
20-10 the Partnership on matters related to the office's duties and the
20-11 programs under this subtitle.
20-12 Sec. 482.022. Administration. The executive director shall
20-13 establish the following functions within the Partnership:
20-14 (a) media relations;
20-15 (b) research and program evaluation; and
20-16 (c) regional planning and local government liaison to act as
20-17 a liaison with local governments responsible for developing
20-18 regional economic development plans.
20-19 SUBCHAPTER E. BUSINESS OMBUDSMAN
20-20 Sec. 482.023. Business Ombudsman. (a) The executive
20-21 director shall employ a business ombudsman approved by the board.
20-22 (b) The business ombudsman shall report directly to the
20-23 executive director.
20-24 (c) The business ombudsman shall recommend changes in state
20-25 regulation affecting business development and tourism and
21-1 recommending changes to improve the Texas business climate.
21-2 (d) The business ombudsman shall consider the impact of
21-3 agency rules on businesses, provide one-stop permit information and
21-4 assistance, and shall assist businesses, particularly small
21-5 businesses, in their dealings with state agencies.
21-6 SUBCHAPTER F. BUSINESS PERMIT OFFICE
21-7 Sec. 482.024. DEFINITIONS. In this subchapter:
21-8 (1) "Applicant" means a person acting for himself or
21-9 authorized to act on behalf of another person to obtain a permit.
21-10 (2) "Permit Office" means the Office of Economic
21-11 Development's business permit office.
21-12 (3) "Permit" means any license, certificate,
21-13 registration, permit, or other form of authorization required by
21-14 law or by state agency rules to be obtained by a person in order to
21-15 engage in a particular business but does not include a permit or
21-16 license issued under Title 2, Tax Code, or issued in connection
21-17 with any form of gaming or gambling.
21-18 Sec. 482.025. Creation. The Permit Office is an office
21-19 within the Office of Economic Development and Tourism. The Office
21-20 shall contract with the Partnership to perform the duties of the
21-21 Office and the Permit Office, and exercise its powers and implement
21-22 and administer the programs under this subchapter to the fullest
21-23 extent permitted by the Texas Constitution.
21-24 Sec. 482.026. Duties. The Permit Office shall:
21-25 (1) provide comprehensive information on permits
22-1 required for business enterprises in the state and make that
22-2 information available to applicants and other persons;
22-3 (2) assist applicants in obtaining timely and
22-4 efficient permit review and in resolving issues arising from the
22-5 review;
22-6 (3) facilitate contacts between applicants and state
22-7 agencies responsible for processing and reviewing permit
22-8 applications;
22-9 (4) assist applicants in the resolution of outstanding
22-10 issues identified by state agencies, including delays experienced
22-11 in permit review;
22-12 (5) develop comprehensive application procedures to
22-13 expedite the permit process;
22-14 (6) compile a comprehensive list of all permits
22-15 required of a person desiring to establish, operate, or expand a
22-16 business enterprise in the state;
22-17 (7) encourage and facilitate the participation of
22-18 federal and local government agencies in permit coordination;
22-19 (8) make recommendations for eliminating,
22-20 consolidating, simplifying, expediting, or otherwise improving
22-21 permit procedures affecting business enterprises by requesting that
22-22 the state auditor, with the advice and support of the office,
22-23 initiate a business permit reengineering review process involving
22-24 all state agencies;
22-25 (9) develop and implement an outreach program to
23-1 publicize and make small business entrepreneurs and others aware of
23-2 services provided by the Permit Office; and
23-3 (10) adopt rules, procedures, instructions, and forms
23-4 required to carry out the functions, powers, and duties of the
23-5 Office under this subchapter.
23-6 Sec. 482.027. Comprehensive Permit Application Procedure.
23-7 (a) The Permit Office shall develop a comprehensive application
23-8 procedure to expedite the identification and processing of required
23-9 permits. The Permit Office shall specify the permits to which the
23-10 comprehensive application procedure applies. A comprehensive
23-11 application must be made on a form prescribed by the Permit Office.
23-12 The Permit Office shall consult with affected agencies in designing
23-13 the form to ensure that the form provides the necessary information
23-14 to allow agencies to identify which permits may be needed by the
23-15 applicant. The form must be designed primarily for the convenience
23-16 of an applicant who is required to obtain multiple permits and must
23-17 provide for concise and specific information necessary to determine
23-18 which permits are or may be required of the particular applicant.
23-19 (b) Use of the comprehensive application procedure by the
23-20 applicant is optional. On request the Permit Office shall assist
23-21 an applicant in preparing a comprehensive application, describe the
23-22 procedures involved, and provide other appropriate information from
23-23 the comprehensive permit information file.
23-24 (c) On receipt of a comprehensive application from an
23-25 applicant, the Permit Office shall immediately notify in writing
24-1 each state agency having a possible interest in the proposed
24-2 business undertaking, project, or activity with respect to permits
24-3 that are or may be required.
24-4 (d) Not later than the 25th day after the date of receipt of
24-5 the notice, the state agency shall specify to the Permit Office
24-6 each permit under its jurisdiction that is or may be required for
24-7 the business undertaking, project, or activity described in the
24-8 comprehensive application and shall indicate each permit fee to be
24-9 charged.
24-10 (e) If a notified state agency responds that it does not
24-11 have an interest in the permit requirements of the business
24-12 undertaking, project, or activity described in the comprehensive
24-13 application or does not respond within the period specified by
24-14 Subsection (d), no permit under the jurisdiction of that agency is
24-15 required for the undertaking, project, or activity described in the
24-16 comprehensive application. This subsection does not apply if the
24-17 comprehensive application contains false, misleading, or deceptive
24-18 information or fails to include pertinent information, the lack of
24-19 which could reasonably lead a state agency to misjudge whether a
24-20 permit under its jurisdiction is required.
24-21 (f) The Permit Office shall promptly provide the applicant
24-22 with application forms and related information for all permits
24-23 specified by the interested state agencies and shall advise the
24-24 applicant that the forms are to be completed and submitted to the
24-25 appropriate state agencies.
25-1 (g) An applicant may withdraw a comprehensive application at
25-2 any time without forfeiture of any permit approval applied for or
25-3 obtained under the comprehensive application procedures.
25-4 (h) Each state agency having jurisdiction over a permit to
25-5 which the comprehensive application procedure applies shall
25-6 designate an officer or employee to act as permit liaison officer
25-7 to cooperate with the Permit Office in carrying out this
25-8 subchapter.
25-9 (i) This section does not apply to a permit or license
25-10 issued under Title 2, Tax Code, and does not exempt any person from
25-11 liability for a tax under that title.
25-12 Sec. 482.028. Comprehensive Permit Handbook. (a) The
25-13 Permit Office shall compile a comprehensive list of all state
25-14 permits required of a person desiring to operate a business
25-15 enterprise in the state.
25-16 (b) To the extent possible, the Permit Office shall organize
25-17 the list according to the types of businesses affected and shall
25-18 publish the list in a comprehensive permit handbook.
25-19 (c) The handbook must include:
25-20 (1) the name of each state agency required to review,
25-21 approve, or grant a permit on the list;
25-22 (2) the address of the agency to which the license,
25-23 permit, or registration materials must be sent; and
25-24 (3) the telephone number of the agency.
25-25 (d) The Permit Office shall periodically update the
26-1 handbook.
26-2 (e) The Permit Office shall make the handbook available to
26-3 persons interested in establishing a business enterprise, public
26-4 libraries, educational institutions, and the state agencies listed
26-5 in the handbook.
26-6 482.029. Assistance of Other State Agencies. Each state
26-7 agency, on request of the Permit Office, shall provide assistance,
26-8 services, facilities, and data to enable the Permit Office to carry
26-9 out its duties. An agency is not required to provide information
26-10 made confidential by a constitution, statute, or judicial decision.
26-11 Sec. 482.030. Comprehensive Permit Information. (a) Each
26-12 state agency required to review, approve, or grant permits for
26-13 business undertakings, projects, or activities shall report to the
26-14 permit office in a form prescribed by the Permit Office on each
26-15 type of review, approval, or permit administered by the agency.
26-16 (b) The agency's report must include application forms,
26-17 applicable agency rules, and the estimated period necessary to
26-18 process permit applications.
26-19 (c) The Permit Office shall prepare an information file on
26-20 state agency permit requirements and shall develop methods for
26-21 maintenance, revision, update, and ready access. The Permit Office
26-22 shall provide comprehensive permit information based on that file.
26-23 (d) The Permit Office may prepare and distribute
26-24 publications, guides, and other materials to serve the convenience
26-25 of permit applicants and explain permit requirements affecting
27-1 business, including requirements involving multiple permits or
27-2 regulation by more than one state agency.
27-3 Sec. 482.031. No Charges For Services. The Permit Office
27-4 shall provide its services without charge.
27-5 Sec. 482.032. Environmental Permits. The Permit Office
27-6 shall consult and cooperate with the Natural Resource Conservation
27-7 Commission in conducting any studies on permits issued by the
27-8 Natural Resource Conservation Commission. The Natural Resource
27-9 Conservation Commission shall cooperate fully in the study and
27-10 analysis of the procedures involving the issuance of permits by
27-11 that commission and shall, in any report issued, evaluate all
27-12 alternatives for improving the process pursuant to the Permit
27-13 Office's responsibilities under Section 482.026. The Permit Office
27-14 and the Natural Resource Conservation Commission shall jointly
27-15 submit any report required under Section 482.026.
27-16 SUBCHAPTER G. STATE AND LOCAL PERMITS
27-17 Sec. 482.033. Legislative Finding and Intent. (a) The
27-18 legislature finds that current administrative practices often
27-19 result in unnecessary governmental regulatory delays that inhibit
27-20 the economic development of the state.
27-21 (b) The legislature desires to establish requirements
27-22 relating to the processing and issuance of permits and approvals by
27-23 governmental regulatory agencies in order to alleviate bureaucratic
27-24 obstacles to economic development.
27-25 Sec. 482.034. Definitions. In this subchapter:
28-1 (1) "Political subdivision" means a political
28-2 subdivision of the state, including a county, a school district, or
28-3 a municipality.
28-4 (2) "Permit" means a license, certificate, approval,
28-5 registration, consent, permit, or other form of authorization
28-6 required by law, rule, regulation, or ordinance that must be
28-7 obtained by a person in order to perform an action or initiate a
28-8 project for which the permit is sought.
28-9 (3) "Project" means an endeavor over which a
28-10 regulatory agency exerts its jurisdiction and for which one or more
28-11 permits are required to initiate or continue the endeavor.
28-12 (4) "Regulatory agency" means an agency, bureau,
28-13 department, division, or commission of the state or any department,
28-14 agency, board, commission, or governing body of a political
28-15 subdivision in its capacity of processing, approving, or issuing
28-16 permits.
28-17 Sec. 482.035. Uniformity of Requirements. (a) The
28-18 approval, disapproval, or conditional approval of an application
28-19 for a permit shall be considered by each regulatory agency solely
28-20 on the basis of any orders, regulations, ordinances, rules,
28-21 expiration dates, or other duly adopted requirements in effect at
28-22 the time the original application for the permit is filed. If a
28-23 series of permits is required for a project, the orders,
28-24 regulations, ordinances, rules, expiration dates, or other duly
28-25 adopted requirements in effect at the time the original application
29-1 for the first permit in that series is filed shall be the sole
29-2 basis for consideration of all subsequent permits required for the
29-3 completion of the project, and all permits required for the project
29-4 shall be considered to be a single series of permits. Preliminary
29-5 plans and related subdivisions plats, site plans, and all other
29-6 development permits for land covered by such preliminary plans or
29-7 subdivision plats are considered collectively to be one series of
29-8 permits. Once an application for a project has been filed, a
29-9 regulatory agency shall not shorten the duration of any permit
29-10 required for the project.
29-11 (b) This subchapter shall apply to all projects in progress
29-12 on or commenced after the effective date of this subchapter as
29-13 originally enacted by Section 1, Chapter 374, Acts of the 70th
29-14 Legislature, Regular Session, 1987, and the duly adopted
29-15 requirements in effect at the time the original application for the
29-16 first permit for the project was filed shall control. This
29-17 subchapter shall be enforceable solely through declaratory,
29-18 mandamus, or injunctive relief.
29-19 (c) This section does not apply to:
29-20 (1) permits or licenses issued in connection with any
29-21 form of gaming or gambling;
29-22 (2) permits or licenses issued under Title 2, Tax
29-23 Code;
29-24 (3) permits or orders issued under programs for which
29-25 a state regulatory agency has received authorization, delegation,
30-1 or approval from the federal government to implement an equivalent
30-2 state program in lieu of or as part of the federal program;
30-3 (4) permits for the construction of buildings or
30-4 structures intended for human occupancy or habitation that are
30-5 issued pursuant to laws, ordinances, procedures, rules, or
30-6 regulations adopting solely the provisions of uniform building,
30-7 fire, electrical, plumbing, or mechanical codes promulgated by a
30-8 recognized national code organization or local amendments to any
30-9 such codes enacted solely to address imminent threats of
30-10 destruction of property or injury to persons, unless such permits
30-11 are less than two years old;
30-12 (5) municipal zoning regulations that do not affect
30-13 lot size, lot dimensions, lot coverage, or building size;
30-14 (6) regulations for the location of adult-oriented
30-15 businesses;
30-16 (7) state or local laws, including city or county
30-17 ordinances, rules, regulations, or other requirements, affecting
30-18 colonies;
30-19 (8) fees lawfully imposed in conjunction with
30-20 development permits;
30-21 (9) regulations for annexation;
30-22 (10) regulations for utility connections;
30-23 (11) regulations to prevent imminent destruction of
30-24 property or injury to persons; or
30-25 (12) construction standards for public works located
31-1 on public lands and easements.
31-2 (d) Notwithstanding any provision of this section to the
31-3 contrary, a permit holder shall have the right to take advantage of
31-4 procedural changes to the laws, rules, regulations, or ordinances
31-5 of a regulatory agency which enhance or protect the project
31-6 including, without limitation, changes which lengthen the effective
31-7 life of the permit after the date on which application for the
31-8 permit was made, without otherwise forfeiting any rights under this
31-9 section.
31-10 (e) The provisions of this section relating to the
31-11 expiration date of a permit or to the duration of a permit do not
31-12 apply in the case of a permit issued by the Railroad Commission of
31-13 Texas which did not have an expiration date or a specific duration
31-14 when originally issued.
31-15 SUBCHAPTER H. STRATEGIC BUSINESS UNITS
31-16 Sec. 482.036. Strategic Business Units. The board shall
31-17 create strategic business units, including the following:
31-18 (a) entrepreneurial and capital development;
31-19 (b) technology and crucial industry development;
31-20 (c) rural and community development;
31-21 (d) direct business services;
31-22 (e) industry recruitment;
31-23 (f) international trade and export development and promotion
31-24 programs; and
31-25 (g) tourism and travel industry development.
32-1 SUBCHAPTER I. PRIVATE FUNDING
32-2 Sec. 482.037. Private Foundations. (a) The Partnership
32-3 shall initiate the establishment of private foundations as
32-4 depositories for private contributions, including as follows:
32-5 (1) the Texas 21st Century Foundation to support
32-6 business and economic development programs; and
32-7 (2) the Texas Tourism Foundation to support tourism
32-8 development programs.
32-9 (b) Funds received pursuant to Subsection (a) shall be held
32-10 in a local bank outside the state treasury.
32-11 CHAPTER 483. INTERNATIONAL TRADE DEVELOPMENT
32-12 SUBCHAPTER A. POWERS AND DUTIES RELATED TO
32-13 INTERNATIONAL TRADE DEVELOPMENT
32-14 Sec. 483.001. Legislative Findings. The legislature finds
32-15 that:
32-16 (1) the development and expansion of international
32-17 trade and the export of products and services from this state to
32-18 foreign purchasers are essential to the economic growth of the
32-19 state and to the full employment, welfare, and prosperity of its
32-20 citizens; and
32-21 (2) the measures authorized and the assistance
32-22 provided by this subchapter, especially with respect to financing,
32-23 are in the public interest and serve a public purpose of the state
32-24 in promoting the welfare of the citizens of the state economically
32-25 by stimulating the expansion of international markets for products
33-1 and services from this state.
33-2 Sec. 483.002. Definitions. In this subchapter:
33-3 (1) "Export business" means a person engaged in the
33-4 export of a Texas product.
33-5 (2) "Lender" means a lending institution, including a
33-6 bank, trust company, banking association, savings and loan
33-7 association, mortgage company, investment bank, credit union, life
33-8 insurance company, governmental agency that customarily provides
33-9 financing, or an affiliate of any of those entities.
33-10 (3) "Texas product" means:
33-11 (A) a manufactured good or a service at least 25
33-12 percent of the total value of which is represented by Texas source
33-13 components, labor, or intellectual property; or
33-14 (B) the export or preexport preparation of a
33-15 Texas agricultural product or livestock.
33-16 Sec. 483.003. Powers to be Interpreted Broadly. The powers
33-17 of the Office provided by this subchapter shall be interpreted
33-18 broadly to effect the purposes of this subchapter. The grant of
33-19 powers under this subchapter is not a limitation of other powers of
33-20 the Office.
33-21 Sec. 483.004. Contract with Partnership. The Office shall
33-22 contract with the Partnership to perform the Office's duties and
33-23 exercise its powers and implement and administer the programs under
33-24 this subchapter to the fullest extent permitted by the Texas
33-25 Constitution.
34-1 Sec. 483.005. International Trade and Export Development and
34-2 Promotion Programs. (a) The Office shall:
34-3 (1) assist, promote, encourage, develop, and advance
34-4 economic prosperity and employment throughout this state by
34-5 fostering the expansion of exports of manufactured goods and
34-6 services to foreign purchasers;
34-7 (2) cooperate and act in conjunction with other public
34-8 and private organizations to promote and advance export trade
34-9 activities in the state;
34-10 (3) design and implement programs to provide financial
34-11 assistance, particularly to small and medium-sized businesses, to
34-12 support export development;
34-13 (4) formulate and develop programs to stimulate and
34-14 encourage increased international trade along the entire border
34-15 region; and
34-16 (5) provide financial counseling to potential and
34-17 existing exporters.
34-18 (b) In carrying out its duties, the Office may:
34-19 (1) conduct research and analysis relating to:
34-20 (A) foreign commerce;
34-21 (B) the manner in which business is conducted in
34-22 foreign marketplaces;
34-23 (C) methods of stimulating reverse investments;
34-24 (D) international tourism; and
34-25 (E) governmental incentives and disincentives to
35-1 foreign trade activity in this state;
35-2 (2) accept inquiries from foreign businesses and
35-3 governments and introduce the inquiring businesses or governments
35-4 to the appropriate association or state businesses;
35-5 (3) cooperate with other persons in developing
35-6 marketing programs and disseminating information about the state
35-7 economy and the opportunities for and advantages of doing business
35-8 in this state;
35-9 (4) represent the interests of state businesses
35-10 engaged in foreign trade and aid others representing those
35-11 interests through trade delegations, missions, marts, seminars, and
35-12 other promotional methods;
35-13 (5) recruit foreign capital investment and encourage
35-14 foreign business development in the state;
35-15 (6) encourage travel from foreign countries;
35-16 (7) seek funding of Office programs and activities
35-17 from federal, state, local, and private sources;
35-18 (8) periodically study and report to the board on the
35-19 effect of state tax laws on international trade activity in this
35-20 state;
35-21 (9) encourage the development of programs by which
35-22 experienced executives from private business volunteer their
35-23 services to the state to aid the development of foreign commerce;
35-24 (10) collect and distribute to foreign commercial
35-25 libraries directories, catalogs, brochures, and other information
36-1 of value to foreign businesses considering doing business in this
36-2 state;
36-3 (11) provide speakers bureau services for civic
36-4 organizations and other private groups in the state;
36-5 (12) develop programs of mutual assistance between
36-6 banks, shipping agents, combination export managers, freight
36-7 forwarders, international consultants, ports, and other trade
36-8 intermediaries of this state;
36-9 (13) encourage and assist expansion of international
36-10 trade activities of chambers of commerce, development commissions,
36-11 trade associations, ports, and similar organizations in the state;
36-12 (14) establish an export finance awareness program to
36-13 provide information to banking organizations about methods used by
36-14 banks to provide financing for businesses engaged in exporting and
36-15 about other state and federal programs to promote and expedite
36-16 export financing;
36-17 (15) provide business with counseling and management
36-18 programs, technical assistance, advice, and information relating to
36-19 development of export opportunities and programs;
36-20 (16) promote export trading companies;
36-21 (17) provide for, in cooperation with the Partnership,
36-22 trade associations, chambers of commerce, or other appropriate
36-23 private entities, the establishment of state offices in Asia,
36-24 Europe, and Central and South America to identify export markets
36-25 for Texas services and products, identify sources of investment
37-1 capital, and otherwise represent the interests of the state; and
37-2 (c) In carrying out its duties and powers, the Office shall
37-3 give emphasis and priority to matters relating to trade with
37-4 Mexico.
37-5 Sec. 483.006. Powers and Duties Relating to Financing.
37-6 (a) The Office shall design and implement programs to provide
37-7 financial assistance to enable export businesses to finance or
37-8 refinance costs incurred in connection with the international
37-9 export or preexport of Texas products, including programs for:
37-10 (1) making or acquiring loans to export businesses;
37-11 (2) making or acquiring loans to lenders to enable the
37-12 lenders to make loans to export businesses;
37-13 (3) guaranteeing in whole or in part loans to export
37-14 businesses;
37-15 (4) insuring, co-insuring, and reinsuring in whole or
37-16 in part loans to export businesses; and
37-17 (5) administering or participating in programs
37-18 established by another entity to provide financial assistance to
37-19 export businesses.
37-20 (b) The Office has the powers that are necessary and
37-21 convenient to accomplish the purposes of this subchapter, including
37-22 the power to:
37-23 (1) borrow money and otherwise incur debt and to issue
37-24 bonds, and provide for the rights of the owners of the bonds, in
37-25 the manner and to the extent permitted by this subtitle and the
38-1 Texas Constitution and to purchase, hold, cancel, or resell or
38-2 otherwise dispose of its bonds, subject to the restrictions in a
38-3 resolution authorizing the issuance of its bonds;
38-4 (2) purchase, discount, sell, and negotiate with or
38-5 without guaranty notes, bonds, debentures, and other evidences of
38-6 indebtedness of export businesses or portions or portfolios of or
38-7 participation in those evidences of indebtedness;
38-8 (3) sell securities as the Office considers necessary
38-9 and advisable to accomplish any of the purposes of this subchapter;
38-10 (4) procure and pay premiums on insurance of any type
38-11 in amounts and from insurers that the Office considers necessary
38-12 and advisable to accomplish any of the purposes of this subchapter;
38-13 (5) provide financial counseling services to export
38-14 businesses;
38-15 (6) make secured or unsecured loans for export
38-16 businesses to provide financing or refinancing of the costs
38-17 incurred in connection with the international export or preexport
38-18 of Texas products authorized by this subchapter, including the
38-19 refunding of outstanding obligations, mortgages, or advances issued
38-20 for those purposes, and charge and collect, on terms and conditions
38-21 that the Office considers advisable and not in conflict with this
38-22 subchapter, interest on those loans for loan payments;
38-23 (7) secure the payment by the Office on guarantees and
38-24 pay claims from money in the Office's funds under any guarantee or
38-25 insurance program implemented by the Office; and
39-1 (8) acquire, hold, invest, use, and dispose of the
39-2 receipts, funds, and money, subject only to the Texas Constitution,
39-3 this subchapter, and any covenants relating to the Office's bonds
39-4 in classes of investments that the Office determines.
39-5 Sec. 483.007. Tax Exemption; Exempt Securities. (a) The
39-6 Office and the Partnership are exempt from franchise, corporate,
39-7 business, and all other taxes levied by this state. This section
39-8 does not exempt from any taxes an export business participating in
39-9 a program implemented under this subchapter.
39-10 (b) Any bonds issued by the Office under this subchapter and
39-11 coupons, if any, representing interest on the bonds are exempt
39-12 securities under The Securities Act (Article 581-1 et seq.,
39-13 Vernon's Texas Civil Statutes). If, however, bonds issued by the
39-14 Office under this subchapter are secured by an agreement by a
39-15 person to pay amounts sufficient to pay the principal of,
39-16 redemption premium, if any, and interest on those bonds,
39-17 notwithstanding that the bonds are exempt securities, that
39-18 agreement is considered to be a separate security issued by the
39-19 person and not by the Office or the Partnership to the purchasers
39-20 of the bonds for purposes of The Securities Act and is exempt from
39-21 that Act only if:
39-22 (1) the security is an exempt security under the terms
39-23 of that Act; or
39-24 (2) the bonds or the payments to be made under the
39-25 agreement are guaranteed by any person and the guarantee is an
40-1 exempt security under the terms of that Act.
40-2 (c) The Office may perform any act it considers necessary to
40-3 qualify the bonds for offer and sale under the securities laws and
40-4 regulations of the United States and of the states and other
40-5 jurisdictions in the United States.
40-6 Sec. 483.008. Conflicts of Interest. (a) The director of
40-7 the Office, an agent or employee of the Office, member of the
40-8 board, the executive director, or an agent or employee of the
40-9 Partnership, in the person's own name or in the name of a nominee,
40-10 may not hold an ownership interest of more than the following
40-11 amount in an association, trust, corporation, Partnership, or other
40-12 entity that is, in its own name or in the name of a nominee, a
40-13 party to a contract or agreement under this subchapter on which the
40-14 director of the Office, an agent or employee of the Office, member
40-15 of the board, executive director, or an agent or employee of the
40-16 Partnership may be called on to act or vote:
40-17 (1) 7-1/2 percent of the fair market value of the
40-18 entity; or
40-19 (2) $50,000.
40-20 (b) With respect to a direct or indirect interest, other
40-21 than an interest prohibited by Subsection (a), in a contract or
40-22 agreement under this subchapter on which the director of the
40-23 Office, agent or employee of the Office, member of the board,
40-24 executive director, or agent or employee of the Partnership may be
40-25 called on to act or vote, the director of the Office, agent or
41-1 employee of the Office, member of the board, executive director, or
41-2 agent or employee of the Partnership shall disclose the interest to
41-3 the Office before the Office takes final action concerning the
41-4 contract or agreement and shall disclose the nature and extent of
41-5 the interest and the person's acquisition of it. The Office shall
41-6 publicly acknowledge this disclosure and enter it in its minutes.
41-7 The director of the Office, agent or employee of the Office, member
41-8 of the board, executive director, or agent or employee of the
41-9 Partnership who holds such an interest may not be officially
41-10 involved in regard to the contract or agreement, may not vote on a
41-11 matter relating to the contract or agreement, and may not
41-12 communicate with any other person who is a director of the Office,
41-13 agent or employee of the Office executive director, members of the
41-14 board, or agents or employees of the Partnership concerning the
41-15 contract or agreement. Notwithstanding any other provision of law,
41-16 a contract or agreement entered into in conformity with this
41-17 subsection is not invalid because of an interest described by this
41-18 subsection nor is a person who complies with this subsection guilty
41-19 of an offense, and the person may not be removed from Office or be
41-20 subjected to other penalty because of the interest.
41-21 (c) A contract or agreement made in violation of this
41-22 section is void and does not create an action against the Office or
41-23 the Partnership.
41-24 Sec. 483.009. Personal Liability of Members or Persons
41-25 Acting on Behalf of the Office or the Partnership. (a) The
42-1 director of the Office, an agent or employee of the Office, a
42-2 member of the board, the executive director, or any other person
42-3 acting on behalf of the Partnership in executing a contract,
42-4 commitment, or agreement under this subchapter is not personally
42-5 liable on the contract, commitment, or agreement.
42-6 (b) The director of the Office, an agent or employee of the
42-7 Office, a member of the board, the executive director, or any other
42-8 person acting on behalf of the Partnership is not personally liable
42-9 for damage or injury resulting from the performance of duties under
42-10 this subchapter.
42-11 Sec. 483.010. Revenue Bonds. (a) The Office may issue,
42-12 sell, and provide for the retirement of bonds to provide funds to
42-13 implement the financial assistance programs authorized by this
42-14 subchapter. The bonds must be special obligations of the Office,
42-15 the principal of and interest on which must be payable solely from
42-16 the revenues derived by the Office. The bonds may not constitute
42-17 an indebtedness of this state, the Office or the Partnership within
42-18 the meaning of any state constitutional provision or statutory
42-19 limitation, but the bonds must be an indebtedness payable solely
42-20 from a revenue-producing source or from a special source that does
42-21 not include revenues from a tax or license. The bonds may not
42-22 constitute or give rise to a pecuniary liability of the state, the
42-23 Office, or the Partnership or a charge against the general credit
42-24 of the Office, the Partnership, or the state or taxing powers of
42-25 the state. The limitations set out in this subsection must be
43-1 plainly stated on the face of each bond.
43-2 (b) In the resolution authorizing the bonds the Office may
43-3 provide for the bonds to:
43-4 (1) be executed and delivered at any time as a single
43-5 issue or from time to time as several issues;
43-6 (2) be in any denomination and form, including
43-7 registered uncertificated obligations not represented by written
43-8 instruments and commonly known as book-entry obligations, the
43-9 registration of ownership and transfer of which the Office shall
43-10 provide for under a system of books and records maintained by a
43-11 bank serving as trustee, paying agent, or bond registrar;
43-12 (3) be of a tenor;
43-13 (4) be in coupon or registered form;
43-14 (5) be payable in installments and at a time or times
43-15 not exceeding five years from their date;
43-16 (6) be subject to terms of redemption;
43-17 (7) be payable at a place or places;
43-18 (8) bear no interest or bear interest at any rate or
43-19 rates, fixed, variable, floating, or otherwise determined by the
43-20 Office or determined under a contractual arrangement approved by
43-21 the Office, except that the maximum net effective interest rate,
43-22 computed in accordance with Chapter 3, Acts of the 61st
43-23 Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
43-24 Civil Statutes), on the bonds may not exceed a rate equal to the
43-25 maximum annual interest rate established for business loans of
44-1 $250,000 or more in this state, payable at the place or places and
44-2 evidenced in the manner; and
44-3 (9) contain provisions not inconsistent with this
44-4 subchapter.
44-5 (c) All bonds issued by the Office are subject to review and
44-6 approval by the attorney general in the same manner and with the
44-7 same effect as is provided by Chapter 656, Acts of the 68th
44-8 Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
44-9 Civil Statutes).
44-10 (d) The state pledges to and agrees with the owners of any
44-11 bonds issued in accordance with this subchapter that the state will
44-12 not limit or alter the rights vested in the Office or the
44-13 Partnership to fulfill the terms of any agreements made with an
44-14 owner or in any way impair the rights and remedies of an owner
44-15 until the bonds, together with any premium and the interest on the
44-16 bonds, with interest on any unpaid premium or installments of
44-17 interest, and all costs and expenses in connection with any action
44-18 or proceeding by or on behalf of the owners, are fully met and
44-19 discharged. The Partnership and the Office may provide for the
44-20 inclusion of this pledge and agreement of the state in any
44-21 agreement with the owners of bonds.
44-22 Sec. 483.011. Bond Sale and Issuance. (a) The bonds may be
44-23 sold at public or private sale at a price and in a manner and from
44-24 time to time as the Office provides.
44-25 (b) From the proceeds of the sale of the bonds, the Office
45-1 may pay expenses, premiums, and insurance premiums that the Office
45-2 considers necessary or advantageous in connection with the
45-3 authorization, sale, and issuance of the bonds.
45-4 (c) In connection with the issuance of its bonds, the Office
45-5 may exercise the powers granted to the governing body of an issuer
45-6 in connection with the issuance of obligations under Chapter 656,
45-7 Acts of the 68th Legislature, Regular Session, 1983 (Article 717q,
45-8 Vernon's Texas Civil Statutes), except to the extent inconsistent
45-9 with this subchapter.
45-10 Sec. 483.012. Agreements in Bonds. (a) A security
45-11 agreement, including a related indenture or trust indenture, may
45-12 contain any agreements and provisions customarily contained in
45-13 instruments securing bonds, including provisions respecting the
45-14 fixing and collection of obligations, the creation and maintenance
45-15 of special funds, and the rights and remedies available, in the
45-16 event of default to the bondholders or to the trustee under the
45-17 security agreement, all as the Office considers advisable and
45-18 consistent with this subchapter. However, in making such an
45-19 agreement or provision, the Office may not incur a pecuniary
45-20 liability or a charge on the general credit of the Office, the
45-21 Partnership, this state or against the taxing powers of this state.
45-22 (b) A security agreement securing the bonds may provide
45-23 that, in the event of default in payment of the principal of or
45-24 interest on the bonds or in the performance of an agreement
45-25 contained in the proceedings or security agreement, the payment and
46-1 performance may be enforced by mandamus or by the appointment of a
46-2 receiver in equity with power to charge and collect obligations and
46-3 to apply revenues pledged according to the proceedings or the
46-4 provisions of the security agreement. A security agreement may
46-5 provide that in the event of default in payment or the violation of
46-6 an agreement contained in the security agreement it may be
46-7 foreclosed by proceedings at law or in equity and that a trustee
46-8 under the security agreement or the holder of a bond it secures may
46-9 become the purchaser at a foreclosure sale, if the trustee or
46-10 holder is the highest bidder.
46-11 (c) A breach of a security agreement does not impose
46-12 pecuniary liability on the state, the Office or the Partnership or
46-13 any charge on the general credit of the Office, the Partnership, or
46-14 the state or against the taxing power of the state.
46-15 (d) The trustee or trustees under a security agreement or a
46-16 depository specified by the security agreement may be any person
46-17 that the Office designates, regardless of whether the person is a
46-18 resident of this state or incorporated under the laws of the United
46-19 States or any state.
46-20 Sec. 483.013. Refunding Bonds. (a) The bonds may be
46-21 refunded by the Office by the issuance of its refunding bonds in
46-22 the amount that the Office considers necessary to refund the
46-23 principal of the refunded bonds, together with any unpaid interest,
46-24 premiums, expenses, and commissions required to be paid in
46-25 connection with the refunded bonds. Refunding may be effected
47-1 whether the refunded bonds have matured or are to mature later
47-2 either by sale of the refunding bonds or by exchange of the
47-3 refunding bonds for the refunded bonds.
47-4 (b) A holder of refunded bonds may not be compelled without
47-5 the holder's consent to surrender the bonds for payment or exchange
47-6 before the date on which the bonds are payable, or, if the bonds
47-7 are called for redemption, before the date on which they are by
47-8 their terms subject to redemption.
47-9 (c) Refunding bonds having a final maturity not to exceed
47-10 that permitted for other bonds issued under this subchapter may be
47-11 issued under the same terms and conditions provided by this
47-12 subchapter for the issuance of bonds or may be issued in the manner
47-13 provided by any other applicable statute, including Chapter 503,
47-14 Acts of the 54th Legislature, Regular Session, 1955 (Article 717k,
47-15 Vernon's Texas Civil Statutes), and Chapter 784, Acts of the 61st
47-16 Legislature, Regular Session, 1969 (Article 717k-3, Vernon's Texas
47-17 Civil Statutes).
47-18 Sec. 483.014. Bond Proceeds; Funds. (a) The proceeds from
47-19 the sale of bonds issued under Section 483.011 may be applied only
47-20 for the purpose for which the bonds were issued, except that any
47-21 premium or secured interest received in the sale shall be applied
47-22 to the payment of the principal of or interest on the bonds sold
47-23 and, if a portion of the proceeds is not needed for the purpose for
47-24 which the bonds were issued, that portion shall be applied to the
47-25 payment of the principal of or interest on the bonds.
48-1 (b) The Office shall establish and maintain a separate fund
48-2 into which the proceeds from the sale of the bonds shall be
48-3 deposited. The Office may provide for the establishment and
48-4 maintenance of separate accounts within the fund, including
48-5 interest and sinking accounts, reserve accounts, program accounts,
48-6 and other accounts. Pending use, the comptroller may invest and
48-7 reinvest the money in the fund in investments authorized by law for
48-8 state funds that the comptroller, with the approval of the board
48-9 and consistent with resolutions authorizing the bonds, considers
48-10 appropriate. Earnings on those investments shall be deposited in
48-11 the fund. The Office is authorized to use money deposited in the
48-12 fund for the purposes specified in and according to the procedures
48-13 established by this subchapter, and the state may not take any
48-14 action with respect to the fund other than as specified by this
48-15 subchapter or the Office. All other money received by the Office
48-16 under this subchapter, except money required to be deposited in the
48-17 Texas exporters loan fund, shall be deposited in a separate account
48-18 in the general revenue fund.
48-19 Sec. 483.015. Tax Exemption. The bonds and the income from
48-20 the bonds are exempt from taxation in this state, except for
48-21 inheritance, estate, or transfer taxes.
48-22 Sec. 483.016. Obligations as Legal Investments for
48-23 Fiduciaries. (a) Bonds, debentures, notes, or other evidences of
48-24 indebtedness of the Office are securities in which all public
48-25 officers and bodies of this state; municipalities; municipal
49-1 subdivisions; insurance companies and associations and other
49-2 persons carrying on an insurance business; banks, bankers, trust
49-3 companies, savings and loan associations, investment companies, and
49-4 other persons carrying on a banking business; administrators,
49-5 guardians, executors, trustees, and other fiduciaries; and other
49-6 persons authorized to invest in bonds or other obligations of the
49-7 state may invest funds, including capital, in their control or
49-8 belonging to them.
49-9 (b) Notwithstanding any other provision of law, the bonds,
49-10 debentures, notes, or other evidences of indebtedness of the Office
49-11 are also securities that may be deposited with and received by
49-12 public officers and bodies of the state and municipalities and
49-13 municipal subdivisions for any purpose for which the deposit of
49-14 bonds or other obligations of the state are authorized.
49-15 Sec. 483.017. Program Guidelines. (a) The Office shall
49-16 establish rules for determining which export businesses may
49-17 participate in programs established by the Office. The rules must
49-18 state that the Office's policy is to provide programs for providing
49-19 to export businesses financial assistance that:
49-20 (1) otherwise would not be made;
49-21 (2) the Office considers to present a reasonable risk
49-22 and have a sufficient likelihood of repayment; and
49-23 (3) will create or maintain employment in the state.
49-24 (b) The Office shall adopt collateral or security
49-25 requirements to ensure the full repayment of financial assistance
50-1 and the solvency of any program implemented under this subchapter.
50-2 (c) Financial assistance under this subchapter must be
50-3 approved by the Office.
50-4 (d) The Office shall establish criteria for lenders that may
50-5 participate in the programs established under this subchapter. As
50-6 a condition of participation, a lender must agree to conduct an
50-7 investigation as it considers necessary to determine the export
50-8 business's viability, the economic benefits to be derived, the
50-9 prospects for repayment, and other facts that it considers
50-10 necessary to determine whether participation by the export business
50-11 is consistent with the purposes of this subchapter.
50-12 (e) Export businesses or lenders participating in the
50-13 programs established under this subchapter shall pay the costs of
50-14 applying for, participating in, administering, and servicing the
50-15 program in amounts that the Office considers reasonable and
50-16 necessary.
50-17 (f) The Office shall establish a procedure to ensure prompt
50-18 review of applications for financial assistance and shall establish
50-19 conditions under which review and approval of those transactions
50-20 may be delegated to participating lenders or to insurers or
50-21 guarantors of the Office's bonds, programs, or loans.
50-22 Sec. 483.018. Texas Exporters Loan Fund. (a) The Texas
50-23 exporters loan fund is an account in the general revenue fund to be
50-24 administered by the Office. The Office shall contract with the
50-25 Partnership to administer the Texas exporters loan fund program.
51-1 The fund consists of appropriations or transfers made to the fund,
51-2 guarantee fees, other money received from operation of the program
51-3 established by this section, and interest paid on money in the
51-4 fund. Notwithstanding Section 483.014, the Office may deposit the
51-5 proceeds of bonds issued under this subchapter in the fund. Money
51-6 in the fund may be used to establish a reserve fund in an amount
51-7 determined by the Office and to carry out the purposes of this
51-8 section.
51-9 (b) The Office may guarantee loans or make loans with a term
51-10 of one year or less made by private lenders to Texas businesses to
51-11 finance activities of those businesses entering or expanding into
51-12 export markets, including activities related to the purchase of
51-13 inventory, equipment, and raw materials, manufacture, and
51-14 marketing.
51-15 (c) In making guarantees or loans under this section, the
51-16 Office shall give preference to Texas products having the highest
51-17 percentage of their total value represented by Texas source
51-18 components, labor, or intellectual property.
51-19 (d) A loan guarantee or loan under this section may not be
51-20 for less than $10,000 or more than $1 million. The Office may not
51-21 guarantee more than 90 percent of a loan by a private lender from
51-22 funds available under the program. The Office may not provide a
51-23 guarantee or make a loan for a project unless the business involved
51-24 provides at least 10 percent of the total cost of the project. The
51-25 Office shall require each loan guaranteed under this section to be
52-1 secured by appropriate collateral and may require the acquisition
52-2 of insurance from the Export-Import Bank of the United States.
52-3 (e) The Office shall assist Texas businesses in determining
52-4 eligibility for participation in the program established by this
52-5 section, preparing necessary paperwork, identifying potential
52-6 lenders, and explaining the program to lenders.
52-7 (f) The Office shall provide training to persons in small
52-8 business development centers and export assistance centers to
52-9 disseminate information concerning the program established by this
52-10 section throughout the state.
52-11 (g) The costs of administering the program must be paid by
52-12 interest earned on money in the fund and by fees collected in
52-13 connection with the program.
52-14 SUBCHAPTER B. ELECTRONIC DATA BASE
52-15 Sec. 483.019. Electronic Data Base. (a) In cooperation
52-16 with other state agencies, the Office shall develop an electronic
52-17 data base to compile international trade information, including
52-18 information on economic, educational, and other opportunities in
52-19 the public and private sectors. The Office shall contract with the
52-20 Partnership to perform the Office's duties and exercise its powers
52-21 and implement and administer the program under this subchapter to
52-22 the fullest extent permitted by the Texas Constitution. The Office
52-23 shall connect that data base with appropriate state, federal, and
52-24 international communication networks.
52-25 (b) The electronic data base advisory committee is composed
53-1 of:
53-2 (1) a representative from the center for border
53-3 economic and enterprise development at The University of Texas at
53-4 El Paso, appointed by the president of the university;
53-5 (2) a representative from the University of North
53-6 Texas Institute for Regional Industrialization and Manufacturing
53-7 Technology, appointed by the president of the university;
53-8 (3) a representative from the Bureau of Business
53-9 Research at The University of Texas at Austin, appointed by the
53-10 president of the university;
53-11 (4) a representative from the Texas Agriculture Market
53-12 and Research Center, appointed by the president of Texas A&M
53-13 University;
53-14 (5) a representative from The University of Texas at
53-15 San Antonio, College of Business, division of management and
53-16 marketing, appointed by the president of the university;
53-17 (6) a representative from The University of Texas-Pan
53-18 American, appointed by the president of the university;
53-19 (7) a representative from Texas A&M International
53-20 University, appointed by the president of the university;
53-21 (8) a representative from Texas Tech University,
53-22 appointed by the president of the university;
53-23 (9) a representative from the University of Houston,
53-24 appointed by the president of the university;
53-25 (10) a representative from Lamar University, appointed
54-1 by the president of the university;
54-2 (11) a representative from Sul Ross State University,
54-3 appointed by the president of the university; and
54-4 (12) the executive director of the Partnership.
54-5 (c) If a member of the advisory committee who represents a
54-6 university ceases to be employed by the university, the member's
54-7 position on the advisory committee becomes vacant on the day
54-8 employment ceases. A vacancy shall be filled by the president of
54-9 the university that the member represents.
54-10 (d) The advisory committee shall recommend to the Office
54-11 procedures for the dissemination of the data base.
54-12 (e) The Office may accept gifts, grants, and donations from
54-13 any source for the operation of the data base.
54-14 SUBCHAPTER C. SHARED FOREIGN SALES CORPORATIONS
54-15 Sec. 483.020. Definition. In this subchapter, "shared
54-16 foreign sales corporation" means a corporation that satisfies the
54-17 requirements of Section 922, Internal Revenue Code of 1986 (26
54-18 U.S.C. Section 922) and is operated for the direct benefit of more
54-19 than one business in this state.
54-20 Sec. 483.021. Creation and Operation of Shared Foreign Sales
54-21 Corporations. To stimulate international trade, produce more jobs,
54-22 create economic diversity and sources of additional tax revenue,
54-23 allow small and medium-sized businesses to take advantage of
54-24 opportunities formerly practically available only to larger
54-25 businesses, and allow businesses in this state to compete with
55-1 businesses in other states, the Office shall encourage and assist
55-2 in creation and operation of shared foreign sales corporations to
55-3 benefit businesses in this state. The Office shall contract with
55-4 the Partnership to perform the Office's duties and exercise its
55-5 powers and implement and administer the program under this
55-6 subchapter to the fullest extent permitted by the Texas
55-7 Constitution. In carrying out this duty the Office may:
55-8 (1) develop model shared foreign sales corporations,
55-9 including model articles of incorporation, bylaws, operation
55-10 manuals, form contracts, and other appropriate aids that businesses
55-11 may use in creating and operating shared foreign sales
55-12 corporations;
55-13 (2) provide information and counseling to businesses
55-14 relating to state, federal, and international law governing shared
55-15 foreign sales corporations;
55-16 (3) provide accounting information and counseling to
55-17 businesses in connection with creation and operation of shared
55-18 foreign sales corporations; and
55-19 (4) provide other information and assistance necessary
55-20 to the creation and operation of shared foreign sales corporations
55-21 to benefit businesses in the state.
55-22 Sec. 483.022. Fees. The Office and the Partnership may
55-23 collect fees for services provided under this subchapter in amounts
55-24 determined by the Office and the Partnership to be necessary to
55-25 cover the costs of administering this subchapter.
56-1 SUBCHAPTER D. TEXAS-MEXICO AUTHORITY
56-2 Sec. 483.023. Advisory Board. (a) An advisory board named
56-3 the Texas-Mexico Authority is created to study all Texas-Mexico
56-4 issues and problems, including health and environment.
56-5 (b) The advisory board consists of six members appointed by
56-6 the governor with the advice and consent of the senate.
56-7 (c) Members of the advisory board serve staggered six-year
56-8 terms with the terms of two members expiring February 1 of each
56-9 odd-numbered year.
56-10 (d) Before the advisory board's first meeting after the
56-11 regular appointment of a member, the governor shall select a
56-12 presiding officer from the board's members.
56-13 (e) The advisory board shall provide information and advice
56-14 to the Office, the governor, the legislature, and the Partnership
56-15 regarding the free-trade agreement between the United Mexican
56-16 States and the United States of America and the impact of
56-17 free-trade agreement on the state.
56-18 (f) The advisory board shall report annually on all aspects
56-19 of the state's relations with Mexico to:
56-20 (1) the governor;
56-21 (2) the lieutenant governor;
56-22 (3) the speaker of the house of representatives;
56-23 (4) the chairman of the Senate State Affairs
56-24 Committee;
56-25 (5) the chairman of the House of Representatives
57-1 State, Federal, and International Relations Committee;
57-2 (6) the Partnership; and
57-3 (7) the Office.
57-4 Sec. 483.024. Compact Exploration With the United Mexican
57-5 States. (a) The Texas-Mexico Authority established under Section
57-6 483.023, shall explore, develop, and negotiate interstate compacts
57-7 relating to trade, infrastructure, and other matters with the
57-8 appropriate officials of the United Mexican States or any of its
57-9 political subdivisions or any other foreign trading partners and
57-10 shall present any negotiated compacts to the Texas Legislature and
57-11 the governing body of the appropriate foreign governmental entity.
57-12 (b) A member of the authority may not receive compensation
57-13 for services under this section and may not be reimbursed for
57-14 actual and necessary expenses incurred in performing services under
57-15 this section.
57-16 (c) The Office shall contract with the Partnership to
57-17 provide office space, needed supplies, expertise, the lead staff,
57-18 and other necessities for the authority's work under this section.
57-19 The authority may receive assistance, expertise, and staffing from
57-20 other state agencies as appropriate, including the Texas foreign
57-21 trade offices in Mexico.
57-22 (d) The governor may make any initial inquiries and
57-23 invitations that are necessary on behalf of the authority to
57-24 officials of the government of the United Mexican States, a
57-25 political subdivision of the United Mexican States, a foreign
58-1 government, and the government of the United States. It is the
58-2 intent of the legislature that the governor invite the officials to
58-3 appoint a body to explore, develop, and negotiate compacts with the
58-4 authority that may be presented to the appropriate governmental
58-5 bodies for consideration, adoption, or approval.
58-6 (e) The authority may develop issues related to trade,
58-7 infrastructure, and other matters that are appropriate subjects for
58-8 a compact and present those issues to its counterparts of foreign
58-9 governmental entities for their consideration and for negotiation.
58-10 The authority may consider, negotiate, and report on issues
58-11 proposed by its counterparts, the governor, and concurrent
58-12 resolution of the legislature.
58-13 (f) The authority may make inquiries, gather information,
58-14 and seek legal advice as necessary to ensure that its activities
58-15 and any proposed compact conform to the laws of the United States.
58-16 (g) The authority may give a written biennial report of its
58-17 activities to the governor; the presiding officer of each house of
58-18 the legislature; the chairman of the Committee on State, Federal,
58-19 and International Relations of the house of representatives; the
58-20 Office; the Partnership; and the chairman of the Committee on State
58-21 Affairs of the senate during December of each even-numbered year.
58-22 (h) The authority shall present to the legislature for
58-23 consideration and possible adoption each proposed compact that has
58-24 been agreed to by the authority and one of its counterparts.
58-25 (i) This section does not affect any right of an agency or
59-1 officer of the state to enter into discussions or any form of
59-2 agreement with other states or nations under other law.
59-3 SUBCHAPTER E. MISCELLANEOUS PROVISIONS
59-4 Sec. 483.025. Honorary Commercial Attache Program. The
59-5 Partnership may develop a network of foreign nationals to serve as
59-6 contacts between state and foreign businesses and investors.
59-7 Sec. 483.026. Confidentiality. Information collected by the
59-8 Partnership concerning the identity, background, finance, marketing
59-9 plans, trade secrets, or other commercially sensitive information
59-10 of a lender or export business is confidential unless the lender or
59-11 export business consents to disclosure of the information.
59-12 CHAPTER 484. INDUSTRY RECRUITMENT
59-13 Sec. 484.001. Major Employer Development Programs. (a) The
59-14 Office may develop and plan programs for the purpose of promoting
59-15 and encouraging the location and expansion of major industrial,
59-16 manufacturing, and recycling enterprises within this state and may
59-17 coordinate, with the consent of local governments, the activities
59-18 of the local governments related to the programs, including
59-19 financing options available under existing law and this section for
59-20 that purpose. The Office shall contract with the Partnership to
59-21 perform the Office's duties and exercise its powers and implement
59-22 and administer the program under this subchapter to the fullest
59-23 extent permitted by the Texas Constitution.
59-24 (b) To assist the Office in exercising its powers under
59-25 Subsection (a), the Texas Major Employer Development Corporation is
60-1 created to assist the Office and act on behalf of the Office for
60-2 purposes of this section. The corporation shall be incorporated
60-3 under this chapter by filing articles of incorporation approved by
60-4 resolution of the board with the secretary of state. The
60-5 corporation shall be governed by a board of directors appointed by
60-6 the board of the Partnership.
60-7 (c) The corporation has:
60-8 (1) all powers granted to a development corporation
60-9 under the Development Corporation Act of 1979 (Article 5190.6,
60-10 Vernon's Texas Civil Statutes), except those powers described by
60-11 Sections 4A and 4B of that Act;
60-12 (2) all powers of the Office granted under this
60-13 section; and
60-14 (3) all powers of a nonprofit corporation granted
60-15 under the Texas Non-Profit Corporation Act (Article 1396-1.01 et
60-16 seq., Vernon's Texas Civil Statutes), except as limited by this
60-17 section.
60-18 (d) All revenue bonds issued by the corporation must state
60-19 on their face that the bonds are payable solely from the revenues
60-20 pledged for that purpose and that the bonds do not and shall not
60-21 constitute a legal or moral obligation of the state, the Office,
60-22 the Partnership, or any other agency of the state.
60-23 (e) Bonds of the corporation may not be issued unless
60-24 approved by the Office, by the bond review board, and, as to
60-25 legality, by the attorney general.
61-1 (f) The corporation shall make a good faith effort to assist
61-2 disadvantaged businesses to receive at least 10 percent of the
61-3 total value of each construction contract award for construction
61-4 and the purchase of supplies, materials, services, and equipment
61-5 that the corporation expects to make in connection with the
61-6 issuance of bonds and any lease, sale, and loan agreement made
61-7 under this section by the corporation. The corporation shall
61-8 annually report to the legislature and the governor on the level of
61-9 disadvantaged business participation as it pertains to the
61-10 corporation's contracts. This report shall include recommendations
61-11 for the improvement of disadvantaged business opportunities with
61-12 the corporation. "Disadvantaged business" means a disadvantaged
61-13 business as defined by Section 1.02, State Purchasing and General
61-14 Services Act (Article 601b, Vernon's Texas Civil Statutes).
61-15 CHAPTER 485. RURAL AND COMMUNITY DEVELOPMENT
61-16 SUBCHAPTER A. TEXAS RURAL ECONOMIC DEVELOPMENT PROGRAM
61-17 Sec. 485.001. Short Title. This subchapter may be cited as
61-18 the Texas Rural Economic Development Act.
61-19 Sec. 485.002. Purpose. (a) The legislature finds that:
61-20 (1) the health, safety, right to gainful employment,
61-21 and general welfare of the people of this state require as a public
61-22 purpose the promotion and development of new and expanded
61-23 enterprises; and
61-24 (2) communities in this state are at a critical
61-25 disadvantage in competing with communities in other states for
62-1 location or expansion of enterprises because of the availability in
62-2 all other states of financing and other special incentives.
62-3 (b) The purpose of this subchapter is to promote economic
62-4 development and employment, which is a public purpose.
62-5 (c) In administering this subchapter the Office shall give
62-6 first preference to assistance to the food and fiber processing
62-7 industries.
62-8 Sec. 485.003. Definitions. In this subchapter:
62-9 (1) "Equity" means the user's contribution to a
62-10 project in the form of cash, land, or depreciable property.
62-11 (2) "Federal agency" means the United States, the
62-12 president or a department of the United States, or a corporation,
62-13 agency, or instrumentality designated or established by the United
62-14 States.
62-15 (3) "Fund" means the Texas rural economic development
62-16 account in the general revenue fund.
62-17 (4) "Private lender" means a bank, savings bank,
62-18 savings and loan association, trust company, municipal corporation,
62-19 or insurance company, or an individual that the Office determines
62-20 is an experienced and sophisticated investor.
62-21 (5) "Project" means land, equipment, or a building,
62-22 facility, or improvement and working capital determined by the
62-23 Office to be required or suitable for the promotion of and for use
62-24 by enterprise, regardless of whether the land, equipment, building,
62-25 facility, or improvement existed before the Office's determination
63-1 or was acquired or constructed after that determination.
63-2 (6) "Qualified application" means a completed
63-3 application, including all documents and information required by
63-4 the Office and submitted by a user or private lender for a project.
63-5 (7) "Rural area" means an area that is predominantly
63-6 rural in character and designated by the Office as a rural area.
63-7 (8) "User" means an individual, a business
63-8 Partnership, corporation, or any other private entity found by the
63-9 Office to be financially responsible to assume the obligation in
63-10 connection with a project.
63-11 (9) "Institution of higher education" means any public
63-12 technical institute, public junior college, public senior college
63-13 or university, medical or dental unit, or other agency of higher
63-14 education.
63-15 (10) "Private institution of higher education" means a
63-16 private institution of higher education located in this state that
63-17 issues degrees in the state and is accredited by a recognized
63-18 accrediting agency as defined by Section 61.003, Education Code.
63-19 Sec. 485.004. Rural Affairs. The Office shall contract with
63-20 the Partnership to maintain a business unit for rural and community
63-21 development to perform the Office's duties and exercise its powers
63-22 and implement and administer the programs under this subchapter to
63-23 the fullest extent permitted by the Texas Constitution. The rural
63-24 and community development business unit shall address the special
63-25 needs of rural communities and businesses and assist those
64-1 communities and businesses.
64-2 Sec. 485.005. Loan Guarantees. (a) The Office may
64-3 guarantee not more than 90 percent of a loan made by a private
64-4 lender or to make loans to fund a project. For each guarantee the
64-5 Office shall determine:
64-6 (1) that the project is located in a rural area;
64-7 (2) the amount of equity the user must pledge or apply
64-8 to the establishment of the project;
64-9 (3) the fees charged by the Office, including
64-10 guarantee or loan fees, application fees, annual fees, and any
64-11 other costs associated with the loan guarantee or loan, as
64-12 necessary to fund the administration of this subchapter;
64-13 (4) the maximum and minimum guarantee or loan amounts,
64-14 if applicable;
64-15 (5) the permissible interest rates and amortization
64-16 requirements for a guaranteed loan or loan, as agreed on by the
64-17 private lender, the user, and the Office;
64-18 (6) the acceptable security for the Office's
64-19 participation in a project; and
64-20 (7) any other terms or conditions relating to a
64-21 guarantee or loan.
64-22 (b) The Office may not make a loan guarantee or loan, except
64-23 on approval of a qualified application submitted by a user or
64-24 private lender for a project.
64-25 (c) On approval of a qualified application and the Office's
65-1 determination that the establishment of a project has accomplished
65-2 or will accomplish the public purposes of this subchapter, the
65-3 Office may provide a loan guarantee or make a loan of not more than
65-4 90 percent of the cost of the project to a participating lender, if
65-5 the user holds funds or property in an amount or value equal to not
65-6 less than 10 percent of the cost of the project and those funds or
65-7 property are then available for and are pledged to be applied to
65-8 the establishment of the project.
65-9 (d) Before making a loan guarantee or loan, the Office must
65-10 have determined that the user has obtained from other independent
65-11 and responsible financial sources a firm commitment for all other
65-12 funds in excess of the loan guaranteed or loan made by the Office,
65-13 and that the sum of those funds and the equity to be provided by
65-14 the user are adequate for the completion and operation of the
65-15 project.
65-16 (e) This subchapter does not prohibit the use of money in
65-17 the Texas rural economic development fund in conjunction with any
65-18 other money available for the purposes of this subchapter.
65-19 (f) The Office shall report to the comptroller the name of
65-20 any user who is in default on a loan guaranteed or loan made under
65-21 this subchapter and with respect to which the Office has been
65-22 required to honor a guarantee. The comptroller may not issue a
65-23 warrant to the user while the user is in default.
65-24 Sec. 485.006. Payments not to be Made to Defaulting Users.
65-25 (a) The Office shall report to the comptroller the name of any
66-1 user who is in default on a loan guaranteed under this subchapter
66-2 and with respect to which the Office has been required to honor a
66-3 guarantee. The comptroller may not issue a warrant or initiate an
66-4 electronic funds transfer to the user while the user is in default.
66-5 (b) The comptroller may issue a warrant to the assignee of a
66-6 user who is in default only if the assignment became effective
66-7 before the user defaulted.
66-8 (c) This section does not prohibit the comptroller from
66-9 issuing a warrant or initiating an electronic funds transfer to pay
66-10 the compensation of a state officer or employee.
66-11 (d) This subsection applies when a payment is made to a user
66-12 other than through the comptroller's issuance of a warrant or the
66-13 comptroller's use of an electronic funds transfer system.
66-14 (e) A state agency may not use funds inside or outside the
66-15 state treasury to pay a user if the agency knows that the user is
66-16 in default on a loan guaranteed under this subchapter and with
66-17 respect to which the Office has been required to honor a guarantee.
66-18 (f) This subsection does not prohibit a state agency from
66-19 paying the assignee of a user who is in default if the assignment
66-20 became effective before the user defaulted.
66-21 (g) This subsection does not prohibit a state agency from
66-22 paying the compensation of a state officer or employee.
66-23 (h) The comptroller may not reimburse a state agency for a
66-24 payment that is made in violation of this subsection.
66-25 (i) In this section:
67-1 (1) "Compensation" includes wages, salaries, longevity
67-2 pay, hazardous duty pay, and emoluments that are provided in lieu
67-3 of wages or salaries. The term does not include expense
67-4 reimbursements.
67-5 (2) "State agency" means a board, commission, council,
67-6 committee, department, office, agency, or other governmental entity
67-7 in the executive, legislative, or judicial branch of state
67-8 government. The term includes an institution of higher education
67-9 as defined by Section 61.003, Education Code.
67-10 (3) "State officer or employee" means an officer or
67-11 employee of a state agency.
67-12 Sec. 485.007. Guarantee-to-Reserve Ratio. (a) The Office
67-13 may guarantee loans as provided by Section 485.005 in an amount
67-14 that exceeds the amount available in the fund. Loan guarantees may
67-15 not exceed the guarantee-to-reserve ratio set by the Office under
67-16 Subsection (b).
67-17 (b) The Office shall adopt a guarantee-to-reserve ratio that
67-18 determines the amount of loan guarantees that may be made that
67-19 exceed the amount available in the fund. The ratio of guarantees
67-20 to the amount of money available in the fund may not exceed two to
67-21 one.
67-22 (c) The Office shall review the guarantee-to-reserve ratio
67-23 annually and adjust the ratio as appropriate. In reviewing the
67-24 guarantee-to-reserve ratio, the Office shall consider the payment
67-25 experience of the loans and any recommendations of the state
68-1 auditor as provided by Subsection (d).
68-2 (d) The state auditor shall review the loan guarantee
68-3 program and payment activity and make recommendations based on that
68-4 review to the Office about the program and the guarantee-to-reserve
68-5 ratio. A recommendation to the Office shall be made not later than
68-6 September 1 of each year.
68-7 Sec. 485.008. Penalty for False Information on Application.
68-8 An applicant who knowingly provides false information in an
68-9 application under this subchapter:
68-10 (1) may not submit an application under this
68-11 subchapter before two years after the date that the application
68-12 containing the false information was submitted; and
68-13 (2) is liable to the state and any private lender
68-14 involved for any expense incurred by the state or private lender
68-15 that would have not been incurred if the applicant had not provided
68-16 the false information.
68-17 Sec. 485.009. Additional Powers and Duties. (a) The Office
68-18 shall:
68-19 (1) cooperate with industrial and economic development
68-20 agencies, users, and private lenders to promote development
68-21 activity in rural areas of this state;
68-22 (2) determine, on proper request by a user or private
68-23 lender, whether the public purpose of this subchapter has been
68-24 accomplished or will be accomplished by the establishment of a
68-25 project;
69-1 (3) accept grants from and enter into contracts with a
69-2 federal agency to accomplish the purposes of this subchapter; and
69-3 (4) contract with the Partnership to provide staff to
69-4 carry out this subchapter. The staff shall act as liaison among
69-5 the Partnership, the Office, users, private lenders, and industrial
69-6 and economic development agencies, organizations related to
69-7 industrial development agencies, and other state agencies whose
69-8 facilities and services are useful to the Partnership in carrying
69-9 out its functions under this subchapter.
69-10 (b) The Office may employ counsel, and engineering,
69-11 financial, or other consultants as required in carrying out its
69-12 functions under this subchapter. The Office may obtain
69-13 professional services in cooperation with state agencies or
69-14 independently.
69-15 (c) The Office and the Partnership may not borrow money,
69-16 incur financial obligations, or pledge the credit or taxing power
69-17 of the state, a municipality, or political subdivision of the state
69-18 in the administration of this subchapter.
69-19 Sec. 485.010. Fund. (a) The Texas rural economic
69-20 development fund is an account in the general revenue fund. The
69-21 fund consists of appropriations for interest, investment earnings,
69-22 and fees. The Office may also deposit funds issued under Chapter
69-23 488, Subchapter A in the fund.
69-24 (b) The Office may use money in the fund to establish a
69-25 reserve fund, in an amount determined by the Office as appropriate,
70-1 for bonds issued under this chapter for projects which are also
70-2 eligible under this subchapter or to insure and guarantee the bonds
70-3 in any other manner. Reserve funds for the issuance of bonds under
70-4 Chapter 488 may only be created on approval of the Product
70-5 Development Advisory Board or the Product Commercialization
70-6 Advisory Board, as applicable. Appropriated money in the fund may
70-7 be used and reused for the purposes of this subchapter. Available
70-8 funds in an amount not to exceed $700,000 may be used for the
70-9 Texas-Mexico Development Fund program or the electronic data base
70-10 established under Chapter 483.
70-11 Sec. 485.011. Directive. (a) The Office shall conduct a
70-12 detailed, comprehensive analysis of the availability of federal,
70-13 state, and local government and private sector rural economic
70-14 development business outreach and data services in Texas. The
70-15 analysis must specifically examine the availability of:
70-16 (1) integrated computerized rural economic development
70-17 data banks that provide comprehensive economic data for existing
70-18 and prospective businesses in Texas; and
70-19 (2) business information outreach service offices or
70-20 centers that provide comprehensive technical assistance, research,
70-21 consulting services, training, and other business services to small
70-22 rural communities to help businesses prepare and implement economic
70-23 development business plans and assist new business start-up
70-24 projects in Texas.
70-25 (b) In conducting the analysis required by this section, the
71-1 Office shall contract with the Partnership and shall consult with
71-2 the governor, economic development officials, economic development
71-3 experts in the private sector, and the academic community in Texas.
71-4 (c) The cost of the analysis and establishment of the rural
71-5 economic development data base required by this section may be paid
71-6 from available funds in the fund in an amount not to exceed
71-7 $300,000.
71-8 Sec. 485.012. Criteria. (a) In assessing the availability
71-9 of rural economic development data services in Texas, the Office
71-10 shall determine the capability of the data banks to provide a
71-11 socioeconomic profile of each trade area, region, or sector that
71-12 includes an inventory of the area's resource base, the area's
71-13 barriers to economic development, and an assessment of the area's
71-14 competitive position in the industrial marketplace particularly in
71-15 the area of production sharing.
71-16 (b) The Office shall determine the ability of a data bank to
71-17 compile:
71-18 (1) population data for each community and county in
71-19 Texas;
71-20 (2) data on all retail businesses by locality, county,
71-21 and community, including information on sales, types of products
71-22 and services, employees, organizational forms, and affiliations;
71-23 (3) information on all components of the health care
71-24 delivery system by community and county, including information on
71-25 physicians, hospitals, laboratories, specialized health care
72-1 providers, and institutions;
72-2 (4) information on all aspects of the transportation
72-3 system in Texas, including data on streets and highways, airline
72-4 and other air access and airports, freight lines, railroad access,
72-5 and limitations imposed through regulation, restrictions on
72-6 transportation of hazardous materials, bridges, landing facilities,
72-7 and the current condition of existing transportation facilities;
72-8 (5) a current inventory of all available industrial
72-9 facilities for lease or sale, including information regarding age,
72-10 type of construction, zoning, availability, cost, ability to
72-11 renovate, utilities, incentives, and similar data;
72-12 (6) information on all public and private utilities
72-13 available by community, area, and county, including information on
72-14 extension of public utilities into rural and nonmetropolitan areas,
72-15 and the ability of systems to support economic growth;
72-16 (7) information on police, fire, hazardous material
72-17 safety, and rescue services, including information on crime rates;
72-18 (8) information on all community, county, regional,
72-19 and state agencies and organizations, and information on what these
72-20 agencies and organizations can provide to existing and prospective
72-21 businesses in Texas;
72-22 (9) information on all primary and secondary education
72-23 programs and programs offered by institutions of higher education
72-24 by community, rural area, and county, including information on
72-25 vocational educational resources and general demographic
73-1 information on the student population;
73-2 (10) information on manufacturing facilities,
73-3 including information by community, county, and type of
73-4 manufacturer;
73-5 (11) information on financial institutions, including
73-6 size, amounts of deposits, loan policies, names of officers, and
73-7 other pertinent information to assist existing and prospective
73-8 economic development in rural areas of Texas;
73-9 (12) information weighing the relative strengths and
73-10 weaknesses of communities, counties, and other locations within
73-11 Texas regarding rural economic development opportunities;
73-12 (13) information regarding technology transfer between
73-13 federal, state, and local governments and private industry in
73-14 Texas;
73-15 (14) information regarding the flow of trade across
73-16 the border of the United States of America and the United Mexican
73-17 States and business opportunities for maquiladora operations and
73-18 other production-sharing enterprises in Texas derived from the
73-19 border trade; and
73-20 (15) information on the development of special
73-21 economic models for regional economic forecasts for Texas.
73-22 Sec. 485.013. Business Service Outreach Study. In assessing
73-23 the availability of business information outreach service offices
73-24 in Texas, the Office shall determine the capability of federal,
73-25 state, and local government and private sector programs in Texas,
74-1 including programs, that:
74-2 (1) provide a comprehensive array of data-gathering,
74-3 consulting, and training business services to existing and
74-4 prospective businesses and industries with interest in locating
74-5 operations in Texas;
74-6 (2) serve as a liaison among existing small business
74-7 development centers, state agencies, vocational educational
74-8 agencies, other community economic development organizations, and
74-9 both existing and prospective new business interests;
74-10 (3) conduct studies, including target industry
74-11 studies, for determining the benefits and costs incurred by
74-12 locating a business or industry in Texas;
74-13 (4) develop special economic models for regional
74-14 economic forecasts for Texas;
74-15 (5) analyze, develop, and disseminate to the business
74-16 community new technologies in community infrastructure development,
74-17 including water conservation and purification systems, recycling
74-18 and waste treatment systems, solar and geothermal energy sources,
74-19 disposal technologies for industrial and medical hazardous
74-20 materials and waste, and landfill operations;
74-21 (6) share with the business community information on
74-22 new product and material developments available from institutions
74-23 of higher education and government research laboratories and
74-24 agencies of the federal government;
74-25 (7) facilitate industry and community production
75-1 networks that include cottage industries in manufacturing,
75-2 industrial machining, and injection molding and that include
75-3 community industrial manufacturing cooperatives involving multiple
75-4 businesses and communities; and
75-5 (8) interface with the rural economic development data
75-6 banks, the electronic data base maintained by the Partnership, and
75-7 any other appropriate data bases and make the data available to
75-8 existing and prospective businesses in Texas.
75-9 Sec. 485.014. Review. The comptroller shall review the
75-10 implementation of 485.011-485.013 of this chapter and assist in the
75-11 carrying out the assessment of programs and activities authorized
75-12 in those sections. The comptroller shall make periodic written
75-13 reports to the appropriate committees of the legislature regarding
75-14 the studies and analyses to be prepared by the Partnership under a
75-15 contract with the Office.
75-16 Sec. 485.015. Gifts and Grants. The Office and the
75-17 Partnership may accept gifts, grants, and donations from any source
75-18 for the purposes of this subchapter.
75-19 SUBCHAPTER B. AGRICULTURE MARKET EXPANSION
75-20 Sec. 485.016. Definitions. In this subchapter:
75-21 (1) "Small business incubator" means a nonprofit
75-22 development agency that provides concentrated business assistance
75-23 services to new small agricultural enterprises.
75-24 (2) "Eligible lending institution" means a financial
75-25 institution that makes commercial loans, is a depository of state
76-1 funds, and agrees to participate in the linked deposit program and
76-2 to provide collateral equal to the amount of linked deposits placed
76-3 with it.
76-4 (3) "Eligible borrower" means a person who is in the
76-5 business or entering the business of:
76-6 (A) processing and marketing agricultural crops
76-7 in this state;
76-8 (B) producing alternative agricultural crops in
76-9 this state;
76-10 (C) producing agricultural crops in this state
76-11 the production of which has declined markedly because of natural
76-12 disasters; or
76-13 (D) producing agricultural crops in this state
76-14 using water conservation equipment for agricultural production
76-15 purposes.
76-16 (4) "Alternative agricultural crops" means crops not
76-17 customarily grown in this state but that could feasibly be produced
76-18 in this state.
76-19 (5) "Linked deposit" means a time deposit governed by
76-20 a written deposit agreement between the state and an eligible
76-21 lending institution that provides:
76-22 (A) that the eligible lending institution pay
76-23 interest on the deposit at a rate that is not less than the greater
76-24 of:
76-25 (i) the current market rate of a United
77-1 States treasury bill or note of comparable maturity minus two
77-2 percent; or
77-3 (ii) 1.5 percent;
77-4 (B) that the state not withdraw any part of the
77-5 deposit before the expiration of a period set by a written advance
77-6 notice of the intention to withdraw; and
77-7 (C) that the eligible lending institution agree
77-8 to lend the value of the deposit to an eligible borrower at a
77-9 maximum rate that is the current market rate of a United States
77-10 treasury bill or note of comparable maturity plus four percent.
77-11 (6) "Microenterprise" means a small business located
77-12 in a rural area in which the owner and the owner's family provide
77-13 the bulk of the management and a significant amount of the labor
77-14 required to operate the enterprise. Priority under this subchapter
77-15 shall be given to microenterprises which demonstrate significant
77-16 potential for expansion that will provide jobs in economically
77-17 depressed rural communities or to currently unemployed rural
77-18 residents.
77-19 (7) "Rural area" means an area which is predominantly
77-20 rural in character, being one which the Office defines and declares
77-21 to be a rural area.
77-22 Sec. 485.017. Contract with Partnership. The Office shall
77-23 contract with the Partnership to perform the Office's duties and
77-24 exercise its powers and implement and administer the programs under
77-25 this subchapter to the fullest extent permitted by the Texas
78-1 Constitution.
78-2 Sec. 485.018. Creation of Programs. (a) The Office shall
78-3 create an agricultural diversification program to:
78-4 (1) support commercial use of agricultural research
78-5 and innovation;
78-6 (2) increase the capabilities of community and
78-7 regional organizations to train and assist new or expanding
78-8 agricultural-based businesses;
78-9 (3) start small business incubators; and
78-10 (4) encourage private commercial loans for enhanced
78-11 production, processing, and marketing of certain agricultural
78-12 crops.
78-13 (b) The Office shall create a microenterprise support
78-14 program to provide financial assistance to microenterprises in
78-15 rural areas.
78-16 Sec. 485.019. Research and Innovation. (a) The Office
78-17 shall administer an agricultural diversification grant program
78-18 supporting research and innovation leading to organizational or
78-19 marketing improvement in business based on agriculture or to the
78-20 commercialization of new crops, new agricultural products, or new
78-21 production processes.
78-22 (b) A recipient of a grant under this section must be a
78-23 nonprofit organization such as a university, community college, or
78-24 other institution affiliated with a small business in a project
78-25 meeting the requirements of Subsection (a) of this section.
79-1 (c) A grant recipient under this section must match the
79-2 amount of the state grant with an equal amount of other money, with
79-3 at least one-half of the matching money coming from the private
79-4 sector.
79-5 (d) The Office shall review and evaluate each grant
79-6 application submitted under this section and award the grants.
79-7 (e) A grant under this section may not exceed $50,000.
79-8 Sec. 485.020. Microenterprise Support Program Loans.
79-9 (a) The Office may administer a loan program supporting
79-10 established and proposed microenterprises in rural areas by
79-11 providing loans to expand, modernize, or otherwise improve
79-12 established microenterprises and to begin operation of proposed
79-13 microenterprises.
79-14 (b) A proposed microenterprise loan applicant may receive a
79-15 loan of up to $15,000 to begin operation of the microenterprise.
79-16 (c) An established microenterprise loan applicant may
79-17 receive a loan of up to $30,000 to expand, modernize, or otherwise
79-18 improve an established microenterprise.
79-19 (d) The Office may reserve a portion of the total fund for
79-20 use in cooperative loan programs established with the participation
79-21 of other public or private lenders.
79-22 (e) Financial assistance in the form of a loan may not be
79-23 used to refinance an existing debt of a proposed or existing
79-24 microenterprise.
79-25 Sec. 485.021. Business Assistance. (a) The Office shall
80-1 create an agricultural diversification grant program to increase
80-2 the capabilities of community and regional organizations to provide
80-3 training and assistance to new and expanding businesses based on
80-4 agriculture.
80-5 (b) A recipient of a grant under this section must be a
80-6 nonprofit community or regional organization such as a community
80-7 college or council of government.
80-8 (c) A grant recipient under this section must match the
80-9 amount of the state grant with an equal amount of other money.
80-10 (d) The Office shall evaluate each grant application
80-11 submitted under this section and award the grants.
80-12 (e) A grant under this section may not exceed $50,000.
80-13 Sec. 485.022. Small Business Incubators. (a) The Office
80-14 shall create an agricultural diversification grant program to
80-15 provide seed money for self-financing small business incubators.
80-16 These incubators shall provide business services to small
80-17 enterprises that process or market agricultural crops in this state
80-18 or that produce alternative agricultural crops in this state.
80-19 (b) A recipient of a grant under this section must be a
80-20 local nonprofit organization such as a community college or council
80-21 of government.
80-22 (c) A grant recipient under this section must match the
80-23 amount of the state grant with assets valued at $3 for every $1 of
80-24 the state grant. The state grant must be used primarily for
80-25 professional services. The local matching share may be in the form
81-1 of land, buildings, business assistance, and dedicated loan pools
81-2 as well as cash contributions.
81-3 (d) The Office shall evaluate each grant application under
81-4 this section and award the grants.
81-5 (e) A grant under this section may not exceed $100,000.
81-6 Sec. 485.023. Linked Deposit Program. (a) The Office may
81-7 establish a linked deposit program to encourage commercial lending
81-8 for the enhanced production, processing, and marketing of certain
81-9 agricultural crops and for the purchase of water conservation
81-10 equipment for agricultural production purposes.
81-11 (b) The Office shall promulgate rules for the loan portion
81-12 of the linked deposit program. The rules must include:
81-13 (1) a list of the categories of crops customarily
81-14 grown in Texas;
81-15 (2) a list of crops that are alternative agricultural
81-16 crops;
81-17 (3) a list of crops the production of which has
81-18 declined markedly because of natural disasters; and
81-19 (4) identification of the types of equipment
81-20 considered as water conservation equipment for agricultural
81-21 production purposes.
81-22 (c) In order to participate in the linked deposit program,
81-23 an eligible lending institution may solicit loan applications from
81-24 eligible borrowers.
81-25 (d) After reviewing an application and determining that the
82-1 applicant is eligible and creditworthy, the eligible lending
82-2 institution shall send the application for a linked deposit loan to
82-3 the Office.
82-4 (e) The eligible lending institution shall certify the
82-5 interest rate applicable to the specific eligible borrower and
82-6 attach it to the application sent to the Office.
82-7 (f) After reviewing each linked deposit loan application,
82-8 the Office shall recommend to the state the acceptance or rejection
82-9 of the application.
82-10 (g) After acceptance of the application, the comptroller
82-11 shall place a linked deposit with the applicable eligible lending
82-12 institution for the period the comptroller considers appropriate.
82-13 The comptroller may not place a deposit for a period extending
82-14 beyond the state fiscal biennium in which it is placed. Subject to
82-15 the limitation described by Section 485.026 of this subchapter, the
82-16 comptroller may place time deposits at an interest rate described
82-17 by Section 485.016(5)(A) of this subchapter, notwithstanding any
82-18 order of the State Depository Board to the contrary.
82-19 (h) Before the placing of a linked deposit, the eligible
82-20 lending institution and the state, represented by the comptroller
82-21 and the Office, shall enter into a written deposit agreement
82-22 containing the conditions on which the linked deposit is made.
82-23 (i) If a lending institution holding linked deposits ceases
82-24 to be a state depository, the comptroller may withdraw the linked
82-25 deposits.
83-1 (j) The Office may adopt rules that create a procedure for
83-2 determining priorities for loans granted under this subchapter.
83-3 Each rule adopted must state the policy objective of the rule. The
83-4 policy objectives of the rules may include preferences to:
83-5 (1) achieve adequate geographic distribution of loans;
83-6 (2) assist certain industries;
83-7 (3) encourage certain practices including water
83-8 conservation; and
83-9 (4) encourage value-added processing of agricultural
83-10 products.
83-11 Sec. 485.024. Compliance. (a) On accepting a linked
83-12 deposit, an eligible lending institution must loan money to
83-13 eligible borrowers in accordance with the deposit agreement and
83-14 this subchapter. The eligible lending institution shall forward a
83-15 compliance report to the Office.
83-16 (b) The Office shall monitor compliance with this subchapter
83-17 and inform the comptroller of noncompliance on the part of an
83-18 eligible lending institution.
83-19 Sec. 485.025. State Liability Prohibited. The state is not
83-20 liable to an eligible lending institution for payment of a
83-21 principal, interest, or any late charges on a loan made to an
83-22 eligible borrower. A delay in payment or default on a loan by an
83-23 eligible borrower does not affect the validity of the deposit
83-24 agreement. Linked deposits are not an extension of the state's
83-25 credit within the meaning of any state constitutional prohibition.
84-1 Sec. 485.026. Limitations in Program. (a) At any one time,
84-2 not more than $5 million may be placed in linked deposits under
84-3 this subchapter.
84-4 (b) The maximum amount of a loan under this subchapter to
84-5 process and market Texas agricultural crops is $500,000. The
84-6 maximum amount of a loan under this subchapter to produce
84-7 alternative agricultural crops in this state is $250,000. The
84-8 maximum amount of a loan under this subchapter to purchase water
84-9 conservation equipment for agricultural production purposes is
84-10 $250,000.
84-11 (c) A loan granted pursuant to this subchapter must be
84-12 applied to the purchase or lease of land, equipment, seed,
84-13 fertilizer, direct marketing facilities, or processing facilities,
84-14 or to payment for professional services.
84-15 Sec. 485.027. Criteria for all Grants. In evaluating
84-16 applications for grants under this subchapter, the Office shall
84-17 consider:
84-18 (1) the scientific and technical merit of the
84-19 application;
84-20 (2) the anticipated benefits arising from a grant to
84-21 the applicant, including both potential job creation and commercial
84-22 benefits to the agricultural industry;
84-23 (3) the market value of the assets of the applicant;
84-24 (4) the qualifications of the applicant;
84-25 (5) the reasonableness of the applicant's proposed
85-1 budget;
85-2 (6) the extent and level of other funding sources for
85-3 the applicant;
85-4 (7) the funding commitments needed for continued
85-5 development; and
85-6 (8) the present involvement and support of local
85-7 organizations, including educational organizations.
85-8 Sec. 485.028. Money for Grants and Loans. The Office may
85-9 accept gifts and grants of money from the federal government, local
85-10 governments, or private corporations or other persons for use in
85-11 making grants and loans under the agricultural diversification
85-12 program and the rural microenterprise support program. The
85-13 legislature may appropriate money for grants and loans under the
85-14 programs.
85-15 Sec. 485.029. Rural Microenterprise Development Fund. The
85-16 rural microenterprise development fund is an account in the general
85-17 revenue fund. Money appropriated to the Office for use in making
85-18 loans under the rural microenterprise support program, other
85-19 amounts received by the state for loans made under the program, and
85-20 other money received by the Office for the program and required by
85-21 the Office to be deposited in the fund shall be deposited to the
85-22 credit of the fund. The fund shall operate as a revolving fund,
85-23 the contents of which shall be applied and reapplied for the
85-24 purposes of the rural microenterprise support program.
86-1 SUBCHAPTER C. FOOD AND FIBERS COMMISSION
86-2 Sec. 485.030. Policy. The purpose of the Texas Food and
86-3 Fibers Commission is to contract with universities engaged in
86-4 agricultural research in the state to conduct surveys, research,
86-5 and investigations relating to the production and increased use of
86-6 cotton, oilseed products, wool, mohair, and other textile products.
86-7 Sec. 485.031. Organization. The Texas Food and Fibers
86-8 Commission is composed of:
86-9 (1) the chancellor of The Texas A&M University System;
86-10 (2) the president of The University of Texas at
86-11 Austin;
86-12 (3) the president of Texas Tech University;
86-13 (4) the president of Texas Woman's University; and
86-14 (5) a designee of the board.
86-15 Sec. 485.032. Administration. (a) Each member of the
86-16 commission shall serve a two-year term as chairman, rotating the
86-17 service in the order in which the members are listed in Section
86-18 485.031. A person may not serve as a member of the commission or
86-19 act as the general counsel to the commission if the person is
86-20 required to register as a lobbyist under Chapter 305, Government
86-21 Code, because of the person's activities for compensation on behalf
86-22 of a profession related to the operation of the commission.
86-23 (b) The commission shall meet at least once each year at a
86-24 time designated by the chairman.
86-25 (c) Each member of the commission shall designate a person
87-1 on his or her staff as a liaison officer to work with commission
87-2 committees, commission staff, and agencies contracting or
87-3 consulting with the commission.
87-4 (d) The executive director of the commission shall
87-5 coordinate the operations of the committees and staff personnel and
87-6 shall oversee the work done for the commission by contracting or
87-7 consulting agencies.
87-8 (e) The commission shall adopt rules for commission and
87-9 committee proceedings, including rules that prescribe the policies
87-10 and procedures to be followed in awarding contracts.
87-11 Sec. 485.033. Powers and Duties. (a) The commission shall
87-12 conduct surveys, research, and investigations relating to the use
87-13 of cotton fiber, cottonseed, oilseed products, other products of
87-14 the cotton plant, wool, mohair, and other textile products.
87-15 (b) Rules adopted by the commission must require the
87-16 submission of summaries of research being conducted or previously
87-17 conducted at institutions of The Texas A&M University System or at
87-18 The University of Texas at Austin, Texas Tech University, or Texas
87-19 Woman's University that are similar to proposals submitted to the
87-20 commission for research funding. The rules must also require the
87-21 submission of reports of marketing activities of the Office, the
87-22 Partnership, and the department of agriculture that are related to
87-23 proposals submitted to the commission for research funding. To
87-24 improve coordination and prevent duplication of research, the
87-25 commission shall consider the summaries and reports before awarding
88-1 a contract for research.
88-2 (c) In performing its functions, the commission may contract
88-3 with the Partnership, any state educational institution, state
88-4 agency, or federal agricultural agency to perform services for the
88-5 commission or for the use of facilities. The commission may
88-6 compensate the contracting agency or other entity from money
88-7 appropriated for the purposes of this subchapter.
88-8 (d) The awarding of contracts by the commission is
88-9 restricted to contracts for surveys, research, or investigations of
88-10 cotton, cottonseed oil or other related oilseed products, wool,
88-11 mohair, or other related textile products.
88-12 (e) The commission shall give priority in the awarding of
88-13 contracts under this subchapter to contracts for production
88-14 research, but the commission may award a research contract for
88-15 marketing processes. The commission may not award a contract for a
88-16 direct marketing or other promotional program.
88-17 (f) The commission shall develop and implement policies that
88-18 provide the public with a reasonable opportunity to appear before
88-19 the commission and to speak on any issue under the jurisdiction of
88-20 the commission.
88-21 Sec. 485.034. Natural Fibers Committee. (a) The chairman
88-22 of the commission, with the approval of the commission, shall
88-23 appoint not more than 25 persons to a natural fibers committee.
88-24 Persons appointed to the committee must be representative of the
88-25 interests of persons in the natural fibers industry.
89-1 (b) Members of the committee serve for terms of two years
89-2 expiring on the last day of the state fiscal year in odd-numbered
89-3 calendar years.
89-4 (c) The committee shall elect a chairman annually.
89-5 (d) The committee shall meet at least once each year at a
89-6 time specified by the committee chairman for the purpose of:
89-7 (1) reviewing the research done for the commission in
89-8 areas involving natural fibers; and
89-9 (2) making annual recommendations to the commission
89-10 for implementation of programs and further research.
89-11 Sec. 485.035. Food Protein Committee. (a) The chairman of
89-12 the commission, with the approval of the commission, shall appoint
89-13 not more than 25 persons to a food protein committee. Persons
89-14 appointed to the committee must be representative of the interests
89-15 of persons in the food protein industry.
89-16 (b) Members of the committee serve for terms of two years
89-17 expiring on the last day of the state fiscal year in odd-numbered
89-18 calendar years.
89-19 (c) The committee shall elect a chairman annually.
89-20 (d) The committee shall meet at least once each year at a
89-21 time specified by the committee chairman for the purpose of:
89-22 (1) reviewing the research done for the commission in
89-23 areas involving food protein; and
89-24 (2) making annual recommendations to the commission
89-25 for implementation of programs and further research.
90-1 Sec. 485.036. Executive Advisory Committee. (a) The
90-2 executive advisory committee of the commission is composed of:
90-3 (1) The chairman of the natural fibers committee;
90-4 (2) the chairman of the food protein committee;
90-5 (3) five persons selected from the members of either
90-6 of the industry advisory committees, appointed by the chairman of
90-7 the commission with approval of the commission;
90-8 (4) a representative of the Department of Agriculture
90-9 appointed by the commissioner of agriculture; and
90-10 (5) a representative of the Partnership.
90-11 (b) In making appointments to the executive advisory
90-12 committee from the industry advisory committees, the chairman of
90-13 the commission shall appoint one representative of the wool
90-14 industry, one representative of the mohair industry, two
90-15 representatives of the cotton industry, and one representative of
90-16 the food protein industry.
90-17 (c) Members of the executive advisory committee appointed by
90-18 the chairman of the commission serve for terms of two years
90-19 expiring on the last day of the state fiscal year in odd-numbered
90-20 calendar years. A member of the executive advisory committee
90-21 appointed as a representative of the Department of Agriculture or
90-22 the Partnership serves at the pleasure of the appointing officer.
90-23 (d) The executive advisory committee shall elect a chairman
90-24 annually.
90-25 (e) The executive advisory committee shall meet semiannually
91-1 at times specified by the committee chairman. The chairman of the
91-2 commission may call or authorize special meetings of the executive
91-3 advisory committee.
91-4 (f) At its meetings, the executive advisory committee shall
91-5 review the work of the commission and advise the commission on
91-6 matters relating to the programs and budgets of the commission.
91-7 Sec. 485.037. Finances. (a) The commission may accept, for
91-8 the purposes of this subchapter, gifts and grants from the United
91-9 States and from private sources, subject only to limitations
91-10 contained in the gift or grant.
91-11 (b) The commission shall prepare annually a complete and
91-12 detailed written report accounting for all funds received and
91-13 disbursed by the commission during the preceding fiscal year. The
91-14 annual report must meet the reporting requirements applicable to
91-15 financial reporting provided in the General Appropriations Act.
91-16 (c) Funds appropriated for the purposes of this subchapter
91-17 shall be expended at the direction of the commission on claims
91-18 approved by a majority of the commission.
91-19 (d) The total amount of appropriations, exclusive of
91-20 legislative appropriations of gifts from private sources, expended
91-21 or encumbered by the commission for purposes of research during a
91-22 fiscal biennium may not exceed the amount of private gifts or
91-23 grants to the commission expended or encumbered for research during
91-24 the same period.
91-25 (e) All money paid to the commission under this subchapter
92-1 is subject to Subchapter F, Chapter 404, Government Code.
92-2 Sec. 485.038. Staff; Administration. (a) The commission
92-3 shall contract with the Partnership to provide necessary staffing
92-4 and to administer the functions under this subchapter.
92-5 Sec. 485.039. Restrictions on Employment. (a) An officer,
92-6 employee, or paid consultant of a Texas trade association in the
92-7 field of food or fiber marketing or research may not be a member of
92-8 the commission.
92-9 (b) A person who is the spouse of an officer, manager, or
92-10 paid consultant of a Texas trade association in the field of food
92-11 or fiber marketing or research may not be a member of the
92-12 commission.
92-13 (c) For the purposes of this section, a Texas trade
92-14 association is a nonprofit, cooperative, and voluntarily joined
92-15 association of business or professional competitors in this state
92-16 designed to assist its members and its industry or profession in
92-17 dealing with mutual business or professional problems and in
92-18 promoting their common interest.
92-19 Sec. 485.040. Public Interest Information and Complaints.
92-20 (a) The commission shall prepare information of public interest
92-21 describing the functions of the commission and the procedures by
92-22 which complaints are filed with and resolved by the commission.
92-23 The commission shall make the information available to the public
92-24 and appropriate state agencies.
92-25 (b) The commission by rule shall establish methods by which
93-1 consumers and service recipients are notified of the name, mailing
93-2 address, and telephone number of the commission for the purpose of
93-3 directing complaints to the commission. The commission may provide
93-4 for that notification on each registration form, application, or
93-5 written contract for services of an individual or entity regulated
93-6 under this chapter.
93-7 (c) The commission shall keep a file about each written
93-8 complaint filed with the commission that it has authority to
93-9 resolve. The commission shall provide to the person filing the
93-10 complaint and the persons or entities complained about the
93-11 commission's policies and procedures pertaining to complaint
93-12 investigation and resolution.
93-13 (d) The commission, at least quarterly and until final
93-14 disposition of the complaint, shall notify the person filing the
93-15 complaint and the persons or entities complained about of the
93-16 status of the complaint unless the notice would jeopardize an
93-17 undercover investigation.
93-18 (e) The commission shall keep information about each
93-19 complaint filed with the commission. The information must include:
93-20 (1) the date the complaint is received;
93-21 (2) the name of the complainant;
93-22 (3) the subject matter of the complaint;
93-23 (4) a record of all persons contacted in relation to
93-24 the complaint;
93-25 (5) a summary of the results of the review or
94-1 investigation of the complaint; and
94-2 (6) for complaints in which the commission took no
94-3 action, an explanation of the reason the complaint was closed
94-4 without action.
94-5 (f) The commission is subject to the open meetings law,
94-6 Chapter 551, Government Code, and the administrative procedure law,
94-7 Chapter 2001, Government Code.
94-8 CHAPTER 486. DIRECT BUSINESS SERVICES
94-9 SUBCHAPTER A. SMALL BUSINESS ASSISTANCE
94-10 Sec. 486.001. Definitions. In this chapter:
94-11 (1) "Historically underutilized business" means:
94-12 (A) a corporation formed for the purpose of
94-13 making a profit in which at least 51 percent of all classes of the
94-14 shares of stock or other equitable securities is owned by one or
94-15 more persons who are socially disadvantaged because of their
94-16 identification as members of certain groups, including black
94-17 Americans, Hispanic Americans, women, Asian Pacific Americans, and
94-18 American Indians, who have suffered the effects of discriminatory
94-19 practices or similar insidious circumstances over which they have
94-20 no control;
94-21 (B) a sole proprietorship formed for the purpose
94-22 of making a profit that is 100 percent owned, operated, and
94-23 controlled by a person described by Paragraph (A);
94-24 (C) a business Partnership formed for the
94-25 purpose of making a profit in which 51 percent of the assets and
95-1 interest in the business Partnership is owned by one or more
95-2 persons described by Paragraph (A). Those persons must have
95-3 proportionate interest in the control, operation, and management of
95-4 the business Partnership's affairs;
95-5 (D) a joint venture in which each entity in the
95-6 joint venture is a historically underutilized business under this
95-7 subdivision; or
95-8 (E) a supplier contract between a historically
95-9 underutilized business under this subdivision and a prime
95-10 contractor under which the historically underutilized business is
95-11 directly involved in the manufacture or distribution of the
95-12 supplies or materials or otherwise warehouses and ships the
95-13 supplies.
95-14 (2) "SBA Office" means the Office of Small Business
95-15 Assistance.
95-16 (3) "Small business" means a corporation, business
95-17 Partnership, sole proprietorship, or other legal entity that:
95-18 (A) is formed for the purpose of making a
95-19 profit;
95-20 (B) is independently owned and operated; and
95-21 (C) has fewer than 100 employees or less than $1
95-22 million in annual gross receipts.
95-23 Sec. 486.002. Office of Small Business Assistance; Contract
95-24 with Partnership. The Office of Small Business Assistance is
95-25 within the Office. The SBA office shall contract with the
96-1 Partnership to perform the SBA office's duties and exercise its
96-2 powers and implement and administer the programs under this
96-3 subchapter to the fullest extent permitted by the Texas
96-4 Constitution.
96-5 Sec. 486.003. Duties. (a) The SBA office shall:
96-6 (1) examine the role of small and historically
96-7 underutilized businesses in the state's economy and the
96-8 contribution of small and historically underutilized businesses in
96-9 generating economic activity, expanding employment opportunities,
96-10 promoting exports, stimulating innovation and entrepreneurship, and
96-11 bringing new and untested products and services to the marketplace;
96-12 (2) serve as the principal advocate in the state on
96-13 behalf of small and historically underutilized businesses and
96-14 provide advice in the consideration of administrative requirements
96-15 and legislation that affect small and historically underutilized
96-16 businesses;
96-17 (3) evaluate the effectiveness of efforts of state
96-18 agencies and other entities to assist small and historically
96-19 underutilized businesses and make appropriate recommendations to
96-20 assist the development and strengthening of small and historically
96-21 underutilized businesses;
96-22 (4) identify specific instances in which regulations
96-23 inhibit small and historically underutilized business development
96-24 and to the extent possible identify conflicting state policy goals;
96-25 (5) determine the availability of financial and other
97-1 resources to small and historically underutilized businesses and
97-2 recommend methods for:
97-3 (A) increasing the availability of equity
97-4 capital and other forms of financial assistance to small and
97-5 historically underutilized businesses;
97-6 (B) generating markets for the goods and
97-7 services of small and historically underutilized businesses;
97-8 (C) providing more effective education,
97-9 training, and management and technical assistance to small and
97-10 historically underutilized businesses; and
97-11 (D) providing assistance to small and
97-12 historically underutilized businesses in complying with federal,
97-13 state, and local laws;
97-14 (6) describe the reasons for small and historically
97-15 underutilized business successes and failures, ascertain the
97-16 related factors that are particularly important in this state, and
97-17 recommend actions for increasing the success rate of small and
97-18 historically underutilized businesses;
97-19 (7) serve as a focal point for receiving complaints
97-20 and suggestions concerning state government policies and activities
97-21 that affect small and historically underutilized businesses;
97-22 (8) assist with the resolution of problems among state
97-23 agencies and small and historically underutilized businesses;
97-24 (9) develop and advocate proposals for changes in
97-25 state policies and activities that adversely affect small and
98-1 historically underutilized businesses;
98-2 (10) provide to legislative committees and state
98-3 agencies information on the effects of proposed policies or actions
98-4 that affect small and historically underutilized businesses;
98-5 (11) enlist the assistance of public and private
98-6 agencies, businesses, and other organizations in disseminating
98-7 information about state programs and services that benefit small
98-8 and historically underutilized businesses and information regarding
98-9 means by which small and historically underutilized businesses can
98-10 use those programs and services;
98-11 (12) provide information and assistance relating to
98-12 establishing, operating, or expanding small and historically
98-13 underutilized businesses;
98-14 (13) establish and operate a statewide toll-free
98-15 telephone service providing small and historically underutilized
98-16 businesses with ready access to the services offered by the SBA
98-17 office;
98-18 (14) assist small and historically underutilized
98-19 businesses by:
98-20 (A) identifying:
98-21 (i) sources of financial assistance for
98-22 those businesses; and
98-23 (ii) financial barriers to those
98-24 businesses;
98-25 (B) establishing financing programs for those
99-1 businesses that aid in overcoming financial barriers;
99-2 (C) matching those businesses with sources of
99-3 financial assistance; and
99-4 (D) assisting those businesses with the
99-5 preparation of applications for loans from governmental or private
99-6 sources;
99-7 (15) sponsor meetings, to the extent practicable in
99-8 cooperation with public and private educational institutions, to
99-9 provide training and disseminate information beneficial to small
99-10 and historically underutilized businesses;
99-11 (16) assist small and historically underutilized
99-12 businesses in their dealings with federal, state, and local
99-13 governmental agencies and provide information regarding
99-14 governmental requirements affecting small and historically
99-15 underutilized businesses;
99-16 (17) perform research, studies, and analyses of
99-17 matters affecting the interests of small and historically
99-18 underutilized businesses;
99-19 (18) develop and implement programs to encourage
99-20 governmental agencies, public sector business associations, and
99-21 other organizations to provide useful services to small and
99-22 historically underutilized businesses;
99-23 (19) use available resources within the state, such as
99-24 small business development centers, educational institutions, and
99-25 nonprofit associations, to coordinate the provision of management
100-1 and technical assistance to small and historically underutilized
100-2 businesses in a systematic manner;
100-3 (20) publish newsletters, brochures, and other
100-4 documents containing information useful to small and historically
100-5 underutilized businesses;
100-6 (21) identify successful small and historically
100-7 underutilized business assistance programs provided by other states
100-8 and determine the feasibility of adapting those programs for
100-9 implementation in this state;
100-10 (22) establish an outreach program to make the
100-11 existence of the Office known to small and historically
100-12 underutilized businesses and potential clients throughout the
100-13 state;
100-14 (23) adopt rules necessary to carry out this
100-15 subchapter;
100-16 (24) identify potential business opportunities for
100-17 small and historically underutilized businesses in the border
100-18 region and develop programs to maximize those opportunities;
100-19 (25) identify potential business opportunities for
100-20 small and historically underutilized businesses in rural areas of
100-21 this state and develop programs to maximize those opportunities;
100-22 and
100-23 (26) perform any other functions necessary to carry
100-24 out the purposes of this subchapter.
100-25 (b) The SBA office may provide community-based services to
101-1 carry out its duties under this subtitle, including the creation of
101-2 a pilot program to evaluate the merits of locating full-time
101-3 personnel outside the Austin headquarters. This pilot program will
101-4 give first preference to serving economically distressed areas,
101-5 rural areas, or disadvantaged businesses or assisting development
101-6 of specific industries. The SBA office may require areas served by
101-7 these personnel to provide in-kind or cash contributions as
101-8 necessary to support these personnel. A report will be submitted
101-9 to the legislature describing the effectiveness of this method for
101-10 delivering services from the SBA office to address specific
101-11 economic needs.
101-12 Sec. 486.004. Rules Affecting Small Businesses. (a) On
101-13 receiving notice of a proposed state agency rule affecting small
101-14 businesses, the SBA office shall notify affected small businesses
101-15 of the proposed rule through business or trade organizations. The
101-16 notice must include the substance of the proposed rule and the
101-17 time, place, and manner in which interested parties may present
101-18 their views and comments on the proposed rule.
101-19 (b) The SBA office may coordinate with the business
101-20 ombudsman of the Partnership agencies to consolidate and simplify
101-21 rules, compliance requirements, and reporting requirements that
101-22 affect small businesses.
101-23 (c) The SBA office may recommend the elimination,
101-24 consolidation, or amendment of existing rules or laws that have a
101-25 disproportionately adverse effect on small businesses.
102-1 Sec. 486.005. Assistance From Other Agencies. (a) The SBA
102-2 office shall obtain from the agencies of this state appropriate
102-3 information needed by the SBA office to carry out its duties under
102-4 this subchapter, and those agencies shall assist the Office in
102-5 furthering the purposes of this subchapter.
102-6 (b) The comptroller may assist the SBA office in furthering
102-7 the purposes of this subtitle by entering into interagency
102-8 agreements with the SBA office, other agencies or the Partnership
102-9 to:
102-10 (1) establish an outreach program to make businesses,
102-11 local governments, and nonprofit organizations in this state aware
102-12 of the services available from state and federal agencies;
102-13 (2) establish and operate a statewide toll-free
102-14 telephone service to provide Texans, especially those in rural
102-15 areas, with a single point of access to economic development
102-16 information specifically related to industrial expansion and
102-17 recruitment, small business assistance, community economic
102-18 development assistance, travel and tourism, education and training,
102-19 leadership development, and grant and loan information.
102-20 (3) use field offices and personnel of the comptroller
102-21 to disseminate brochures, documents, and other information useful
102-22 to businesses in this state;
102-23 (4) collect and compile data about business
102-24 opportunities in this state, in cooperation with the data
102-25 depository defined in Chapter 487 of this subtitle, and provide
103-1 timely information to persons and organizations seeking this
103-2 information.
103-3 Sec. 486.006. Contracts Awarded to Small or Historically
103-4 Underutilized Businesses. Each state agency shall keep statistical
103-5 data and other records on the number of contracts awarded by the
103-6 agency to small or historically underutilized businesses.
103-7 Sec. 486.007. Loans to Economically Distressed Communities.
103-8 (a) The SBA office may create innovative loan programs to aid
103-9 small businesses in communities experiencing defense-related
103-10 layoffs or other severe economic problems, as designated by the
103-11 Office.
103-12 (b) These programs may be established in cooperation with
103-13 community-based organizations and other private or public lenders.
103-14 They may include loans or loan guarantees to businesses that do not
103-15 qualify for other sources of public or private credit.
103-16 SUBCHAPTER B. SMALL BUSINESS LINKED DEPOSIT PROGRAM
103-17 Sec. 486.008. Definitions. In this subchapter:
103-18 (1) "Eligible borrower" means a person who proposes to
103-19 begin operating a small business in a distressed community or a
103-20 historically underutilized business.
103-21 (2) "Eligible lending institution" means a financial
103-22 institution that makes commercial loans, is a depository of state
103-23 funds, and agrees to participate in the linked deposit program
103-24 established by this subchapter and to provide collateral equal to
103-25 the amount of linked deposits placed with it.
104-1 Sec. 486.009. Linked Deposit. A linked deposit is a time
104-2 deposit governed by a written deposit agreement between the state
104-3 and an eligible lending institution that provides:
104-4 (1) that the eligible lending institution pay interest
104-5 on the deposit at a rate that is not less than the greater of:
104-6 (A) the current market rate of a United States
104-7 treasury bill or note of comparable maturity minus two percent; or
104-8 (B) 1.5 percent; and
104-9 (2) that the eligible lending institution agree to
104-10 lend the value of the deposit to an eligible borrower at a maximum
104-11 rate that is the current market rate of a United States treasury
104-12 bill or note of comparable maturity plus four percent.
104-13 Sec. 486.010. Linked Deposit Program. (a) The Office may
104-14 contract with the Partnership to establish a linked deposit program
104-15 to encourage commercial lending for the development of small
104-16 businesses in distressed communities and historically underutilized
104-17 businesses and to perform the Office's duties and exercise its
104-18 powers and implement and administer the program under this
104-19 subchapter to the fullest extent permitted by the Texas
104-20 Constitution.
104-21 (b) The Office shall adopt rules for the loan portion of the
104-22 linked deposit program.
104-23 (c) In order to participate in the linked deposit program,
104-24 an eligible lending institution may solicit loan applications from
104-25 eligible borrowers.
105-1 (d) After reviewing an application and determining that the
105-2 applicant is an eligible borrower and is creditworthy, the eligible
105-3 lending institution shall send the application for a linked deposit
105-4 loan to the Office.
105-5 (e) The eligible lending institution shall certify the
105-6 interest rate applicable to the specific eligible borrower and
105-7 attach it to the application sent to the Office.
105-8 (f) After reviewing each linked deposit loan application,
105-9 the Office shall recommend to the comptroller the acceptance or
105-10 rejection of the application.
105-11 (g) After the comptroller's acceptance of the application
105-12 and the lending institution originates a loan to an eligible
105-13 borrower, the comptroller shall place a linked deposit with the
105-14 applicable eligible lending institution for the period the
105-15 comptroller considers appropriate. The comptroller may not place a
105-16 deposit for a period extending beyond the state fiscal biennium in
105-17 which it is placed. Subject to the limitation described by Section
105-18 486.014, the comptroller may place time deposits at an interest
105-19 rate described by Section 486.009, notwithstanding any order of the
105-20 State Depository Board to the contrary.
105-21 (h) Before the placing of a linked deposit, the eligible
105-22 lending institution and the state, represented by the comptroller
105-23 and the Office, shall enter into a written deposit agreement
105-24 containing the conditions on which the linked deposit is made. The
105-25 deposit agreement must provide that:
106-1 (1) the lending institution notify the comptroller if
106-2 the borrower to which the deposit is linked defaults on the loan;
106-3 and
106-4 (2) in the event of a default the comptroller may
106-5 withdraw the linked deposit.
106-6 (i) If a lending institution holding linked deposits ceases
106-7 to be a state depository, the comptroller may withdraw the linked
106-8 deposits.
106-9 Sec. 486.011. Compliance. (a) On acceptance of its
106-10 application to receive linked deposits, an eligible lending
106-11 institution shall loan money to an eligible borrower in accordance
106-12 with the deposit agreement and this subchapter. The eligible
106-13 lending institution shall forward a compliance report to the
106-14 Office.
106-15 (b) The Office shall monitor compliance with this subchapter
106-16 and inform the state comptroller of noncompliance on the part of an
106-17 eligible lending institution.
106-18 Sec. 486.012. Designation as Distressed Community. (a) A
106-19 municipality may apply to the Office for designation of a subarea
106-20 of the municipality as a distressed community.
106-21 (b) The application must:
106-22 (1) provide evidence that the subarea of a
106-23 municipality for which the application is being made has been
106-24 traditionally recognized by custom or by previous governmental
106-25 designation as a subarea and certify that:
107-1 (A) the per capita income in the subarea is 80
107-2 percent or less of the median income of the entire municipality
107-3 filing the application;
107-4 (B) the unemployment rate in the subarea is 1.5
107-5 times higher than the average unemployment rate of the entire
107-6 municipality; and
107-7 (C) 10 percent or more of all individuals and
107-8 families in the subarea are in poverty; or
107-9 (2) certify that the subarea is part of an enterprise
107-10 zone designated under Chapter 2303.
107-11 (c) The Office shall designate the subarea for which an
107-12 application is filed as a distressed community if it determines
107-13 that the requirements of Subsection (b) have been satisfied and
107-14 that the evidence required under Subsection (b)(1), if applicable,
107-15 is sufficient.
107-16 Sec. 486.013. State and Partnership Liability Prohibited.
107-17 The state, the Office and the Partnership are not liable to an
107-18 eligible lending institution for payment of the principal,
107-19 interest, or any late charges on a loan made to an eligible
107-20 borrower. Linked deposits are not an extension of the state's
107-21 credit within the meaning of any state constitutional prohibition.
107-22 Sec. 486.014. Limitations in Program. (a) At any one time,
107-23 not more than $3 million may be placed in linked deposits under
107-24 this subchapter.
107-25 (b) The maximum amount of a loan under the linked deposit
108-1 program is $100,000.
108-2 (c) The borrower shall apply a loan granted under this
108-3 subchapter to working capital or to the purchase, construction, or
108-4 lease of capital assets, including land, buildings, and equipment.
108-5 SUBCHAPTER C. SMART JOBS FUND PROGRAM
108-6 Sec. 486.027. Definitions. In this subchapter:
108-7 (1) "Business development" includes relocation,
108-8 expansion, turnover, diversification, or technological change.
108-9 (2) "Demand occupation" means an occupation in which,
108-10 as a result of business development, there are or will be positive
108-11 growth-to-replacement ratios within the next 12 to 24 months,
108-12 according to the best available sources of state and local labor
108-13 market information.
108-14 (3) "Employee" means an individual who performs
108-15 services for another under a contract of hire, whether express or
108-16 implied, or oral or written.
108-17 (4) "Employer" means a person that employs one or more
108-18 employees.
108-19 (5) "Existing employer" means an employer that:
108-20 (A) has been liable to pay contributions under
108-21 the Texas Workforce Compensation Act (Article 5221b-1 et seq.,
108-22 Vernon's Texas Civil Statutes) for more than one year;
108-23 (B) has employees; and
108-24 (C) is in compliance with the reporting and
108-25 payment requirements of that Act, as determined by the Texas
109-1 Workforce Commission.
109-2 (6) "Family wage job" means a job that offers:
109-3 (A) wages equal to or greater than the state
109-4 average weekly wage;
109-5 (B) benefits, such as vacation leave, sick
109-6 leave, and insurance coverage;
109-7 (C) reasonable opportunities for continued skill
109-8 development and career path advancement; and
109-9 (D) a substantial likelihood of long-term job
109-10 security.
109-11 (7) "In-kind contribution" means a noncash
109-12 contribution of goods and services provided by an employer as all
109-13 or part of the employer's matching share of a grant or project.
109-14 (8) "Job" means employment on a basis customarily
109-15 considered full-time for the applicable occupation and industry.
109-16 (9) "Minority employer" means a business entity at
109-17 least 51 percent of which is owned by minority group members or, in
109-18 the case of a corporation, at least 51 percent of the shares of
109-19 which are owned by minority group members and that:
109-20 (A) is managed and, in daily operations, is
109-21 controlled by minority group members; and
109-22 (B) is a domestic business entity with a home or
109-23 branch office located in this state and is not a branch or
109-24 subsidiary of a foreign corporation or other foreign business
109-25 entity.
110-1 (10) "Minority group members" include:
110-2 (A) African-Americans;
110-3 (B) American Indians;
110-4 (C) Asian-Americans; and
110-5 (D) Mexican-Americans and other Americans of
110-6 Hispanic origin.
110-7 (11) "Program" means the smart jobs fund program
110-8 created under this subchapter.
110-9 (12) "Project" means a specific employment training
110-10 project developed and implemented under this subchapter.
110-11 (13) "Provider" means a person that provides
110-12 employment-related training. The term includes employers, employer
110-13 associations, labor organizations, community-based organizations,
110-14 training consultants, public and private schools, technical
110-15 institutes, junior or community colleges, senior colleges,
110-16 universities, and proprietary schools, as defined by Section
110-17 132.001, Education Code.
110-18 (14) "State average weekly wage" means the annual
110-19 average of the average weekly wage of manufacturing production
110-20 workers in this state as of September 1 of each year, as determined
110-21 by the Texas Workforce Commission under Section 3(b), Texas
110-22 Unemployment Compensation Act (Title 4, Subtitle A, Labor Code,
110-23 V.T.C.S.), adjusted for regional variances.
110-24 (15) "Targeted industry" means an industry that
110-25 promotes high-skill, high-wage jobs using Texas-available material
111-1 and human resources, as determined by the Office.
111-2 (16) "Trainee" means a participant in a project funded
111-3 under this subchapter.
111-4 (17) "Wages" means all forms of compensation or
111-5 remuneration, excluding benefits, payable for a specific period to
111-6 an employee for personal services rendered by that employee.
111-7 Sec. 486.028. Smart Jobs Fund Program; Administration.
111-8 (a) The smart jobs fund program is created in the Office as a work
111-9 force development incentive program to enhance employment
111-10 opportunities and to meet the needs of existing and new industries
111-11 in this state. The Office shall contract with the Partnership to
111-12 perform the Office's duties and exercise its powers and implement
111-13 and administer the smart jobs fund program under this subchapter to
111-14 the fullest extent permitted by the Texas Constitution.
111-15 (b) The program shall give priority to the creation and
111-16 retention of family wage jobs and focus on employers in industries
111-17 that promote high-skill, high-wage jobs in high-technology areas
111-18 and on demand occupations that provide those jobs. At least 60
111-19 percent of the money spent under the program shall be used for
111-20 projects that assist existing employers.
111-21 Sec. 486.029. Rules. The Office shall adopt rules as
111-22 necessary to implement the program.
111-23 Sec. 486.030. Funding. (a) The smart jobs fund is
111-24 established as a special trust fund in the custody of the state
111-25 comptroller separate and apart from all public money or funds of
112-1 this state. The fund is composed of:
112-2 (1) money transferred into the fund under Section 9e,
112-3 Texas Unemployment Compensation Act (Section 204.123, Labor Code,
112-4 V.T.C.S.);
112-5 (2) gifts, grants, and other donations received by the
112-6 Office or the Partnership for the fund; and
112-7 (3) any amounts appropriated by the legislature for
112-8 the program.
112-9 (b) The program is funded through the smart jobs fund.
112-10 (c) Money in the smart jobs fund may be used for program
112-11 administration, marketing expenses, and evaluation of the program.
112-12 These costs in any fiscal year may not exceed five percent of the
112-13 total funds appropriated to the smart jobs fund in that year.
112-14 (d) If, during any three consecutive months, the balance in
112-15 the smart jobs fund exceeds 0.15 percent of the total taxable wages
112-16 for the four calendar quarters ending the preceding June 30, as
112-17 computed under Section 7(c)(8), Texas Unemployment Compensation Act
112-18 (Section 204.062(c), Labor Code, V.T.C.S.), the Office shall
112-19 immediately transfer the excess to the Unemployment Compensation
112-20 Fund created under Section 9(a), Texas Unemployment Compensation
112-21 Act (Section 203.021, Labor Code, V.T.C.S.).
112-22 Sec. 486.031. Grants. (a) The Office may award grants from
112-23 the smart jobs fund for projects that meet the requirements of this
112-24 subchapter. The Office shall attempt to ensure that at least 20
112-25 percent of the total dollar amount of grants awarded under the
113-1 program are awarded to minority employers.
113-2 (b) The program is job-driven. A grant may not be awarded
113-3 unless each employer participating in the project certifies that:
113-4 (1) a job or job opening exists or will exist at the
113-5 end of the project for which the grant is sought; and
113-6 (2) the job or job opening will be filled by a
113-7 participant in the project.
113-8 (c) A grant may not be awarded for a project under this
113-9 section unless each employer participating in the project certifies
113-10 that the starting wage for a new job created through the project
113-11 will be greater than 66 2/3 percent of the state average weekly
113-12 wage and that the wage for a job existing on the date that the
113-13 project is scheduled to begin will be increased to the greater of:
113-14 (1) 10 percent over the wage in effect on the day
113-15 before the date on which the project is scheduled to begin for that
113-16 job; or
113-17 (2) 75 percent of the state average weekly wage.
113-18 (d) An employer may apply for a grant under this subchapter
113-19 if the employer is required to reduce or eliminate the employer's
113-20 work force because of reductions in overall employment within an
113-21 industry or a substantial change in the skills required to continue
113-22 the employer's business because of technological changes or other
113-23 factors. In awarding a grant under this subsection, the Office may
113-24 modify the requirements of Subsection (c). Grants awarded under
113-25 this subsection for which the Office has modified the requirements
114-1 of Subsection (c) may not, in any fiscal year, exceed 10 percent of
114-2 the total dollar amount of grants awarded under the program in that
114-3 year.
114-4 (e) Unless modified by the Office under rules adopted by the
114-5 Office, a grant may not be awarded for a project unless each
114-6 employer participating in the project certifies that it will
114-7 continue to spend on nonmanagerial training an amount from private
114-8 sources equal to the average amount spent by that employer on such
114-9 training for the most recent two-year period.
114-10 (f) A grant may not be awarded for a project if the project
114-11 will impair existing contracts for services or collective
114-12 bargaining agreements, except that a project inconsistent with the
114-13 terms of a collective bargaining agreement may be undertaken with
114-14 the written concurrence of the collective bargaining unit and the
114-15 employer or employers who are parties to the agreement.
114-16 (g) During each state fiscal year the Office shall attempt
114-17 to ensure that at least 50 percent of the total dollar amount of
114-18 grants awarded under this section is awarded to small businesses,
114-19 as defined by Section 486.001.
114-20 (h) In awarding a grant under this section, the Office shall
114-21 give priority to a project that is located in an enterprise zone as
114-22 defined by Section 2303.003.
114-23 Sec. 486.032. Grant Application. (a) The following may
114-24 apply for a grant under this subchapter:
114-25 (1) one or more employers to secure training for
115-1 demand occupations in a particular industry;
115-2 (2) one or more employers acting together with an
115-3 employer organization, labor organization, or community-based
115-4 organization to secure training for demand occupations in a
115-5 particular industry; or
115-6 (3) one or more employers acting in together with a
115-7 consortium composed of one or more providers to secure training for
115-8 demand occupations in a particular industry.
115-9 (b) A grant application must be filed with the Office in a
115-10 form approved by the Office and must include a complete business
115-11 and training plan, including:
115-12 (1) the number and kind of jobs available;
115-13 (2) the skills and competencies required for the
115-14 identified jobs;
115-15 (3) the wages to be paid to trainees on successful
115-16 completion of the project;
115-17 (4) the goals, objectives, and outcome measures for
115-18 the project;
115-19 (5) the proposed curriculum for the project; and
115-20 (6) the projected cost per person enrolled, trained,
115-21 hired, and retained in employment.
115-22 (c) The Office may provide assistance to applicants in
115-23 formulating the business and training plan required under
115-24 Subsection (b).
115-25 (d) The Office shall minimize the length of the application
116-1 form.
116-2 (e) The Office shall act on a completed application not
116-3 later than the 30th day after the date on which the application is
116-4 filed with the Office.
116-5 Sec. 486.033. Matching Requirements; Exemptions. (a) Money
116-6 provided under a grant for a project must be matched by private
116-7 funds provided by the employer benefiting from the project in an
116-8 amount at least equal to the amount provided by the grant.
116-9 (b) The Office may adopt rules modifying the requirements of
116-10 Subsection (a) for employers with fewer than 50 employees and may
116-11 also adopt rules modifying the requirements of Subsection (a) for
116-12 projects that provide significant economic benefits to an entire
116-13 region of the state.
116-14 (c) Employer matches may include documented in-kind
116-15 contributions as well as wages paid to trainees during the training
116-16 period.
116-17 Sec. 486.034. Trainees. The program shall give priority to
116-18 residents of this state, including residents formerly sentenced to
116-19 the institutional division or the state jail division of the Texas
116-20 Department of Criminal Justice.
116-21 Sec. 486.035. Contracts. (a) The Office may approve any
116-22 project that meets the requirements of this subchapter. If the
116-23 Office approves a project and funds are available, the Office shall
116-24 enter into a contract with the grant applicant and with each
116-25 employer participating in the project. The contract must specify
117-1 those skills and competencies to be gained as a result of the
117-2 project.
117-3 (b) Reimbursable costs in the contract may include only
117-4 those expenses related to direct training in job-related basic
117-5 skills, including literacy skills, job-related vocational skills,
117-6 and administrative costs. Total administrative costs for any
117-7 particular project may not exceed 10 percent of the project's
117-8 expenditures.
117-9 (c) Each contract must provide a schedule for payment of
117-10 smart jobs fund money. Twenty-five percent of the grant award
117-11 shall be withheld by the Office for 90 days after the date of
117-12 completion of the project. If all of the trainees in the project
117-13 have been retained in employment for that 90-day period, the amount
117-14 of the grant award withheld shall be remitted to the employer. For
117-15 each trainee who is not retained in employment for that 90-day
117-16 period, the amount withheld shall be reduced by the amount of the
117-17 training costs for that trainee that is derived from grant money,
117-18 and any balance shall be remitted to the employer. If there is a
117-19 negative balance, the employer is liable for the amount of the
117-20 negative balance and shall remit that amount to the Office not
117-21 later than the 30th day after the date on which the employer is
117-22 notified of the negative balance by the Office.
117-23 Sec. 486.036. Annual Report. (a) The Office and the
117-24 Partnership shall report to the governor and the legislature at the
117-25 end of each fiscal year on the status of the program.
118-1 (b) The annual report must include for that fiscal year:
118-2 (1) the number of employers receiving grants under the
118-3 program;
118-4 (2) the total amount of grants awarded;
118-5 (3) the value, expressed in dollars and as a
118-6 percentage of total training expenditures, of matching
118-7 contributions made by employers;
118-8 (4) the number of small businesses, as defined by
118-9 Section 486.001, that receive grants under the program and the
118-10 total amount of the grants awarded to those businesses;
118-11 (5) the number of businesses located in enterprise
118-12 zones, as that term is defined by Chapter 2303, that receive grants
118-13 under the program and the total amount of the grants awarded to
118-14 those businesses;
118-15 (6) the geographical distribution of employers
118-16 receiving grants under the program;
118-17 (7) the total number of jobs created, enhanced, or
118-18 retained under the program, reported by region of the state and by
118-19 occupation;
118-20 (8) the wage levels of trainees entering or returning
118-21 to the work force, broken down by current employees undergoing
118-22 retraining and new hires, at three months, one year, and three
118-23 years after the conclusion of their training;
118-24 (9) the number and percentage of participating
118-25 employers that provide workers' compensation insurance coverage and
119-1 the number and percentage of employees covered;
119-2 (10) the number and percentage of participating
119-3 employers that offer health care insurance coverage and the number
119-4 and percentage of employees covered;
119-5 (11) the number and percentage of women employers and
119-6 minority employers receiving grants under the program and the total
119-7 amount of the grants awarded, broken out by group;
119-8 (12) the number and percentage of women, minority
119-9 group members, and disabled individuals participating as trainees
119-10 in training projects, broken out by group; and
119-11 (13) the number and percentage of women private
119-12 providers and private providers who are minority group members
119-13 utilized by employers in training projects, broken out by group.
119-14 Sec. 486.037. Expiration. This subchapter expires
119-15 December 31, 1999.
119-16 CHAPTER 487. TOURISM AND TRAVEL INDUSTRY DEVELOPMENT
119-17 SUBCHAPTER A. TOURISM
119-18 Sec. 487.001. Legislative Findings. The legislature finds
119-19 that:
119-20 (1) tourism development and the marketing of this
119-21 state as a travel destination is essential to the economic
119-22 well-being and growth of this state and to the full employment,
119-23 welfare, and prosperity of its citizens; and
119-24 (2) the measures authorized by this subchapter in
119-25 promoting tourism are in the public interest and serve a public
120-1 purpose of the state in promoting the welfare of the citizens of
120-2 this state economically.
120-3 Sec. 487.002. Contract with Partnership. The Office shall
120-4 contract with the Partnership to perform the Office's duties and
120-5 exercise its powers and implement and administer the programs under
120-6 this subchapter to the fullest extent permitted by the Texas
120-7 Constitution.
120-8 Sec. 487.003. Duties. The Office shall:
120-9 (1) promote and advertise within the United States and
120-10 in foreign countries, by radio, television, newspapers, and other
120-11 means considered appropriate, tourism in this state by non-Texans,
120-12 including persons from foreign countries, and distribute
120-13 promotional materials through appropriate agencies, including the
120-14 United States Travel and Tourism Agency;
120-15 (2) encourage travel by Texans to this state's scenic,
120-16 historical, natural, agricultural, educational, recreational, and
120-17 other attractions;
120-18 (3) coordinate and stimulate orderly and accelerated
120-19 development of tourist attractions throughout this state;
120-20 (4) conduct a public relations campaign to create a
120-21 responsible and accurate national and international image of this
120-22 state; and
120-23 (5) administer, with the cooperation of the Texas
120-24 Department of Transportation, highway map distribution and the
120-25 operation of travel information bureaus;
121-1 (6) administer, with the cooperation of the Texas
121-2 Department of Transportation, the publication of Texas Highways
121-3 Magazine;
121-4 (7) administer, with the cooperation of the Texas
121-5 Historical Commission, the promotion of historic sites;
121-6 (8) administer, with the cooperation of Texas Parks
121-7 and Wildlife Department the publication Texas Parks and Wildlife
121-8 magazine;
121-9 (9) encourage communities, organizations and
121-10 individuals in this state to cooperate with its program by their
121-11 activities and use of their own funds and collaborate with those
121-12 organizations and other governmental entities in the pursuit of the
121-13 objectives of this subchapter.
121-14 Sec. 487.004. Name and Picture of Living State Official.
121-15 The name or the picture of a living state official may not be used
121-16 for advertising purposes under this subchapter.
121-17 Sec. 487.005. Advertisements in Tourism Promotions.
121-18 (a) The Office may sell advertisements in travel promotions in any
121-19 medium.
121-20 (b) Proceeds from the sale of advertisements shall be
121-21 deposited in the general revenue fund and may be used for
121-22 advertising and marketing activities of the Office as provided by
121-23 Section 156.251, Tax Code.
121-24 SUBCHAPTER B. DATA DEPOSITORY
121-25 Sec. 487.006. Definition. In this subchapter "state agency"
122-1 means:
122-2 (1) a department, commission, board, or other agency
122-3 that is created by the state constitution or a state statute and is
122-4 part of any branch of state government; and
122-5 (2) a governing board and an institution of higher
122-6 education, as defined by Section 61.003, Education Code.
122-7 Sec. 487.007. Contract with Partnership. The Office shall
122-8 contract with the Partnership to perform the Office's duties and
122-9 exercise its powers and implement and administer the programs under
122-10 this subchapter to the fullest extent permitted by the Texas
122-11 Constitution.
122-12 Sec. 487.008. Duties. The Office:
122-13 (1) establish and maintain a central depository of
122-14 information, including computer retrievable files, concerning the
122-15 significant characteristics of the state and its people, economy,
122-16 land, and physical characteristics, including information
122-17 concerning employment opportunities in the state;
122-18 (2) analyze the information collected under
122-19 Subdivision (1) as well as other information and disseminate the
122-20 information and analyses to state, federal, and local agencies and
122-21 the public;
122-22 (3) collect information and compile data on the border
122-23 region for the preparation of specific plans and programs for the
122-24 border region;
122-25 (4) adopt procedures to ensure the greatest use by and
123-1 exchange among state agencies of data bases and statistical and
123-2 analytical models created by or belonging to the state;
123-3 (5) assist institutions of elementary, secondary, and
123-4 higher education to develop and expand programs of education in
123-5 international commerce, geography, and language;
123-6 (6) establish and operate a comprehensive
123-7 clearinghouse of information relating to small and historically
123-8 underutilized businesses; and
123-9 (7) develop and maintain a master file of information
123-10 on small and historically underutilized business assistance
123-11 programs provided by federal, state, and local agencies,
123-12 educational institutions, chambers of commerce, civic
123-13 organizations, community development groups, private industry
123-14 associations, and other organizations and provide comprehensive,
123-15 timely information to persons seeking that information.
123-16 Sec. 487.009. Agency Cooperation. Each state agency that
123-17 provides, collects, analyzes, or disseminates information of any
123-18 type shall execute a written agreement with the Partnership
123-19 providing for coordination of those activities with the
123-20 Partnership's activities under this subchapter. However, an agency
123-21 is not required to supply information made confidential or the
123-22 distribution of which is otherwise restricted by state law.
123-23 Sec. 487.010. Fees. The Office shall charge fees for
123-24 services provided under this subchapter. Each fee must be in the
123-25 amount necessary to cover the cost of providing the service.
124-1 CHAPTER 488. ENTREPRENEURIAL AND CAPITAL DEVELOPMENT
124-2 SUBCHAPTER A. DEVELOPMENT OF PRODUCTS
124-3 Sec. 488.001. Definitions. In this subchapter:
124-4 (1) "Director" means the director of the Office or the
124-5 director's designee.
124-6 (2) "Fund" means the product development fund.
124-7 (3) "Product" means an invention, product, device,
124-8 technique, or process, without regard to whether a patent has or
124-9 could be granted, that is or may be exploitable commercially. The
124-10 term does not refer to pure research but includes products,
124-11 devices, techniques, or processes that have advanced beyond the
124-12 theoretical stage and have or are readily capable of having a
124-13 commercial application.
124-14 (4) "Venture financing" means a revolving loan, loan
124-15 guarantee, or equity investment from the Texas product development
124-16 fund to a person for use in the development of new or improved
124-17 products.
124-18 Sec. 488.002. Texas Product Development Fund; Venture
124-19 Financing. (a) The Texas product development fund is a revolving
124-20 fund in the state treasury. The fund consists of money
124-21 appropriated to the Office, interest paid on money in the fund,
124-22 proceeds of bonds issued under this chapter, application fees, loan
124-23 repayments, guarantee fees, royalty receipts, dividend income, and
124-24 other amounts received by the state from loans, loan guarantees,
124-25 and equity investments made under this subchapter, other amounts
125-1 received by the state for loans or grants made under this
125-2 subchapter, and money acquired from federal grants or other
125-3 sources. The fund contains a program account, an interest and
125-4 sinking account, and other accounts that the Office authorizes to
125-5 be created and maintained. Money in the fund is available for use
125-6 by the Office under this subchapter.
125-7 (b) Money in the program account, minus the costs of
125-8 issuance of bonds under this subchapter and necessary costs of
125-9 administering the fund, may be used only to provide venture
125-10 financing to aid in the development and for the commercialization
125-11 of new or improved products. The Office may provide venture
125-12 financing from the fund for the purposes of designing and
125-13 constructing new facilities, rehabilitating existing facilities,
125-14 acquiring any interest in real or personal property, and providing
125-15 initial working capital to pay the cost of salaries, rents,
125-16 supplies, inventories, mortgage payments, legal services, and
125-17 utilities and telephone, travel, and other incidental costs
125-18 normally classified as working capital according to standard
125-19 accounting principles. The Office shall provide venture financing
125-20 from the fund on the terms and conditions that the Office
125-21 determines to be reasonable, appropriate, and consistent with the
125-22 purposes and objectives of the fund and this subchapter for the
125-23 purpose of financing a new or improved product that is or may be
125-24 exploitable commercially. The Office may provide venture financing
125-25 only if financing for the product being developed is not otherwise
126-1 available on reasonable terms.
126-2 (c) Before approving the provision of venture financing to a
126-3 person, the Office shall enter into an agreement with the person
126-4 under which the Office will obtain an appropriate portion of
126-5 royalties, patent rights, equitable interests, or a combination of
126-6 those royalties, rights, and interests from or in the product or
126-7 proceeds of the product for which venture financing is requested.
126-8 Contracts executed under this subchapter must include agreements to
126-9 ensure proper use of funds and the receipt of royalties, patent
126-10 rights, or equity interest, as appropriate.
126-11 Sec. 488.003. Powers and Duties. (a) The Office shall
126-12 contract with the Partnership to perform the Office's duties and
126-13 exercise its powers and implement and administer the programs under
126-14 this subchapter to the fullest extent permitted by the Texas
126-15 Constitution.
126-16 (b) The Office may:
126-17 (1) provide venture financing to acquire, construct,
126-18 enlarge, improve, equip, sell, lease, exchange, and otherwise
126-19 dispose of property, structures, equipment, and facilities within
126-20 the state;
126-21 (2) enter into venture agreements with persons, on
126-22 terms and conditions consistent with the purposes of this
126-23 subchapter, for the advancement of venture financing to the persons
126-24 for the development of specific products;
126-25 (3) enter into agreements necessary or incidental to
127-1 the performance of its duties and the execution of its powers under
127-2 this subchapter;
127-3 (4) hold patents, copyrights, trademarks, or other
127-4 evidences of protection or exclusivity issued under the laws of the
127-5 United States, any state, or any nation;
127-6 (5) receive, hold, sell, and transfer shares of
127-7 corporate stock in a corporation formed to market, produce,
127-8 manufacture, or promote a product for which venture financing has
127-9 been provided;
127-10 (6) consent to termination, modification, forgiveness,
127-11 or other change of a term of a contractual right, payment, royalty,
127-12 contract, or agreement to which the Office is a party;
127-13 (7) accept funds from any source to carry out the
127-14 purposes of this subchapter;
127-15 (8) assist persons with obtaining alternative forms of
127-16 governmental or commercial financing for development of new or
127-17 improved products;
127-18 (9) encourage financial institutions to participate in
127-19 consortiums for investment in the development of new or improved
127-20 products;
127-21 (10) provide and pay for advisory and technical
127-22 assistance consistent with the purposes of this subchapter;
127-23 (11) engage in special programs to enhance the
127-24 development of new or improved products; and
127-25 (12) perform other functions to carry out the purposes
128-1 and requirements of this subchapter.
128-2 Sec. 488.004. Application. (a) An application for venture
128-3 financing must be delivered to the Office, together with a
128-4 reasonable application fee prescribed by the Office. The
128-5 application shall contain a business plan, containing such
128-6 information as required by the Office, including at a minimum:
128-7 (1) information regarding the history and financial
128-8 condition of the applicant, including the applicant's income
128-9 statement, and information about the applicant's present markets
128-10 and market prospects and about the integrity of the applicant's
128-11 management;
128-12 (2) a statement of the feasibility of the product for
128-13 which financing is requested, including the state of development of
128-14 the product and the likelihood of its commercialization; and
128-15 (3) a description of attempts to obtain private
128-16 financing, including documentation verifying such efforts and a
128-17 clear description of the reasons such financing was denied.
128-18 (b) The Office shall determine the following with respect to
128-19 each application for venture financing:
128-20 (1) whether the product for which financing is
128-21 requested is economically sound, and whether there is a reasonable
128-22 expectation that the product will be successful;
128-23 (2) whether the product will create or preserve jobs
128-24 and otherwise benefit the economy of the state;
128-25 (3) whether the applicant lacks the financial
129-1 resources to complete the project, and whether venture financing is
129-2 necessary because financing is unavailable in traditional capital
129-3 markets or credit has been offered on terms that would preclude the
129-4 success of the project; and
129-5 (4) whether there is reasonable assurance that the
129-6 potential revenues to be derived from the sale of the product will
129-7 be sufficient to repay any venture financing approved by the
129-8 Office.
129-9 (c) After considering the report, together with other
129-10 information that the Office considers appropriate, the Office shall
129-11 approve or deny the application for venture financing and promptly
129-12 notify the applicant of its decision.
129-13 Sec. 488.005. Information Confidential. Information
129-14 relating to a product, and the application or use of a product, and
129-15 technological and scientific information, including computer
129-16 programs, developed in whole or part by an applicant for or a
129-17 recipient of venture financing, is confidential and is not subject
129-18 to disclosure under state law or otherwise, regardless of whether
129-19 the product is patentable or capable of being registered under
129-20 copyright or trademark laws, or has a potential for being sold,
129-21 traded, or licensed for a fee; however, nothing in this subchapter
129-22 shall prevent or restrict the Office or the Partnership from
129-23 obtaining information relating to a product or process from an
129-24 applicant or recipient of a loan under this subchapter.
129-25 Sec. 488.006. Bonds. (a) The Office may issue up to $25
130-1 million of general obligation bonds authorized by Texas
130-2 Constitution, article 16, section 71, and may use the proceeds of
130-3 the bonds to provide venture financing under this subchapter. The
130-4 Office shall deposit the proceeds of the bonds in the Texas product
130-5 development fund and apply them in accordance with the resolution
130-6 authorizing the bonds. The fund and any accounts established in
130-7 the fund shall be held in trust by the comptroller for and on
130-8 behalf of the Office and the owners of the general obligation bonds
130-9 issued in accordance with this section, and may be used only as
130-10 provided by this section. Pending use, the comptroller may invest
130-11 and reinvest money in the fund in investments authorized by law for
130-12 state funds that the comptroller, consistent with the Office's
130-13 authorization of the bonds, considers appropriate. Repayments of
130-14 financial assistance provided under this subchapter, together with
130-15 earnings received on investments of the product development funds,
130-16 shall be deposited first, in the interest and sinking account as
130-17 prescribed by the Office under this subchapter and second, in any
130-18 reserve account established by the Office until that account is
130-19 fully funded as prescribed by the resolutions. If, during the time
130-20 any general obligation bonds are payable from the interest and
130-21 sinking account, the Office determines that there will not be
130-22 sufficient money in the interest and sinking account during the
130-23 following fiscal year to pay the principal of or interest on the
130-24 general obligation bonds or both the principal and interest that
130-25 are to come due during the following fiscal year, the comptroller
131-1 of public accounts shall transfer to the fund the first money
131-2 coming into the state treasury not otherwise appropriated by the
131-3 constitution in an amount sufficient to pay the obligations.
131-4 (b) The bonds may be issued from time to time in one or more
131-5 series or issues, in bearer, registered, or any other form, which
131-6 may include registered uncertificated obligations not represented
131-7 by written instruments and commonly known as book-entry
131-8 obligations, the registration of ownership and transfer of which
131-9 shall be provided for by the Office under a system of books and
131-10 records maintained by the Office or by an agent. Bonds may mature
131-11 serially or otherwise not more than 40 years from their date.
131-12 Bonds may bear no interest or may bear interest at any rate or
131-13 rates, fixed, variable, floating, or otherwise, determined by the
131-14 Office or determined pursuant to any contractual arrangements, not
131-15 to exceed the maximum net effective interest rate allowed by
131-16 Chapter 3, Acts of the 61st Legislature, Regular Session, 1969
131-17 (Article 717k-2, Vernon's Texas Civil Statutes). Interest on the
131-18 bonds may be payable at any time and the rate of interest on the
131-19 bonds may be adjusted at any time as determined by the Office or as
131-20 determined pursuant to any contractual arrangement approved by the
131-21 Office. In connection with the issuance of its bonds, the Office
131-22 may exercise the powers granted to the governing body of an issuer
131-23 in connection with the issuance of obligations under Chapter 656,
131-24 Acts of the 68th Legislature, Regular Session, 1983 (Article 717q,
131-25 Vernon's Texas Civil Statutes), to the extent not inconsistent with
132-1 this section. The bonds may be issued in the form and
132-2 denominations and executed in the manner and under the terms,
132-3 conditions, and details determined by the Office. If any officer
132-4 whose manual or facsimile signature appears on the bonds ceases to
132-5 be an officer, the signature remains valid and sufficient for all
132-6 purposes as if the officer had remained in office.
132-7 (c) All bonds issued by the Office under this section are
132-8 subject to review and approval by the attorney general in the same
132-9 manner and with the same effect as is provided by Chapter 656, Acts
132-10 of the 68th Legislature, Regular Session, 1983 (Article 717q,
132-11 Vernon's Texas Civil Statutes).
132-12 (d) The bonds are a legal and authorized investment for a
132-13 bank, trust company, savings and loan association, insurance
132-14 company, fiduciary, trustee, or guardian or a sinking fund of a
132-15 municipality, county, school district, or political subdivision of
132-16 the state. The bonds may secure deposits of public funds of the
132-17 state, a municipality, a county, a school district, or another
132-18 political corporation or subdivision of the state. The Office may
132-19 issue bonds to refund all or part of its outstanding bonds,
132-20 including accrued but unpaid interest. The bonds, a transaction
132-21 relating to the bonds, or a profit made in the sale of the bonds is
132-22 exempt from taxation by the state, an agency or subdivision of the
132-23 state, a municipality, or a special district.
132-24 Sec. 488.007. Eligible Projects and Borrowers. (a) A loan
132-25 may be made under this subchapter only to finance a project
133-1 approved by the Office.
133-2 (b) In determining eligible projects, the Office shall give
133-3 special preference to projects that have the greatest likelihood of
133-4 commercial success and have the greatest effect on job creation and
133-5 retention in the state, specifically including but not limited to
133-6 projects in the areas of biotechnology, biomedicine, energy,
133-7 materials science, microelectronics, aerospace, marine science,
133-8 aquaculture, telecommunications, manufacturing science, and other
133-9 priority research areas as provided in Section 143.003, Education
133-10 Code. The priority research area of agriculture will be funded
133-11 according to the provisions of Subchapter D, Chapter 58,
133-12 Agriculture Code. The Office further shall give consideration to:
133-13 (1) grantees under the small business innovation
133-14 research program established under 15 U.S.C. Section 638;
133-15 (2) Texas companies formed to commercialize research
133-16 funded at least in part with state funds; and
133-17 (3) Texas companies receiving assistance from
133-18 designated state small business development centers.
133-19 Sec. 488.008. Consideration in Financing. In determining
133-20 whether to provide financing under this subchapter, the Office
133-21 shall give preference to applicants who are Texas residents doing
133-22 business in the state and performing financed activities
133-23 predominantly in the state, and then to applicants who can
133-24 demonstrate that the financed activities will take place
133-25 predominantly in this state.
134-1 Sec. 488.009. Program Coordination. The Office may
134-2 coordinate the administration and funding of the programs
134-3 established pursuant to Subchapter C and this subchapter.
134-4 Sec. 488.010. Rules; Immunity from Liability. (a) The
134-5 Office shall adopt rules establishing limits on the amount of each
134-6 loan and otherwise governing the terms and conditions of the loans,
134-7 specifically including requirements for appropriate security or
134-8 collateral and the rights and remedies of the Office in the event
134-9 of a default on the loan.
134-10 (b) The director of the Office, the executive director, a
134-11 member of the board, or other person acting on behalf of the
134-12 Partnership or the Office in executing a contract, commitment, or
134-13 agreement under this subchapter is not personally liable on the
134-14 contract, commitment, or agreement. The director of the Office,
134-15 the executive director, a member of the board, or other person
134-16 acting on behalf of the Partnership or the Office is not personally
134-17 liable for damage or injury resulting from the performance of
134-18 duties under this subchapter.
134-19 SUBCHAPTER B. SMALL BUSINESS INCUBATORS
134-20 Sec. 488.011. Definitions. In this subchapter:
134-21 (1) "Local sponsor" means an organization or entity,
134-22 including a municipality, a junior college, an institution of
134-23 higher education as defined by Section 61.003, Education Code, a
134-24 private college or university, a development corporation created
134-25 under state law, or a private organization, that enters into a
135-1 written agreement with the Office or the Partnership to establish,
135-2 operate, and administer a small business incubator or that
135-3 contracts with another organization or entity to operate or
135-4 administer a small business incubator.
135-5 (2) "Small business" means a corporation, business
135-6 Partnership, sole proprietorship, or other legal entity that:
135-7 (A) is domiciled in this state;
135-8 (B) is formed to make a profit;
135-9 (C) is independently owned and operated; and
135-10 (D) employs fewer than 25 full-time employees.
135-11 (3) "Small business incubator" means a facility or a
135-12 portion thereof within which small businesses share space,
135-13 equipment, and support personnel and have access to professional
135-14 consultants for advice related to the technical and management
135-15 aspects of conducting a commercial enterprise.
135-16 (4) "Tenant" means an entity that leases space in a
135-17 small business incubator and that is:
135-18 (A) a small business other than a retail
135-19 enterprise; or
135-20 (B) a nonprofit organization that contributes to
135-21 the economic development of the community.
135-22 Sec. 488.012. Creation of Program. The small business
135-23 incubator program is established to foster and stimulate the
135-24 development of new small businesses by providing low-interest loans
135-25 and grants to local sponsors for the establishment and operation of
136-1 small business incubators.
136-2 Sec. 488.013. Contract with Partnership. The Office shall
136-3 contract with the Partnership to perform the Office's duties and
136-4 exercise its powers and implement and administer the program under
136-5 this subchapter to the fullest extent permitted by the Texas
136-6 Constitution.
136-7 Sec. 488.014. Powers and Duties. (a) The Office shall:
136-8 (1) establish guidelines regarding loan procedures,
136-9 repayment terms, security requirements, and default and remedy
136-10 provisions;
136-11 (2) make loans and grants to local sponsors;
136-12 (3) ensure that local sponsors comply with the
136-13 requirements of this subchapter; and
136-14 (4) receive and evaluate annual reports from each
136-15 local sponsor, including a financial statement for the small
136-16 business incubator operated by the sponsor, evidence that all
136-17 tenants in the facility are eligible under this subchapter, and a
136-18 list of the tenants located in the small business incubator.
136-19 (b) The Office, if it finds that a local sponsor of a small
136-20 business incubator is not complying with this subchapter, may
136-21 withdraw financial support from the incubator.
136-22 (c) The Office and the Partnership staff shall work closely
136-23 with designated local sponsors, offer advice and assistance, and
136-24 promote through advertising and other appropriate means the
136-25 concept, benefits, and availability of small business incubators.
137-1 Sec. 488.015. Duties of Local Sponsor. Each local sponsor
137-2 shall:
137-3 (1) pay, from funds other than loans or grants
137-4 provided through the small business incubator fund, not less than
137-5 50 percent of the cost of purchasing, leasing, or renovating the
137-6 small business incubator and not less than 50 percent of the cost
137-7 of operating and maintaining the small business incubator;
137-8 (2) if applicable, secure title to the small business
137-9 incubator or execute a lease for the term of the loan;
137-10 (3) market the small business incubator and secure
137-11 eligible tenants;
137-12 (4) establish policies governing the acceptance of
137-13 tenants into the small business incubator and the termination of
137-14 occupancy of tenants;
137-15 (5) establish rental and service fees;
137-16 (6) manage the physical development of the small
137-17 business incubator;
137-18 (7) provide physical space for tenants and furnish and
137-19 equip the small business incubator to provide business development
137-20 services to the tenants;
137-21 (8) provide or arrange for the provision to tenants of
137-22 bookkeeping, accounting, or other consulting services; legal
137-23 services; assistance with product development, commercialization,
137-24 and marketing; assistance in gaining access to private financial
137-25 markets; and other business development and management services;
138-1 (9) provide or arrange for the provision of
138-2 professional counseling services and information relating to
138-3 government regulations applicable to small businesses, basic
138-4 management skills, advertising, promotion, marketing, sales,
138-5 inventory controls, personnel administration, and labor relations
138-6 and provide financial counseling in areas such as venture capital,
138-7 risk management, and taxes;
138-8 (10) provide or arrange for the provision of:
138-9 (A) facility services within the small business
138-10 incubator, including secretarial services, cleaning, and building
138-11 security;
138-12 (B) conference, laboratory, and library
138-13 facilities; and
138-14 (C) duplicating machines, computers, and other
138-15 electronic equipment;
138-16 (11) encourage the sharing of information and ideas
138-17 among tenants and otherwise aid tenants;
138-18 (12) establish a local advisory committee to assist in
138-19 the performance of the duties and responsibilities provided by this
138-20 section; and
138-21 (13) submit an annual report to the Office which
138-22 includes a financial statement for the small business incubator
138-23 operated by the local sponsor, evidence that all tenants in the
138-24 facility are eligible under this subchapter, a list of tenants
138-25 located in the small business incubator, the number of jobs
139-1 provided by the small business incubator and by each tenant located
139-2 therein, the number of businesses that have left the incubator and
139-3 are still operating in the state, the number of jobs created by
139-4 these tenants, and other information requested by the Office.
139-5 Sec. 488.016. Application for Loan or Grant. (a) A local
139-6 sponsor may submit an application to the Office to obtain a loan or
139-7 grant to acquire, construct, or renovate real property to be used
139-8 as a small business incubator or to acquire equipment to be used in
139-9 the operations of a small business incubator. The application must
139-10 include:
139-11 (1) a description of the location, size, and other
139-12 physical characteristics of the building to be used as the small
139-13 business incubator;
139-14 (2) a statement of the cost of leasing, purchasing,
139-15 renovating, or constructing the building;
139-16 (3) a detailed itemization of all estimated annual
139-17 operating and maintenance costs for the operation of the small
139-18 business incubator;
139-19 (4) a statement of the amount of the loan or grant
139-20 requested;
139-21 (5) an estimate of the annual income that will be
139-22 generated by the operation of the small business incubator from
139-23 tenant fees and other sources;
139-24 (6) a statement of the value of cash contributions and
139-25 services to be provided by the local sponsor and other sources;
140-1 (7) a demonstration, through a market study or other
140-2 means, of the prospects for attracting suitable businesses to the
140-3 small business incubator and the potential for sustained use of the
140-4 small business incubator by eligible tenants;
140-5 (8) a demonstration of the ability of the local
140-6 sponsor to comply with the requirements of Section 488.015;
140-7 (9) a demonstration that the small business incubator
140-8 tenants will generate a significant number of new jobs;
140-9 (10) a demonstration that establishment of the small
140-10 business incubator is supported by local representatives of
140-11 business, labor, educational, and governmental entities; and
140-12 (11) other information the Partnership requires.
140-13 (b) The Office shall review and approve or deny each
140-14 application based on:
140-15 (1) the ability of the local sponsor to carry out the
140-16 requirements and purposes of this subchapter;
140-17 (2) the potential economic effect of the small
140-18 business incubator on the state and on the community in which the
140-19 small business incubator would be located;
140-20 (3) whether the small business incubator proposal
140-21 conforms to existing areawide and local economic development plans;
140-22 (4) the location of the small business incubator, to
140-23 encourage geographic distribution of small business incubators
140-24 across the state; and
140-25 (5) other criteria established by the Office.
141-1 Sec. 488.017. Application to Become Tenant. (a) An
141-2 application must be submitted to a local sponsor in a form approved
141-3 by the Office and must include:
141-4 (1) a description of the type of business the
141-5 applicant wishes to establish or expand;
141-6 (2) an estimate of the number of employees the
141-7 applicant will need to establish or expand the business, and a
141-8 two-year projection of future employment needs;
141-9 (3) a description of the skill and educational level
141-10 of the employees the applicant plans to hire and the ability of the
141-11 applicant to establish and operate a successful business;
141-12 (4) a general statement of the reason the applicant
141-13 wishes to be accepted into the small business incubator; and
141-14 (5) a signed acknowledgment by the applicant that the
141-15 applicant understands and accepts the obligations imposed by
141-16 Section 488.018.
141-17 (b) The local sponsor shall evaluate each applicant based on
141-18 but not limited to the following:
141-19 (1) the likelihood that the business will be
141-20 profitable or that the nonprofit tenant will be able to pay rent;
141-21 (2) whether the product to be manufactured or the
141-22 service to be rendered will be new or improved;
141-23 (3) whether the potential market for the product or
141-24 service is regional, statewide, or national;
141-25 (4) the likelihood that the business will generate a
142-1 significant number of new jobs and not eliminate existing jobs in
142-2 the community or area of the small business incubator;
142-3 (5) certification that the business is a new plant
142-4 start-up or new venture opportunity and is not an area or regional
142-5 relocation of an existing business or that it is a relocation that
142-6 will result in substantial growth of the business; and
142-7 (6) the likelihood that the business will be
142-8 substantially aided by its location in the small business
142-9 incubator.
142-10 (c) The local sponsor shall notify each applicant for small
142-11 business incubator space whose application it accepts of its
142-12 decision to accept the applicant and whether space for the
142-13 applicant in the small business incubator exists. The local
142-14 sponsor shall notify each applicant it rejects of the rejection and
142-15 shall provide the reasons for the rejection.
142-16 Sec. 488.018. Duties of Tenant. A tenant within a small
142-17 business incubator shall:
142-18 (1) pay rent determined by the local sponsor, who may
142-19 agree to defer payment of rent for a predetermined number of months
142-20 until a date by which the business is expected to have received
142-21 committed starting capital;
142-22 (2) pay utilities and other costs determined by the
142-23 local sponsor;
142-24 (3) relocate to a permanent location not later than 24
142-25 months after the date of entering the small business incubator,
143-1 except that a tenant may request suspension of this requirement for
143-2 one or more six-month periods and the local sponsor may grant such
143-3 a request on a determination that the tenant still requires the
143-4 services of the small business incubator; and
143-5 (4) provide an annual report to the local sponsor for
143-6 three years after leaving the small business incubator which
143-7 includes the number of jobs as of the end of each year and any
143-8 other information requested.
143-9 Sec. 488.019. Loans and Grants. (a) A loan or grant
143-10 provided to a local sponsor may be used only for the acquisition or
143-11 lease of land and existing buildings, the construction or
143-12 rehabilitation of buildings or other facilities, or the purchase of
143-13 equipment and furnishings necessary for the establishment and
143-14 operation of the small business incubator.
143-15 (b) A loan or grant to a local sponsor may not exceed the
143-16 lesser of $250,000 or 50 percent of total eligible project costs.
143-17 (c) A loan or grant for a facility that is currently leased
143-18 for a small business incubator may be made only if the local
143-19 sponsor has a lease for the term of the loan.
143-20 (d) Each loan must be adequately secured by a lien on
143-21 collateral of the local sponsor or guaranteed in a manner that
143-22 adequately secures the loan.
143-23 (e) The Office shall determine the rate of interest on loans
143-24 made under this subchapter. Payment of interest and principal on a
143-25 loan may be deferred at the discretion of the Office.
144-1 (f) The term of a loan may not exceed the longer of 10
144-2 years, the useful life of the property, as determined in the manner
144-3 established by the United States Department of the Treasury, or the
144-4 term of the bond issue.
144-5 Sec. 488.020. Challenge Grants. (a) The Office may award a
144-6 challenge grant to provide seed capital to a tenant to assist
144-7 development of the business. Each application for a challenge
144-8 grant must:
144-9 (1) describe the purposes for which the proposed grant
144-10 will be used, including a detailed description of the businesses
144-11 that would be assisted by the grant;
144-12 (2) explain the need for the challenge grant in
144-13 attracting private investment to the business;
144-14 (3) present a detailed plan for use of the grant,
144-15 including the amount of private investment sought, and the strategy
144-16 for obtaining those investments; and
144-17 (4) describe private investment commitments already
144-18 obtained.
144-19 (b) The Office may not deliver funds awarded as a challenge
144-20 grant unless it finds that at least $3 of private investment has
144-21 been committed for each $1 of the grant. If a recipient of a
144-22 challenge grant cannot demonstrate the commitment of those private
144-23 investments before a deadline established by the Office, the Office
144-24 shall rescind the grant or the part of the grant for which adequate
144-25 commitment has not been demonstrated.
145-1 Sec. 488.021. Confidential Information. A local sponsor,
145-2 the Partnership, the Office, or any other person may not disclose
145-3 matters of a proprietary nature, such as commercial or financial
145-4 information, trade secrets, or confidential personal information
145-5 submitted by a person or business under this subchapter without the
145-6 consent of the person or business submitting the information.
145-7 Sec. 488.022. Office Report. (a) On or before January 1 of
145-8 each year, the Office shall submit to the governor and legislature
145-9 a report showing:
145-10 (1) the number of applications submitted to the Office
145-11 for loans or grants for small business incubators;
145-12 (2) the number of applications for small business
145-13 incubators approved by the Office;
145-14 (3) the number of small business incubators created
145-15 under this subchapter;
145-16 (4) the number of tenants occupying each small
145-17 business incubator;
145-18 (5) the number of jobs provided by each small business
145-19 incubator and by each tenant;
145-20 (6) the occupancy rate of each small business
145-21 incubator;
145-22 (7) the number of businesses that have left small
145-23 business incubators and are still operating in the state and the
145-24 number of jobs those businesses have provided;
145-25 (8) the amount of funds awarded as challenge grants;
146-1 (9) the amount of private investment committed as
146-2 required by Section 488.020; and
146-3 (10) the number, types, and amounts of investments in
146-4 small businesses made with funds under Section 488.020.
146-5 (b) The Office in the report shall attempt to identify the
146-6 reasons that any businesses have left the state after starting in a
146-7 small business incubator.
146-8 Sec. 488.023. Small Business Incubator Fund. (a) The small
146-9 business incubator fund is a revolving fund in the state treasury.
146-10 (b) Money appropriated to the Office, interest paid on money
146-11 in the fund, proceeds of bonds issued under this subchapter,
146-12 pursuant to Texas Constitution, article 16, section 71, application
146-13 fees, guarantee fees, royalty receipts, dividend income, loan
146-14 repayments, and other amounts received by the state for loans, loan
146-15 guarantees, equity in investments, or grants made under this
146-16 subchapter, and any other money received by the Partnership or
146-17 Office under this chapter including federal funds and the proceeds
146-18 of any investment pools operated by the comptroller shall be
146-19 deposited to the credit of the fund. Appropriated money in the
146-20 fund may be applied and reapplied to the purposes of this
146-21 subchapter.
146-22 Sec. 488.024. Nonprofit Status. The operation of the small
146-23 business incubator for which a loan or grant is made under this
146-24 subchapter must be conducted by a public or private nonprofit
146-25 entity, and no part of its net earnings remaining after payment of
147-1 its expenses may benefit any individual, firm, or corporation.
147-2 Sec. 488.025. Bonds. (a) The Office may issue up to $20
147-3 million of general obligation bonds and may use the proceeds, less
147-4 the costs of issuance of the bonds, to carry out the small business
147-5 incubator program in accordance with the resolution authorizing the
147-6 bonds. The Office shall deposit the proceeds of the bonds in the
147-7 small business incubator fund and apply them in accordance with the
147-8 resolution authorizing the bonds. The fund and any accounts
147-9 established in the fund shall be held in trust by the state
147-10 comptroller for and on behalf of the Office and the owners of the
147-11 general obligation bonds issued in accordance with this section,
147-12 and may be used only as provided by this subchapter. Pending use,
147-13 the comptroller may invest and reinvest money in the fund in
147-14 investments authorized by law for state funds that the comptroller,
147-15 consistent with the Office's authorization of the bonds, considers
147-16 appropriate. Repayments of financial assistance provided under
147-17 this subchapter, together with earnings received on investments of
147-18 the fund, shall be deposited first, in the interest and sinking
147-19 account as prescribed by Office and second, in any reserve account
147-20 established by the Office until that account is fully funded as
147-21 prescribed by the Office. If, during the time any general
147-22 obligation bonds are payable from the interest and sinking account,
147-23 the Office determines that there will not be sufficient money in
147-24 the interest and sinking account during the following fiscal year
147-25 to pay the principal of or interest on the general obligation bonds
148-1 or both the principal and interest that are to come due during the
148-2 following fiscal year, the comptroller of public accounts shall
148-3 transfer to the fund the first money coming into the state treasury
148-4 not otherwise appropriated by the constitution in an amount
148-5 sufficient to pay the obligations.
148-6 (b) The bonds may be issued from time to time in one or more
148-7 series or issues, in bearer, registered, or any other form, which
148-8 may include registered uncertificated obligations not represented
148-9 by written instruments and commonly known as book-entry
148-10 obligations, the registration of ownership and transfer of which
148-11 shall be provided for by the Office under a system of books and
148-12 records maintained by the Office or by an agent of the Office.
148-13 Bonds may mature serially or otherwise not more than 40 years from
148-14 their date. Bonds may bear no interest or may bear interest at any
148-15 rate or rates, fixed, variable, floating, or otherwise, determined
148-16 by the Office or determined pursuant to any contractual
148-17 arrangements with the Office, not to exceed the maximum net
148-18 effective interest rate allowed by Chapter 3, Acts of the 61st
148-19 Legislature, Regular Session, 1969 (Article 717k-2, Vernon's Texas
148-20 Civil Statutes). Interest on the bonds may be payable at any time
148-21 and the rate of interest on the bonds may be adjusted at any time
148-22 determined by the Office or determined pursuant to any contractual
148-23 arrangement with the Office. In connection with the issuance of
148-24 its bonds, the Office may exercise the powers granted to the
148-25 governing body of an issuer in connection with the issuance of
149-1 obligations under Chapter 656, Acts of the 68th Legislature,
149-2 Regular Session, 1983 (Article 717q, Vernon's Texas Civil
149-3 Statutes), to the extent not inconsistent with this section. The
149-4 bonds may be issued in the form and denominations and executed in
149-5 the manner and under the terms, conditions, and details determined
149-6 by the Office. If any officer whose manual or facsimile signature
149-7 appears on the bonds ceases to be an officer, the signature remains
149-8 valid and sufficient for all purposes as if the officer had
149-9 remained in office.
149-10 (c) All bonds issued by the Office under this section are
149-11 subject to review and approval by the attorney general in the same
149-12 manner and with the same effect as is provided by Chapter 656, Acts
149-13 of the 68th Legislature, Regular Session, 1983 (Article 717q,
149-14 Vernon's Texas Civil Statutes).
149-15 (d) The bonds are a legal and authorized investment for a
149-16 bank, trust company, savings and loan association, insurance
149-17 company, fiduciary, trustee, or guardian or a sinking fund of a
149-18 municipality, county, school district, or political subdivision of
149-19 the state. The bonds may secure deposits of public funds of the
149-20 state, a municipality, a county, a school district, or another
149-21 political corporation or subdivision of the state. The Office may
149-22 issue bonds to refund all or part of its outstanding bonds,
149-23 including accrued but unpaid interest. The bonds, a transaction
149-24 relating to the bonds, or a profit made in the sale of the bonds is
149-25 exempt from taxation by the state, an agency or subdivision of the
150-1 state, a municipality, or a special district.
150-2 Sec. 488.026. Investment Pools. The Office may develop
150-3 programs encouraging the creation of local investment pools to
150-4 assist with the financing of businesses emerging from the
150-5 incubator.
150-6 Sec. 488.027. Considerations in Financing. In determining
150-7 whether to provide financing under this subchapter, the Office
150-8 shall consider the likelihood of success of the applicant and the
150-9 effect of the financing on job creation and retention in the state.
150-10 The Office shall give preference to applicants who are Texas
150-11 residents doing business in the state, and then to applicants who
150-12 can demonstrate that the financed activities will take place in
150-13 this state.
150-14 SUBCHAPTER C. PRODUCT COMMERCIALIZATION
150-15 Sec. 488.028. Definitions. In this subchapter:
150-16 (1) "Advisory board" means the Product
150-17 Commercialization Advisory Board.
150-18 (2) "Fund" means the product commercialization fund.
150-19 Sec. 488.029. Contract with Partnership. The Office shall
150-20 contract with the Partnership to perform the Office's duties and
150-21 exercise its powers and implement and administer the programs under
150-22 this subchapter to the fullest extent permitted by the Texas
150-23 Constitution.
150-24 Sec. 488.030. Fund. (a) The product commercialization fund
150-25 is an account in the general revenue fund. The fund consists of
151-1 appropriations, transfers, loan payments, and interest received on
151-2 loans made under this subchapter, gifts, donations, fees, grants,
151-3 and any other money received under this subtitle. The Office may
151-4 accept funds from any source to carry out the purposes of this
151-5 subchapter.
151-6 (b) Money in the fund may be used for making loans or loan
151-7 guarantees under this subchapter and for administrative expenses
151-8 relating to the fund. The Office may use money in the fund to
151-9 establish a reserve fund, in an amount determined by the Office as
151-10 appropriate, for bonds issued under Subchapter A for projects which
151-11 are also eligible under this subchapter or to insure and guarantee
151-12 the bonds in any other manner. Reserve funds for the issuance of
151-13 bonds under this subchapter and Subchapter A may only be created on
151-14 approval of the Product Commercialization Advisory Board or the
151-15 Product Development Advisory Board, as applicable.
151-16 Sec. 488.031. Loans. (a) The Office may make loans or loan
151-17 guarantees to finance the commercialization of new or improved
151-18 products or processes for which financing is not reasonably
151-19 available from private sources.
151-20 (b) On recommendation of the advisory board, the Office
151-21 shall adopt rules establishing limits on the amount of each loan or
151-22 loan guarantee and otherwise governing the terms and conditions of
151-23 the loans and loan guarantees, specifically including requirements
151-24 for appropriate security or collateral and the rights and remedies
151-25 of the Office in the event of a default on an obligation under the
152-1 loan or loan guarantee. Such rules shall include a requirement
152-2 that borrowers shall report to the Office and the advisory board on
152-3 the use of money distributed through this fund.
152-4 (c) An application for a loan or loan guarantee must be in
152-5 the form prescribed by the Office based on the recommendations of
152-6 the advisory board.
152-7 (d) In connection with any loan or loan guarantee made
152-8 subject to this subchapter, the Office may enter into an agreement
152-9 with the applicant under which the Office obtains royalties, patent
152-10 rights, equitable interests, or a combination of these royalties,
152-11 rights, and interests, from or in the product or proceeds of the
152-12 product for which a loan or loan guarantee is requested. Such
152-13 agreements must include provisions to ensure proper use of funds
152-14 and the receipt of royalties, patent rights, or equity interest, as
152-15 appropriate.
152-16 Sec. 488.032. Eligible Projects and Borrowers. (a) A loan
152-17 or loan guarantee may be made under this subchapter only to finance
152-18 a project approved by the advisory board and the Office.
152-19 (b) In determining eligible projects, the Office and the
152-20 advisory board shall give special preference to projects that have
152-21 the greatest likelihood of commercial success, specifically
152-22 including but not limited to projects in the areas of agriculture,
152-23 biotechnology, biomedicine, energy, materials science,
152-24 microelectronics, aerospace, marine science, aquaculture,
152-25 telecommunications, manufacturing science, recycling, and other
153-1 priority research areas as provided in Section 143.003, Education
153-2 Code. The Office and the advisory board further shall give
153-3 consideration to grantees under the small business innovation
153-4 research program established under 15 U.S.C. Section 638 as well as
153-5 to Texas companies formed to commercialize research funded at least
153-6 in part with state funds.
153-7 (c) The Office and the advisory board may make a loan or a
153-8 loan guarantee to the governing body of an enterprise zone
153-9 designated as a recycling market development zone under Chapter 489
153-10 to fund an activity that sustains or increases recycling efforts.
153-11 Sec. 488.033. Information Confidential. Information
153-12 relating to a product or process and the application or use of a
153-13 product or process, and technological and scientific information,
153-14 including computer programs, developed in whole or part by an
153-15 applicant for or recipient of a loan, is confidential and is not
153-16 subject to disclosure under state law or otherwise, regardless of
153-17 whether the product is patentable or capable of being registered
153-18 under copyright or trademark laws, or has a potential for being
153-19 sold, traded, or licensed for a fee. However, nothing in this
153-20 subchapter shall prevent or restrict the Office or the advisory
153-21 board from obtaining information relating to a product or process
153-22 from an applicant or recipient of a loan under this subchapter.
153-23 The Product Commercialization Advisory Board is not required to
153-24 deliberate in an open meeting regarding matters made confidential
153-25 under this section. Decisions or other actions as a result of the
154-1 board's deliberations are not confidential and shall be made in an
154-2 open meeting.
154-3 Sec. 488.034. Advisory Board. (a) The Product
154-4 Commercialization Advisory Board is composed of:
154-5 (1) one representative of the Texas Higher Education
154-6 Coordinating Board selected by the Texas Higher Education
154-7 Coordinating Board; and
154-8 (2) six persons appointed by the governor with the
154-9 advice and consent of the senate.
154-10 (b) In appointing members of the advisory board, the
154-11 governor may appoint persons having significant business leadership
154-12 experience with emerging technologies, particularly experience with
154-13 the transfer of research results into commercial application.
154-14 (c) Members of the advisory board serve two-year staggered
154-15 terms with the terms of four members expiring February 1 of each
154-16 odd-numbered year and the terms of three members expiring
154-17 February 1 of each even-numbered year.
154-18 (d) The governor shall appoint the advisory board's chairman
154-19 from among its members.
154-20 (e) A member of the board, advisory board, or other person
154-21 acting on behalf of the Partnership or the Office in executing a
154-22 contract, commitment, or agreement under this subchapter is not
154-23 personally liable on the contract, commitment, or agreement.
154-24 Sec. 488.035. Program Coordination. The Office may
154-25 coordinate the administration and funding of the programs
155-1 established pursuant to Subchapter A and this subchapter.
155-2 SUBCHAPTER D. SMALL BUSINESS INNOVATION RESEARCH
155-3 Sec. 488.036. Definitions. In this subchapter:
155-4 (1) "Small business" means a corporation, business
155-5 partnership, sole proprietorship, joint venture, or other business
155-6 entity operating as a for-profit concern, having not more than 500
155-7 employees, including employees employed by any subsidiary or
155-8 affiliated business entity, that otherwise meets the requirements
155-9 of the federal small business innovation research program.
155-10 (2) "Small business innovation research program" or
155-11 "SBIR" means the program established as provided by the Small
155-12 Business Innovation Development Act of 1982 (Pub. L. No. 97-219, 15
155-13 U.S.C. 638), which provides funds to small business to conduct
155-14 innovative research having commercial application.
155-15 Sec. 488.037. Notices Relating to Participation. Within 30
155-16 days after the date of the public announcement of the small
155-17 business innovation research program Phase I award winners by the
155-18 appropriate federal agency, the Office shall contact all known
155-19 Phase I award recipients whose principal place of business is
155-20 located in this state, provide them with information concerning the
155-21 program authorized by this subchapter, and advise them of the
155-22 requirements relating to the program. The recipient, at least 30
155-23 days before completion of its SBIR Phase I award period, may submit
155-24 to the Office a notice of its desire to secure research funding
155-25 under this subchapter, along with a copy of its original federal
156-1 SBIR proposal and additional information the Office requires to
156-2 assist it in determining the eligibility of the recipient for this
156-3 program.
156-4 Sec. 488.038. Eligibility. In addition to receipt of an
156-5 SBIR award, to be eligible for a state SBIR bridge award under this
156-6 subchapter a small business must:
156-7 (1) have its principal place of business in this
156-8 state; and
156-9 (2) certify that the research to be conducted will be
156-10 performed solely in this state.
156-11 Sec. 488.039. State SBIR Bridge Award. On a finding by the
156-12 Office that a Phase I award recipient whose principal place of
156-13 business is in this state has satisfactorily met all the
156-14 requirements of this subchapter, the Office shall notify the small
156-15 business that it will award the business a state SBIR bridge award.
156-16 The conditions of the state SBIR bridge award must be compatible
156-17 with and a continuation of the research to be performed under the
156-18 SBIR contract awarded by the federal agency involved and may not
156-19 exceed the amount of the federal SBIR award or $50,000, whichever
156-20 is less. The total amount of state SBIR bridge awards made by the
156-21 Office may not exceed the amount appropriated for that purpose.
156-22 Sec. 488.040. Delivery of State SBIR Bridge Award. (a) The
156-23 Office may not disburse money under this subchapter to a small
156-24 business until:
156-25 (1) the small business has completed its SBIR Phase I
157-1 research;
157-2 (2) its final Phase I report concerning the research
157-3 has been accepted by the federal agency involved;
157-4 (3) its final Phase II research proposal has been
157-5 properly submitted to the federal agency involved; and
157-6 (4) it has submitted copies of its final Phase I
157-7 report, its Phase II proposal, and a plan for commercialization to
157-8 the Office.
157-9 (b) The Office has the right to refuse to make a state SBIR
157-10 bridge award if:
157-11 (1) the commercialization plan is unacceptable;
157-12 (2) the federal funding agency has indicated that the
157-13 applicant is not being considered for a Phase II award; or
157-14 (3) the state SBIR bridge award fund is depleted.
157-15 Sec. 488.041. Prohibited Uses. This money may not be
157-16 expended for travel, equipment, or facilities. Not more than
157-17 one-third of the money awarded to a business under this subchapter
157-18 may be used to contract for research or other related services.
157-19 Sec. 488.042. Proprietary Information. Consistent with
157-20 Federal SBIR procedures, the office and the Partnership may not
157-21 disclose proprietary information if confidentiality is requested by
157-22 participants in this program.
157-23 Sec. 488.043. Report. The Office annually shall submit a
157-24 report to the governor, lieutenant governor, and speaker of the
157-25 house of representatives detailing the results of the program,
158-1 including:
158-2 (1) the number of Texas small businesses applying for
158-3 SBIR awards;
158-4 (2) the number receiving Phase I awards;
158-5 (3) the number receiving Phase II awards;
158-6 (4) any products or processes developed as a result of
158-7 the SBIR research involved;
158-8 (5) any patents applied for or licenses granted based
158-9 on the SBIR research involved;
158-10 (6) an abstract of the SBIR Phase I and II work
158-11 performed by Texas firms; and
158-12 (7) any other information pertinent in evaluating the
158-13 program.
158-14 Sec. 488.044. Contract with Partnership. The Office shall
158-15 contract with the Partnership to perform the Office's duties and
158-16 exercise its powers and implement and administer the programs under
158-17 this subchapter to the fullest extent permitted by the Texas
158-18 Constitution.
158-19 Sec. 488.045. Funding. In addition to other funds provided
158-20 for purposes of this subchapter, the Office may utilize royalties
158-21 and equity interests derived under the provisions of Subchapter A
158-22 to carry out the program established under this section.
158-23 SUBCHAPTER E. CAPITAL DEVELOPMENT CORPORATION
158-24 Sec. 488.046. Legislative Findings. The legislature finds
158-25 that:
159-1 (1) the development and expansion of business,
159-2 commerce, and industry are essential to the economic growth of the
159-3 state and to the full employment, welfare, and prosperity of its
159-4 citizens; and
159-5 (2) the measures authorized by this subchapter and the
159-6 assistance provided by this subchapter, especially with respect to
159-7 financing, are in the public interest and serve a public purpose of
159-8 the state economically by the securing and retaining of private
159-9 business enterprises and the resulting maintenance of a higher
159-10 level of employment, economic activity, and stability.
159-11 Sec. 488.047. Definitions. In this subchapter:
159-12 (1) "Cost" has the meaning assigned that term by the
159-13 Development Corporation Act.
159-14 (2) "Development Corporation Act" means the
159-15 Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
159-16 Civil Statutes).
159-17 (3) "Project" has the meaning assigned that term by
159-18 the Development Corporation Act.
159-19 (4) "User" includes any person.
159-20 Sec. 488.048. Contract with Partnership. The Office shall
159-21 contract with the Partnership to perform the Office's duties and
159-22 exercise its powers and implement and administer the programs under
159-23 this subchapter to the fullest extent permitted by the Texas
159-24 Constitution.
159-25 Sec. 488.049. Powers and Duties Relating to Financing.
160-1 (a) The Office shall act on behalf of the state to carry out the
160-2 public purposes of this subchapter and of the Development
160-3 Corporation Act. The Office may issue bonds to finance the cost of
160-4 projects. The bonds may be secured as provided by Section 25(e) of
160-5 the Development Corporation Act.
160-6 (b) The Office has the powers that are necessary to
160-7 accomplish the purposes of this subchapter, including the powers
160-8 granted to industrial development corporations by Section 23 of the
160-9 Development Corporation Act, except those provided by Subsections
160-10 (a)(7), (8), (9), and (10) of that section, and Sections 26, 27,
160-11 and 29 of that Act.
160-12 (c) The Office may:
160-13 (1) purchase, discount, sell, assign, negotiate, and
160-14 otherwise dispose of notes, bonds, and other evidences of
160-15 indebtedness incurred to finance or refinance projects whether
160-16 secured or unsecured;
160-17 (2) administer or participate in programs established
160-18 by another person to finance or refinance projects; and
160-19 (3) acquire, hold, invest, use, and dispose of the
160-20 Office's revenues, funds, and money received from any source under
160-21 this subchapter and the proceedings authorizing the bonds issued
160-22 under this subchapter, subject only to the provisions of the Texas
160-23 Constitution, this subchapter, and any covenants relating to the
160-24 Office's bonds in classes of investments that the Office
160-25 determines.
161-1 Sec. 488.050. Bonds. Sections 483.007, 483.008, 483.009,
161-2 483.010, 483.011, 483.012, 483.013, 483.014, 483.015, and 483.016
161-3 apply to the Office's bonds issued under this subchapter to the
161-4 extent not inconsistent with this subchapter. However, bonds
161-5 issued under this subchapter may mature serially or otherwise not
161-6 more than 40 years after their date.
161-7 Sec. 488.051. Program Criteria. (a) The Office shall
161-8 establish criteria for determining which users may participate in
161-9 programs established by the Office under this subchapter. The
161-10 Office shall adopt collateral or security requirements to ensure
161-11 the full repayment of any loan, lease, or installment sale and the
161-12 solvency of any program implemented under this subchapter. The
161-13 Office must approve all leases and sale and loan agreements made
161-14 under this subchapter.
161-15 (b) Users participating in the programs established under
161-16 this subchapter shall pay the costs of applying for, participating
161-17 in, and administering and servicing the program in amounts that the
161-18 Office considers reasonable and necessary.
161-19 Sec. 488.052. Statewide Certified Development Corporation.
161-20 (a) The Office shall create a statewide certified development
161-21 corporation to carry out the purposes of the Small Business
161-22 Investment Act of 1958 (15 U.S.C. Section 697). The corporation
161-23 has the rights and powers of a nonprofit corporation incorporated
161-24 under the Texas Non-Profit Corporation Act (Article 1396-1.01 et
161-25 seq., Vernon's Texas Civil Statutes), except to the extent
162-1 inconsistent with this section. The corporation may contract with
162-2 the Office, Partnership, counsel, and other advisors its board of
162-3 directors considers necessary.
162-4 (b) The revenues and funds of the corporation shall be
162-5 deposited with one or more financial institutions chosen for that
162-6 purpose by the board of directors of the corporation. Expenses
162-7 incurred by the corporation in the operation and administration of
162-8 its programs and affairs, including expenditures for professional,
162-9 management, and legal services, shall be paid out of the fees
162-10 collected or revenues generated under this subtitle. The
162-11 corporation shall enter into a written agreement with the
162-12 Partnership for the provision of professional and management
162-13 services.
162-14 (c) A director, officer, or employee of the Office or the
162-15 Partnership is not personally liable for damage, loss, or injury
162-16 resulting from the performance of the person's services to the
162-17 statewide certified development corporation under this section or
162-18 under any contract, commitment, or agreement executed with the
162-19 corporation.
162-20 SUBCHAPTER F. CAPITAL ACCESS PROGRAM
162-21 Sec. 488.0530. Capital Access Program. The Office may
162-22 contract with the Partnership to develop, implement, and administer
162-23 a capital access fund, "the fund" to provide a loan loss reserve
162-24 for small business development.
162-25 Sec. 488.0531. Definitions.
163-1 (1) "Capital Access Loan" means a loan that is
163-2 entitled to be secured by the fund.
163-3 (2) "Financial institution" includes a bank, trust
163-4 company, banking association, savings and loan association,
163-5 mortgage company, investment bank, credit union or nontraditional
163-6 financial institution.
163-7 (3) "Fund" means the capital access account in the
163-8 general revenue fund.
163-9 (4) "Loan" includes a line of credit.
163-10 (5) "Nonprofit organization" means a private,
163-11 nonprofit, tax-exempt corporation, association or organization that
163-12 is domiciled in this state or has at least 51 percent of its
163-13 members located in this state.
163-14 (6) "Participating financial institution" means a
163-15 financial institution participating in the program.
163-16 (7) "Program" means the capital access program.
163-17 (8) "Reserve account" means an account established in
163-18 a participating financial institution on approval of the Office in
163-19 which money is deposited to serve as a source of additional revenue
163-20 to reimburse the financial institution for losses on loans enrolled
163-21 in the program.
163-22 (9) "Small business" means a corporation, Partnership,
163-23 sole proprietorship, or other legal entity that:
163-24 (A) is domiciled in this state or has at least
163-25 51 percent of its employees located in this state;
164-1 (B) is formed to make a profit;
164-2 (C) is independently owned and operated; and
164-3 (D) employs fewer than 350 full-time employees.
164-4 Sec. 488.0532. Capital Access Fund. (a) The capital access
164-5 fund is a special account in the general revenue fund.
164-6 (b) Appropriations for the implementation and administration
164-7 of this subchapter, investment earnings, fees charged under this
164-8 subchapter, and any other amounts received by the state under this
164-9 subchapter shall be deposited in the fund.
164-10 (c) Money in the fund may be appropriated only to the Office
164-11 for use in carrying out the purposes of this subchapter.
164-12 Sec. 488.0533. Transfer of Money from other Funds to the
164-13 Capital Access Fund. (a) At the beginning of each fiscal year,
164-14 the Office shall compute for the Texas exporters loan fund
164-15 established under Chapter 483, and the Texas rural economic
164-16 development fund:
164-17 (1) the amount sufficient for that fiscal year to
164-18 cover loan guarantees made under Subchapter D or F, as applicable
164-19 to each fund;
164-20 (2) the amount sufficient for the fiscal year to repay
164-21 bonds issued under Subchapter D, to carry out the purposes of
164-22 Section 481.059, or for projects that are eligible under Subchapter
164-23 F, as applicable to each fund; and
164-24 (3) the amount of loan repayments for loans made under
164-25 Subchapter D or F that will be expected to be received during the
165-1 fiscal year, as applicable to each fund.
165-2 (b) At the beginning of each fiscal year, the comptroller
165-3 for each fund described by Subsection (a) shall subtract the sum of
165-4 the amount computed by the Office under Subsection (a)(1) and
165-5 (a)(2) for the respective fund from the amount in the fund at the
165-6 beginning of the fiscal year.
165-7 (c) If a positive amount results from a computation made
165-8 under Subsection (b), the comptroller shall transfer an amount
165-9 equal to the computed amount from the fund to which the computation
165-10 relates to the capital access fund.
165-11 (d) As loan repayments are received for each fund described
165-12 by Subsection (a), the comptroller shall transfer the payments to
165-13 the capital access fund.
165-14 Sec. 488.0534. Powers of the Office in Administering the
165-15 Capital Access Fund. The Office shall have the powers necessary to
165-16 carry out the purposes of this subchapter, including the power to:
165-17 (1) make, execute, and deliver contracts, conveyances,
165-18 and other instruments necessary to the exercise of its powers;
165-19 (2) invest money at the Office's discretion in
165-20 obligations determined proper by the Office, and select and use
165-21 depositories for its money;
165-22 (3) employ personnel and counsel and pay the persons
165-23 from money in the fund legally available for this purpose; and
165-24 (4) impose and collect fees and charges in connection
165-25 with any transaction and provide for reasonable penalties for
166-1 delinquent payment of fees or charges.
166-2 Sec. 488.0535. Capital Access Program. (a) The Office
166-3 shall establish a capital access program to assist a participating
166-4 financial institution in making loans to small businesses and
166-5 nonprofit organizations that face barriers in accessing capital.
166-6 (b) The Office shall use money in the fund to make a deposit
166-7 in a participating financial institution's reserve account in an
166-8 amount specified by this subchapter to be a source of money the
166-9 institution may receive as reimbursement for losses attributable to
166-10 loans in the program.
166-11 (c) The Office shall determine the eligibility of a
166-12 financial institution to participate in the program and may set a
166-13 limit on the number of eligible financial institutions that may
166-14 participate in the program.
166-15 (d) To participate in the program, an eligible financial
166-16 institution must enter into a participation agreement with the
166-17 Office that sets out the terms and conditions under which the
166-18 Office will make contributions to the institution's reserve account
166-19 and specifies the criteria for a loan to qualify as a capital
166-20 access loan.
166-21 (e) To qualify as a capital access loan, a loan:
166-22 (1) must be made to a small business or a nonprofit
166-23 organization;
166-24 (2) must be used by the business or nonprofit
166-25 organization for any project, activity, or enterprise in this state
167-1 that fosters economic development in this state; and
167-2 (3) must meet any other criteria provided by this
167-3 subchapter.
167-4 Sec. 488.0536. Rulemaking Authority. (a) The Office shall
167-5 adopt rules relating to the implementation of the capital access
167-6 loan program and any other rules necessary to accomplish the
167-7 purposes of this subchapter. The rules may:
167-8 (1) provide for criteria under which a certain line of
167-9 credit issued by an eligible financial institution to a small
167-10 business or nonprofit organization qualifies to participate in the
167-11 program; and
167-12 (2) authorize a consortium of financial institutions
167-13 to participate in the program subject to common underwriting
167-14 guidelines.
167-15 (b) To qualify for participation in the program, a line of
167-16 credit must:
167-17 (1) be an account at a financial institution under
167-18 which the financial institution agrees to lend money to a person
167-19 from time to time to finance one or more projects, activities, or
167-20 enterprises that are authorized by this subchapter; and
167-21 (2) contain the same restrictions, to the extent
167-22 possible, that are placed on a capital access loan that is not a
167-23 line of credit.
167-24 Sec. 488.0538. Provisions Relating to Capital Access Loan.
167-25 (a) Except as otherwise provided by this subchapter, the Office
168-1 may not determine the recipient, amount, or interest rate of a
168-2 capital access loan or the fees or other requirements related to
168-3 the loan.
168-4 (b) A loan is not eligible to be enrolled under this
168-5 subchapter if the loan is for:
168-6 (1) construction or purchase of residential housing;
168-7 (2) simple real estate investments, excluding the
168-8 development or improvement of commercial real estate occupied by
168-9 the borrower's business or organization;
168-10 (3) refinancing of existing loans not originally
168-11 enrolled under this subchapter; or
168-12 (4) inside blank transactions, as defined by the
168-13 Office.
168-14 (c) The borrower of a capital access loan must apply the
168-15 loan to working capital or to the purchase, construction or lease
168-16 of capital assets, including buildings and equipment used by the
168-17 business or nonprofit organization. Working capital uses include
168-18 the cost of exporting, accounts receivable, payroll, inventory, and
168-19 other financing needs of the business or organization.
168-20 (d) A capital access loan may be sold on the secondary
168-21 market under conditions as may be determined by the Office.
168-22 Sec. 488.0539. Reserve Account. (a) On approval by the
168-23 Office and after entering into a participation agreement with the
168-24 Office, a participating financial institution making a capital
168-25 access loan shall establish a reserve account. The reserve account
169-1 shall be used by the institution only to cover any losses arising
169-2 from a default of a capital access loan made by the institution
169-3 under this subchapter or as otherwise provided by this subchapter.
169-4 (b) When a participating financial institution makes a loan
169-5 enrolled in the program, the institution shall require the borrower
169-6 to pay the institution a fee in an amount that is not less than two
169-7 percent but not more than three percent of the principal amount of
169-8 the loan, which the financial institution shall deposit in the
169-9 reserve account. The institution shall also deposit in the reserve
169-10 account an amount equal to the amount of the fee received by the
169-11 institution from the borrower under this subsection.
169-12 (c) For each capital access loan made by a financial
169-13 institution, the institution shall certify to the Office, within
169-14 the period prescribed by the Office, that the institution has made
169-15 a capital access loan, the amount the institution has deposited in
169-16 the reserve account, including the amount of fees received from the
169-17 borrower, and, if applicable, that the borrower is located in or
169-18 financing a project, activity, or enterprise in an area designated
169-19 as an enterprise zone under Chapter 2303.
169-20 (d) On receipt of a certification made under Subsection (c)
169-21 and subject to Section 488.0540, the Office shall deposit into the
169-22 institution's reserve account for each capital access loan made by
169-23 the institution:
169-24 (1) an amount equal to the amount deposited by the
169-25 institution for each loan if the institution:
170-1 (A) has assets of more than $1 billion; or
170-2 (B) has previously enrolled loans in the program
170-3 that in the aggregate are more than $2 million;
170-4 (2) an amount equal to 150 percent of the total amount
170-5 deposited under Subsection (b) for each loan if the institution is
170-6 not described by Subdivision (1); or
170-7 (3) notwithstanding Subdivisions (1) and (2), an
170-8 amount equal to 200 percent of the amount deposited under
170-9 Subsection (b) for each loan if the borrower is located in or
170-10 financing a project, activity or enterprise in an area designated
170-11 as an enterprise zone under Chapter 2303.
170-12 Sec. 488.0540. Limitations on State Contribution to Reserve
170-13 Account. (a) The amount deposited by the Office into a
170-14 participating financial institution's reserve account for any
170-15 single loan recipient may not exceed $150,000 during a three-year
170-16 period.
170-17 (b) The maximum amount the Office may deposit into a reserve
170-18 account for each capital access loan made under this subchapter is
170-19 the lesser of $35,000 or an amount equal to:
170-20 (1) eight percent of the loan amount if the borrower
170-21 is located in or financing a project, activity, or enterprise in an
170-22 area designated as an enterprise zone under Chapter 2303.
170-23 (2) six percent of the loan amount for any other
170-24 borrower.
170-25 Sec. 488.0541. Rights of State with Respect to Reserve
171-1 Account. (a) All of the money in a reserve account established
171-2 under this subchapter is the property of the state.
171-3 (b) The state is entitled to earn interest on the amount of
171-4 contributions made by the Office, borrower and institution to a
171-5 reserve account under this subchapter. The Office shall withdraw
171-6 monthly or quarterly from a reserve account the amount of the
171-7 interest earned by the state. The Office shall deposit the amount
171-8 withdrawn under this subsection into the fund.
171-9 (c) If the amount in a reserve account exceeds an amount
171-10 equal to 33 percent of the balance of the financial institution's
171-11 outstanding capital access loans, the Office may withdraw the
171-12 excess amount and deposit the amount in the fund. A withdrawal of
171-13 money authorized under this subsection may not reduce an active
171-14 reserve account to an amount that is less than $200,000.
171-15 (d) The Office shall withdraw from the institution's reserve
171-16 account the total amount in the account and any interest earned on
171-17 the account and deposit the amount in the fund when:
171-18 (1) a financial institution is no longer eligible to
171-19 participate in the program, or a participation agreement entered
171-20 into under this subchapter expires without renewal by the Office or
171-21 institution;
171-22 (2) the financial institution has no outstanding
171-23 capital access loans; and
171-24 (3) the financial institution has not made a capital
171-25 access loan within the preceding 24 months.
172-1 Sec. 488.0542. Annual Report. A participating financial
172-2 institution shall submit an annual report to the Office. The
172-3 report must:
172-4 (1) provide information regarding outstanding capital
172-5 access loans, capital access loan losses and any other information
172-6 on capital access loans the Office considers appropriate;
172-7 (2) state the total amount of loans for which the
172-8 Office has made a contribution from the fund under this subchapter;
172-9 (3) include a copy of the institution's most recent
172-10 financial statement; and
172-11 (4) include information regarding the type and size of
172-12 businesses and nonprofit organizations with capital access loans.
172-13 Sec. 488.0543. Reports and Audits. (a) The Office shall
172-14 submit to the legislature an annual status report on the activities
172-15 of the program.
172-16 (b) The financial transactions of the fund are subject to
172-17 audit by the state auditor as provided by Chapter 321.
172-18 Sec. 488.0544. State Liability Prohibited. The state is not
172-19 liable to a participating financial institution for payment of the
172-20 principal, interest, or any late charges on a capital access loan
172-21 made under this subchapter.
172-22 Sec. 488.0545. Gifts and Grants. The Office may accept
172-23 gifts, grants, and donations from any source for the purposes of
172-24 this subchapter.
173-1 SUBCHAPTER G. TEXAS LEVERAGE PROGRAM
173-2 Sec. 488.054. Definitions. In this subchapter:
173-3 (1) "Fund" means the Texas business enhancement
173-4 account in the general revenue fund.
173-5 (2) "Loan recipient" means a corporation, business
173-6 Partnership, joint venture, retail business, sole proprietorship,
173-7 cooperative, or other entity, profit or nonprofit, that is
173-8 authorized to conduct business in this state and organized for
173-9 agricultural, commercial, or industrial purposes.
173-10 (3) "Program" means the Texas business enhancement
173-11 program.
173-12 Sec. 488.055. Texas Business Enhancement Fund; Creation and
173-13 Administration. (a) The fund shall be created as a special
173-14 account in the general revenue fund and shall operate as a
173-15 guaranteed loan fund. Appropriations and other deposits to the
173-16 fund, including investment earnings and fees, shall be deposited in
173-17 the fund. The Office shall use money in the fund to make deposits
173-18 in a participating financial institution's reserve account in an
173-19 amount specified by this subchapter for each guaranteed loan made
173-20 by the institution. Money in the fund may be used only to carry
173-21 out the purposes of this subchapter.
173-22 (b) The Office shall contract with the Partnership to
173-23 perform the Office's duties and exercise its powers and implement
173-24 and administer the fund under this subchapter to the fullest extent
173-25 permitted by the Texas Constitution.
174-1 Sec. 488.056. Powers of Office. In administering the fund,
174-2 the Office has the powers necessary or convenient to carry out the
174-3 purposes of this subchapter and the fund, including any power
174-4 granted the Office under this subtitle and the power to:
174-5 (1) make, execute, and deliver contracts, conveyances,
174-6 and other instruments necessary or convenient to the exercise of
174-7 its powers;
174-8 (2) acquire insurance against loss in connection with
174-9 the Office's property, assets, or activities;
174-10 (3) invest money at the Office's discretion inn
174-11 obligations determined proper by the Office, and select and use
174-12 depositories for its money;
174-13 (4) employ personnel, private consultants, managers,
174-14 counsel, auditors, engineers, and scientists and pay them from
174-15 money in the fund legally available for this purpose; and
174-16 (5) charge, impose, and collect fees and charges in
174-17 connection with any transaction and provide for reasonable
174-18 penalties for delinquent payment of fees or charges.
174-19 Sec. 488.057. Support to Office by Other State Departments
174-20 and Agencies. Each agency of state government shall provide full
174-21 cooperation to the Office in the performance of its powers, duties,
174-22 and responsibilities.
174-23 Sec. 488.058. Provisions Relating to Loan Guarantees.
174-24 (a) The Office shall determine eligibility of a financial
174-25 institution to make guaranteed loans under this subchapter and
175-1 establish general policies governing those loans. Except as
175-2 provided by this section or by rules adopted under Subsection (f),
175-3 the Office may not determine the recipient, amount, type, or
175-4 interest rate of a loan or the fees or other requirements related
175-5 to a loan. The Office shall require a financial institution to
175-6 enter a participatory agreement with the Office before the
175-7 financial institution makes guaranteed loans under this subchapter.
175-8 (b) A financial institution making a loan guaranteed under
175-9 this subchapter shall establish a reserve account. The institution
175-10 shall collect a fee from each guaranteed loan recipient in an
175-11 amount not less than three percent nor more than five percent of
175-12 the amount of the loan and shall deposit the fee in the reserve
175-13 account.
175-14 (c) Until the first anniversary of the date a bank executes
175-15 a participatory agreement or until the time the total amount of
175-16 loans made by an institution guaranteed under this subchapter first
175-17 exceeds $1 million, whichever occurs first, the Office shall
175-18 deposit in the institution's reserve account for each guaranteed
175-19 loan made by the institution an amount equal to twice the amount of
175-20 the fee deposited by the institution for that loan. Thereafter,
175-21 the Office shall deposit in the reserve account an amount equal to
175-22 the amount deposited by the institution for each loan.
175-23 (d) The reserve account shall be used to cover any losses
175-24 arising from a loan guaranteed under this subchapter.
175-25 (e) If a loss arises from a loan that is guaranteed using
176-1 money appropriated by the General Appropriations Act, Acts of the
176-2 71st Legislature, Regular Session, 1989, and if the reserve account
176-3 then does not contain sufficient funds to cover the loss, the bank
176-4 may recover the loss later by a one-time payment when the Office
176-5 determines the reserve account contains sufficient funds. If the
176-6 amount in the reserve account equals or exceeds 33 percent of the
176-7 total amount of the institution's loans guaranteed under this
176-8 subchapter, the institution shall use the fee collected from a
176-9 guaranteed loan recipient to repay the Office's contribution to the
176-10 reserve account. Half of any interest earned on the reserve
176-11 account shall be deposited in the reserve account and the remainder
176-12 shall be used to repay the Office's contribution to the reserve
176-13 account.
176-14 (f) The Office shall adopt rules governing the length of
176-15 time within which loans guaranteed under this subchapter must be
176-16 repaid. The rules must provide for preference of loans with longer
176-17 terms.
176-18 (g) A loan guaranteed under this subchapter shall be used
176-19 for a business purpose within this state.
176-20 (h) A loan is not eligible for a guarantee under this
176-21 subchapter if it is for:
176-22 (1) construction or purchase of residential housing;
176-23 (2) simple real estate investments, excluding the
176-24 development or improvement of commercial real estate or real estate
176-25 business operations;
177-1 (3) refinancing of existing loans not originally
177-2 guaranteed under this subchapter; or
177-3 (4) inside bank transactions, as defined by the
177-4 Office.
177-5 (i) The amount deposited by the Office into a financial
177-6 institution's reserve account for any single loan recipient may not
177-7 exceed $150,000 during a three-year period.
177-8 Sec. 488.059. Reports; Audits. (a) The Office shall submit
177-9 to the legislature an annual status report on the program's
177-10 activities.
177-11 (b) The financial transactions of the fund are subject to
177-12 audit by the state auditor as provided by Chapter 321.
177-13 SUBCHAPTER H. OFFICE POWERS AND DUTIES RELATING TO ZONES
177-14 Sec. 488.060. Contract with Partnership. The Office shall
177-15 contract with the Partnership to perform the Office's duties and
177-16 exercise its powers and implement and administer the programs under
177-17 Chapter 2303 to the fullest extent permitted by the Texas
177-18 Constitution.
177-19 CHAPTER 489. TECHNOLOGY AND CRUCIAL INDUSTRY DEVELOPMENT
177-20 SUBCHAPTER A. SCIENCE AND TECHNOLOGY COUNCIL
177-21 Sec. 489.001. Purpose. The Office shall contract with the
177-22 Partnership to form The Council on Science and Technology, "the
177-23 Council", for the purpose of researching, reporting and advising
177-24 the Office on issues relating to the development of high technology
177-25 industry in the state. The goal of the Council shall be to develop
178-1 strategies for the Office which will make Texas the national leader
178-2 in science and technology cooperation, development and research.
178-3 (a) Composition of Council. The Council shall consist of 21
178-4 members appointed by the governor. The governor shall designate
178-5 the chair of the Council. The Council shall meet at the call of
178-6 the chair.
178-7 (b) Duties. The Council shall perform the duties of the
178-8 Office under this Chapter. The Office shall:
178-9 (1) review and recommend policies that will increase
178-10 the amount of basic and applied research conducted by state and
178-11 private institutions of higher education;
178-12 (2) propose policies that promote technology
178-13 development and transfer in the state, including the creation of
178-14 Partnerships that result in the establishment of new technology
178-15 industries;
178-16 (3) analyze and propose state policies that will
178-17 encourage availability and accessibility of venture capital and
178-18 commercial lending;
178-19 (4) study and make recommendations on issues that
178-20 relate directly to the improvement of the state's competitive
178-21 position in the fields of science, research and development, and
178-22 development of advanced technologies;
178-23 (5) explore methods for increasing trade and
178-24 encouraging initiatives for cooperation with trade partners for the
178-25 benefit of technology and telecommunications industries based in
179-1 this state; and
179-2 (6) identify methods and propose strategies to attract
179-3 new industry to the state.
179-4 SUBCHAPTER B. TEXAS MANUFACTURING INSTITUTE
179-5 Sec. 489.002. Establishment. The Texas Manufacturing
179-6 Institute consists of governmental agencies, educational
179-7 institutions, and other entities, involved in the promotion of
179-8 manufacturing, that join as members of the institute.
179-9 Sec. 489.003. Duties. The Office shall contract with the
179-10 Partnership to manage and administer the Texas Manufacturing
179-11 Institute. The institute shall perform the duties of the Office
179-12 under this subchapter. The Office shall:
179-13 (1) identify needs within Texas' manufacturing
179-14 infrastructure, work to meet those needs, promote Texas'
179-15 manufacturing strengths and capabilities, and communicate the
179-16 importance of manufacturing to the state's economic future;
179-17 (2) develop a program of activities that will improve
179-18 Texas' manufacturing capabilities by enhancing existing research,
179-19 educational, and technical training programs aimed at developing
179-20 and transferring new manufacturing technologies and at increasing
179-21 the skilled work force in manufacturing;
179-22 (3) take all opportunities for cooperation among
179-23 manufacturing programs of its member institutions;
179-24 (4) encourage the development of the statewide
179-25 manufacturing program among its member institutions, including the
180-1 areas of microelectronics, electronics assembly, automation and
180-2 robotics, concurrent engineering, computer integrated
180-3 manufacturing, artificial intelligence applications, and flexible
180-4 manufacturing systems; and
180-5 (5) seek opportunities to facilitate cooperative
180-6 efforts among members of the institute, other educational
180-7 institutions of this state, private research organizations,
180-8 industry, and federal laboratories.
180-9 Sec. 489.004. Policy Board. The institute is governed by a
180-10 policy board composed of one member appointed by each member
180-11 institution. The policy board shall elect the chairman from among
180-12 the policy board's members. The chairman serves a two-year term.
180-13 A person who has been chairman is not eligible to be elected
180-14 chairman. The policy board shall establish policies and strategies
180-15 necessary for the institute to accomplish the purposes of this
180-16 subchapter.
180-17 Sec. 489.005. Technical Advisory Council. The policy board
180-18 shall appoint a technical advisory council to develop
180-19 recommendations on the educational and technical program priorities
180-20 for the institute. The technical advisory council consists of one
180-21 representative from each member institution, together with an equal
180-22 number of representatives from manufacturing industry, a
180-23 representative of community and junior colleges, and a senior
180-24 representative from a professional engineering society. The
180-25 technical advisory council shall be responsible for those
181-1 activities assigned to it by the policy board.
181-2 Sec. 489.006. Public and Private Funds. The institute may
181-3 receive state-appropriated funds and use the funds as matching
181-4 funds for federal proposals and contracts to provide specialized
181-5 equipment and facilities for members of the institute and to assist
181-6 with technology transfer to Texas industry, and as seed funds for
181-7 new programs within the scope of the institute. The institute may
181-8 accept gifts, donations, and grants, including federal funds, to
181-9 support its purposes and programs.
181-10 Sec. 489.007. Disbursement Policy. Disbursement of funds
181-11 received by the institute shall be in accordance with policy
181-12 determined by the policy board subject to the laws of the state and
181-13 the policies of the member institutions. The disbursement policy
181-14 must recognize the state core support for each institution,
181-15 matching requirements for federal grants and contracts, and new
181-16 cooperative initiatives. Disbursement of funds shall reflect the
181-17 division of labor as specified in the submitted proposal.
181-18 SUBCHAPTER C. FILM AND MUSIC MARKETING
181-19 Sec. 489.008. Promotion; Duties. (a) The Office shall
181-20 contract with the Partnership to perform the Office's duties and
181-21 exercise its powers and implement and administer the programs under
181-22 this subchapter to the fullest extent permitted by the Texas
181-23 Constitution.
181-24 (b) The Office shall:
181-25 (1) promote the development of the music industry in
182-1 the state by informing members of that industry and the public
182-2 about the resources available to the state for music production;
182-3 and
182-4 (2) promote the development of the film, television,
182-5 and multimedia industries in this state by informing members of
182-6 those industries and the public of the resources available in this
182-7 state for film, television, and multimedia production.
182-8 (c) State agencies and political subdivisions of this state
182-9 shall cooperate with the Office to the greatest extent possible to
182-10 fully implement the goal of promoting the development of the music,
182-11 film, television, and multimedia industries in this state.
182-12 Sec. 489.009. Gifts and Grants. (a) The Office may accept
182-13 gifts, grants, and other funds specifically designated by the donor
182-14 or grantor for use in developing the music, film, television, and
182-15 multimedia industries of this state.
182-16 Sec. 489.010. Music, Film, Television, and Multimedia Fund.
182-17 The music, film, television, and multimedia fund is in the state
182-18 treasury. The continued existence of this fund is determined by
182-19 the provisions of S.B. No. 3, Acts of the 72nd Legislature, 1st
182-20 Called Session, 1991. All gifts, grants, and other funds received
182-21 by the Office under this subchapter shall be deposited to the
182-22 credit of the fund and may be used only for the purposes of this
182-23 chapter.
182-24 SUBCHAPTER D. TEXAS AEROSPACE COUNCIL
182-25 Sec. 489.0110. Purpose. The Office shall contract with the
183-1 Partnership to form the Texas Aerospace Council "the Council". The
183-2 Council will develop an economic strategy to provide
183-3 recommendations and alternatives for creating an environment which
183-4 will attract and retain aerospace industry resources and
183-5 investments and facilitate the diversification of nontraditional
183-6 aerospace technologies into the state economy.
183-7 Sec. 489.0111. Composition of the Council. The Council will
183-8 consist of the governor and nine members from the public and
183-9 private sector appointed by the governor. To be eligible for
183-10 appointment, a person must have demonstrated experience in
183-11 aerospace research, economic development in the private sector,
183-12 marketing, banking, or research and development in science or
183-13 engineering. Members of the Council appointed by the governor will
183-14 serve for staggered four-year terms.
183-15 Sec. 489.0112. Duties. The Council shall perform the duties
183-16 of the Office for the purposes of this Subchapter. The Office
183-17 shall encourage economic development in this state by fostering the
183-18 development of industries related to the commercialization of
183-19 aerospace and analyze space related research currently conducted in
183-20 this state and may conduct activities designed to further that
183-21 research. The Office may solicit and accept private and public
183-22 donations and grants specifically designated for the purposes of
183-23 this subchapter. The funds may be deposited in a special account
183-24 in the general revenue fund. The account may be used to administer
183-25 the functions of this Subchapter.
184-1 SUBCHAPTER E. ENERGY AND ALTERNATIVE FUELS PROMOTION
184-2 Sec. 489.0120. Purpose. The Office shall contract with the
184-3 Partnership to promote alternative energy and the natural gas
184-4 industry in the state. The Office will promote research,
184-5 information, and greater use of alternative fuels as a means of
184-6 lessening demand on foreign energy resources, ameliorating
184-7 environmental pollution, and increasing the economic well-being of
184-8 the state.
184-9 Sec. 489.0121. Duties. The Office shall develop and
184-10 implement a research, marketing, and public education plan for the
184-11 increased use of liquefied petroleum gas, natural gas, and other
184-12 alternative energy resources as fuel. The plan will include a
184-13 strategy for the promotion of the use of natural gas for vehicles
184-14 and electric power generation and facilitate the advancement of
184-15 natural gas technology. The general land office and the railroad
184-16 commission shall provide all necessary information to the Office in
184-17 order that the Office and the Partnership may carry out the
184-18 purposes of this subchapter. The Office may solicit and accept
184-19 private and public donations and grants specifically designated for
184-20 the purposes of this subchapter. The funds may be deposited in a
184-21 special account in the general revenue fund. The account may be
184-22 used to administer the functions of this subchapter.
184-23 SUBCHAPTER F. RECYCLING MARKET DEVELOPMENT
184-24 Sec. 489.013. Purpose. The Office shall contract with the
184-25 Partnership to develop and diversify the economy of this state and
185-1 develop and expand commerce in this state through sustaining and
185-2 promoting recycling enterprises.
185-3 Sec. 489.014. Definitions. In this subchapter, "enterprise
185-4 zone" and "governing body" have the meanings assigned by Chapter
185-5 2303.
185-6 Sec. 489.015. Designation as Recycling Market Development
185-7 Zone. On application by the governing body of an enterprise zone,
185-8 the Office may designate the enterprise zone as a recycling market
185-9 development zone for the development of local business and industry
185-10 in the zone to recycle materials that have served their intended
185-11 use or that are scrapped, discarded, used, surplus, or obsolete by
185-12 collecting, separating, or processing the materials for use in the
185-13 production of new products.
185-14 Sec. 489.016. Recycling Market Development Loans and Grants.
185-15 (a) The Office may make a loan or grant to the governing body of
185-16 an enterprise zone designated as a recycling market development
185-17 zone to fund an activity that sustains or increases recycling
185-18 efforts.
185-19 (b) A grant recipient under this section must match the
185-20 amount of the state grant with an equal amount of money from
185-21 another source.
185-22 (c) A grant under this section may not exceed $30,000.
185-23 (d) The Office may make loans or grants from appropriated
185-24 funds or from any special fund.
185-25 Sec. 489.017. Rulemaking. The Office shall adopt necessary
186-1 rules to implement and administer this subchapter in accordance
186-2 with the purposes of this subchapter, including rules on:
186-3 (1) criteria for designating a recycling market
186-4 development zone;
186-5 (2) designation applications, loan applications, and
186-6 grant applications;
186-7 (3) the minimum and maximum amount of a loan made
186-8 under this subchapter;
186-9 (4) application fees; and
186-10 (5) operational guidelines for loan and grant
186-11 disbursement.
186-12 CHAPTER 490. MISCELLANEOUS PROVISIONS
186-13 SUBCHAPTER A. LITERACY
186-14 Sec. 490.001. Literacy. (a) In this section, "Council"
186-15 means the Council on Workforce and Economic Competitiveness.
186-16 (b) The Council shall:
186-17 (1) advise the governor, the Texas Workforce
186-18 Commission, the State Board of Education, the Texas Higher
186-19 Education Coordinating Board, and any group interested in literacy
186-20 on policy, planning, research, and program development;
186-21 (2) coordinate the development and maintenance of a
186-22 literacy services delivery system;
186-23 (3) oversee the attainment of the state's literacy
186-24 goals;
186-25 (4) build a Partnership with the private sector in
187-1 order to inform the objectives-setting process and to gain
187-2 acceptance of the services of a functional literacy program;
187-3 (5) provide state leadership to encourage and support
187-4 local and statewide literacy efforts;
187-5 (6) advocate the importance of literacy to ensure that
187-6 all in need of assistance understand the benefits of increased
187-7 functional literacy and to ensure that the necessary resources are
187-8 available;
187-9 (7) make literacy instruction available to adults and
187-10 out-of-school youth by ensuring that a comprehensive literacy
187-11 instruction capacity is present in every Texas community;
187-12 (8) coordinate and improve local literacy instruction
187-13 to ensure the most efficient and effective use of resources to meet
187-14 adult education goals;
187-15 (9) identify state and local literacy programs and
187-16 enter them in a directory for centralized referral and
187-17 communication;
187-18 (10) continue oversight of literacy needs analysis;
187-19 (11) continue to develop an awareness campaign;
187-20 (12) develop a timetable and objectives for reaching
187-21 the proposed goals and subgoals; and
187-22 (13) make recommendations to the governor, lieutenant
187-23 governor, and speaker of the house of representatives or other
187-24 state officials or organizations that it considers appropriate
187-25 regarding the expenditure of funds and the administration of
188-1 programs.
188-2 (c) The Office may award literacy grants out of state,
188-3 local, federal, and private money available to the Office for that
188-4 purpose. Grants shall be awarded under guidelines set by the Texas
188-5 Workforce Commission. The guidelines shall include a competitive
188-6 request for proposal process that includes criteria for evaluating
188-7 the proposals.
188-8 (d) The Office may establish a Texas literacy trust fund for
188-9 the purpose of collecting private funds for distribution to
188-10 community literacy programs. The fund, if established, shall be a
188-11 fund held in trust by the comptroller for and on behalf of the
188-12 Office as funds held outside the treasury under Section 404.073.
188-13 The Office shall distribute money from the fund under guidelines
188-14 set by the Texas Workforce Commission.
188-15 SUBCHAPTER B. INDEMNIFICATION IN CONNECTION WITH ART AND
188-16 ARTIFACTS
188-17 Sec. 490.002. Authority of the Office to Indemnify. The
188-18 Office may agree to indemnify against loss or damage in connection
188-19 with eligible items borrowed from or loaned to a nonprofit
188-20 corporation, foundation, individual, corporation, another business
188-21 entity, or a governmental entity outside the state on the terms and
188-22 conditions the Office by rule prescribes to achieve the purposes of
188-23 this subchapter and to protect the financial interest of this
188-24 state.
188-25 Sec. 490.003. Eligible Items and Applicants. (a) The
189-1 following items are eligible to be the subject of an indemnity
189-2 agreement under this subchapter:
189-3 (1) works of art, including but not limited to
189-4 tapestries, paintings, sculpture, folk art, graphics, and craft
189-5 arts;
189-6 (2) manuscripts, rare documents, books, and other
189-7 printed or published materials;
189-8 (3) other artifacts or objects; and
189-9 (4) photographs, motion pictures, audio and video
189-10 tapes, or other forms of audio and visual communication.
189-11 (b) In addition, to be eligible the items must:
189-12 (1) be of public, educational, cultural, artistic,
189-13 historical, or scientific significance;
189-14 (2) not be eligible for an indemnity agreement under
189-15 the United States Arts and Artifacts Indemnity Act (20 U.S.C.
189-16 Section 971 et seq.) and regulations adopted under that Act;
189-17 (3) have or constitute a portion of an exhibition
189-18 having an aggregate fair market value of at least $1 million; and
189-19 (4) be certified by the Office to conform to this
189-20 subchapter.
189-21 (c) The Office may enter an indemnity agreement to cover
189-22 only applicants that the Texas Commission on the Arts has
189-23 determined qualify for indemnity coverage under criteria determined
189-24 by rule of the Texas Commission on the Arts. The criteria must
189-25 include:
190-1 (1) physical security of the borrower's exhibition
190-2 facilities and of the means of transportation of the eligible items
190-3 between the borrower and the lender;
190-4 (2) experience and qualifications of the borrower's
190-5 director, curator, registrar, and other staff;
190-6 (3) eligibility of the borrower's exhibition
190-7 facilities for commercial insurance coverage of the eligible items
190-8 displayed there; and
190-9 (4) availability of proper equipment to protect
190-10 eligible items from damage from extremes of temperature or humidity
190-11 or exposure to glare, dust, or corrosion.
190-12 (d) The Texas Commission on the Arts may consult with
190-13 private insurance and art experts as reasonably necessary to carry
190-14 out Subsection (c).
190-15 (e) An indemnity agreement under this subchapter shall cover
190-16 eligible items from the time the items leave the premises of the
190-17 lender until the time the items are returned to the premises of the
190-18 lender or to a place previously designated in writing by the
190-19 lender.
190-20 Sec. 490.004. Application for Indemnity Agreement. (a) A
190-21 nonprofit corporation, foundation, institution, or state or
190-22 governmental body in the state may apply to the Office for
190-23 indemnification for eligible items it proposes to borrow from or
190-24 loan to a borrower or lender outside the state according to the
190-25 procedures, in the form, and in the manner prescribed by rules of
191-1 the Office.
191-2 (b) An application under this section must:
191-3 (1) describe each item to be covered by the agreement
191-4 and include an estimated value of the item;
191-5 (2) show evidence that the items are eligible under
191-6 Sections 490.003(a) and (b); and
191-7 (3) set forth the policies, procedures, techniques,
191-8 and methods with respect to preparation for, and conduct of, the
191-9 exhibition of the items and any transportation related to the items
191-10 to show compliance with the criteria established under Section
191-11 490.003(c).
191-12 (c) On receipt of an application that complies with this
191-13 subchapter, the Office, through a committee of experts designated
191-14 by the Texas Commission on the Arts, shall review the validity of
191-15 the application, including the accuracy of the value of the items
191-16 for which coverage by an indemnity agreement is sought. The Office
191-17 may have the items appraised by an independent appraiser, with the
191-18 cost of the appraisal charged to the applicant. If the committee
191-19 agrees with the estimated value, the Office shall approve the
191-20 application and enter into an indemnity agreement with and issue a
191-21 certificate to the lender of the eligible items.
191-22 (d) An indemnity agreement shall constitute a contract among
191-23 the Office, the lender, and the borrower under which the Office
191-24 becomes liable as provided by the agreement. The Office shall
191-25 limit the amount of any covered indemnity agreement to $50 million
192-1 for each exhibition and to $100 million for all outstanding
192-2 agreements. An agreement may cover only loss or damage in excess
192-3 of the first $1 million in claims resulting from a single
192-4 exhibition.
192-5 Sec. 490.005. Claims. (a) The commissioner of insurance
192-6 shall adopt rules providing for prompt adjustment of valid claims
192-7 for losses covered by an indemnity agreement under this subchapter,
192-8 including rules providing for the employment of consultants and for
192-9 the arbitration of issues relating to the dollar value of damages
192-10 involving less than total loss or destruction of covered eligible
192-11 items.
192-12 (b) The Office shall investigate and certify the validity of
192-13 a claim and authorize payment of the amount of the loss, less any
192-14 deductible portion, to the indemnity. The Office shall forward the
192-15 authorization to the comptroller, who shall take appropriate action
192-16 to execute authorized payment of the claim from the Texas art
192-17 indemnity fund.
192-18 Sec. 490.006. Texas Art Indemnity Fund. (a) The Texas art
192-19 indemnity fund is a fund outside the state treasury. The
192-20 comptroller shall be trustee of the fund as provided by Section
192-21 404.073. The fund consists of contributions made for the purposes
192-22 of this subchapter. Money in the fund may be used only for payment
192-23 of indemnity claims as provided by this subchapter.
192-24 (b) The Texas Commission on the Arts by rule shall establish
192-25 programs to provide for contributions and other participation to
193-1 carry out the purposes of this subchapter. The rules shall
193-2 establish standards for participation in the programs.
193-3 Sec. 490.007. Annual Report to Legislature. On or before
193-4 December 31 of each year, the Office shall report to the
193-5 legislature. The report must include a statement of:
193-6 (1) the amount of claims, if any, actually paid under
193-7 this subchapter during the preceding state fiscal year;
193-8 (2) the amount of claims pending under this subchapter
193-9 as of the close of that fiscal year; and
193-10 (3) the aggregate face value of indemnity agreements
193-11 entered into by the Office that are outstanding at the close of
193-12 that fiscal year.
193-13 Sec. 490.008. Contract with Partnership. The Office shall
193-14 contract with the Partnership to perform the Office's duties and
193-15 exercise its powers and implement and administer the program under
193-16 this subchapter to the fullest extent permitted by the Texas
193-17 Constitution.
193-18 SUBCHAPTER C. AT-RISK YOUTH AND DROPOUTS
193-19 Sec. 490.009. Guidelines for Access to Funds for At-Risk
193-20 Youth and Dropouts. (a) In this section:
193-21 (1) "Funds" means funds available under Chapter 301,
193-22 Labor Code.
193-23 (2) "Service delivery area" has the meaning assigned
193-24 by Section 301.005(a)(6), Labor Code.
193-25 (b) The Office shall maintain guidelines for the Texas
194-1 Department of Human Services, the Texas Department of Mental Health
194-2 and Mental Retardation, the Texas Juvenile Probation Commission,
194-3 the Texas Education Agency, and the Texas Youth Commission to
194-4 facilitate access to funds for dropouts and youth who are at risk
194-5 of becoming dropouts. The guidelines shall establish the
194-6 procedures for the state agencies' county or regional
194-7 representatives to follow to submit an application to the
194-8 appropriate service delivery area for funds for youth-related
194-9 projects.
194-10 (c) Each agency shall:
194-11 (1) appoint one state agency level employee to assist
194-12 the local agency representatives with the funding process;
194-13 (2) identify projects that meet the requirements for
194-14 obtaining funds;
194-15 (3) distribute the information to local agency
194-16 representatives on a timely basis; and
194-17 (4) assist its local agency representatives in the
194-18 development and submission of project applications and, if a
194-19 project receives funds, in the development of the necessary
194-20 documentation to comply with the project guidelines.
194-21 (d) Not later than the last month of each state fiscal year,
194-22 the Office and the agencies described in Subsection (b) shall
194-23 review and update the guidelines.
195-1 SUBCHAPTER D. MAIN STREET PROGRAM
195-2 Sec. 490.010. Agreement with Historical Commission. The
195-3 Texas Historical Commission shall execute a written agreement with
195-4 the Office providing for coordination and planning of and giving
195-5 priority to loans made under the commission's Main Street program.
195-6 The Office shall contract with the Partnership to perform the
195-7 Office's duties and exercise its powers and implement and
195-8 administer the program under this subchapter to the fullest extent
195-9 permitted by the Texas Constitution.
195-10 SECTION 2. REPEALER. The following laws are repealed:
195-11 (a) Subtitle F, Title 4, Government Code; and
195-12 (b) Chapter 42 and Chapter 44, Agriculture Code.
195-13 SECTION 3. The Texas Partnership for Economic Development is
195-14 abolished. If the Texas Partnership for Economic Development has
195-15 been organized as a nonprofit corporation, the Texas Partnership
195-16 for Economic Development may continue to exist after the effective
195-17 date of this Act only for the purposes of dissolving and of
195-18 disposing of any unencumbered assets in accordance with law. If
195-19 the Texas Partnership for Economic Development has not been
195-20 organized as a nonprofit corporation, any unencumbered assets of
195-21 the Texas Partnership for Economic Development, including property
195-22 and records, are transferred to the Office of Economic Development
195-23 and Tourism in the office of the governor.
195-24 SECTION 4. This Act does not revive a fund, account, or
195-25 dedication that was abolished or consolidated in accordance with
196-1 Section 403.094, Government Code, as added by Chapter 4, Acts of
196-2 the 72nd Legislature, 1st C.S., 1991, or in accordance with other
196-3 law.
196-4 SECTION 5. (a) Subtitle F, Government Code, as added by
196-5 this Act, takes effect September 1, 1997, and on that date the
196-6 powers, duties, and obligations of the Texas Department of Commerce
196-7 relating to the activities that are included in Subtitle F, as
196-8 added by this Act, are transferred to the Office of Economic
196-9 Development and Tourism in the office of the governor. As soon as
196-10 possible after the effective date of Subtitle F, Government Code,
196-11 as added by this Act, the Texas Department of Commerce shall
196-12 transfer all property of the department relating to the powers,
196-13 duties, and obligations being transferred and all records relating
196-14 to the powers, duties, and obligations being transferred in its
196-15 custody to the Office of Economic Development and Tourism in the
196-16 office of the governor.
196-17 (b) On the transfer of all property and records under
196-18 Subsection (a) of this section:
196-19 (1) a rule, form, or policy adopted by the Texas
196-20 Department of Commerce relating to the powers, duties, and
196-21 obligations being transferred becomes a rule, form, or policy of
196-22 the Office of Economic Development and Tourism in the office of the
196-23 governor; and
196-24 (2) a contract made by the Texas Department of
196-25 Commerce relating to the powers, duties, and obligations being
197-1 transferred becomes a contract made by the Office of Economic
197-2 Development and Tourism in the office of the governor.
197-3 (c) As soon as possible after the effective date of Subtitle
197-4 F, Government Code, as added by this Act, all funds appropriated to
197-5 the Texas Department of Commerce for the powers, duties, and
197-6 obligations related to the powers, duties, and obligations being
197-7 transferred are transferred to the Office of Economic Development
197-8 and Tourism in the office of the governor and all other funds
197-9 transferred or deposited pursuant to this Act are hereby
197-10 appropriated as specified in the General Appropriations Act for the
197-11 purposes specified in this Act.
197-12 (d) As soon as possible after the effective date of Subtitle
197-13 F, Government Code, as added by this Act, all personnel employed by
197-14 the Texas Department of Commerce for the administration of the
197-15 powers, duties, and obligations related to those being transferred
197-16 are transferred to the Office of Economic Development and Tourism
197-17 in the office of the governor until the Office of Economic
197-18 Development and Tourism contracts with Partnership Texas to carry
197-19 out the administration related to the powers, duties, and
197-20 obligations being transferred.
197-21 SECTION 6. If an entity that is abolished by this Act has
197-22 property, records, or other assets and the article of this Act that
197-23 abolishes the entity does not provide for their disposition, the
197-24 General Services Commission shall take custody of the property,
197-25 records, or other assets of the entity unless the governor
198-1 designates another appropriate state agency to take custody of the
198-2 entity's property, records, or other assets.
198-3 SECTION 7. EFFECTIVE DATE. This Act takes effect September
198-4 1, 1997.
198-5 SECTION 8. EMERGENCY. The importance of this legislation
198-6 and the crowded condition of the calendars in both houses create an
198-7 emergency and an imperative public necessity that the
198-8 constitutional rule requiring bills to be read on three several
198-9 days in each house be suspended, and this rule is hereby suspended.