By Gallego, Solis, McCall, Chisum, Luna, H.B. No. 3452
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the continuation and functions of the Texas Department
1-3 of Economic Development and the operation, funding, and
1-4 administration of economic development programs.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 ARTICLE 1. CONTINUATION AND FUNCTIONS OF TEXAS DEPARTMENT
1-7 OF ECONOMIC DEVELOPMENT
1-8 SECTION 1.01. Section 481.001, Government Code, is amended by
1-9 adding Subdivision (5) to read as follows:
1-10 (5) "Council" means the Texas Tourism Coordinating
1-11 Council.
1-12 SECTION 1.02. Section 481.003, Government Code, is amended to
1-13 read as follows:
1-14 Sec. 481.003. SUNSET PROVISION. The Texas Department of
1-15 Economic Development is subject to Chapter 325 (Texas Sunset Act).
1-16 Unless continued in existence as provided by that chapter, the
1-17 department is abolished and this chapter expires September 1, 2003
1-18 [2001].
1-19 SECTION 1.03. Subchapter A, Chapter 481, Government Code, is
1-20 amended by adding Section 481.0031 to read as follows:
1-21 Sec. 481.0031. OVERSIGHT OF DEPARTMENT. (a) The following
1-22 criteria shall be used to determine if the department has
1-23 successfully implemented the proper management and oversight
1-24 controls of the state's economic development efforts:
1-25 (1) effective development and implementation of a
2-1 strategic plan that:
2-2 (A) ensures a clear focus and direction for the
2-3 department, including a proper needs assessment that incorporates
2-4 information from local economic development entities;
2-5 (B) focuses activities based on the policy
2-6 directives of the governing board;
2-7 (C) details the methodology of how the
2-8 department plans to implement the strategies in the strategic plan;
2-9 and
2-10 (D) explains how individual division actions
2-11 contribute to the department's desired results;
2-12 (2) establishment of subcommittees relating to the key
2-13 administrative and programmatic functions of the department to
2-14 allow governing board members to develop the expertise necessary to
2-15 make informed decisions about and ensure accountability to the
2-16 department and its programs;
2-17 (3) establishment of effective, department-wide
2-18 contracting standards and methodologies;
2-19 (4) effective development and implementation of
2-20 consistent, department-wide policies, procedures, and controls over
2-21 daily operations, including budgeting, contracting, and travel;
2-22 (5) effective development and implementation of a
2-23 centralized information and accounting system that will provide
2-24 single management reports for key areas so that management can
2-25 determine a true financial position of the department; and
2-26 (6) effective use of the department's internal audit
2-27 function that ensures management responses to internal audit
3-1 reports are actually implemented.
3-2 (b) The department shall report to the Sunset Advisory
3-3 Commission by September 1, 2002, on the status of the criteria set
3-4 out in Subsection (a) as part of the reevaluation of the
3-5 department.
3-6 (c) This section expires September 1, 2003.
3-7 SECTION 1.04. Section 481.004, Government Code, is amended
3-8 to read as follows:
3-9 Sec. 481.004. GOVERNING BOARD. (a) The governing board is
3-10 composed of five [nine] public members appointed by the governor
3-11 with the advice and consent of the senate, which members shall be
3-12 appointed to give geographical representation on the governing
3-13 board to all regions of the state.
3-14 (b) Members of the governing board serve for staggered
3-15 six-year terms with the terms of either one or two [three] members
3-16 expiring February 1 of each odd-numbered year in accordance with
3-17 Section 30a, Article XVI, Texas Constitution.
3-18 (c) Appointments to the governing board shall be made
3-19 without regard to the race, color, handicap, sex, religion, age, or
3-20 national origin of the appointees.
3-21 (d) In making appointments under this section, the governor
3-22 shall attempt to include members of different minority groups
3-23 including females, African Americans, Hispanic Americans, Native
3-24 Americans, Asian Americans, and persons who are disabled.
3-25 [(e) At least one member of the governing board must be a
3-26 resident of a county with a population of less than 30,000, at
3-27 least one other member must have experience in international trade,
4-1 at least one other member must have experience in tourism, and at
4-2 least one other member must be an economic development
4-3 practitioner.]
4-4 SECTION 1.05. Section 481.024, Government Code, is amended by
4-5 adding new Subsections (c) and (d) and relettering current
4-6 Subsections (c), (d), (e), and (f) as Subsections (e), (f), (g),
4-7 and (h), respectively, to read as follows:
4-8 (c) The corporation may engage in fund-raising activities
4-9 for the market Texas program only and may raise no more than $2
4-10 million per biennium in those fund-raising activities.
4-11 (d) The office of the governor may use all money raised by
4-12 the corporation as discretionary funds only for the purposes stated
4-13 in the rules of the market Texas program to promote exceptional
4-14 economic development projects in the state. The office of the
4-15 governor may not use general revenue funds appropriated by the
4-16 legislature for the market Texas program to promote exceptional
4-17 economic development projects under this subsection.
4-18 (e) The corporation is a nonprofit corporation, and no part
4-19 of its net earnings remaining after payment of its expenses may
4-20 inure to any individual, firm, or corporation, except that if the
4-21 board of directors determines that sufficient provision has been
4-22 made for the full payment of the expenses, bonds, and other
4-23 obligations of the corporation, the additional net earnings of the
4-24 corporation shall be deposited to the credit of the general revenue
4-25 fund.
4-26 (f) [(d)] At any time the board of directors by written
4-27 resolution may alter the structure, organization, programs, or
5-1 activities of the corporation or terminate and dissolve the
5-2 corporation, subject only to any limitation provided by the law of
5-3 the state on the impairment of contracts of the corporation.
5-4 (g) [(e)] If the board of directors by resolution determines
5-5 that the purposes for which the corporation was formed have been
5-6 substantially complied with and that all bonds issued by the
5-7 corporation have been fully paid, the board of directors shall
5-8 dissolve the corporation. On dissolution, the title to all funds
5-9 and properties then owned by the corporation shall be transferred
5-10 to the department.
5-11 (h) [(f)] The Texas Economic Development Corporation and any
5-12 other corporation whose charter specifically dedicates the
5-13 corporation's activities to the benefit of the Texas Department of
5-14 Economic Development or its predecessor agency shall file an annual
5-15 report of the financial activity of the corporation. The annual
5-16 report shall be filed prior to the 90th day after the last day for
5-17 the corporation's fiscal year and shall be prepared in accordance
5-18 with generally accepted accounting principles. The report must
5-19 include a statement of support, revenue, and expenses and change in
5-20 fund balances, a statement of functional expenses, and balance
5-21 sheets for all funds.
5-22 SECTION 1.06. Section 481.0041(c), Government Code, is
5-23 amended to read as follows:
5-24 (c) If the executive director has knowledge that a potential
5-25 ground for removal exists, the executive director shall notify the
5-26 presiding officer of the governing board of the ground. The
5-27 presiding officer shall then notify the governor that a potential
6-1 ground for removal exists. If the potential ground for removal
6-2 involves the presiding officer, the executive director shall notify
6-3 the next highest ranking officer of the governing board, who shall
6-4 then notify the governor and the attorney general that a potential
6-5 ground for removal exists.
6-6 SECTION 1.07. Section 481.0044, Government Code, is amended
6-7 by adding Subsection (e) to read as follows:
6-8 (e) The governing board shall develop and implement policies
6-9 that clearly separate the policy-making responsibilities of the
6-10 governing board and the management responsibilities of the
6-11 executive director and staff of the department.
6-12 SECTION 1.08. Subchapter A, Chapter 481, Government Code, is
6-13 amended by adding Section 481.0045 to read as follows:
6-14 Sec. 481.0045. TRAINING. (a) A person who is appointed to
6-15 and qualifies for office as a member of the governing board may not
6-16 vote, deliberate, or be counted as a member in attendance at a
6-17 meeting of the governing board until the person completes a
6-18 training program that complies with this section.
6-19 (b) The training program must provide the person with
6-20 information regarding:
6-21 (1) the legislation that created the department and
6-22 the governing board;
6-23 (2) the programs operated by the department;
6-24 (3) the role and functions of the department;
6-25 (4) the rules of the department, with an emphasis on
6-26 the rules that relate to disciplinary and investigatory authority;
6-27 (5) the current budget for the department;
7-1 (6) the results of the most recent formal audit of the
7-2 department;
7-3 (7) the requirements of:
7-4 (A) the open meetings law, Chapter 551;
7-5 (B) the public information law, Chapter 552;
7-6 (C) the administrative procedure law, Chapter
7-7 2001; and
7-8 (D) other laws relating to public officials,
7-9 including conflict-of-interest laws; and
7-10 (8) any applicable ethics policies adopted by the
7-11 department or the Texas Ethics Commission.
7-12 (c) A person appointed to the governing board is entitled to
7-13 reimbursement, as provided by the General Appropriations Act, for
7-14 the travel expenses incurred in attending the training program
7-15 regardless of whether the attendance at the program occurs before
7-16 or after the person qualifies for office.
7-17 SECTION 1.09. Section 481.0065, Government Code, is amended
7-18 to read as follows:
7-19 Sec. 481.0065. OFFICE OF DEFENSE AFFAIRS. (a) The
7-20 department shall:
7-21 (1) establish and maintain an Office of Defense
7-22 Affairs; and
7-23 (2) appoint a director to manage the Office of Defense
7-24 Affairs.
7-25 (b) The Office of Defense Affairs shall:
7-26 (1) provide information to defense-dependent
7-27 communities, the legislature, the Texas congressional delegation,
8-1 and state agencies regarding federal actions affecting military
8-2 installations and missions;
8-3 (2) serve as a clearinghouse for:
8-4 (A) defense economic adjustment and transition
8-5 information and activities [along with the Texas Business and
8-6 Community Economic Development Clearinghouse]; and
8-7 (B) information about:
8-8 (i) issues related to the operating costs
8-9 and strategic value of federal military installations located in
8-10 the state; [and]
8-11 (ii) the loss of jobs in defense-dependent
8-12 communities and defense-related businesses; and
8-13 (iii) interstate competition relative to
8-14 defense strategies and incentive programs that other states are
8-15 utilizing to maintain, expand, and attract new defense contractors;
8-16 (3) provide assistance to defense-dependent
8-17 communities that have experienced a defense-related closure or
8-18 realignment, including the administration and oversight for
8-19 implementing the programs established under Chapter 486, Government
8-20 Code, and Chapter 2310, Government Code;
8-21 (4) assist defense-dependent communities in the design
8-22 and execution of programs that enhance a community's relationship
8-23 with military installations and defense-related businesses; [and]
8-24 (5) assist communities in the retention, expansion,
8-25 and recruiting of defense-related businesses; and
8-26 (6) assist with the development of state strategies
8-27 and programs to protect the state's existing military missions and
9-1 position Texas to be competitive for new or expanded military
9-2 missions; and
9-3 (7) serve as the state's focal point for the
9-4 coordination of all issues and policies that would affect active,
9-5 closed, or realigned military installations and defense-related
9-6 businesses.
9-7 (c) The Office of Defense Affairs shall prepare an annual
9-8 report about the active military installations, defense-dependent
9-9 communities, and defense-related businesses in this state. The
9-10 report must include:
9-11 (1) an economic impact statement describing in detail
9-12 the effect of the military on the economy of this state;
9-13 (2) a statewide assessment of active military
9-14 installations and current missions;
9-15 (3) a statewide strategy to attract defense-related
9-16 business and prevent future defense closures and realignments;
9-17 (4) a list of state and federal activities that have
9-18 significant impact on active military installations and current
9-19 missions;
9-20 (5) a statement identifying:
9-21 (A) the state and federal programs and services
9-22 that assist defense-dependent communities impacted by military base
9-23 closures or realignments and the efforts to coordinate those
9-24 programs; and
9-25 (B) the efforts to coordinate state agency
9-26 programs and services that assist defense-dependent communities in
9-27 retaining active military installations and current missions;
10-1 (6) an evaluation of initiatives to retain existing
10-2 defense-related businesses; and
10-3 (7) a list of agencies with regulations, policies,
10-4 programs, or services that impact the operating costs or strategic
10-5 value of federal military installations and activities in the
10-6 state.
10-7 (d) State agencies shall cooperate with and assist the
10-8 Office of Defense Affairs in the preparation of the report required
10-9 under Subsection (c) including providing information about
10-10 regulations, policies, programs, and services that may impact
10-11 defense-dependent communities, defense-related businesses, and the
10-12 viability of existing Texas military missions. The Office of
10-13 Defense Affairs shall submit its report to the governor and the
10-14 legislature not later than July 1 of each year.
10-15 (e) The Office of Defense Affairs shall coordinate an annual
10-16 meeting with the head of each state agency, members of the Texas
10-17 Strategic Military Planning Commission, and members of the
10-18 legislature whose districts contain active, closed, or realigned
10-19 military installations to discuss the implementation of the
10-20 recommendations outlined in the report required under Subsection
10-21 (c).
10-22 (f) [(d)] The Office of Defense Affairs shall develop and
10-23 maintain a database of the names and public business information of
10-24 all prime contractors and subcontractors operating in this state
10-25 who perform defense-related work.
10-26 [(f) The Office of Defense Affairs may enter into an
10-27 agreement with a consulting firm to provide information and
11-1 assistance on a pending decision of the United States Department of
11-2 Defense or other federal agency regarding the status of military
11-3 installations and defense-related businesses located in this
11-4 state.]
11-5 (g) In this section, "state agency" has the meaning assigned
11-6 by Section 2151.002.
11-7 SECTION 1.10. Section 481.0066, Government Code, is amended
11-8 by adding Subsection (i) to read as follows:
11-9 (i) In carrying out its duties, the commission may not
11-10 deliberate the purchase, exchange, lease, or value of real
11-11 property, deliberate the appointment, employment, evaluation,
11-12 reassignment, duties, discipline, or dismissal of an officer or
11-13 employee of the department, or hear a complaint or charge against
11-14 an officer or employee of the department.
11-15 SECTION 1.11. Section 481.007, Government Code, is amended to
11-16 read as follows:
11-17 Sec. 481.007. ADVISORY COMMITTEES. (a) The executive
11-18 director or the governing board may appoint advisory committees to
11-19 assist the executive director or the governing board in the
11-20 performance of their duties. A member of an advisory committee
11-21 appointed by the executive director or the governing board may not
11-22 receive compensation for service on the advisory committee. A
11-23 member appointed under this section is entitled to receive
11-24 reimbursement, subject to any applicable limitation on
11-25 reimbursement provided by the General Appropriations Act, for
11-26 actual and necessary expenses included in performing service as a
11-27 member of the advisory committee.
12-1 (b) An advisory committee:
12-2 (1) must provide independent, external expertise on
12-3 department functions;
12-4 (2) may not be involved in setting department policy
12-5 or managing the department's actual operations; and
12-6 (3) may not include a board member as a member of the
12-7 advisory committee.
12-8 SECTION 1.12. Section 481.010, Government Code, is amended by
12-9 adding Subsection (i) to read as follows:
12-10 (i) The executive director or the executive director's
12-11 designee shall provide to department employees information and
12-12 training on the benefits and methods of participation in the state
12-13 employee incentive program.
12-14 SECTION 1.13. Section 481.012, Government Code, is amended by
12-15 amending Subsection (b), adding a new Subsection (c), and
12-16 redesignating current Subsections (c) and (d) as Subsections (d)
12-17 and (e), respectively, to read as follows:
12-18 (b) The department shall keep an information file about each
12-19 complaint filed with the department that the department has
12-20 authority to resolve. If a written complaint is filed with the
12-21 department that the department has authority to resolve, the
12-22 department, at least quarterly and until final disposition of the
12-23 complaint, shall notify the parties to the complaint of the status
12-24 of the complaint unless the notice would jeopardize an undercover
12-25 investigation. The file must include:
12-26 (1) the name of the person who filed the complaint;
12-27 (2) the date the complaint is received by the
13-1 department;
13-2 (3) the subject matter of the complaint;
13-3 (4) the name of each person contacted in relation to
13-4 the complaint;
13-5 (5) a summary of the results of the review or
13-6 investigation of the complaint; and
13-7 (6) an explanation of the reason the file was closed,
13-8 if the department closed the file without taking action other than
13-9 to investigate the complaint.
13-10 (c) The department shall provide to the person filing the
13-11 complaint and to each person who is a subject of the complaint a
13-12 copy of the department's policies and procedures relating to
13-13 complaint investigation and resolution.
13-14 (d) [(c)] The governing board shall prepare and maintain a
13-15 written plan that describes how a person who does not speak English
13-16 can be provided reasonable access to the department's programs. The
13-17 governing board shall also comply with federal and state laws for
13-18 program and facility accessibility.
13-19 (e) [(d)] The governing board by rule shall establish
13-20 methods by which consumers and service recipients are notified of
13-21 the name, mailing address, and telephone number of the department
13-22 for the purpose of directing complaints to the department.
13-23 SECTION 1.14. Section 481.021(c), Government Code, is amended
13-24 to read as follows:
13-25 (c) The department shall deposit contributions from private
13-26 sources in a separate fund kept and held in escrow and in trust by
13-27 the comptroller for and on behalf of the department as funds held
14-1 outside the treasury under Section 404.073, and the money
14-2 contributed shall be used to carry out the purposes of the
14-3 department and, to the extent possible, the purposes specified by
14-4 the donors. The comptroller may invest and reinvest the money,
14-5 pending its use, in the fund in investments authorized by law for
14-6 state funds that the comptroller considers appropriate. The
14-7 department shall adopt rules that:
14-8 (1) require the department to account for all general
14-9 revenue money contributed to projects supported by money held
14-10 outside the treasury and provide that the department shall be fully
14-11 reimbursed for those contributions as money becomes available; and
14-12 (2) require the department to account for all staff
14-13 time spent on fund-raising activities associated with private
14-14 donations.
14-15 SECTION 1.15. Section 481.154, Government Code, is amended
14-16 to read as follows:
14-17 Sec. 481.154. FUNDING[; RAINY DAY FUND]. (a) The smart jobs
14-18 fund is established as a dedicated account in the general revenue
14-19 [special trust] fund [in the custody of the comptroller separate
14-20 and apart from all public money or funds of this state]. The fund
14-21 is composed of:
14-22 (1) money transferred into the fund under Section
14-23 204.123, Labor Code;
14-24 (2) gifts, grants, and other donations received by the
14-25 department for the fund; and
14-26 (3) any amounts appropriated by the legislature for
14-27 the program from the general revenue fund.
15-1 (b) The program is funded through the smart jobs fund.
15-2 (c) Money in the smart jobs fund may be used for program
15-3 administration, marketing expenses, and evaluation of the program.
15-4 These costs of the department in any fiscal year may not exceed the
15-5 lesser of:
15-6 (1) five percent of the total amount appropriated for
15-7 the program for that fiscal year; or
15-8 (2) $1.5 million.
15-9 (d) If money in the unemployment insurance holding fund is
15-10 insufficient to prevent the unemployment insurance trust fund from
15-11 incurring a deficit tax, the Texas Workforce Commission may
15-12 request an emergency transfer of money from the smart jobs fund for
15-13 that purpose, and upon approval of the Legislative Budget Board and
15-14 the governor, money from the smart jobs fund shall be transferred
15-15 to the Texas Workforce Commission for that purpose.
15-16 (e) Notwithstanding any other provision of this section, the
15-17 total combined amount spent in any fiscal year from the smart jobs
15-18 fund may not exceed the amount appropriated by the legislature for
15-19 that fiscal year for the operation of the smart jobs fund program.
15-20 (f) If, during any three consecutive months, the balance in
15-21 the smart jobs fund exceeds 0.15 percent of the total taxable wages
15-22 for the four calendar quarters ending the preceding June 30, as
15-23 computed under Section 204.062(c), Labor Code, the executive
15-24 director shall immediately transfer the excess from the fund to the
15-25 Unemployment Compensation Fund created under Section 203.021, Labor
15-26 Code. [The smart jobs rainy day fund is established as a special
15-27 trust fund in the custody of the comptroller separate and apart
16-1 from all public money or funds of this state. The smart jobs rainy
16-2 day fund is composed of:]
16-3 [(1) money transferred to that fund as provided by
16-4 Section 204.123, Labor Code;]
16-5 [(2) money returned by employers or recouped by the
16-6 program under Section 481.159(d); and]
16-7 [(3) any other money received by the governing board
16-8 for deposit in that fund.]
16-9 [(e) The governing board may authorize the executive
16-10 director to use money in the smart jobs rainy day fund if:]
16-11 [(1) the governing board determines, after consulting
16-12 with the comptroller, that the smart jobs fund contains
16-13 insufficient money to cover the amounts appropriated by the
16-14 legislature to operate the program; and]
16-15 [(2) the Texas Workforce Commission has determined
16-16 that:]
16-17 [(A) the unemployment rate in this state is 125
16-18 percent of the average unemployment rate in this state during the
16-19 preceding three years; or]
16-20 [(B) a severe economic dislocation is occurring
16-21 in a specific region of this state.]
16-22 [(f) The Texas Workforce Commission by rule shall define
16-23 "severe economic dislocation" for purposes of Subsection (e). In
16-24 adopting a definition, the commission shall consider
16-25 employment-related factors, including:]
16-26 [(1) massive layoffs in a region of this state caused
16-27 by:]
17-1 [(A) the closure of military bases;]
17-2 [(B) the effect of the implementation of the
17-3 North American Free Trade Agreement;]
17-4 [(C) employer relocations; or]
17-5 [(D) other analogous situations; and]
17-6 [(2) the number of jobs lost in a region compared to
17-7 the region's usual rates of employment.]
17-8 [(g) If the governing board approves the use of money from
17-9 the smart jobs rainy day fund because of a severe economic
17-10 dislocation occurring in a specific region of the state, the
17-11 executive director may use the money allocated from the smart jobs
17-12 rainy day fund solely for projects located in the affected region.]
17-13 [(h) Notwithstanding any other provision of this section,
17-14 the total combined amount spent in any fiscal year from the smart
17-15 jobs fund and the smart jobs rainy day fund may not exceed the
17-16 amount appropriated by the legislature for that fiscal year for the
17-17 operation of the smart jobs fund program.]
17-18 [(i) If, during any three consecutive months, the balance in
17-19 the smart jobs fund or the smart jobs rainy day fund exceeds 0.15
17-20 percent of the total taxable wages for the four calendar quarters
17-21 ending the preceding June 30, as computed under Section 204.062(c),
17-22 Labor Code, the executive director shall immediately transfer the
17-23 excess from the applicable fund to the Unemployment Compensation
17-24 Fund created under Section 203.021, Labor Code.]
17-25 SECTION 1.16. Section 481.161, Government Code, is amended to
17-26 read as follows:
17-27 Sec. 481.161. EXPIRATION. Sections 481.151, 481.152,
18-1 481.153, 481.155, 481.156, 481.1565, 481.157, 481.158, 481.159, and
18-2 481.160, and this section expire [This subchapter expires] December
18-3 31, 2001.
18-4 SECTION 1.17. Subchapter L, Chapter 481, Government Code, is
18-5 amended by adding Sections 481.175, 481.176, 481.177, and 481.178
18-6 to read as follows:
18-7 Sec. 481.175. TEXAS TOURISM COORDINATING COUNCIL. (a) The
18-8 Texas Tourism Coordinating Council consists of one appointee of the
18-9 governor and one representative from each of the following:
18-10 (1) the department;
18-11 (2) the Texas Department of Transportation;
18-12 (3) the Parks and Wildlife Department;
18-13 (4) the Texas Commission on the Arts;
18-14 (5) the Texas Historical Commission;
18-15 (6) the General Land Office;
18-16 (7) the Texas Department of Public Safety;
18-17 (8) the Department of Agriculture;
18-18 (9) The Texas A&M University System;
18-19 (10) the Music, Film, Television, and Multimedia
18-20 Office; and
18-21 (11) the State Preservation Board.
18-22 (b) The appointee of the governor shall serve as the
18-23 presiding officer of the council.
18-24 (c) The council shall receive administrative support from
18-25 the entities the members represent.
18-26 (d) The council members shall develop, maintain, and enter
18-27 into a memorandum of understanding for the administration of this
19-1 subchapter.
19-2 Sec. 481.176. MEETINGS. (a) The council shall meet
19-3 quarterly and as often as necessary to perform its duties.
19-4 (b) Eight members of the council, including the presiding
19-5 officer, constitute a quorum. If a quorum is present, the council
19-6 may act on any matter that is within its jurisdiction by a majority
19-7 vote.
19-8 (c) The council shall keep complete minutes of each meeting.
19-9 Sec. 481.177. POWERS AND DUTIES. The council shall:
19-10 (1) identify and address tourism coordination
19-11 problems;
19-12 (2) ensure that council members comply with the
19-13 required memorandum of understanding;
19-14 (3) coordinate a marketing plan that promotes Texas,
19-15 that includes input from all council members, and that includes the
19-16 creation and adoption of a cooperative regional marketing plan
19-17 regarding the use of promotional funds by convention and visitors
19-18 bureaus in coordination with the department's tourism functions
19-19 prescribed by Sections 481.171, 481.172, and 481.174;
19-20 (4) work with the department's Tourism Advisory
19-21 Committee, as necessary, to ensure comment and recommendations from
19-22 the other state agencies responsible for specific tourism areas
19-23 such as recreational, nature, heritage, and cultural tourism; and
19-24 (5) report to the legislature biennially on all
19-25 agencies' progress and actions taken to coordinate tourism efforts
19-26 in this state, including the state resources dedicated to and the
19-27 outcomes of recreational, cultural, historical, nature, and other
20-1 types of tourism.
20-2 Sec. 481.178. TOURISM PERFORMANCE MEASURES. (a) The
20-3 department, in consultation with the council and the Legislative
20-4 Budget Board, shall develop performance measures that measure the
20-5 outputs, outcomes, and efficiencies resulting from the department's
20-6 tourism activities.
20-7 (b) When measuring the performance of the department's
20-8 tourism activities, the department shall:
20-9 (1) clearly distinguish between leisure travelers and
20-10 business travelers; and
20-11 (2) separate the resources dedicated to and the
20-12 outcomes of the department's tourism activities from those of all
20-13 other state agencies involved in tourism efforts.
20-14 (c) If resources from more than one state agency are used to
20-15 achieve any of the department's tourism activities, the department
20-16 shall clearly indicate that when reporting on those activities.
20-17 (d) The department shall compute and report the return on
20-18 investment from state funding for tourism. The return on
20-19 investment shall be based on the total amount of tourism funding
20-20 from all state agencies involved in tourism advertising and
20-21 marketing and the tourism generated by those activities. The
20-22 department shall differentiate between tourism generated by state
20-23 advertising and marketing and tourism generated by other factors
20-24 that influence tourism.
20-25 SECTION 1.18. (a) This section governs the transition from a
20-26 nine-member governing board of the Texas Department of Economic
20-27 Development to a governing board composed of five members in
21-1 accordance with the changes in law made by this Act.
21-2 (b) The nine members of the governing board of the Texas
21-3 Department of Economic Development who are serving immediately
21-4 before September 1, 2001, continue to serve as the governing board
21-5 of the department on and after that date. However, the positions of
21-6 those nine members are abolished on the date on which a majority of
21-7 the five board membership positions that are created under Section
21-8 481.004, Government Code, as amended by this Act, are filled by
21-9 appointment by the governor and the appointees qualify for office.
21-10 (c) The governor shall make the five appointments to the
21-11 board under Section 481.004, Government Code, as amended by this
21-12 Act, as soon as possible on or after September 1, 2001. In making
21-13 the initial appointments, the governor shall designate two members
21-14 for terms expiring February 1, 2003, one member for a term expiring
21-15 February 1, 2005, and two members for terms expiring February 1,
21-16 2007.
21-17 SECTION 1.19. (a) The changes in law made by this Act in the
21-18 prohibitions and qualifications applying to members of the
21-19 governing board of the Texas Department of Economic Development
21-20 apply only to a member appointed on or after September 1, 2001.
21-21 (b) The Texas Department of Economic Development shall adopt
21-22 the rules required by Section 481.021(c), Government Code, as
21-23 amended by this Act, on or before December 1, 2001.
21-24 SECTION 1.20. The Texas Department of Economic Development
21-25 may not award a grant under the smart jobs fund program on or after
21-26 the effective date of this Act. The Texas Department of Economic
21-27 Development shall perform its duties under all smart jobs fund
22-1 program contracts in existence on the effective date of this Act.
22-2 SECTION 1.21. On the effective date of this Act, the Texas
22-3 Workforce Commission shall transfer any money remaining in the
22-4 holding fund created under Section 204.122, Labor Code, to the
22-5 unemployment compensation fund. The Texas Workforce Commission
22-6 shall deposit any money collected by the employment training
22-7 investment assessment after the effective date of this Act directly
22-8 into the unemployment compensation fund.
22-9 ARTICLE 2. ADMINISTRATION OF FOREIGN OFFICES, INTERNATIONAL
22-10 TRADE, AND TEXAS EXPORTERS LOAN FUND
22-11 SECTION 2.01. Section 481.027, Government Code, is
22-12 transferred to Subchapter B, Chapter 405, Government Code,
22-13 redesignated as Section 405.020, and amended to read as follows:
22-14 Sec. 405.020 [481.027]. FOREIGN OFFICES. (a) The secretary
22-15 of state [department] shall maintain and operate offices in foreign
22-16 countries for the purposes of promoting investment that generates
22-17 jobs in Texas, exporting of Texas products, tourism, and
22-18 international relations for Texas. The offices shall be named "The
22-19 State of Texas" offices. To the extent permitted by law, other
22-20 state agencies that conduct business in foreign countries may place
22-21 staff in the offices established by the secretary of state
22-22 [department] and share the overhead and operating expenses of the
22-23 offices. Other state agencies and the secretary of state
22-24 [department] may enter interagency contracts for this purpose.
22-25 Chapter 771 does not apply to those contracts. Any purchase for
22-26 local procurement or contract in excess of $5,000 shall be approved
22-27 by the secretary of state [executive director] prior to its
23-1 execution.
23-2 (b) The offices shall be accessible to Texas-based
23-3 institutions of higher education and their nonprofit affiliates for
23-4 the purposes of fostering Texas science, technology, and research
23-5 development, international trade and investment, and cultural
23-6 exchange. The secretary of state [department] and the institutions
23-7 may enter contracts for this purpose. Chapter 771 does not apply
23-8 to those contracts.
23-9 (c) The secretary of state [department] shall maintain
23-10 regional offices in locations specified in the General
23-11 Appropriations Act.
23-12 (d) The secretary of state [department] may collect fees for
23-13 the use of the offices from public and private entities except that
23-14 any payments by a state agency are governed by any interagency
23-15 contract under Subsection (a). The fees may be used only to
23-16 expand, develop, and operate offices under this section.
23-17 (e) Chapter 2175 applies to the operation and maintenance of
23-18 the offices. No other provisions of Subtitle D, Title 10, apply to
23-19 the operation and maintenance of the offices, or to transactions of
23-20 the secretary of state [department] that are authorized by this
23-21 section.
23-22 (f) The General Services Commission may, at the request of a
23-23 state agency, provide to the agency services exempted from the
23-24 application of Subtitle D, Title 10 under Subsection (e). Chapter
23-25 771 does not apply to services provided under this subsection. The
23-26 commission shall establish a system of charges and billings that
23-27 ensures recovery of the cost of providing the services and shall
24-1 submit a purchase voucher or a journal voucher, after the close of
24-2 each month, to the agency for which services were performed.
24-3 SECTION 2.02. Subchapter D, Chapter 481, Government Code, is
24-4 transferred to Chapter 405, Government Code, redesignated as
24-5 Subchapter D, Chapter 405, and amended to read as follows:
24-6 SUBCHAPTER D. INTERNATIONAL TRADE
24-7 Sec. 405.041 [481.041]. LEGISLATIVE FINDINGS. The
24-8 legislature finds that:
24-9 (1) the development and expansion of international
24-10 trade and the export of products and services from this state to
24-11 foreign purchasers are essential to the economic growth of the
24-12 state and to the full employment, welfare, and prosperity of its
24-13 citizens; and
24-14 (2) the measures authorized and the assistance
24-15 provided by this subchapter, especially with respect to financing,
24-16 are in the public interest and serve a public purpose of the state
24-17 in promoting the economic welfare of the citizens of the state.
24-18 Sec. 405.042 [481.043]. GENERAL POWERS AND DUTIES RELATING
24-19 TO INTERNATIONAL TRADE. The secretary of state [department] shall:
24-20 (1) provide businesses in the state with technical
24-21 assistance, information, and referrals related to the export of
24-22 products and services, including export finance and international
24-23 business practices;
24-24 (2) coordinate the representation of exporters in the
24-25 state at international trade shows, missions, marts, seminars, and
24-26 other appropriate promotional venues;
24-27 (3) cooperate and act in conjunction with other public
25-1 and private organizations to promote and advance export trade
25-2 activities in this state; and
25-3 (4) disseminate trade leads to exporters in the state
25-4 through the use of the Internet and other available media.
25-5 Sec. 405.043 [481.045]. POWERS TO BE INTERPRETED BROADLY.
25-6 The powers of the secretary of state [department] provided by this
25-7 subchapter shall be interpreted broadly to effect the purposes of
25-8 this subchapter. The grant of powers under this subchapter is not
25-9 a limitation of other powers of the secretary of state
25-10 [department].
25-11 Sec. 405.044 [481.047]. CONFIDENTIALITY. Information
25-12 collected by the secretary of state [department] concerning the
25-13 identity, background, finance, marketing plans, trade secrets, or
25-14 other commercially sensitive information of a lender or export
25-15 business is confidential unless the lender or export business
25-16 consents to disclosure of the information.
25-17 Sec. 405.045 [481.059]. TEXAS EXPORTERS LOAN FUND. (a) The
25-18 Texas exporters loan fund is a fund in the state treasury. The
25-19 fund consists of appropriations or transfers made to the fund,
25-20 fees, other money received from operation of the program
25-21 established by this section, and interest paid on money in the
25-22 fund. Money in the fund may be used to establish a reserve fund in
25-23 an amount determined by the secretary of state [department] and to
25-24 carry out the purposes of this section. If any appropriations are
25-25 made to the secretary of state [department] from the general
25-26 revenue fund to carry out this section for a fiscal year, at the
25-27 end of that fiscal year the unexpended balance of those
26-1 appropriations shall be transferred to the Texas exporters loan
26-2 fund.
26-3 (b) The secretary of state [department] may guarantee loans
26-4 or make loans with a term of one year or less made by private
26-5 lenders to Texas businesses to finance activities of those
26-6 businesses entering or expanding into export markets, including
26-7 activities related to the purchase of inventory, equipment, and raw
26-8 materials, manufacture, and marketing.
26-9 (c) In making guarantees or loans under this section, the
26-10 secretary of state [department] shall give preference to Texas
26-11 products having the highest percentage of their total value
26-12 represented by Texas source components, labor, or intellectual
26-13 property.
26-14 (d) A loan guarantee or loan under this section may not be
26-15 for less than $10,000 or a lesser amount prescribed by a
26-16 [department] rule of the secretary of state or more than $1
26-17 million. The secretary of state [department] may not guarantee
26-18 more than 90 percent of a loan by a private lender. The secretary
26-19 of state [department] may not provide a guarantee or make a loan
26-20 for a project unless the business involved provides at least 10
26-21 percent of the total cost of the project. The secretary of state
26-22 [department] shall require each loan guaranteed under this section
26-23 to be secured by appropriate collateral and may require the
26-24 acquisition of insurance from the Export-Import Bank of the United
26-25 States.
26-26 (e) The secretary of state [department] shall assist Texas
26-27 businesses in determining eligibility for participation in the
27-1 program established by this section, preparing necessary paperwork,
27-2 identifying potential lenders, and explaining the program to
27-3 lenders.
27-4 (f) The secretary of state [department] shall provide
27-5 training to persons in small business development centers and
27-6 export assistance centers to disseminate information concerning the
27-7 program established by this section throughout the state.
27-8 (g) [The department shall administer the program established
27-9 by this section in the same manner as its other programs under this
27-10 chapter, except as provided otherwise by this section.] The costs
27-11 of administering the program must be paid by interest earned on
27-12 money in the fund and by fees collected in connection with the
27-13 program.
27-14 (h) The secretary of state [department] may not guarantee or
27-15 make a loan under this section after August 31, 1997.
27-16 Sec. 405.046. TRANSFER OF MONEY FROM TEXAS EXPORTERS LOAN
27-17 FUND TO CAPITAL ACCESS FUND. (a) At the beginning of each fiscal
27-18 year, the secretary of state shall compute for the Texas exporters
27-19 loan fund established under Section 405.045:
27-20 (1) the amount sufficient for that fiscal year to
27-21 cover loan guarantees made under Section 405.045;
27-22 (2) the amount sufficient for that fiscal year to
27-23 repay bonds issued under Section 405.045, to carry out the purposes
27-24 of Section 405.045; and
27-25 (3) the amount of loan repayments for loans made under
27-26 Section 405.045 that will be expected to be received during the
27-27 fiscal year.
28-1 (b) At the beginning of each fiscal year, the comptroller
28-2 for the Texas exporters loan fund shall subtract the sum of the
28-3 amount computed by the secretary of state under Subsections (a)(1)
28-4 and (a)(2) from the amount in the fund at the beginning of the
28-5 fiscal year.
28-6 (c) If a positive amount results from a computation made
28-7 under Subsection (b), the comptroller shall transfer an amount
28-8 equal to the computed amount from the Texas exporters loan fund to
28-9 the capital access fund.
28-10 (d) As loan repayments are received for the Texas exporters
28-11 loan fund, the comptroller shall transfer the payments to the
28-12 capital access fund.
28-13 SECTION 2.03. Section 481.087(c), Government Code, is amended
28-14 to read as follows:
28-15 (c) Appropriated money in the fund may be used and reused
28-16 for the purposes of this subchapter. Available funds in the fund in
28-17 an amount not to exceed $700,000 may be used for the Texas-Mexico
28-18 Development Fund program or the electronic data base established
28-19 under Subchapter D, Chapter 405.
28-20 SECTION 2.04. Section 481.403, Government Code, is amended to
28-21 read as follows:
28-22 Sec. 481.403. TRANSFER OF MONEY FROM TEXAS RURAL ECONOMIC
28-23 DEVELOPMENT FUND [OTHER FUNDS] TO [THE] CAPITAL ACCESS FUND. (a)
28-24 At the beginning of each fiscal year, the department shall compute
28-25 for [the Texas exporters loan fund established under Subchapter D
28-26 and] the Texas rural economic development fund established under
28-27 Subchapter F:
29-1 (1) the amount sufficient for that fiscal year to
29-2 cover loan guarantees made under Subchapter [D or] F[, as
29-3 applicable to each fund];
29-4 (2) the amount sufficient [for the fiscal year to
29-5 repay bonds issued under Subchapter D, to carry out the purposes of
29-6 Section 481.059, or] for projects that are eligible under
29-7 Subchapter F[, as applicable to each fund]; and
29-8 (3) the amount of loan repayments for loans made under
29-9 Subchapter [D or] F that will be expected to be received during the
29-10 fiscal year[, as applicable to each fund].
29-11 (b) At the beginning of each fiscal year, the comptroller
29-12 for the Texas rural economic development fund [each fund described
29-13 by Subsection (a)] shall subtract the sum of the amount computed by
29-14 the department under Subsections (a)(1) and (a)(2) [for the
29-15 respective fund] from the amount in the fund at the beginning of
29-16 the fiscal year.
29-17 (c) If a positive amount results from a computation made
29-18 under Subsection (b), the comptroller shall transfer an amount
29-19 equal to the computed amount from the Texas rural economic
29-20 development fund [to which the computation relates] to the capital
29-21 access fund.
29-22 (d) As loan repayments are received for the Texas rural
29-23 economic development fund [each fund described by Subsection (a)],
29-24 the comptroller shall transfer the payments to the capital access
29-25 fund.
29-26 SECTION 2.05. (a) On the effective date of this Act, all
29-27 powers, duties, obligations, rights, contracts, records, employees,
30-1 property, and unspent and unobligated appropriations and other
30-2 funds of the Texas Department of Economic Development that were
30-3 used by that agency immediately before the effective date of this
30-4 Act to administer foreign offices, the international trade program,
30-5 and the border affairs program are transferred to the secretary of
30-6 state.
30-7 (b) All rules, policies, procedures, and decisions that
30-8 affect the foreign offices, the international trade program, and
30-9 the border affairs program are continued in effect until superseded
30-10 by a rule or other appropriate action of the secretary of state.
30-11 ARTICLE 3. ADMINISTRATION OF THE TEXAS BUSINESS AND COMMUNITY
30-12 ECONOMIC DEVELOPMENT CLEARINGHOUSE AND THE
30-13 COMMUNITY INVESTMENT PROGRAM
30-14 SECTION 3.01. Subchapter K, Chapter 481, Government Code, is
30-15 transferred to Chapter 403, Government Code, designated as
30-16 Subchapter O, and amended to read as follows:
30-17 SUBCHAPTER O [K]. INFORMATION AND REFERRAL
30-18 Sec. 403.361 [481.166]. LEGISLATIVE FINDINGS. The
30-19 legislature finds that:
30-20 (1) economic development programs and services are
30-21 located in a number of state agencies;
30-22 (2) businesses and communities need a single point of
30-23 contact on business and community economic development programs and
30-24 services; and
30-25 (3) state agencies need to work together to provide
30-26 outreach and assistance to local governments and businesses.
30-27 Sec. 403.362 [481.1665]. INFORMATION ON PROGRAMS AND
31-1 SERVICES FOR CERTAIN COMMUNITIES AND ENTITIES. (a) At least once
31-2 each two-year period, the Texas Business and Community Economic
31-3 Development Clearinghouse shall provide written notice in English
31-4 and in Spanish regarding those programs and services described by
31-5 Section 403.363(b) [481.167(b)] that will benefit and assist
31-6 communities and entities that have experienced significant job
31-7 losses associated with the implementation of the North American
31-8 Free Trade Agreement (NAFTA). The clearinghouse shall provide the
31-9 notice to each of the governing bodies of the municipalities and
31-10 counties, chambers of commerce, small business development centers,
31-11 and economic development centers located in the border region. The
31-12 clearinghouse shall also provide the information contained in the
31-13 notice on the comptroller's [department's] Internet website.
31-14 (b) The notice required by Subsection (a) must contain:
31-15 (1) the Internet address of the comptroller's
31-16 [department's] website; and
31-17 (2) the toll-free telephone number of the
31-18 clearinghouse.
31-19 Sec. 403.363 [481.167]. TEXAS BUSINESS AND COMMUNITY
31-20 ECONOMIC DEVELOPMENT CLEARINGHOUSE. (a) The comptroller
31-21 [department] shall establish the Texas Business and Community
31-22 Economic Development Clearinghouse to provide information and
31-23 assistance to businesses and communities in the state through the
31-24 use of a statewide toll-free telephone service.
31-25 (b) The clearinghouse shall collect and disseminate
31-26 information on federal, state, local, and private:
31-27 (1) business development programs, including financial
32-1 assistance and business incentive programs;
32-2 (2) business development services, including technical
32-3 assistance, workshops, business incubators, training, and useful
32-4 publications;
32-5 (3) rural and urban community economic development
32-6 programs, including loans, grants, and other funding sources;
32-7 (4) rural and urban community economic development
32-8 services, including technical assistance, workshops, training, and
32-9 useful publications;
32-10 (5) small business programs and services and useful
32-11 publications;
32-12 (6) in cooperation with the Governor's Committee on
32-13 People with Disabilities, the Texas Department of Economic
32-14 Development Office of Small Business, the United States Small
32-15 Business Administration, and the Texas Council for Developmental
32-16 Disabilities, business development services, including technical
32-17 assistance, workshops, training, and useful publications for people
32-18 with disabilities;
32-19 (7) [(6)] defense economic adjustment programs and
32-20 services and useful publications; and
32-21 (8) [(7)] international trade programs, services, and
32-22 useful publications.
32-23 (c) The clearinghouse shall provide access to the
32-24 information compiled under this subchapter in a user-friendly
32-25 format through the use of the Internet.
32-26 (d) The comptroller [department] shall obtain from other
32-27 state agencies appropriate information needed by the department to
33-1 carry out its duties under this subchapter.
33-2 (e) The comptroller shall further [assist the department in
33-3 furthering] the purposes of this subchapter by allowing the Texas
33-4 Department of Economic Development [department] to use the field
33-5 offices and personnel of the comptroller to disseminate brochures,
33-6 documents, and other information useful to businesses in the state.
33-7 SECTION 3.02. Subchapter BB, Chapter 481, Government Code, is
33-8 amended by adding Section 481.415 to read as follows:
33-9 Sec. 481.415. COMMUNITY INVESTMENT PROGRAM. (a) In this
33-10 section:
33-11 (1) "Community development financial institution" has
33-12 the meaning assigned by 12 U.S.C. Section 4702, as amended.
33-13 (2) "Community development investment" means a loan or
33-14 grant made to a community development financial institution for the
33-15 purpose of enhancing the provision of basic consumer financial
33-16 services.
33-17 (3) "Community development loan" means a loan from a
33-18 community development financial institution to a low-income
33-19 business or nonprofit organization for the purpose of revitalizing
33-20 a distressed community.
33-21 (4) "Eligible institution" means a community
33-22 development financial institution meeting the minimum selection
33-23 criteria described by 12 U.S.C. Section 4704, as amended.
33-24 (b) Notwithstanding any other law, the department shall
33-25 establish a community investment program in which the department
33-26 makes grants or interest-free loans, using money in the fund, to
33-27 eligible institutions that use the money to make community
34-1 development loans in distressed areas of the state or to assist
34-2 low-income areas by providing basic consumer financial services.
34-3 (c) The department shall determine the eligibility of an
34-4 institution by verifying that the institution meets the minimum
34-5 selection criteria described by 12 U.S.C. Section 4704, as amended.
34-6 The department may set a limit on the number of eligible
34-7 institutions that may participate in the community investment
34-8 program. To participate in the community investment program, an
34-9 eligible institution must enter into a participation agreement with
34-10 the department that sets out the terms and conditions under which
34-11 the department will make a grant or loan to the eligible
34-12 institution.
34-13 (d) The department may make a grant to an institution or
34-14 nonprofit organization to assist the institution or organization
34-15 to:
34-16 (1) meet the minimum selection criteria described by
34-17 12 U.S.C. Section 4704, as amended, or to otherwise obtain
34-18 assistance under 12 U.S.C. Section 4701 et seq., as amended; and
34-19 (2) become an eligible institution and participate in
34-20 the community investment program.
34-21 (e) The department may make a grant to a nonprofit
34-22 organization the department determines is performing activities
34-23 consistent with the goals of this section to provide the
34-24 organization operating support, technical assistance, and training
34-25 assistance.
34-26 (f) The department shall adopt rules relating to the
34-27 implementation of the community investment program and any other
35-1 rules necessary to accomplish the purposes of this section.
35-2 (g) An eligible institution may file a grant or loan
35-3 application with the department. The application must be in a form
35-4 approved by the department and include a plan of investment that
35-5 includes the type and number of community development loans or
35-6 investments that the institution plans to make using money from the
35-7 community investment program. The department shall act on a
35-8 completed application not later than the 30th day after the date on
35-9 which the application is filed with the department.
35-10 (h) All income received on a loan or investment made with
35-11 money received under the community investment program is the
35-12 property of the eligible institution that makes the loan or
35-13 investment.
35-14 (i) Not later than the 30th day after the expiration of each
35-15 six-month period for which there is a participation agreement in
35-16 effect between the department and an eligible institution, the
35-17 eligible institution shall submit a report to the department that
35-18 states in detail the status of each investment or loan made under
35-19 the community investment program. The report must be in a form
35-20 prescribed by the department and must contain all information
35-21 required by the department as part of the institution's
35-22 participation agreement.
35-23 (j) The participation agreement entered into between the
35-24 eligible institution and the department must provide for an annual
35-25 audit. The department shall adopt rules relating to the format of
35-26 the audit, including rules allowing not more than $5,000 of the
35-27 amount received by the eligible institution under the community
36-1 investment program to be used to finance the audit.
36-2 SECTION 3.03. On the effective date of this Act, all powers,
36-3 duties, obligations, rights, contracts, records, employees,
36-4 property, and unspent and unobligated appropriations and other
36-5 funds of the Texas Department of Economic Development that were
36-6 used by that agency immediately before the effective date of this
36-7 Act to administer the Texas Business and Community Economic
36-8 Development Clearinghouse are transferred to the comptroller of
36-9 public accounts.
36-10 ARTICLE 4. EFFECTIVE DATE
36-11 SECTION 4.01. This Act takes effect September 1, 2001, except
36-12 that SECTION 1.20 of this Act takes effect immediately if it
36-13 receives a vote of two-thirds of all the members elected to each
36-14 house, as provided by Section 39, Article III, Texas Constitution,
36-15 and for the purposes of application of SECTION 1.20 of this Act
36-16 only, the effective date of this Act is considered to be the date
36-17 that SECTION 1.20 of this Act takes effect. If SECTION 1.20 of
36-18 this Act does not receive the vote necessary for immediate effect,
36-19 SECTION 1.20 of this Act takes effect September 1, 2001.