By: Madla, et al. S.B. No. 15
A BILL TO BE ENTITLED
AN ACT
relating to the use of appropriations in the Smart Jobs Fund as
business location incentives; making an appropriation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. LEGISLATIVE FINDINGS. The legislature finds
that the use of public funds for the purpose of awarding grants as
business location incentives for the diversification of the
economy, the elimination of unemployment or underemployment, or the
development or expansion of transportation or commerce is in the
public interest and serves a public purpose of the state.
SECTION 2. BUSINESS LOCATION INCENTIVES. (a) The Texas
Department of Economic Development is authorized to make grants to
local governmental entities within Texas for the purpose of
diversifying the economy, reducing unemployment or
underemployment, or developing or expanding transportation or
commerce. The department must develop procedures or adopt rules to
implement this Act.
(b) From the amounts appropriated by Chapter 637, Acts of
the 77th Legislature, Regular Session, 2001, and Chapter 1515, Acts
of the 77th Legislature, Regular Session, 2001 (the General
Appropriations Act), from Smart Jobs Fund No. 891 to the Texas
Department of Economic Development in connection with the smart
jobs fund program, the department is authorized to expend the
unencumbered amount of $15,000,000 during the remainder of the
fiscal year ending August 31, 2003, for business location
incentives.
(c) If the Texas Department of Economic Development is not
abolished on September 1, 2003, by operation of Chapter 325,
Government Code (Texas Sunset Act), the unexpended balance of funds
described by Subsection (b) of this section remaining at the end of
the fiscal year ending August 31, 2003, is appropriated from Smart
Jobs Fund No. 891 to the Texas Department of Economic Development
for the fiscal year beginning September 1, 2003, for business
location incentives. The total amount of funds appropriated from
Smart Jobs Fund No. 891 under this subsection and Subsection (b) of
this section may not exceed $15,000,000.
(d) A grant awarded under this section is contingent on the
recipient meeting certain criteria relating to the purposes for
which the grant is made. Before awarding a grant under this
section, the Texas Department of Economic Development must enter
into a written agreement with the local governmental entity being
awarded the grant specifying that:
(1) if all or any portion of the amount of the grant is
used to build infrastructure or make any other type of capital
improvement, the state must:
(A) retain 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) ensure that if the capital improvement is
sold, the grant recipient repays the department, with interest at
the agreed rate and terms, any state money used to pay for the
capital improvement and shares with this state a proportionate
amount of any profit realized from the sale; and
(2) if, upon the expiration of a date provided in the
agreement, the grant recipient fails to use an amount awarded under
this section for any of 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.
(e) If the Texas Department of Economic Development is
abolished on September 1, 2003, by operation of Chapter 325,
Government Code (Texas Sunset Act), the unexpended balance of funds
described by Subsection (b) of this section remaining at the end of
the fiscal year ending August 31, 2003, shall be transferred to an
appropriate state agency designated by the governor to be used for
the purposes and in the manner described by this Act. The total
amount of funds appropriated from Smart Jobs Fund No. 891 under this
subsection and Subsection (b) of this section may not exceed
$15,000,000.
SECTION 3. EFFECTIVE DATE. 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.