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.