78R3393 ATP-D
By: Keffer of Eastland H.B. No. 3472
A BILL TO BE ENTITLED
AN ACT
relating to the abolition of the Texas Department of Economic
Development; to the transfer of its functions to the Governor's
Economic Development Division; and to the creation of the Texas
Office of Tourism and the consolidation of the tourism functions of
certain state agencies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. ABOLITION OF THE TEXAS DEPARTMENT OF ECONOMIC
DEVELOPMENT; TRANSFER OF BUSINESS INCENTIVE FUNCTIONS TO
GOVERNOR'S OFFICE
SECTION 1.01. The heading to Chapter 481, Government Code,
is amended to read as follows:
CHAPTER 481. GOVERNOR'S [TEXAS DEPARTMENT OF] ECONOMIC
DEVELOPMENT DIVISION
SECTION 1.02. Section 481.001, Government Code, is amended
by adding Subdivision (5) to read as follows:
(5) "Division" means the Governor's Economic
Development Division.
SECTION 1.03. Section 481.002, Government Code, is amended
to read as follows:
Sec. 481.002. DIVISION [DEPARTMENT]. The Governor's [Texas
Department of] Economic Development Division is a trusteed program
within the office of the governor [an agency of the state].
SECTION 1.04. Section 481.003, Government Code, is amended
to read as follows:
Sec. 481.003. SUNSET PROVISION. The Governor's [Texas
Department of] Economic Development Division is subject to Chapter
325 (Texas Sunset Act). Unless continued in existence as provided
by that chapter, the division [department] is abolished and this
chapter expires September 1, 2015 [2003].
SECTION 1.05. Section 481.0044(a), Government Code, is
amended to read as follows:
(a) The governor may [governing board shall] adopt rules
necessary for the administration of division [department] programs
and [may adopt rules] for its internal management and control.
SECTION 1.06. The heading to Section 481.005, Government
Code, is amended to read as follows:
Sec. 481.005. [EXECUTIVE] DIRECTOR[; GOVERNING BOARD
DUTIES].
SECTION 1.07. Section 481.005(a), Government Code, is
amended to read as follows:
(a) The governor [governing board] shall appoint a [employ
an executive] director of the division [department] who serves at
the pleasure of the governor [governing board].
SECTION 1.08. Section 481.006, Government Code, is amended
to read as follows:
Sec. 481.006. FUNCTIONS [DIVISIONS]. (a) The governor may
[governing board shall] establish functions [the divisions] within
the division [department], which may include:
(1) [an administrative division;
[(2) an] information and referral services
[division];
(2) [(3) a] research and data services [division];
(3) [(4) a] business development [division];
(4) [(5) an] international trade development
[division]; and
(5) [(6) a] promotion and marketing [division; and
[(7) a tourism division].
(b) The governor may [executive director shall] staff and
assign duties [to the divisions] to carry out the division's
[department's] functions.
SECTION 1.09. Sections 481.0065(a) and (e), Government
Code, are amended to read as follows:
(a) The governor may [department shall:
[(1)] establish and maintain an Office of Defense
Affairs within the office of the governor[; and
[(2) appoint a director to manage the Office of
Defense Affairs].
(e) The Office of Defense Affairs shall coordinate an annual
meeting with the head of each state agency, members of the Texas
Strategic Military Planning Commission, and members of the
legislature whose districts contain active, closed, or realigned
military installations to discuss the implementation of the
recommendations outlined in the annual report [required] under
Section 481.011(a)(5) [Subsection (c)].
SECTION 1.10. Section 481.0068(a), Government Code, is
amended to read as follows:
(a) The governor may establish and maintain an Office of
Small Business Assistance [is an office] within the office of the
governor to [department and shall] be headed by a small business
advocate designated by the governor. To be eligible to serve as the
small business advocate, a person must have demonstrated a strong
commitment to and involvement in small business efforts.
SECTION 1.11. Section 481.007, Government Code, is amended
to read as follows:
Sec. 481.007. ADVISORY COMMITTEES. The governor [executive
director or the governing board] may appoint advisory committees to
assist the governor [executive director or the governing board] in
the performance of the governor's [their] duties. A member of an
advisory committee [appointed by the executive director or the
governing board] may not receive compensation for service on the
advisory committee. A member appointed under this section is
entitled to receive reimbursement, subject to any applicable
limitation on reimbursement provided by the General Appropriations
Act, for actual and necessary expenses included in performing
service as a member of the advisory committee.
SECTION 1.12. Section 481.011, Government Code, is amended
to read as follows:
Sec. 481.011. ANNUAL [FISCAL] REPORT. (a) The governor
[executive director] shall file annually, with [the governor and]
the presiding officer of each house of the legislature and the
clerks of the standing committees of the senate and the house of
representatives with primary jurisdiction over commerce and
economic development, a complete and detailed written report:
(1) accounting for all funds received and disbursed by
the division [department] during the preceding fiscal year,[. The
annual report must be] in the form [and reported in the time]
provided by the General Appropriations Act;
(2) describing the activities and efforts of the
governor and the division during the preceding calendar year,
including:
(A) the efforts of the governor and the division
to promote and market the division's economic development programs
and services, including the Texas Business and Community Economic
Development Clearinghouse; and
(B) the efforts of the governor and the division
to obtain federal and private funding to accomplish the goals of the
division;
(3) making recommendations to the legislature on
issues related to economic development and the business climate of
the state, and assessing the effectiveness of the agreements
executed under Section 481.028(b);
(4) providing:
(A) a list of the properties in this state that
are compiled and reported to the division under Section 23.03, Tax
Code;
(B) a list of the school districts in this state,
classified according to the categories established by Sections
313.022 and 313.052, Tax Code;
(C) a list of prospective projects identified by
the division that proposed to invest at least $100 million in this
state, including prospective projects that worked with the division
or the governor or of which the division was aware but that located
in another state or country;
(D) information identifying the other state or
country in which a prospective project located and stating the
primary reason identified by the division that the prospective
project did not locate in this state; and
(E) an assessment of the effectiveness of the
incentives provided by Chapter 313, Tax Code, accompanied by
information on the number of agreements entered into by school
districts under that chapter during the preceding biennium, a
description of each project covered by an agreement, and the
details of the agreement;
(5) providing any information compiled by the Office
of Defense Affairs relating to active military installations,
defense-dependent communities, and defense-related businesses in
this state, and including:
(A) an economic impact statement describing in
detail the effect of the military on the economy of this state;
(B) a statewide assessment of active military
installations and current missions;
(C) a statewide strategy to attract
defense-related business and prevent future defense closures and
realignments;
(D) a list of state and federal activities that
have a significant impact on active military installations and
current missions;
(E) the identification of:
(i) the state and federal programs and
services that assist defense-dependent communities impacted by
military base closures or realignments and the efforts to
coordinate those programs; and
(ii) the efforts to coordinate state agency
programs and services that assist defense-dependent communities in
retaining active military installations and current missions;
(F) an evaluation of initiatives to retain
existing defense-related businesses; and
(G) a list of agencies with regulations,
policies, programs, or services that impact the operating costs or
strategic value of federal military installations and activities in
the state;
(6) containing specific information regarding any
functions performed by the Office of Small Business Assistance,
including recommendations regarding issues that affect small
businesses of the state;
(7) providing updated results of the survey of tax
incentive laws and economic development laws under Section
481.168(a), including recommendations for legislative action;
(8) describing the division's efforts during the
preceding calendar year in promoting the linked deposit program
under Section 481.198; and
(9) providing the status of the capital access
program.
(b) The comptroller shall assist the governor in complying
with Subsection (a)(4).
(c) State agencies shall cooperate with and assist the
governor in the preparation of the information included in the
report under Subsection (a)(5), including providing information
about regulations, policies, programs, and services that may impact
defense-dependent communities, defense-related businesses, and the
viability of existing Texas military missions.
(d) An interested person, including a trade association,
may provide information the person considers useful or relevant to
the information included in the report under Subsection (a)(7). A
state agency, on request, shall assist in preparing information
included in the report under Subsection (a)(7).
(e) The governor shall submit the report under this section
on or before September 1 of each year.
SECTION 1.13. Section 481.012, Government Code, is amended
to read as follows:
Sec. 481.012. PUBLIC INTEREST INFORMATION AND COMPLAINTS.
(a) The division [department] shall prepare information of public
interest describing the functions of the division [department] and
the division's [department's] procedures by which complaints are
filed with and resolved by the division [department]. The division
[department] shall make the information available to the public and
appropriate state agencies.
(b) The division [department] shall keep an information
file about each complaint filed with the division [department] that
the division [department] has authority to resolve. If a written
complaint is filed with the division [department] that the division
[department] has authority to resolve, the division [department],
at least quarterly and until final disposition of the complaint,
shall notify the parties to the complaint of the status of the
complaint unless the notice would jeopardize an undercover
investigation.
(c) The governor may [governing board shall] prepare and
maintain a written plan that describes how a person who does not
speak English can be provided reasonable access to the division's
[department's] programs. The division [governing board] shall also
comply with federal and state laws for program and facility
accessibility.
(d) The governor [governing board] by rule may [shall]
establish methods by which consumers and service recipients are
notified of the name, mailing address, and telephone number of the
division [department] for the purpose of directing complaints to
the division [department].
SECTION 1.14. The heading to Subchapter B, Chapter 481,
Government Code, is amended to read as follows:
SUBCHAPTER B. GENERAL POWERS AND DUTIES OF DIVISION [DEPARTMENT]
SECTION 1.15. Section 481.021, Government Code, is amended
to read as follows:
Sec. 481.021. GENERAL POWERS OF DIVISION [DEPARTMENT]. (a)
The division [department] may:
(1) [adopt and enforce rules necessary to carry out
this chapter;
[(2) adopt and] use an official seal adopted by the
governor;
(2) [(3)] accept gifts, grants, or loans from and
contract with any entity;
(3) [(4)] sue and be sued;
(4) [(5)] acquire and convey property or an interest
in property;
(5) [(6)] procure insurance and pay premiums on
insurance of any type, in accounts, and from insurers as the
governor [department] considers necessary and advisable to
accomplish any of the division's [department's] purposes;
(6) [(7)] hold patents, copyrights, trademarks, or
other evidence of protection or exclusivity issued under the laws
of the United States, any state, or any nation and may enter into
license agreements with any third parties for the receipt of fees,
royalties, or other monetary or nonmonetary value;
(7) [(8)] sell advertisements in any medium; and
(8) [(9)] exercise any other power necessary to carry
out this chapter at the direction of the governor.
(b) Except as otherwise provided by this chapter, money paid
to the division [department] under this chapter shall be deposited
in the state treasury.
(c) The division [department] shall deposit contributions
from private sources in a separate fund kept and held in escrow and
in trust by the comptroller for and on behalf of the division
[department] as funds held outside the treasury under Section
404.073, and the money contributed shall be used to carry out the
purposes of the division [department] and, to the extent possible,
the purposes specified by the donors. The comptroller may invest
and reinvest the money, pending its use, in the fund in investments
authorized by law for state funds that the comptroller considers
appropriate.
SECTION 1.16. Section 481.022, Government Code, is amended
to read as follows:
Sec. 481.022. GENERAL DUTIES OF DIVISION [DEPARTMENT]. The
division, at the direction of the governor, [department] shall:
(1) facilitate the location, expansion, and retention
of domestic and international business investment to the state;
(2) provide statewide toll-free information and
referrals for business and community economic development;
(3) promote and administer business and community
economic development programs and services in the state;
(4) provide to businesses in the state assistance with
exporting products and services to international markets;
(5) [promote the state as a premier tourist and
business travel destination;
[(6)] provide businesses and local communities with
timely and useful research and data services;
(6) [(7)] aggressively market and promote the
business climate in the state and the state economic development
business assistance programs and services through the use of
available media and resources, including the Internet; and
(7) [(8)] seek funding of division [the department]
programs and activities from federal, state, and private sources.
SECTION 1.17. Section 481.023, Government Code, is amended
to read as follows:
Sec. 481.023. ADMINISTRATION OF OTHER STATUTES. (a) The
division [department] shall perform the administrative duties
formerly assigned to the Texas Department of Economic Development
[prescribed] under:
(1) Chapter 1433; and
(2) the Development Corporation Act of 1979 (Article
5190.6, Vernon's Texas Civil Statutes).
(b) The division [department] shall perform the
administrative duties formerly assigned to the Texas Department of
Economic Development, the Texas Economic Development Commission,
and the Enterprise Zone Board under Chapter 2303.
(c) The division [department] may not use money from the
general revenue fund to support the Texas leverage fund.
SECTION 1.18. Section 481.0231, Government Code, is amended
to read as follows:
Sec. 481.0231. DEVELOPMENT CORPORATION TRAINING SEMINAR.
(a) The division [department], under the direction of the governor
and in conjunction with the attorney general and the comptroller,
shall [by rule] develop a training seminar to ensure that the
officers of a corporation created by a municipality or county
under, and the officials of the municipality or county that created
a corporation under, the Development Corporation Act of 1979
(Article 5190.6, Vernon's Texas Civil Statutes) properly and
legally operate the corporation and administer a tax imposed for
the benefit of the corporation.
(b) The division [department] may include in the seminar any
information regarding training programs offered by the division
[department], the attorney general, or the comptroller that would
assist a person attending the seminar with the operation and
administration of a development corporation.
(c) The division [department] shall issue a certificate of
completion to each person who completes the training seminar.
(d) The division [department] shall hold the training
seminars in different regions in the state for the convenience of
persons required to complete the training seminar under Section 39,
Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
Civil Statutes).
(e) The governor [department] may enter into an agreement
for the provision of a training seminar developed by the division
under this section by any person determined by the governor
[department] to be qualified to provide the training seminar. A
person who provides a training seminar under this subsection may
charge a reasonable fee for attending the seminar.
SECTION 1.19. Sections 481.024(a), (e), and (f), Government
Code, are amended to read as follows:
(a) The Texas Economic Development Corporation on behalf of
the state shall carry out the public purposes of this chapter. The
creation of the corporation does not limit or impair the rights,
powers, and duties of the division [department] provided by this
chapter. The corporate existence of the Texas Economic Development
Corporation begins on the issuance of a certificate of
incorporation by the secretary of state. The governor shall
appoint [members of the governing board serve ex officio as] the
board of directors of the corporation. The corporation has the
powers and is subject to the limitations provided for the division
[department] by this chapter in carrying out the public purposes of
this chapter. The corporation has the rights and powers of a
nonprofit corporation incorporated under the Texas Non-Profit
Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
Statutes) except to the extent inconsistent with this section. The
corporation may contract with the division [department] and with
bond counsel, financial advisors, or underwriters as its board of
directors considers necessary.
(e) If the board of directors by resolution determines that
the purposes for which the corporation was formed have been
substantially complied with and that all bonds issued by the
corporation have been fully paid, the board of directors shall
dissolve the corporation. On dissolution, the title to all funds
and properties then owned by the corporation shall be transferred
to the division [department].
(f) The Texas Economic Development Corporation and any
other corporation whose charter specifically dedicates the
corporation's activities to the benefit of the division or the
Texas Department of Economic Development or its predecessor agency
shall file an annual report of the financial activity of the
corporation. The annual report shall be filed prior to the 90th day
after the last day for the corporation's fiscal year and shall be
prepared in accordance with generally accepted accounting
principles. The report must include a statement of support,
revenue, and expenses and change in fund balances, a statement of
functional expenses, and balance sheets for all funds.
SECTION 1.20. Section 481.025, Government Code, is amended
to read as follows:
Sec. 481.025. EMPOWERMENT ZONE AND ENTERPRISE COMMUNITY
PROGRAM. The division [department] is [the agency of this state]
responsible for administering the Empowerment Zone and Enterprise
Community grant program in this state. The division [department]
shall cooperate with appropriate federal and local agencies as
necessary to administer the grant program.
SECTION 1.21. Sections 481.027(a)-(e), Government Code, are
amended to read as follows:
(a) The division [department] shall maintain and operate
offices in foreign countries for the purposes of promoting
investment that generates jobs in Texas, exporting of Texas
products, tourism, and international relations for Texas. The
offices shall be named "The State of Texas" offices. To the extent
permitted by law, [other] state agencies that conduct business in
foreign countries may place staff in the offices established by the
division [department] and share the overhead and operating expenses
of the offices. The governor shall direct [Other] state agencies
and the division to [department may] enter into interagency
contracts for this purpose. Chapter 771 does not apply to those
contracts. Any purchase for local procurement or contract in
excess of $5,000 shall be approved by the governor [executive
director] prior to its execution.
(b) The offices shall be accessible to Texas-based
institutions of higher education and their nonprofit affiliates for
the purposes of fostering Texas science, technology, and research
development, international trade and investment, and cultural
exchange. The division [department] and the institutions may enter
contracts for this purpose. Chapter 771 does not apply to those
contracts.
(c) The division [department] shall maintain regional
offices in locations specified in the General Appropriations Act.
(d) The division [department] may collect fees for the use
of the offices from public and private entities except that any
payments by a state agency are governed by any interagency contract
under Subsection (a). The fees may be used only to expand, develop,
and operate offices under this section.
(e) Chapter 2175 applies to the operation and maintenance of
the offices. No other provisions of Subtitle D, Title 10, apply to
the operation and maintenance of the offices, or to transactions of
the division [department] that are authorized by this section.
SECTION 1.22. Sections 481.028(a), (b), and (d), Government
Code, are amended to read as follows:
(a) The governor [department] shall initiate negotiations
for and establish [enter into] a memorandum of understanding with
any [other] state agency involved in economic development to
cooperate in program planning and budgeting.
(b) The governor shall establish [department shall enter
into] an agreement as required by Subsection (a) with the:
(1) Department of Agriculture regarding [each
agency's] international marketing efforts and business finance
programs;
(2) Texas Workforce Commission regarding the skills
development fund, and the dissemination of employment-related
data, statistics, and analyses, and the use of field offices to
distribute information of interest to businesses and communities in
the state[, including applications for Smart Jobs grants];
(3) General Land Office regarding [each agency's]
rural economic development efforts;
(4) Texas Department of Housing and Community Affairs
regarding [each agency's] community development programs;
(5) [Texas Department of Transportation and Parks and
Wildlife Department regarding each agency's efforts to promote
tourism;
[(6)] Texas [Natural Resource Conservation]
Commission on Environmental Quality regarding small business
finance and permits, the marketing of recyclable products, and
business permits;
(6) [(7)] office of the comptroller regarding the
dissemination of economic data, statistics, and analyses and the
use of field offices to distribute information to businesses and
local communities in the state;
(7) [(8)] Texas Historical Commission regarding
community preservation, restoration, and revitalization;
(8) [(9)] Texas Building and Procurement [General
Services] Commission regarding providing procurement information,
certification, and technical assistance to small and historically
underutilized businesses;
(9) [(10)] Alternative Fuels Council regarding the
promotion of alternative fuels;
(10) [(11)] institutions of higher education
regarding work force development, literacy, and technology
transfer; and
(11) [(12)] Texas Agricultural Finance Authority
regarding the marketing and promotion of the programs administered
by the authority.
(d) The memorandum of understanding between the governor
[department] and the [other] state agency shall be adopted as a rule
of the governor and the [each department or] agency.
SECTION 1.23. Section 481.029, Government Code, is amended
to read as follows:
Sec. 481.029. COST RECOVERY. The division, at the
direction of the governor, [department] shall recover the cost of
providing direct technical assistance, management training
services, and other services to businesses and communities when
reasonable and practical.
SECTION 1.24. Section 481.043, Government Code, is amended
to read as follows:
Sec. 481.043. GENERAL POWERS AND DUTIES RELATING TO
INTERNATIONAL TRADE. The division [department] shall:
(1) provide businesses in the state with technical
assistance, information, and referrals related to the export of
products and services, including export finance and international
business practices;
(2) coordinate the representation of exporters in the
state at international trade shows, missions, marts, seminars, and
other appropriate promotional venues;
(3) cooperate and act in conjunction with other public
and private organizations to promote and advance export trade
activities in this state; and
(4) disseminate trade leads to exporters in the state
through the use of the Internet and other available media.
SECTION 1.25. Section 481.045, Government Code, is amended
to read as follows:
Sec. 481.045. POWERS TO BE INTERPRETED BROADLY. The powers
of the governor and the division [department] provided by this
subchapter shall be interpreted broadly to effect the purposes of
this subchapter. The grant of powers under this subchapter is not a
limitation of other powers of the governor and the division
[department].
SECTION 1.26. Section 481.047, Government Code, is amended
to read as follows:
Sec. 481.047. CONFIDENTIALITY. Information collected by
the division [department] concerning the identity, background,
finance, marketing plans, trade secrets, or other commercially
sensitive information of a lender or export business is
confidential unless the lender or export business consents to
disclosure of the information.
SECTION 1.27. Section 481.071, Government Code, is amended
to read as follows:
Sec. 481.071. LEGISLATIVE FINDINGS. The legislature finds
that:
(1) the division [department] should focus business
development efforts on rural areas, the border region, and small
business;
(2) the measures authorized by this subchapter and the
assistance provided by this subchapter, especially with respect to
financing, are in the public interest and serve a public purpose of
the state;
(3) the economic future of Texas and its citizens
depends on the ability of businesses to secure low-cost capital
that promotes the high-quality jobs that improve the living
standards of all Texans; and
(4) the division [department] should actively seek
private funding to supplement the division's [department's]
marketing and advertising efforts.
SECTION 1.28. Section 481.0725, Government Code, is amended
to read as follows:
Sec. 481.0725. GENERAL POWERS AND DUTIES. The division, at
the direction of the governor, [department] shall:
(1) focus business recruitment, expansion, and
retention efforts on industry sectors with the highest potential
for creating high-wage, high-skill jobs;
(2) provide businesses with site selection assistance
and communities with investment leads;
(3) develop a comprehensive business recruitment
marketing plan;
(4) participate in international and domestic trade
shows, trade missions, marketing trips, and seminars; and
(5) produce and disseminate information through the
use of available media and resources, including the Internet, to
promote business assistance programs and the overall business
climate in the state.
SECTION 1.29. Section 481.073, Government Code, is amended
to read as follows:
Sec. 481.073. POWERS AND DUTIES RELATING TO FINANCING. (a)
The division, at the direction of the governor, [department] shall
act on behalf of the state to carry out the public purposes of this
subchapter and of the Development Corporation Act. The division
[department] may issue bonds to finance the cost of projects. The
bonds may be secured as provided by Section 25(e) of the Development
Corporation Act.
(b) The governor [governing board] has the powers that are
necessary to accomplish the purposes of this subchapter, including
the powers granted to industrial development corporations by
Section 23 of the Development Corporation Act, except those
provided by Subsections (a)(7), (8), (9), and (10) of that section,
and Sections 26, 27, and 29 of that Act.
(c) The division, at the direction of the governor,
[department] may:
(1) purchase, discount, sell, assign, negotiate, and
otherwise dispose of notes, bonds, and other evidences of
indebtedness incurred to finance or refinance projects whether
secured or unsecured;
(2) administer or participate in programs established
by another person to finance or refinance projects; and
(3) acquire, hold, invest, use, and dispose of the
division's [department's] revenues, funds, and money received from
any source under this subchapter and the proceedings authorizing
the bonds issued under this subchapter, subject only to the
provisions of the Texas Constitution, this subchapter, and any
covenants relating to the division's [department's] bonds in
classes of investments that the governor [board] determines.
SECTION 1.30. Section 481.075, Government Code, is amended
to read as follows:
Sec. 481.075. PROGRAM RULES. (a) The governor may
[department shall] adopt rules to establish criteria for
determining which users may participate in programs established by
the division [department] under this subchapter. The governor may
[department shall] adopt collateral or security requirements to
ensure the full repayment of any loan, lease, or installment sale
and the solvency of any program implemented under this subchapter.
The governor [governing board] must approve all leases and sale and
loan agreements made under this subchapter except that the governor
[governing board] may delegate this approval authority to the
[executive] director of the division.
(b) Users participating in the programs established under
this subchapter shall pay the costs of applying for, participating
in, and administering and servicing the program in amounts that the
governor [department] considers reasonable and necessary.
SECTION 1.31. Sections 481.087(a) and (b), Government Code,
as amended by Chapters 18 and 602, Acts of the 72nd Legislature,
Regular Session, 1991, are amended to read as follows:
(a) The Texas rural economic development fund is a
[guaranteed loan] fund in the state treasury. The division
[department] may use money in the fund to establish a reserve fund,
in an amount determined by the governor [department] as
appropriate, for bonds issued under [Subchapter E of] this chapter
for projects that [which] are [also] eligible under this subchapter
or to insure and guarantee the bonds in any other manner. [Reserve
funds for the issuance of bonds under Subchapters Q and U may only
be created on approval of the Product Development Advisory Board or
the Product Commercialization Advisory Board, as applicable.]
(b) Appropriations for the implementation and
administration of this subchapter, interest paid on money in the
fund, investment earnings, and fees shall be deposited in the fund.
The division [department] may [also] deposit proceeds of bonds
[funds] issued under [Subchapter E of] this chapter in the fund.
SECTION 1.32. Section 481.101, Government Code, is amended
to read as follows:
Sec. 481.101. COORDINATED ECONOMIC DEVELOPMENT PLAN. The
division, under the direction of the governor and [department,] in
consultation with the comptroller, shall develop a coordinated,
comprehensive economic development plan to provide for the orderly
development and management of economic development in this state.
The plan must provide for:
(1) establishing goals and standards to measure
whether state efforts are having a positive economic effect;
(2) tracking benefits and wage and retention
performance measures; and
(3) reevaluating economic development initiatives
that offer fewer benefits in relation to their costs.
SECTION 1.33. Section 481.102(b), Government Code, is
amended to read as follows:
(b) Each fifth following year after 2002, the division,
under the direction of the governor and [department,] in
consultation with the comptroller, shall update the plan.
SECTION 1.34. Sections 481.103(a) and (b), Government Code,
are amended to read as follows:
(a) The state economic development plan shall be a guide to
state economic development policy. The division [department] shall
take the plan into consideration in matters coming before it.
(b) The division [department] shall disseminate the plan to
local governments and shall encourage the local governments to use
the suggested standards to improve efficient allocation and use of
economic development resources.
SECTION 1.35. Section 481.104, Government Code, is amended
to read as follows:
Sec. 481.104. RULES. The governor may [department by rule
shall] adopt guidance principles for the state economic development
plan that reflect the public interest of the entire state,
including the needs of rural and urban areas, economically
depressed areas, and areas experiencing significant changes in
population.
SECTION 1.36. Section 481.105, Government Code, is amended
to read as follows:
Sec. 481.105. DELIVERY OF PLAN AND UPDATES. The division
[department] shall promptly deliver the state economic development
plan and each update of the plan to the governor, the lieutenant
governor, and the speaker of the house of representatives and
present the plan for review to the appropriate legislative
committees. The plan and updates must include legislative
recommendations that the division [department] believes are needed
and desirable to facilitate more voluntary economic development.
SECTION 1.37. Section 481.121(2), Government Code, is
amended to read as follows:
(2) "Office" means the [department's] business permit
office established under this subchapter.
SECTION 1.38. Section 481.122, Government Code, is amended
to read as follows:
Sec. 481.122. CREATION. The governor may establish and
maintain a business permit office [is an office] within the office
of the governor [department].
SECTION 1.39. Section 481.123, Government Code, is amended
to read as follows:
Sec. 481.123. DUTIES. (a) The office, at the direction of
the governor, shall:
(1) provide comprehensive information on permits
required for business enterprises in the state and make that
information available to applicants and other persons;
(2) assist applicants in obtaining timely and
efficient permit review and in resolving issues arising from the
review;
(3) facilitate contacts between applicants and state
agencies responsible for processing and reviewing permit
applications;
(4) assist applicants in the resolution of outstanding
issues identified by state agencies, including delays experienced
in permit review;
(5) develop comprehensive application procedures to
expedite the permit process;
(6) compile a comprehensive list of all permits
required of a person desiring to establish, operate, or expand a
business enterprise in the state;
(7) encourage and facilitate the participation of
federal and local government agencies in permit coordination;
(8) make recommendations for eliminating,
consolidating, simplifying, expediting, or otherwise improving
permit procedures affecting business enterprises by requesting
that the state auditor, with the advice and support of the office,
initiate a business permit reengineering review process involving
all state agencies;
(9) develop and implement an outreach program to
publicize and make small business entrepreneurs and others aware of
services provided by the office; and
(10) [adopt rules, procedures, instructions, and
forms required to carry out the functions, powers, and duties of the
office under this subchapter; and
[(11)] except as provided in Section 481.129, complete
the implementation of the business permit review process on or
before September 1, 1994, and provide all recommended statutory
changes as needed to the legislature on or before January 1, 1995.
(b) The governor may adopt rules, procedures, instructions,
and forms required to carry out the functions, powers, and duties of
the office under this subchapter.
SECTION 1.40. Section 481.124(a), Government Code, is
amended to read as follows:
(a) The governor may direct the office to [shall] develop
and [by rule] implement a comprehensive application procedure to
expedite the identification and processing of required permits.
The office shall specify the permits to which the comprehensive
application procedure applies. A comprehensive application must be
made on a form prescribed by the office. The office shall consult
with affected agencies in designing the form to ensure that the form
provides the necessary information to allow agencies to identify
which permits may be needed by the applicant. The form must be
designed primarily for the convenience of an applicant who is
required to obtain multiple permits and must provide for concise
and specific information necessary to determine which permits are
or may be required of the particular applicant.
SECTION 1.41. Section 481.1665, Government Code, is
redesignated as Section 481.169, Government Code, and amended to
read as follows:
Sec. 481.169 [481.1665]. INFORMATION ON PROGRAMS AND
SERVICES FOR CERTAIN COMMUNITIES AND ENTITIES. (a) At least once
each two-year period, the Texas Business and Community Economic
Development Clearinghouse established under Section 481.167 shall
provide written notice in English and in Spanish regarding those
programs and services described by Section 481.167(b) that will
benefit and assist communities and entities that have experienced
significant job losses associated with the implementation of the
North American Free Trade Agreement (NAFTA). The clearinghouse
shall provide the notice to each of the governing bodies of the
municipalities and counties, chambers of commerce, small business
development centers, and economic development centers located in
the border region. The clearinghouse shall also provide the
information contained in the notice on the division's
[department's] Internet website.
(b) The notice required by Subsection (a) must contain:
(1) the Internet address of the division's
[department's] website; and
(2) the toll-free telephone number of the
clearinghouse.
SECTION 1.42. Sections 481.167(a), (d), and (e), Government
Code, are amended to read as follows:
(a) The governor may [department shall] establish the Texas
Business and Community Economic Development Clearinghouse to
provide information and assistance to businesses and communities in
the state through the use of a statewide toll-free telephone
service.
(d) The division [department] shall obtain from other state
agencies appropriate information needed by the division
[department] to carry out its duties under this subchapter.
(e) The comptroller shall assist the division [department]
in furthering the purposes of this subchapter by allowing the
division [department] to use the field offices and personnel of the
comptroller to disseminate brochures, documents, and other
information useful to businesses in the state.
SECTION 1.43. Sections 481.168(a), (c), and (d), Government
Code, are amended to read as follows:
(a) The attorney general, the comptroller, the division
[Texas Department of Economic Development], and the Council on
Workforce and Economic Competitiveness shall[:
[(1)] conduct a survey of tax incentive laws and
economic development laws enacted in other states since 1990[; and
[(2) deliver to the governor, the lieutenant governor,
and the speaker of the house of representatives a joint report of
the results of the survey].
(c) Any interested person, including a trade association,
may provide information the person considers useful or relevant to
the survey [or the joint report].
(d) Any agency of this state, on request, shall assist in
conducting the survey [or in preparing the initial joint report or
an update of the joint report].
SECTION 1.44. Sections 481.193(a), (b), (d), (e), (f), and
(h), Government Code, are amended to read as follows:
(a) The governor may [department shall] establish a linked
deposit program to encourage commercial lending for the development
of:
(1) small businesses in enterprise zones;
(2) historically underutilized businesses;
(3) child-care services provided by and activities
engaged in this state by nonprofit organizations; and
(4) quality, affordable child-care services in this
state.
(b) If the governor establishes a linked deposit program
under this section, the governor [The policy board] shall adopt
rules for the loan portion of the linked deposit program.
(d) After reviewing an application and determining that the
applicant is an eligible borrower and is creditworthy, the eligible
lending institution shall send the application for a linked deposit
loan to the division [department].
(e) The eligible lending institution shall certify the
interest rate applicable to the specific eligible borrower and
attach it to the application sent to the division [department].
(f) After reviewing each linked deposit loan application,
the [executive] director of the division [department] shall
recommend to the comptroller the acceptance or rejection of the
application.
(h) Before the placing of a linked deposit, the eligible
lending institution and the state, represented by the comptroller
and the division [department], shall enter into a written deposit
agreement containing the conditions on which the linked deposit is
made. The deposit agreement must provide that:
(1) the lending institution notify the comptroller if
the borrower to which the deposit is linked defaults on the loan;
and
(2) in the event of a default the comptroller may
withdraw the linked deposit.
SECTION 1.45. Section 481.194, Government Code, is amended
to read as follows:
Sec. 481.194. COMPLIANCE. (a) On acceptance of its
application to receive linked deposits, an eligible lending
institution shall loan money to an eligible borrower in accordance
with the deposit agreement and this subchapter. The eligible
lending institution shall forward a compliance report to the
division [department].
(b) The division [department] shall monitor compliance with
this subchapter and inform the comptroller of noncompliance on the
part of an eligible lending institution.
SECTION 1.46. Section 481.198(a), Government Code, is
amended to read as follows:
(a) The division, at the direction of the governor,
[department] shall promote the linked deposit program established
by this subchapter to eligible borrowers and financial institutions
that make commercial loans and are depositories of state funds.
SECTION 1.47. Section 481.201, Government Code, is amended
to read as follows:
Sec. 481.201. AGREEMENT WITH HISTORICAL COMMISSION. The
Texas Historical Commission shall execute a written agreement with
the division [department] providing for coordination and planning
of and giving priority to loans made under the commission's Main
Street program.
SECTION 1.48. Section 481.211, Government Code, is amended
to read as follows:
Sec. 481.211. POWERS AND DUTIES. The division, at the
direction of the governor, [department] shall:
(1) compile and update demographic and economic
information on the state;
(2) develop and update information products for local
communities on community economic development issues and practices
that encourage regional cooperation; and
(3) compile and disseminate information on economic
and industrial development trends and issues, including NAFTA,
emerging industries, and patterns of international trade and
investment.
SECTION 1.49. Section 481.212, Government Code, is amended
to read as follows:
Sec. 481.212. COMPILATION AND DISTRIBUTION OF DATA AND
RESEARCH. (a) To serve as a one-stop center for business-related
information, the division, at the direction of the governor,
[department] shall obtain from [other] state agencies and
organizations, including the comptroller and the Texas Workforce
Commission, business-related statistics and data.
(b) To maximize the accessibility of business-related data,
the division, at the direction of the governor, [department] shall
create a web site to publish business-related information on the
Internet. The web site must provide connections to other
business-related web sites.
(c) The division [department] may charge a reasonable
access fee in connection with this subchapter.
SECTION 1.50. Section 481.379(b), Government Code, is
amended to read as follows:
(b) The design committee is composed of members appointed by
the governor [executive director] as follows:
(1) three members who are employers, representing the
business community, including representation of small businesses;
(2) three members who are employees, representing the
labor community;
(3) three members who are high school teachers,
representing secondary education, including representation by
persons with experience in the federal technical preparatory
education programs created under 20 U.S.C. Section 2394b;
(4) three members who are faculty members of
institutions of higher education, representing higher education,
including representation by persons with experience in the federal
technical preparatory education programs created under 20 U.S.C.
Section 2394b;
(5) three members who are training directors from
registered United States Department of Labor Bureau of
Apprenticeship and Training programs; and
(6) three members who are persons who are not eligible
for appointment under Subdivisions (1) through (5), representing
the general public.
SECTION 1.51. Section 481.401(9), Government Code, is
amended to read as follows:
(9) "Reserve account" means an account established in
a participating financial institution on approval of the governor
[department] in which money is deposited to serve as a source of
additional revenue to reimburse the financial institution for
losses on loans enrolled in the program.
SECTION 1.52. Section 481.402(c), Government Code, is
amended to read as follows:
(c) Money in the fund may be appropriated only to the
division [department] for use in carrying out the purposes of this
subchapter.
SECTION 1.53. Sections 481.403(a), (b), and (c), Government
Code, are amended to read as follows:
(a) At the beginning of each fiscal year, the division
[department] shall compute for [the Texas exporters loan fund
established under Subchapter D and] the Texas rural economic
development fund established under Subchapter F[:
[(1) the amount sufficient for that fiscal year to
cover loan guarantees made under Subchapter D or F, as applicable to
each fund;
[(2)] the amount sufficient for the fiscal year to
repay bonds issued [under Subchapter D, to carry out the purposes of
Section 481.059, or] for projects that are eligible under
Subchapter F[, as applicable to each fund; and
[(3) the amount of loan repayments for loans made
under Subchapter D or F that will be expected to be received during
the fiscal year, as applicable to each fund].
(b) At the beginning of each fiscal year, the comptroller
[for each fund described by Subsection (a)] shall subtract the sum
of the amount computed by the division [department] under
Subsection (a) [Subsections (a)(1) and (a)(2)] for the [respective]
fund from the amount in the fund at the beginning of the fiscal
year.
(c) If a positive amount results from a computation made
under Subsection (b), the comptroller shall transfer an amount
equal to the computed amount from the fund [to which the computation
relates] to the capital access fund.
SECTION 1.54. Section 481.404, Government Code, is amended
to read as follows:
Sec. 481.404. POWERS OF DIVISION [DEPARTMENT] IN
ADMINISTERING CAPITAL ACCESS FUND. In administering the fund, the
division [department] has the powers necessary to carry out the
purposes of this subchapter, including the power to:
(1) make, execute, and deliver contracts,
conveyances, and other instruments necessary to the exercise of its
powers;
(2) invest money at the governor's [department's]
discretion in obligations determined proper by the governor
[department], and select and use depositories for its money;
(3) employ personnel and counsel and pay the persons
from money in the fund legally available for that purpose; and
(4) impose and collect fees and charges in connection
with any transaction and provide for reasonable penalties for
delinquent payment of fees or charges.
SECTION 1.55. Sections 481.405(a)-(d), Government Code, are
amended to read as follows:
(a) The governor may [department shall] establish a capital
access program to assist a participating financial institution in
making loans to businesses and nonprofit organizations that face
barriers in accessing capital.
(b) The division, at the direction of the governor,
[department] shall use money in the fund to make a deposit in a
participating financial institution's reserve account in an amount
specified by this subchapter to be a source of money the institution
may receive as reimbursement for losses attributable to loans in
the program.
(c) The division [department] shall determine the
eligibility of a financial institution to participate in the
program and may set a limit on the number of eligible financial
institutions that may participate in the program.
(d) To participate in the program, an eligible financial
institution must enter into a participation agreement with the
division [department] that sets out the terms and conditions under
which the division [department] will make contributions to the
institution's reserve account and specifies the criteria for a loan
to qualify as a capital access loan.
SECTION 1.56. Section 481.406(a), Government Code, is
amended to read as follows:
(a) If the governor establishes a capital access program
under this subchapter, the governor [The policy board] shall adopt
rules relating to the implementation of the program and any other
rules necessary to accomplish the purposes of this subchapter. The
rules may:
(1) provide for criteria under which a certain line of
credit issued by an eligible financial institution to a small or
medium-sized business or nonprofit organization qualifies to
participate in the program; and
(2) authorize a consortium of financial institutions
to participate in the program subject to common underwriting
guidelines.
SECTION 1.57. Sections 481.407(a), (b), and (d), Government
Code, are amended to read as follows:
(a) Except as otherwise provided by this subchapter, the
governor or the division [department] may not determine the
recipient, amount, or interest rate of a capital access loan or the
fees or other requirements related to the loan.
(b) A loan is not eligible to be enrolled under this
subchapter if the loan is for:
(1) construction or purchase of residential housing;
(2) simple real estate investments, excluding the
development or improvement of commercial real estate occupied by
the borrower's business or organization;
(3) refinancing of existing loans not originally
enrolled under this subchapter; or
(4) inside bank transactions, as defined by the
governor [policy board].
(d) A capital access loan may be sold on the secondary
market under conditions as may be determined by the governor
[department].
SECTION 1.58. Sections 481.408(a), (c), and (d), Government
Code, are amended to read as follows:
(a) On approval by the governor [department] and after
entering into a participation agreement with the division
[department], a participating financial institution making a
capital access loan shall establish a reserve account. The reserve
account shall be used by the institution only to cover any losses
arising from a default of a capital access loan made by the
institution under this subchapter or as otherwise provided by this
subchapter.
(c) For each capital access loan made by a financial
institution, the institution shall certify to the division
[department], within the period prescribed by the governor
[department], that the institution has made a capital access loan,
the amount the institution has deposited in the reserve account,
including the amount of fees received from the borrower, and, if
applicable, that the borrower is located in or financing a project,
activity, or enterprise in an area designated as an enterprise zone
under Chapter 2303.
(d) On receipt of a certification made under Subsection (c)
and subject to Section 481.409, the division [department] shall
deposit in the institution's reserve account for each capital
access loan made by the institution:
(1) an amount equal to the amount deposited by the
institution for each loan if the institution:
(A) has assets of more than $1 billion; or
(B) has previously enrolled loans in the program
that in the aggregate are more than $2 million;
(2) an amount equal to 150 percent of the total amount
deposited under Subsection (b) for each loan if the institution is
not described by Subdivision (1); or
(3) notwithstanding Subdivisions (1) and (2), an
amount equal to 200 percent of the total amount deposited under
Subsection (b) for each loan if:
(A) the borrower is located in or financing a
project, activity, or enterprise in an area designated as an
enterprise zone under Chapter 2303; or
(B) the borrower is a small or medium-size
business or a nonprofit organization that operates or proposes to
operate a day-care center or a group day-care home, as those terms
are defined by Section 42.002, Human Resources Code.
SECTION 1.59. Section 481.409, Government Code, is amended
to read as follows:
Sec. 481.409. LIMITATIONS ON STATE CONTRIBUTION TO RESERVE
ACCOUNT. (a) The amount deposited by the division [department]
into a participating financial institution's reserve account for
any single loan recipient may not exceed $150,000 during a
three-year period.
(b) The maximum amount the division [department] may
deposit into a reserve account for each capital access loan made
under this subchapter is the lesser of $35,000 or an amount equal
to:
(1) eight percent of the loan amount if:
(A) the borrower is located in or financing a
project, activity, or enterprise in an area designated as an
enterprise zone under Chapter 2303; or
(B) the borrower is a small or medium-size
business or a nonprofit organization that operates or proposes to
operate a day-care center or a group day-care home, as those terms
are defined by Section 42.002, Human Resources Code; or
(2) six percent of the loan amount for any other
borrower.
SECTION 1.60. Sections 481.410(b)-(d), Government Code, are
amended to read as follows:
(b) The state is entitled to earn interest on the amount of
contributions made by the division [department], borrower, and
institution to a reserve account under this subchapter. The
division [department] shall withdraw monthly or quarterly from a
reserve account the amount of the interest earned by the state. The
division [department] shall deposit the amount withdrawn under this
subsection into the fund.
(c) If the amount in a reserve account exceeds an amount
equal to 33 percent of the balance of the financial institution's
outstanding capital access loans, the division [department] may
withdraw the excess amount and deposit the amount in the fund. A
withdrawal of money authorized under this subsection may not reduce
an active reserve account to an amount that is less than $200,000.
(d) The division [department] shall withdraw from the
institution's reserve account the total amount in the account and
any interest earned on the account and deposit the amount in the
fund when:
(1) a financial institution is no longer eligible to
participate in the program or a participation agreement entered
into under this subchapter expires without renewal by the division
[department] or institution;
(2) the financial institution has no outstanding
capital access loans; and
(3) the financial institution has not made a capital
access loan within the preceding 24 months.
SECTION 1.61. Section 481.411, Government Code, is amended
to read as follows:
Sec. 481.411. ANNUAL REPORT. A participating financial
institution shall submit an annual report to the division
[department]. The report must:
(1) provide information regarding outstanding capital
access loans, capital access loan losses, and any other information
on capital access loans the division [department] considers
appropriate;
(2) state the total amount of loans for which the
division [department] has made a contribution from the fund under
this subchapter;
(3) include a copy of the institution's most recent
financial statement; and
(4) include information regarding the type and size of
businesses and nonprofit organizations with capital access loans.
SECTION 1.62. The heading to Section 481.412, Government
Code, is amended to read as follows:
Sec. 481.412. [REPORTS;] AUDITS.
SECTION 1.63. Section 481.414, Government Code, is amended
to read as follows:
Sec. 481.414. GIFTS AND GRANTS. The division [department]
may accept gifts, grants, and donations from any source for the
purposes of this subchapter.
SECTION 1.64. Section 481.452, Government Code, is amended
to read as follows:
Sec. 481.452. INITIATIVE UNIT. (a) The governor may
establish the Texas-Mexico Commerce and International Relations
Initiative Unit.
(b) The governor [department] shall appoint to serve on the
unit established under this section [Texas-Mexico Commerce and
International Relations Initiative Unit] at least one
representative of the division [department] and at least one
representative from the staff of each of the following agencies or
offices:
(1) Texas Department of Health;
(2) Texas Water Development Board;
(3) Texas [Natural Resource Conservation] Commission
on Environmental Quality;
(4) Texas Department of Housing and Community Affairs;
(5) Health and Human Services Commission;
(6) Parks and Wildlife Department;
(7) Texas Department of Transportation;
(8) Department of Public Safety of the State of Texas;
(9) office of the secretary of state;
(10) Department of Agriculture;
(11) Texas Department of Insurance;
(12) Railroad Commission of Texas; and
(13) office of the comptroller.
(c) [(b)] The governor [department] shall designate one of
the members of the initiative unit to serve as the presiding officer
of the unit.
SECTION 1.65. Section 481.453, Government Code, is amended
to read as follows:
Sec. 481.453. COORDINATION OF AGENCIES AND OFFICES. The
division [department], with the assistance of the initiative unit,
shall coordinate efforts with each of the agencies and offices
represented by the initiative unit to:
(1) study the trade relations between this state and
Mexico and between this state and the states that border this state;
and
(2) develop and adopt the Texas-Mexico Commerce and
International Relations Coordinated Plan to propose a course of
action that the state, including the division [department] and each
agency and office represented by the initiative unit, should take.
SECTION 1.66. Section 481.454(a), Government Code, is
amended to read as follows:
(a) The Texas-Mexico Commerce and International Relations
Coordinated Plan shall include:
(1) short-term recommendations and initiatives that
the state, including the division [department] and each agency and
office represented by the initiative unit, may follow after the
adoption of the plan for the ensuing:
(A) two years; and
(B) four years;
(2) long-term recommendations and initiatives that
the state, including the division [department] and each agency and
office represented by the initiative unit, may follow after the
adoption of the plan for the ensuing:
(A) five years;
(B) 10 years; and
(C) 15 years; and
(3) recommendations on what the state can do to:
(A) increase and improve trade with Mexico and
with the states that border this state;
(B) increase tourism to and from Mexico and
tourism to and from the states that border this state; and
(C) address any important trade problems between
this state and Mexico identified by the initiative unit.
SECTION 1.67. Section 481.455, Government Code, is amended
to read as follows:
Sec. 481.455. QUARTERLY REPORTS. Each agency and office
represented by the initiative unit shall submit quarterly reports
to the division [department] regarding the actions taken by the
agency or office on behalf of the initiative unit or in furtherance
of a plan or recommendation of the initiative unit, including:
(1) the status of projects;
(2) the funding of expenditures;
(3) the planning and research done;
(4) the community and technical assistance provided;
(5) the information collected; and
(6) the direct role of the agency or office in
promoting the economic development of this state through increased
trade with and tourism to and from Mexico and the states that border
this state.
SECTION 1.68. Section 481.456, Government Code, is amended
to read as follows:
Sec. 481.456. PARTNERSHIP TO UPDATE CLEARINGHOUSE. If the
governor has established a Texas Business and Community Economic
Development Clearinghouse under Section 481.167, the division [The
department] shall form a partnership with the agencies and offices
represented by the initiative unit to ensure that the clearinghouse
[Texas Business and Community Economic Development Clearinghouse]
has current knowledge of the Texas-Mexico Commerce and
International Relations Coordinated Plan and the actions taken by
the initiative unit and the agencies and offices represented by the
initiative unit.
SECTION 1.69. Section 481.459, Government Code, is amended
to read as follows:
Sec. 481.459. PERFORMANCE OF FUNCTIONS OF DIVISION
[DEPARTMENT]. If a [another] state agency or office assumes the
functions of the division [department], that agency or office shall
perform the functions of the division [department] under this
subchapter.
SECTION 1.70. Sections 4(b) and (d), Development
Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
Statutes), are amended to read as follows:
(b) There is hereby created the Texas Small Business
Industrial Development Corporation which shall act on behalf of the
state to carry out the public purposes of this Act. The Texas Small
Business Industrial Development Corporation shall be considered to
be a corporation within the meaning of this Act, shall be organized
and governed in accordance with the provisions of this Act, and
shall have all of the powers, and shall be subject to all of the
limitations, provided for corporations by this Act, except as
otherwise provided by this section. For purposes of this Act, the
state shall be considered to be the unit under whose auspices the
Texas Small Business Industrial Development Corporation is
created. The governor shall appoint [and the department shall be
considered to be] the governing body of the corporation. To the
extent that the provisions of this section are inconsistent with
other provisions of this Act, the provisions of this section shall
control as to the existence, powers, limitations, organization,
administration, operation, and affairs of the Texas Small Business
Industrial Development Corporation.
(d) The governor shall appoint [members of the board of the
department shall serve ex officio as] the board of directors of the
Texas Small Business Industrial Development Corporation.
SECTION 1.71. (a) The Texas Department of Economic
Development is abolished and the offices of the members of the
governing board of the department serving on the effective date of
this Act are abolished.
(b) The validity of an action taken by the Texas Department
of Economic Development or its governing board before it is
abolished under Subsection (a) of this section is not affected by
the abolishment.
SECTION 1.72. On September 1, 2003:
(1) a rule, standard, or form adopted by the Texas
Department of Economic Development or the department's governing
board relating to the promotion of economic development and the
establishment of business incentives under Chapter 481, Government
Code, or other law, is a rule, standard, or form of the Governor's
Economic Development Division and remains in effect until changed
by the governor;
(2) a reference in law to the Texas Department of
Economic Development relating to the promotion of economic
development and the establishment of business incentives under
Chapter 481, Government Code, or other law, means the Governor's
Economic Development Division, and a reference in law to the
governing board of the Texas Department of Economic Development
means the governor;
(3) a proceeding involving the Texas Department of
Economic Development relating to the promotion of economic
development and the establishment of business incentives under
Chapter 481, Government Code, or other law, is transferred without
change in status to the Governor's Economic Development Division,
and the Governor's Economic Development Division assumes, without a
change in status, the position of the Texas Department of Economic
Development in a proceeding relating to the promotion of economic
development and the establishment of business incentives under
Chapter 481, Government Code, or other law, to which the Texas
Department of Economic Development is a party;
(4) all money, contracts, leases, rights, and
obligations of the Texas Department of Economic Development
relating to the promotion of economic development and the
establishment of business incentives under Chapter 481, Government
Code, or other law, are transferred to the Governor's Economic
Development Division;
(5) all property, including records, in the custody of
the Texas Department of Economic Development relating to the
promotion of economic development and the establishment of business
incentives under Chapter 481, Government Code, or other law,
becomes the property of the Governor's Economic Development
Division; and
(6) all funds appropriated by the legislature to the
Texas Department of Economic Development relating to the promotion
of economic development and the establishment of business
incentives under Chapter 481, Government Code, or other law, are
transferred to the Governor's Economic Development Division.
SECTION 1.73. (a) The executive director of the Texas
Department of Economic Development serving on the effective date of
this Act does not automatically become the director of the
Governor's Economic Development Division. To become the director
of the Governor's Economic Development Division, a person must
apply for the position and the person's employment in that capacity
must be approved by the governor.
(b) An employee of the Texas Department of Economic
Development employed on the effective date of this Act who
primarily performs duties relating to the promotion of economic
development and the establishment of business incentives under
Chapter 481, Government Code, or other law, does not automatically
become an employee of the Governor's Economic Development Division.
To become an employee of the Governor's Economic Development
Division, a person must apply for a position at the division and the
person's employment in that capacity must be approved by the
governor or the governor's designee.
SECTION 1.74. A function or activity performed or a program
administered by the Texas Department of Economic Development
relating to the promotion of economic development and the
establishment of business incentives under Chapter 481, Government
Code, or other law, is transferred to the Governor's Economic
Development Division, at the governor's discretion.
SECTION 1.75. Sections 481.001(1) and (4), 481.004,
481.0041, 481.0042, 481.0043, 481.0044(b)-(f), 481.005(b)-(d),
481.0065(c), 481.0065(d), as added by Chapter 283, Acts of the 76th
Legislature, Regular Session, 1999, 481.0068(e), 481.008, 481.010,
481.059, 481.077, 481.084, 481.102(a), 481.198(b), and 481.412(a),
Government Code, are repealed.
ARTICLE 2. CREATION OF TEXAS OFFICE OF TOURISM; CONSOLIDATION OF
TOURISM PROMOTION FUNCTIONS
SECTION 2.01. Subtitle F, Title 4, Government Code, is
amended by adding Chapter 489 to read as follows:
CHAPTER 489. TEXAS OFFICE OF TOURISM
Sec. 489.001. DEFINITION. In this chapter, "office" means
the Texas Office of Tourism.
Sec. 489.002. OFFICE. The Texas Office of Tourism is a
trusteed program within the office of the governor.
Sec. 489.003. DIRECTOR. The governor shall appoint a
director for the office to serve at the pleasure of the governor.
Sec. 489.004. RULES. The governor may adopt rules for the
administration of office programs and for its internal management
and control.
SECTION 2.02. Subchapter L, Chapter 481, Government Code,
is transferred to Chapter 489, Government Code, redesignated as
Sections 489.005 to 489.008, Government Code, and amended to read
as follows:
[SUBCHAPTER L. TOURISM]
Sec. 489.005 [481.171]. LEGISLATIVE FINDINGS. The
legislature finds that:
(1) tourism development and the marketing of this
state as a travel destination is essential to the economic
well-being and growth of this state and to the full employment,
welfare, and prosperity of its citizens; and
(2) the measures authorized by this chapter
[subchapter] in promoting tourism are in the public interest and
serve a public purpose of the state in promoting the welfare of the
citizens of this state economically.
Sec. 489.006 [481.172]. GENERAL DUTIES. The office, at the
direction of the governor, [department] shall:
(1) promote and advertise within the United States and
in foreign countries, by radio, television, newspaper, the
Internet, and other means considered appropriate, tourism in this
state by non-Texans, including persons from foreign countries, and
distribute promotional materials through appropriate distribution
channels;
(2) represent the state in domestic and international
travel trade shows, trade missions, and seminars;
(3) encourage travel by Texans to this state's scenic,
historical, natural, agricultural, educational, recreational, and
other attractions;
(4) conduct a public relations campaign to create a
responsible and accurate national and international image of this
state;
(5) use current market research to develop a tourism
marketing plan to increase travel to the state by domestic and
international visitors;
(6) develop methods to attract tourist attractions to
the state;
(7) assist communities to develop tourist
attractions; [and]
(8) provide policy direction to ensure that [cooperate
fully with] the Parks and Wildlife Department, [the Texas
Department of Transportation,] the Texas Historical Commission,
and the Texas Commission on the Arts promote [in all matters
relating to promotion of] tourism in a manner consistent with the
policy developed by the governor; and
(9) [(8)] promote and encourage the horse racing and
greyhound racing industry, if funds are appropriated for the
promotion or encouragement.
Sec. 489.007 [481.173]. NAME AND PICTURE OF LIVING STATE
OFFICIAL. The name or the picture of a living state official may
not be used for advertising purposes under this chapter
[subchapter].
Sec. 489.008 [481.174]. ADVERTISEMENTS IN TOURISM
PROMOTIONS. (a) The office [department] may sell advertisements
in travel promotions in any medium.
(b) The governor may [governing board shall] adopt rules to
implement the sale of advertisements under Subsection (a),
including rules regulating:
(1) the cost of advertisements;
(2) the type of products or services that may be
advertised;
(3) the size of advertisements; and
(4) refunds on advertisements that are not run.
(c) Proceeds from the sale of advertisements shall be
deposited in the special account in the general revenue fund that
may be used for advertising and marketing activities of the office
[department] as provided by Section 156.251, Tax Code.
SECTION 2.03. Sections 3 and 4, Chapter 193, Acts of the
56th Legislature, Regular Session, 1959 (Article 6144e, Vernon's
Texas Civil Statutes), are transferred to Chapter 489, Government
Code, redesignated as Sections 489.009 to 489.014, Government Code,
and amended to read as follows:
Sec. 489.009 [3]. HIGHWAY TOURISM PROMOTION [DUTIES OF THE
TEXAS DEPARTMENT OF TRANSPORTATION]. (a) The office, at the
direction of the governor, may [(1) For the purpose of
dissemination of information relative to highway construction,
repair, maintenance, and upkeep, and for the purpose of advertising
the highways of this state and attracting traffic thereto, the
Texas Department of Transportation is empowered to] compile and
publish for distribution [such pamphlets, bulletins, and]
documents, including pamphlets and bulletins, to:
(1) disseminate information relating to highway
construction, repair, maintenance, and upkeep; and
(2) advertise the highways of this state and attract
traffic to this state.
(b) A document compiled or published under Subsection (a)
shall contain information relating to:
(1) [as it will deem necessary and expedient for
informational and publicity purposes concerning] the highways of
this [the] state;
(2) [, and with respect to] public parks, recreational
grounds, scenic places, and other public places [and scenic areas]
or objects of interest;
(3) [, data as to] distances between places of
interest;
(4) [,] historical facts; or
(5) [, and] other items or matters of interest and
value to the general public and road users.
(c) The office, at the direction of the governor, may[; and
said Department is authorized and empowered to] make or cause to be
made [from time to time a map or] maps showing [thereon] the
highways of this [the] state and the towns, cities, and other places
of interest served and reached by the [said] highways. The office
may publish and distribute the maps [, and may cause to be printed,
published, and prepared in such manner or form as the Department may
deem best, all of such information and data and provide for the
distribution and dissemination of the same] in a [such] manner [and
method] and to the [such] extent as in the opinion of the governor
[Department] will best serve the motoring public and road users.
(d) The office shall provide single [(2)(A) Single] copies
of pamphlets, documents, maps, and other travel materials
distributed by the office [Department] under this section. The
governor [Subdivision (1) of this subsection shall be provided free
of charge, provided that the Department] by rule may require the
office to collect payment for large quantities of the [such]
materials in an amount sufficient to recover its direct and
indirect production costs and may authorize the office to
distribute free [distribution of] multiple copies if the [such]
distribution will maximize the resources of the office [Department]
that are available to advertise the highways of the state and to
promote travel to and within the state. Money paid to the office
[Department] under this subsection [subdivision] shall be
deposited in the general revenue fund [state treasury to the credit
of the State Highway Fund to be used by the Department in the
production of travel materials. Sections 403.094(h) and 403.095,
Government Code, do not apply to funds deposited in the State
Highway Fund under this subdivision].
Sec. 489.010. OPERATION OF TRAVEL INFORMATION CENTERS. (a)
[(B) If the provisions of Paragraph (A) of this subdivision
conflict with the provisions of a license agreement under Article
6673a-4, Revised Statutes, the license agreement shall prevail to
the extent of that conflict.
[(3)] The office [Department] shall maintain and
operate Travel Information Centers at the principal gateways to
this state [Texas] for the purpose of providing road information,
travel guidance, and various descriptive materials, pamphlets, and
booklets designed to furnish aid and assistance to the traveling
public and stimulate travel to and within this state [Texas.
[(4) The Department is authorized and empowered to pay
the cost of all administration, operation, and the cost of
developing and publishing various material and the dissemination
thereof, including the cost of operating Travel Information Centers
from highway revenues. The Department is further empowered to
receive and administer a legislative appropriation from the general
fund for the specific purpose of purchasing advertising space in
periodicals of national circulation, and/or time on broadcasting
facilities].
(b) The governor shall coordinate with the Texas Department
of Transportation to ensure that the employees of the office
provide transportation-related functions in concert with the Texas
Department of Transportation.
Sec. 489.011. POWERS RELATING TO PUBLICATION OF INFORMATION
AND ADVERTISING. (a) [(5)] The office, at the direction of the
governor, may enter into a contract:
(1) [Department shall have the power to enter into
contracts] with a recognized and financially responsible
advertising agency, having a minimum of five years of experience in
handling accounts of similar scope;
(2) [, and] for [the contracting of] space in
magazines, papers, and periodicals for the publication of [such]
advertising information, historical facts, statistics and pictures
[as will be] useful and informative to persons[, and corporations]
outside this state; [the State of Texas,] and
(3) [shall have the power to enter into contracts]
with motion picture producers and others for the taking of moving or
still pictures in this [the] state, and provide for the showing of
the films [when taken, and the Department may join with other
governmental departments of the state in publishing such
informational publicity matter].
(b) The office [Texas Department of Transportation] may
accept contributions for the [above] purposes of this chapter from
private sources, and may deposit the funds [which funds may be
deposited] in a bank [or banks] to be used at the discretion of the
office, and to the extent practicable, [Department] in compliance
with the wishes of the donor.
(c) The office, at the direction of the governor, [Texas
Department of Transportation] may contract with private entities
for the production, marketing, and distribution of pamphlets,
bulletins, documents, and other travel materials published under
this chapter [Subsection (a) of this section] on terms [and
conditions] considered by the governor [department] to be
beneficial to the state, including terms providing cost savings. A
contract may include cooperative strategies considered by the
governor [department] to be cost-beneficial [and provide for the
acceptance of paid advertising in the travel materials if the
quality and quantity of the travel materials is maintained].
Sec. 489.012. SALE OF PROMOTIONAL ITEMS. [(d)] The
office [Texas Department of Transportation] may sell promotional
items such as calendars, books, prints, caps, light clothing, or
other items approved by the governor [Texas Transportation
Commission] as advertising the resources of this state [Texas].
All proceeds from the sale of the items shall be deposited in the
general revenue fund [state treasury to the credit of the State
Highway Fund for the use of the department in its travel and
information operations. Sections 403.094(h) and 403.095,
Government Code, do not apply to funds deposited in the State
Highway Fund under this subsection].
Sec. 489.013. TEXAS HIGHWAYS MAGAZINE. [(e)] The office
[Texas Department of Transportation] shall publish the official
travel magazine of the State of Texas, Texas Highways, and shall set
subscription rates and other charges for the magazine at a level
that will generate receipts approximately sufficient to cover the
costs incurred in the production and distribution of the magazine.
Sec. 489.014 [4]. DISCLOSURE OF TEXAS HIGHWAYS SUBSCRIBER
INFORMATION OR PURCHASER INFORMATION. (a) Except as provided by
this section or a rule adopted by the governor [Texas
Transportation Commission] under this section, the office [Texas
Department of Transportation] may not disclose to any person the
name, address, telephone number, social security account number,
driver's license number, bank account number, credit or debit card
number, or charge number of a person who:
(1) is or has been a subscriber to Texas Highways
magazine; or
(2) has purchased from the office [department] a
promotional item described by Section 489.012 [3(d) of this
article].
(b) Chapter 552, Government Code, does not apply to
subscriber or purchaser information described by Subsection (a) [of
this section].
(c) The governor [Texas Transportation Commission] by rule
may [shall] establish policies relating to:
(1) the release of subscriber or purchaser
information;
(2) the use by the office [department] of subscriber
and purchaser information; and
(3) the sale of a mailing list containing the names and
addresses of subscribers or purchasers.
(d) The policies may [must]:
(1) include a method by which a subscriber or
purchaser may require the office [department] to exclude
information about the person from a mailing list that is sold; and
(2) provide that subscriber or purchaser information
be disclosed to an agency of this state or the United States only if
the agency certifies that the information is necessary for the
performance of the agency's duties.
(e) The governor and the office [department] is immune from
civil or criminal liability if the governor or the office
[department] commits an unintentional violation of this section or
a rule adopted under this section.
(f) In this section, a reference to the office [department]
includes an [officer,] employee[,] or agent of the office
[department].
SECTION 2.04. (a) On September 1, 2003:
(1) all functions and activities performed by the
Texas Department of Economic Development relating to the promotion
of tourism immediately before that date are transferred to the
Texas Office of Tourism;
(2) the Tourism Advisory Committee of the Texas
Department of Economic Development becomes a committee of the Texas
Office of Tourism;
(3) a rule adopted by the Texas Department of Economic
Development or its governing board relating to the promotion of
tourism is a rule of the Texas Office of Tourism and remains in
effect until altered by the governor;
(4) a reference in law to the Texas Department of
Economic Development that relates to functions and activities
performed by the department relating to the promotion of tourism
means the Texas Office of Tourism, and a reference in law to the
governing board of the Texas Department of Economic Development
means the governor;
(5) a proceeding involving the Texas Department of
Economic Development that relates to functions and activities
performed by the Texas Department of Economic Development relating
to the promotion of tourism is transferred without change in status
to the Texas Office of Tourism, and the Texas Office of Tourism
assumes without a change in status the position of the Texas
Department of Economic Development in a proceeding relating to
functions and activities performed by the Texas Department of
Economic Development relating to the promotion of tourism, to which
the Texas Department of Economic Development is a party;
(6) all money, contracts, leases, rights, and
obligations of the Texas Department of Economic Development related
to functions and activities performed by the department relating to
the promotion of tourism are transferred to the Texas Office of
Tourism;
(7) all property, including records, in the custody of
the Texas Department of Economic Development related to functions
and activities performed by the department relating to the
promotion of tourism becomes property of the Texas Office of
Tourism; and
(8) all funds appropriated by the legislature to the
Texas Department of Economic Development for purposes related to
functions and activities performed by the department relating to
the promotion of tourism are transferred to the Texas Office of
Tourism.
(b) On September 1, 2003:
(1) all functions and activities performed by the
Texas Department of Transportation under Sections 3 and 4, Chapter
193, Acts of the 56th Legislature, Regular Session, 1959 (Article
6144e, Vernon's Texas Civil Statutes), including the operation of
travel information centers, immediately before that date are
transferred to the Texas Office of Tourism;
(2) a rule adopted by the Texas Department of
Transportation under Sections 3 and 4, Chapter 193, Acts of the 56th
Legislature, Regular Session, 1959 (Article 6144e, Vernon's Texas
Civil Statutes), is a rule of the Texas Office of Tourism and
remains in effect until altered by the governor;
(3) a reference in law to the Texas Department of
Transportation that relates to functions and activities performed
by the department under Sections 3 and 4, Chapter 193, Acts of the
56th Legislature, Regular Session, 1959 (Article 6144e, Vernon's
Texas Civil Statutes), means the Texas Office of Tourism;
(4) a proceeding involving the Texas Department of
Transportation that is related to functions and activities
performed by the department under Sections 3 and 4, Chapter 193,
Acts of the 56th Legislature, Regular Session, 1959 (Article 6144e,
Vernon's Texas Civil Statutes), is transferred without change in
status to the Texas Office of Tourism, and the Texas Office of
Tourism assumes without a change in status the position of the Texas
Department of Transportation in a proceeding relating to functions
and activities performed by the department under Sections 3 and 4,
Chapter 193, Acts of the 56th Legislature, Regular Session, 1959
(Article 6144e, Vernon's Texas Civil Statutes), to which the
department is a party;
(5) all money, contracts, leases, rights, and
obligations of the Texas Department of Transportation related to
functions and activities performed by the department under Sections
3 and 4, Chapter 193, Acts of the 56th Legislature, Regular Session,
1959 (Article 6144e, Vernon's Texas Civil Statutes), are
transferred to the Texas Office of Tourism;
(6) all property, including records, in the custody of
the Texas Department of Transportation related to functions and
activities performed by the department under Sections 3 and 4,
Chapter 193, Acts of the 56th Legislature, Regular Session, 1959
(Article 6144e, Vernon's Texas Civil Statutes), becomes property of
the Texas Office of Tourism; and
(7) all funds appropriated by the legislature to the
Texas Department of Transportation for purposes related to
functions and activities performed by the department under Sections
3 and 4, Chapter 193, Acts of the 56th Legislature, Regular Session,
1959 (Article 6144e, Vernon's Texas Civil Statutes), are
transferred to the Texas Office of Tourism.
SECTION 2.05. (a) An employee of the Texas Department of
Economic Development employed on the effective date of this Act who
primarily performs duties relating to the promotion of tourism does
not automatically become an employee of the Texas Office of
Tourism. To become an employee of the Texas Office of Tourism, a
person must apply for a position at the office and the person's
employment in that capacity must be approved by the governor or the
governor's designee.
(b) An employee of the Texas Department of Transportation
employed on the effective date of this Act who primarily performs
duties under Sections 3 and 4, Chapter 193, Acts of the 56th
Legislature, Regular Session, 1959 (Article 6144e, Vernon's Texas
Civil Statutes), including the operation of travel information
centers, does not automatically become an employee of the Texas
Office of Tourism. To become an employee of the Texas Office of
Tourism, a person must apply for a position at the office and the
person's employment in that capacity must be approved by the
governor or the governor's designee.
ARTICLE 3. EFFECTIVE DATE; TRANSITION
SECTION 3.01. This Act takes effect September 1, 2003.
SECTION 3.02. The governor shall submit the first annual
report required by Section 481.011, Government Code, as amended by
Article 1 of this Act, on or before September 1, 2004.