77R13876 JMG-D                           
         By Gallego, Solis, McCall, Chisum, Luna               H.B. No. 3452
         Substitute the following for H.B. No. 3452:
         By Luna                                           C.S.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:
 2-1                 (1)  effective development and implementation of a
 2-2     strategic plan that:
 2-3                       (A)  ensures a clear focus and direction for the
 2-4     department, including a proper needs assessment that incorporates
 2-5     information from local economic development entities;
 2-6                       (B)  focuses activities based on the policy
 2-7     directives of the governing board;
 2-8                       (C)  details the methodology of how the
 2-9     department plans to implement the strategies in the strategic plan;
2-10     and
2-11                       (D)  explains how individual division actions
2-12     contribute to the department's desired results;
2-13                 (2)  establishment of subcommittees relating to the key
2-14     administrative and programmatic functions of the department to
2-15     allow governing board members to develop the expertise necessary to
2-16     make informed decisions about and ensure accountability to the
2-17     department and its programs;
2-18                 (3)  establishment of effective, department-wide
2-19     contracting standards and methodologies;
2-20                 (4)  effective development and implementation of
2-21     consistent, department-wide policies, procedures, and controls over
2-22     daily operations, including budgeting, contracting, and travel;
2-23                 (5)  effective development and implementation of a
2-24     centralized information and accounting system that will provide
2-25     single management reports for key areas so that management can
2-26     determine a true financial position of the department; and
2-27                 (6)  effective use of the department's internal audit
 3-1     function that ensures management responses to internal audit
 3-2     reports are actually implemented.
 3-3           (b)  The department shall report to the Sunset Advisory
 3-4     Commission by September 1, 2002, on the status of the criteria set
 3-5     out in Subsection (a) as part of the reevaluation of the
 3-6     department.
 3-7           (c)  This section expires September 1, 2003.
 3-8           SECTION 1.04.  Section 481.004, Government Code, is amended
 3-9     to read as follows:
3-10           Sec. 481.004.  GOVERNING BOARD. (a)  The governing board is
3-11     composed of five [nine] public members appointed by the governor
3-12     with the advice and consent of the senate, which members shall be
3-13     appointed to give geographical representation on the governing
3-14     board to all regions of the state.
3-15           (b)  Members of the governing board serve for staggered
3-16     six-year terms with the terms of either one or two [three] members
3-17     expiring February 1 of each odd-numbered year in accordance with
3-18     Section 30a, Article XVI, Texas Constitution.
3-19           (c)  Appointments to the governing board shall be made
3-20     without regard to the race, color, handicap, sex, religion, age, or
3-21     national origin of the appointees.
3-22           (d)  In making appointments under this section, the governor
3-23     shall attempt to include members of different minority groups
3-24     including females, African Americans, Hispanic Americans, Native
3-25     Americans, Asian Americans, and persons who are disabled.
3-26           [(e)  At least one member of the governing board must be a
3-27     resident of a county with a population of less than 30,000, at
 4-1     least one other member must have experience in international trade,
 4-2     at least one other member must have experience in tourism, and at
 4-3     least one other member must be an economic development
 4-4     practitioner.]
 4-5           SECTION 1.05. Section 481.024, Government Code, is amended by
 4-6     adding a new Subsection (c) and relettering current Subsections
 4-7     (c), (d), (e), and (f) as Subsections (d), (e), (f), and (g),
 4-8     respectively, to read as follows:
 4-9           (c)  The corporation may engage in fund-raising activities
4-10     for the market Texas program only and may raise no more than $2
4-11     million per biennium in those fund-raising activities.
4-12           (d)  The corporation is a nonprofit corporation, and no part
4-13     of its net earnings remaining after payment of its expenses may
4-14     inure to any individual, firm, or corporation, except that if the
4-15     board of directors determines that sufficient provision has been
4-16     made for the full payment of the expenses, bonds, and other
4-17     obligations of the corporation, the additional net earnings of the
4-18     corporation shall be deposited to the credit of the general revenue
4-19     fund.
4-20           (e) [(d)]  At any time the board of directors by written
4-21     resolution may alter the structure, organization, programs, or
4-22     activities of the corporation or terminate and dissolve the
4-23     corporation, subject only to any limitation provided by the law of
4-24     the state on the impairment of contracts of the corporation.
4-25           (f) [(e)]  If the board of directors by resolution determines
4-26     that the purposes for which the corporation was formed have been
4-27     substantially complied with and that all bonds issued by the
 5-1     corporation have been fully paid, the board of directors shall
 5-2     dissolve the corporation.  On dissolution, the title to all funds
 5-3     and properties then owned by the corporation shall be transferred
 5-4     to the department.
 5-5           (g) [(f)]  The Texas Economic Development Corporation and any
 5-6     other corporation whose charter specifically dedicates the
 5-7     corporation's activities to the benefit of the Texas Department of
 5-8     Economic Development or its predecessor agency shall file an annual
 5-9     report of the financial activity of the corporation.  The annual
5-10     report shall be filed prior to the 90th day after the last day for
5-11     the corporation's fiscal year and shall be prepared in accordance
5-12     with generally accepted accounting principles.  The report must
5-13     include a statement of support, revenue, and expenses and change in
5-14     fund balances, a statement of functional expenses, and balance
5-15     sheets for all funds.
5-16           SECTION 1.06. Section 481.0041(c), Government Code, is
5-17     amended to read as follows:
5-18           (c)  If the executive director has knowledge that a potential
5-19     ground for removal exists, the executive director shall notify the
5-20     presiding officer of the governing board of the ground.  The
5-21     presiding officer shall then notify the governor that a potential
5-22     ground for removal exists.  If the potential ground for removal
5-23     involves the presiding officer, the executive director shall notify
5-24     the next highest ranking officer of the governing board, who shall
5-25     then notify the governor and the attorney general that a potential
5-26     ground for removal exists.
5-27           SECTION 1.07. Section 481.0044, Government Code, is amended
 6-1     by adding Subsection (e) to read as follows:
 6-2           (e)  The governing board shall develop and implement policies
 6-3     that clearly separate the policy-making responsibilities of the
 6-4     governing board and the management responsibilities of the
 6-5     executive director and staff of the department.
 6-6           SECTION 1.08. Subchapter A, Chapter 481, Government Code, is
 6-7     amended by adding Section 481.0045 to read as follows:
 6-8           Sec. 481.0045.  TRAINING. (a)  A person who is appointed to
 6-9     and qualifies for office as a member of the governing board may not
6-10     vote, deliberate, or be counted as a member in attendance at a
6-11     meeting of the governing board until the person completes a
6-12     training program that complies with this section.
6-13           (b)  The training program must provide the person with
6-14     information regarding:
6-15                 (1)  the legislation that created the department and
6-16     the governing board;
6-17                 (2)  the programs operated by the department;
6-18                 (3)  the role and functions of the department;
6-19                 (4)  the rules of the department, with an emphasis on
6-20     the rules that relate to disciplinary and investigatory authority;
6-21                 (5)  the current budget for the department;
6-22                 (6)  the results of the most recent formal audit of the
6-23     department;
6-24                 (7)  the requirements of:
6-25                       (A)  the open meetings law, Chapter 551;
6-26                       (B)  the public information law, Chapter 552;
6-27                       (C)  the administrative procedure law, Chapter
 7-1     2001; and
 7-2                       (D)  other laws relating to public officials,
 7-3     including conflict-of-interest laws; and
 7-4                 (8)  any applicable ethics policies adopted by the
 7-5     department or the Texas Ethics Commission.
 7-6           (c)  A person appointed to the governing board is entitled to
 7-7     reimbursement, as provided by the General Appropriations Act, for
 7-8     the travel expenses incurred in attending the training program
 7-9     regardless of whether the attendance at the program occurs before
7-10     or after the person qualifies for office.
7-11           SECTION 1.09. Section 481.0066, Government Code, is amended
7-12     by adding Subsection (i) to read as follows:
7-13           (i)  In carrying out its duties, the commission may not
7-14     deliberate the purchase, exchange, lease, or value of real
7-15     property, deliberate the appointment, employment, evaluation,
7-16     reassignment, duties, discipline, or dismissal of an officer or
7-17     employee of the department, or hear a complaint or charge against
7-18     an officer or employee of the department.
7-19           SECTION 1.10. Section 481.007, Government Code, is amended to
7-20     read as follows:
7-21           Sec. 481.007.  ADVISORY COMMITTEES. (a)  The executive
7-22     director or the governing board may appoint advisory committees to
7-23     assist the executive director or the governing board in the
7-24     performance of their duties.  A member of an advisory committee
7-25     appointed by the executive director or the governing board may not
7-26     receive compensation for service on the advisory committee.  A
7-27     member appointed under this section is entitled to receive
 8-1     reimbursement, subject to any applicable limitation on
 8-2     reimbursement provided by the General Appropriations Act, for
 8-3     actual and necessary expenses included in performing service as a
 8-4     member of the advisory committee.
 8-5           (b)  An advisory committee:
 8-6                 (1)  must provide independent, external expertise on
 8-7     department functions;
 8-8                 (2)  may not be involved in setting department policy
 8-9     or managing the department's actual operations; and
8-10                 (3)  may not include a board member as a member of the
8-11     advisory committee.
8-12           SECTION 1.11. Section 481.010, Government Code, is amended by
8-13     adding Subsection (i) to read as follows:
8-14           (i)  The executive director or the executive director's
8-15     designee shall provide to department employees information and
8-16     training on the benefits and methods of participation in the state
8-17     employee incentive program.
8-18           SECTION 1.12. Section 481.012, Government Code, is amended by
8-19     amending Subsection (b), adding a new Subsection (c), and
8-20     redesignating current Subsections (c) and (d) as Subsections (d)
8-21     and (e), respectively, to read as follows:
8-22           (b)  The department shall keep an information file about each
8-23     complaint filed with the department that the department has
8-24     authority to resolve.  If a written complaint is filed with the
8-25     department that the department has authority to resolve, the
8-26     department, at least quarterly and until final disposition of the
8-27     complaint, shall notify the parties to the complaint of the status
 9-1     of the complaint unless the notice would jeopardize an undercover
 9-2     investigation.  The file must include:
 9-3                 (1)  the name of the person who filed the complaint;
 9-4                 (2)  the date the complaint is received by the
 9-5     department;
 9-6                 (3)  the subject matter of the complaint;
 9-7                 (4)  the name of each person contacted in relation to
 9-8     the complaint;
 9-9                 (5)  a summary of the results of the review or
9-10     investigation of the complaint; and
9-11                 (6)  an explanation of the reason the file was closed,
9-12     if the department closed the file without taking action other than
9-13     to investigate the complaint.
9-14           (c)  The department shall provide to the person filing the
9-15     complaint and to each person who is a subject of the complaint a
9-16     copy of the department's policies and procedures relating to
9-17     complaint investigation and resolution.
9-18           (d) [(c)]  The governing board shall prepare and maintain a
9-19     written plan that describes how a person who does not speak English
9-20     can be provided reasonable access to the department's programs. The
9-21     governing board shall also comply with federal and state laws for
9-22     program and facility accessibility.
9-23           (e) [(d)]  The governing board by rule shall establish
9-24     methods by which consumers and service recipients are notified of
9-25     the name, mailing address, and telephone number of the department
9-26     for the purpose of directing complaints to the department.
9-27           SECTION 1.13. Section 481.021(c), Government Code, is amended
 10-1    to read as follows:
 10-2          (c)  The department shall deposit contributions from private
 10-3    sources in a separate fund kept and held in escrow and in trust by
 10-4    the comptroller for and on behalf of the department as funds held
 10-5    outside the treasury under Section 404.073, and the money
 10-6    contributed shall be used to carry out the purposes of the
 10-7    department and, to the extent possible, the purposes specified by
 10-8    the donors.  The comptroller may invest and reinvest the money,
 10-9    pending its use, in the fund in investments authorized by law for
10-10    state funds that the comptroller considers appropriate. The
10-11    department shall adopt rules that:
10-12                (1)  require the department to account for all general
10-13    revenue money contributed to projects supported by money held
10-14    outside the treasury and provide that the department shall be fully
10-15    reimbursed for those contributions as money becomes available; and
10-16                (2)  require the department to account for all staff
10-17    time spent on fund-raising activities associated with private
10-18    donations.
10-19          SECTION 1.14. Subchapter L, Chapter 481, Government Code, is
10-20    amended by adding Sections 481.175, 481.176, 481.177, and 481.178
10-21    to read as follows:
10-22          Sec. 481.175.  TEXAS TOURISM COORDINATING COUNCIL. (a)  The
10-23    Texas Tourism Coordinating Council consists of one appointee of the
10-24    governor and one representative from each of the following:
10-25                (1)  the department;
10-26                (2)  the Texas Department of Transportation;
10-27                (3)  the Parks and Wildlife Department;
 11-1                (4)  the Texas Commission on the Arts;
 11-2                (5)  the Texas Historical Commission;
 11-3                (6)  the General Land Office;
 11-4                (7)  the Texas Department of Public Safety;
 11-5                (8)  the Department of Agriculture;
 11-6                (9)  The Texas A&M University System;
 11-7                (10)  the Music, Film, Television, and Multimedia
 11-8    Office; and
 11-9                (11)  the State Preservation Board.
11-10          (b)  The appointee of the governor shall serve as the
11-11    presiding officer of the council.
11-12          (c)  The council shall receive administrative support from
11-13    the entities the members represent.
11-14          (d)  The council members shall develop, maintain, and enter
11-15    into a memorandum of understanding for the administration of this
11-16    subchapter.
11-17          Sec. 481.176.  MEETINGS. (a)  The council shall meet
11-18    quarterly and as often as necessary to perform its duties.
11-19          (b)  Eight members of the council, including the presiding
11-20    officer, constitute a quorum.  If a quorum is present, the council
11-21    may act on any matter that is within its jurisdiction by a majority
11-22    vote.
11-23          (c)  The council shall keep complete minutes of each meeting.
11-24          Sec. 481.177.  POWERS AND DUTIES. The council shall:
11-25                (1)  identify and address tourism coordination
11-26    problems;
11-27                (2)  ensure that council members comply with the
 12-1    required memorandum of understanding;
 12-2                (3)  implement a coordinated marketing plan;
 12-3                (4)  work with the department's Tourism Advisory
 12-4    Committee, as necessary, to ensure comment and recommendations from
 12-5    the other state agencies responsible for specific tourism areas
 12-6    such as recreational, nature, heritage, and cultural tourism; and
 12-7                (5)  report to the legislature biennially on all
 12-8    agencies' progress and actions taken to coordinate tourism efforts
 12-9    in this state, including the state resources dedicated to and the
12-10    outcomes of recreational, cultural, historical, nature, and other
12-11    types of tourism.
12-12          Sec. 481.178.  TOURISM PERFORMANCE MEASURES. (a)  The
12-13    department, in consultation with the council, shall develop
12-14    performance measures that measure the outputs, outcomes, and
12-15    efficiencies resulting from the department's tourism activities.
12-16          (b)  When measuring the performance of the department's
12-17    tourism activities, the department shall:
12-18                (1)  clearly distinguish between leisure travelers and
12-19    business travelers; and
12-20                (2)  separate the resources dedicated to and the
12-21    outcomes of the department's tourism activities from those of all
12-22    other state agencies involved in tourism efforts.
12-23          (c)  If resources from more than one state agency are used to
12-24    achieve any of the department's tourism activities, the department
12-25    shall clearly indicate that when reporting on those activities.
12-26          (d)  The department shall compute and report the return on
12-27    investment from state funding for tourism.  The return on
 13-1    investment shall be based on the total amount of tourism funding
 13-2    from all state agencies involved in tourism advertising and
 13-3    marketing and the tourism generated by those activities.  The
 13-4    department shall differentiate between tourism generated by state
 13-5    advertising and marketing and tourism generated by other factors
 13-6    that influence tourism.
 13-7          SECTION 1.15. (a)  This section governs the transition from a
 13-8    nine-member governing board of the Texas Department of Economic
 13-9    Development to a governing board composed of five members in
13-10    accordance with the changes in law made by this Act.
13-11          (b)  The nine members of the governing board of the Texas
13-12    Department of Economic Development who are serving immediately
13-13    before September 1, 2001, continue to serve as the governing board
13-14    of the department on and after that date. However, the positions of
13-15    those nine members are abolished on the date on which a majority of
13-16    the five board membership positions that are created under Section
13-17    481.004, Government Code, as amended by this Act, are filled by
13-18    appointment by the governor and the appointees qualify for office.
13-19          (c)  The governor shall make the five appointments to the
13-20    board under Section 481.004, Government Code, as amended by this
13-21    Act, as soon as possible on or after September 1, 2001. In making
13-22    the initial appointments, the governor shall designate two members
13-23    for terms expiring February 1, 2003, one member for a term expiring
13-24    February 1, 2005, and two members for terms expiring February 1,
13-25    2007.
13-26          SECTION 1.16. (a)  The changes in law made by this Act in the
13-27    prohibitions and qualifications applying to members of the
 14-1    governing board of the Texas Department of Economic Development
 14-2    apply only to a member appointed on or after September 1, 2001.
 14-3          (b)  The Texas Department of Economic Development shall adopt
 14-4    the rules required by Section 481.021(c), Government Code, as
 14-5    amended by this Act, on or before December 1, 2001.
 14-6          SECTION 1.17. (a)  On the effective date of this Act, all
 14-7    unspent and unobligated appropriations and other funds of the Texas
 14-8    Department of Economic Development that are used by that agency on
 14-9    the effective date of this Act to administer the smart jobs fund
14-10    program, including the smart jobs holding fund, are transferred to
14-11    the unemployment insurance trust fund administered by the Texas
14-12    Workforce Commission.
14-13          (b)  The Texas Department of Economic Development may not
14-14    award a grant under the smart jobs fund program on or after the
14-15    effective date of this Act.  The Texas Department of Economic
14-16    Development shall perform its duties under all smart jobs fund
14-17    program contracts in existence on the effective date of this Act.
14-18    The Texas Department of Economic Development shall transfer all
14-19    money received under a smart jobs fund program contract on or after
14-20    the effective date of this Act to the unemployment insurance trust
14-21    fund administered by the Texas Workforce Commission before the 61st
14-22    day after the date the department receives the money.  All
14-23    unobligated and unexpended balances in the smart jobs fund created
14-24    under Section 481.154, Government Code, are transferred on the
14-25    effective date of this Act to the unemployment insurance trust fund
14-26    administered by the Texas Workforce Commission. After the Texas
14-27    Department of Economic Development has performed all of its duties
 15-1    under all smart jobs fund program contracts entered into before the
 15-2    effective date of this Act, the department shall transfer any money
 15-3    remaining in the smart jobs fund and the smart jobs holding fund,
 15-4    and any other money set aside for administration of the smart jobs
 15-5    fund program, to the unemployment insurance trust fund administered
 15-6    by the Texas Workforce Commission.
 15-7       ARTICLE 2.  ADMINISTRATION OF FOREIGN OFFICES, INTERNATIONAL
 15-8                   TRADE, AND TEXAS EXPORTERS LOAN FUND
 15-9          SECTION 2.01. Section 481.027, Government Code, is
15-10    transferred to Subchapter B, Chapter 405, Government Code,
15-11    redesignated as Section 405.020, and amended to read as follows:
15-12          Sec. 405.020 [481.027].  FOREIGN OFFICES. (a)  The secretary
15-13    of state [department] shall maintain and operate offices in foreign
15-14    countries for the purposes of promoting investment that generates
15-15    jobs in Texas, exporting of Texas products, tourism, and
15-16    international relations for Texas.  The offices shall be named "The
15-17    State of Texas" offices.  To the extent permitted by law, other
15-18    state agencies that conduct business in foreign countries may place
15-19    staff in the offices established by the secretary of state
15-20    [department] and share the overhead and operating expenses of the
15-21    offices.  Other state agencies and the secretary of state
15-22    [department] may enter interagency contracts for this purpose.
15-23    Chapter 771 does not apply to those contracts.  Any purchase for
15-24    local procurement or contract in excess of $5,000 shall be approved
15-25    by the secretary of state [executive director] prior to its
15-26    execution.
15-27          (b)  The offices shall be accessible to Texas-based
 16-1    institutions of higher education and their nonprofit affiliates for
 16-2    the purposes of fostering Texas science, technology, and research
 16-3    development, international trade and investment, and cultural
 16-4    exchange.  The secretary of state [department] and the institutions
 16-5    may enter contracts for this purpose.  Chapter 771 does not apply
 16-6    to those contracts.
 16-7          (c)  The secretary of state [department] shall maintain
 16-8    regional offices in locations specified in the General
 16-9    Appropriations Act.
16-10          (d)  The secretary of state [department] may collect fees for
16-11    the use of the offices from public and private entities except that
16-12    any payments by a state agency are governed by any interagency
16-13    contract under Subsection (a).  The fees may be used only to
16-14    expand, develop, and operate offices under this section.
16-15          (e)  Chapter 2175 applies to the operation and maintenance of
16-16    the offices.  No other provisions of Subtitle D, Title 10, apply to
16-17    the operation and maintenance of the offices, or to transactions of
16-18    the secretary of state [department] that are authorized by this
16-19    section.
16-20          (f)  The General Services Commission may, at the request of a
16-21    state agency, provide to the agency services exempted from the
16-22    application of Subtitle D, Title 10 under Subsection (e).  Chapter
16-23    771 does not apply to services provided under this subsection.  The
16-24    commission shall establish a system of charges and billings that
16-25    ensures recovery of the cost of providing the services and shall
16-26    submit a purchase voucher or a journal voucher, after the close of
16-27    each month, to the agency for which services were performed.
 17-1          SECTION 2.02. Subchapter D, Chapter 481, Government Code, is
 17-2    transferred to Chapter 405, Government Code, redesignated as
 17-3    Subchapter D, Chapter 405, and amended to read as follows:
 17-4                    SUBCHAPTER D.  INTERNATIONAL TRADE
 17-5          Sec. 405.041 [481.041].  LEGISLATIVE FINDINGS. The
 17-6    legislature finds that:
 17-7                (1)  the development and expansion of international
 17-8    trade and the export of products and services from this state to
 17-9    foreign purchasers are essential to the economic growth of the
17-10    state and to the full employment, welfare, and prosperity of its
17-11    citizens; and
17-12                (2)  the measures authorized and the assistance
17-13    provided by this subchapter, especially with respect to financing,
17-14    are in the public interest and serve a public purpose of the state
17-15    in promoting the economic welfare of the citizens of the state.
17-16          Sec. 405.042 [481.043].  GENERAL POWERS AND DUTIES RELATING
17-17    TO INTERNATIONAL TRADE. The secretary of state [department] shall:
17-18                (1)  provide businesses in the state with technical
17-19    assistance, information, and referrals related to the export of
17-20    products and services, including export finance and international
17-21    business practices;
17-22                (2)  coordinate the representation of exporters in the
17-23    state at international trade shows, missions, marts, seminars, and
17-24    other appropriate promotional venues;
17-25                (3)  cooperate and act in conjunction with other public
17-26    and private organizations to promote and advance export trade
17-27    activities in this state; and
 18-1                (4)  disseminate trade leads to exporters in the state
 18-2    through the use of the Internet and other available media.
 18-3          Sec. 405.043 [481.045].  POWERS TO BE INTERPRETED BROADLY.
 18-4    The powers of the secretary of state [department] provided by this
 18-5    subchapter shall be interpreted broadly to effect the purposes of
 18-6    this subchapter.  The grant of powers under this subchapter is not
 18-7    a limitation of other powers of the secretary of state
 18-8    [department].
 18-9          Sec. 405.044 [481.047].  CONFIDENTIALITY. Information
18-10    collected by the secretary of state [department] concerning the
18-11    identity, background, finance, marketing plans, trade secrets, or
18-12    other commercially sensitive information of a lender or export
18-13    business is confidential unless the lender or export business
18-14    consents to disclosure of the information.
18-15          Sec. 405.045 [481.059].  TEXAS EXPORTERS LOAN FUND. (a)  The
18-16    Texas exporters loan fund is a fund in the state treasury.  The
18-17    fund consists of appropriations or transfers made to the fund,
18-18    fees, other money received from operation of the program
18-19    established by this section, and interest paid on money in the
18-20    fund. Money in the fund may be used to establish a reserve fund in
18-21    an amount determined by the secretary of state [department] and to
18-22    carry out the purposes of this section.  If any appropriations are
18-23    made to the secretary of state [department] from the general
18-24    revenue fund to carry out this section for a fiscal year, at the
18-25    end of that fiscal year the unexpended balance of those
18-26    appropriations shall be transferred to the Texas exporters loan
18-27    fund.
 19-1          (b)  The secretary of state [department] may guarantee loans
 19-2    or make loans with a term of one year or less made by private
 19-3    lenders to Texas businesses to finance activities of those
 19-4    businesses entering or expanding into export markets, including
 19-5    activities related to the purchase of inventory, equipment, and raw
 19-6    materials, manufacture, and marketing.
 19-7          (c)  In making guarantees or loans under this section, the
 19-8    secretary of state [department] shall give preference to Texas
 19-9    products having the highest percentage of their total value
19-10    represented by Texas source components, labor, or intellectual
19-11    property.
19-12          (d)  A loan guarantee or loan under this section may not be
19-13    for less than $10,000 or a lesser amount prescribed by a
19-14    [department] rule of the secretary of state or more than $1
19-15    million.  The secretary of state [department] may not guarantee
19-16    more than 90 percent of a loan by a private lender.  The secretary
19-17    of state [department] may not provide a guarantee or make a loan
19-18    for a project unless the business involved provides at least 10
19-19    percent of the total cost of the project.  The secretary of state
19-20    [department] shall require each loan guaranteed under this section
19-21    to be secured by appropriate collateral and may require the
19-22    acquisition of insurance from the Export-Import Bank of the United
19-23    States.
19-24          (e)  The secretary of state [department] shall assist Texas
19-25    businesses in determining eligibility for participation in the
19-26    program established by this section, preparing necessary paperwork,
19-27    identifying potential lenders, and explaining the program to
 20-1    lenders.
 20-2          (f)  The secretary of state [department] shall provide
 20-3    training to persons in small business development centers and
 20-4    export assistance centers to disseminate information concerning the
 20-5    program established by this section throughout the state.
 20-6          (g)  [The department shall administer the program established
 20-7    by this section in the same manner as its other programs under this
 20-8    chapter, except as provided otherwise by this section.]  The costs
 20-9    of administering the program must be paid by interest earned on
20-10    money in the fund and by fees collected in connection with the
20-11    program.
20-12          (h)  The secretary of state [department] may not guarantee or
20-13    make a loan under this section after August 31, 1997.
20-14          Sec. 405.046.  TRANSFER OF MONEY FROM TEXAS EXPORTERS LOAN
20-15    FUND TO CAPITAL ACCESS FUND. (a)  At the beginning of each fiscal
20-16    year, the secretary of state shall compute for the Texas exporters
20-17    loan fund established under Section 405.045:
20-18                (1)  the amount sufficient for that fiscal year to
20-19    cover loan guarantees made under Section 405.045;
20-20                (2)  the amount sufficient for that fiscal year to
20-21    repay bonds issued under Section 405.045, to carry out the purposes
20-22    of Section 405.045; and
20-23                (3)  the amount of loan repayments for loans made under
20-24    Section 405.045 that will be expected to be received during the
20-25    fiscal year.
20-26          (b)  At the beginning of each fiscal year, the comptroller
20-27    for the Texas exporters loan fund shall subtract the sum of the
 21-1    amount computed by the secretary of state under Subsections (a)(1)
 21-2    and (a)(2) from the amount in the fund at the beginning of the
 21-3    fiscal year.
 21-4          (c)  If a positive amount results from a computation made
 21-5    under Subsection (b), the comptroller shall transfer an amount
 21-6    equal to the computed amount from the  Texas exporters loan fund to
 21-7    the capital access fund.
 21-8          (d)  As loan repayments are received for the  Texas exporters
 21-9    loan fund, the comptroller shall transfer the payments to the
21-10    capital access fund.
21-11          SECTION 2.03. Section 481.087(c), Government Code, is amended
21-12    to read as follows:
21-13          (c)  Appropriated money in the fund may be used and reused
21-14    for the purposes of this subchapter. Available funds in the fund in
21-15    an amount not to exceed $700,000 may be used for the Texas-Mexico
21-16    Development Fund program or the electronic data base established
21-17    under Subchapter D, Chapter 405.
21-18          SECTION 2.04. Section 481.403, Government Code, is amended to
21-19    read as follows:
21-20          Sec. 481.403.  TRANSFER OF MONEY FROM TEXAS RURAL ECONOMIC
21-21    DEVELOPMENT FUND [OTHER FUNDS] TO [THE] CAPITAL ACCESS FUND. (a)
21-22    At the beginning of each fiscal year, the department shall compute
21-23    for [the Texas exporters loan fund established under Subchapter D
21-24    and] the Texas rural economic development fund established under
21-25    Subchapter F:
21-26                (1)  the amount sufficient for that fiscal year to
21-27    cover loan guarantees made under Subchapter [D or] F[, as
 22-1    applicable to each fund];
 22-2                (2)  the amount sufficient [for the fiscal year to
 22-3    repay bonds issued under Subchapter D, to carry out the purposes of
 22-4    Section 481.059, or] for projects that are eligible under
 22-5    Subchapter F[, as applicable to each fund]; and
 22-6                (3)  the amount of loan repayments for loans made under
 22-7    Subchapter [D or] F that will be expected to be received during the
 22-8    fiscal year[, as applicable to each fund].
 22-9          (b)  At the beginning of each fiscal year, the comptroller
22-10    for the Texas rural economic development fund [each fund described
22-11    by Subsection (a)] shall subtract the sum of the amount computed by
22-12    the department under Subsections (a)(1) and (a)(2) [for the
22-13    respective fund] from the amount in the fund at the beginning of
22-14    the fiscal year.
22-15          (c)  If a positive amount results from a computation made
22-16    under Subsection (b), the comptroller shall transfer an amount
22-17    equal to the computed amount from the Texas rural economic
22-18    development fund [to which the computation relates] to the capital
22-19    access fund.
22-20          (d)  As loan repayments are received for the Texas rural
22-21    economic development fund [each fund described by Subsection (a)],
22-22    the comptroller shall transfer the payments to the capital access
22-23    fund.
22-24          SECTION 2.05. (a)  On the effective date of this Act, all
22-25    powers, duties, obligations, rights, contracts, records, employees,
22-26    property, and unspent  and  unobligated  appropriations  and  other
22-27    funds of the Texas Department of Economic Development that were
 23-1    used by that agency immediately before the effective date of this
 23-2    Act to administer foreign offices, the international trade program,
 23-3    the border affairs program, and the Texas rural economic
 23-4    development fund are transferred to the secretary of state.
 23-5          (b)  All rules, policies, procedures, and decisions that
 23-6    affect the foreign offices, the international trade program, the
 23-7    border affairs program, and the Texas rural economic development
 23-8    fund are continued in effect until superseded by a rule or other
 23-9    appropriate action of the secretary of state.
23-10      ARTICLE 3.  ADMINISTRATION OF THE TEXAS BUSINESS AND COMMUNITY
23-11                    ECONOMIC DEVELOPMENT CLEARINGHOUSE
23-12          SECTION 3.01. Subchapter K, Chapter 481, Government Code, is
23-13    transferred to Chapter 403, Government Code, designated as
23-14    Subchapter O, and amended to read as follows:
23-15                SUBCHAPTER O [K].  INFORMATION AND REFERRAL
23-16          Sec. 403.361 [481.166].  LEGISLATIVE FINDINGS. The
23-17    legislature finds that:
23-18                (1)  economic development programs and services are
23-19    located in a number of state agencies;
23-20                (2)  businesses and communities need a single point of
23-21    contact on business and community economic development programs and
23-22    services; and
23-23                (3)  state agencies need to work together to provide
23-24    outreach and assistance to local governments and businesses.
23-25          Sec. 403.362 [481.1665].  INFORMATION ON PROGRAMS AND
23-26    SERVICES FOR CERTAIN COMMUNITIES AND ENTITIES. (a)  At least once
23-27    each two-year period, the Texas Business and Community Economic
 24-1    Development Clearinghouse shall provide written notice in English
 24-2    and in Spanish regarding those programs and services described by
 24-3    Section 403.363(b) [481.167(b)] that will benefit and assist
 24-4    communities and entities that have experienced significant job
 24-5    losses associated with the implementation of the North American
 24-6    Free Trade Agreement (NAFTA).  The clearinghouse shall provide the
 24-7    notice to each of the governing bodies of the municipalities and
 24-8    counties, chambers of commerce, small business development centers,
 24-9    and economic development centers located in the border region.  The
24-10    clearinghouse shall also provide the information contained in the
24-11    notice on the comptroller's [department's] Internet website.
24-12          (b)  The notice required by Subsection (a) must contain:
24-13                (1)  the Internet address of the comptroller's
24-14    [department's] website; and
24-15                (2)  the toll-free telephone number of the
24-16    clearinghouse.
24-17          Sec. 403.363 [481.167].  TEXAS BUSINESS AND COMMUNITY
24-18    ECONOMIC DEVELOPMENT CLEARINGHOUSE. (a)  The comptroller
24-19    [department] shall establish the Texas Business and Community
24-20    Economic Development Clearinghouse to provide information and
24-21    assistance to businesses and communities in the state through the
24-22    use of a statewide toll-free telephone service.
24-23          (b)  The clearinghouse shall collect and disseminate
24-24    information on federal, state, local, and private:
24-25                (1)  business development programs, including financial
24-26    assistance and business incentive programs;
24-27                (2)  business development services, including technical
 25-1    assistance, workshops, business incubators, training, and useful
 25-2    publications;
 25-3                (3)  rural and urban community economic development
 25-4    programs, including loans, grants, and other funding sources;
 25-5                (4)  rural and urban community economic development
 25-6    services, including technical assistance, workshops, training, and
 25-7    useful publications;
 25-8                (5)  small business programs and services and useful
 25-9    publications;
25-10                (6)  defense economic adjustment programs and services
25-11    and useful publications; and
25-12                (7)  international trade programs, services, and useful
25-13    publications.
25-14          (c)  The clearinghouse shall provide access to the
25-15    information compiled under this subchapter in a user-friendly
25-16    format through the use of the Internet.
25-17          (d)  The comptroller [department] shall obtain from other
25-18    state agencies appropriate information needed by the department to
25-19    carry out its duties under this subchapter.
25-20          (e)  The comptroller shall further [assist the department in
25-21    furthering] the purposes of this subchapter by allowing the Texas
25-22    Department of Economic Development [department] to use the field
25-23    offices and personnel of the comptroller to disseminate brochures,
25-24    documents, and other information useful to businesses in the state.
25-25          SECTION 3.02. On the effective date of this Act, all powers,
25-26    duties, obligations, rights, contracts, records, employees,
25-27    property, and unspent and  unobligated appropriations and other
 26-1    funds of the Texas Department of Economic Development that were
 26-2    used by that agency immediately before the effective date of this
 26-3    Act to administer the Texas Business and Community Economic
 26-4    Development Clearinghouse are transferred to the comptroller of
 26-5    public accounts.
 26-6                        ARTICLE 4.  EFFECTIVE DATE
 26-7          SECTION 4.01. This Act takes effect September 1, 2001.