78R14016 JJT-F


By:  Keffer of Eastland                                           H.B. No. 3323

Substitute the following for H.B. No. 3323:                                   

By:  Keffer of Eastland                                       C.S.H.B. No. 3323



A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Texas Enterprise Fund.                        
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter E, Chapter 481, Government Code, is 
amended by adding Section 481.078 to read as follows:
	Sec. 481.078.  TEXAS ENTERPRISE FUND.  (a)  In this section, 
"account" means the Texas Enterprise Fund.
	(b)  The Texas Enterprise Fund is an account in the general 
revenue fund.
	(c)  The account consists of:                                           
		(1)  money appropriated by the legislature for the 
purposes of this section; and
		(2)  gifts, grants, and other donations received by the 
governor or the department intended for the account.
	(d)  Money in the account may be used only for economic 
development, infrastructure development, community development, 
job training programs, job creation programs, and business 
incentives.  Money in the account may be used by the comptroller 
temporarily for cash management purposes.
	(e)  Interest earned on the principal of the account shall be 
deposited to the credit of the account.
	(f)  The governor may negotiate on behalf of the state 
regarding awarding, by grant, money appropriated from the account.  
The governor may award money appropriated from the account only 
with the express written prior approval of the lieutenant governor 
and the speaker of the house of representatives.
	(g)  Before awarding a grant under this section, the governor 
may enter into a written agreement with the entity to be awarded the 
grant money that specifies that:
		(1)  if all or any portion of the amount of the grant is 
used to build a capital improvement:
			(A)  the state retains a lien or other interest in 
the capital improvement in proportion to the percentage of the 
grant amount used to pay for the capital improvement; and
			(B)  the recipient of the grant shall, if the 
capital improvement is sold:
				(i)  repay to the state the grant money used 
to pay for the capital improvement, with interest at the rate and 
according to other terms provided by the agreement; and
				(ii)  share with the state a proportionate 
amount of any profit realized from the sale; and
		(2)  if, as of a date certain as provided in the 
agreement, the grant recipient has not used grant money awarded 
under this section for the purposes for which the grant was 
intended, the recipient shall repay that amount and any related 
interest to the state at the agreed rate and terms.
	SECTION 2.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.