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78R900 ATP-D
By: Nelson S.B. No. 275
A BILL TO BE ENTITLED
AN ACT
relating to the abolition of the Texas Department of Economic
Development and the transfer of certain of its functions to the
Texas Economic Development Office; and the consolidation of tourism
promotion functions by agencies of this state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. ABOLITION OF TEXAS DEPARTMENT OF ECONOMIC DEVELOPMENT;
TRANSFER OF CERTAIN FUNCTIONS TO TEXAS ECONOMIC DEVELOPMENT OFFICE
SECTION 1.01. The heading to Chapter 481, Government Code,
is amended to read as follows:
CHAPTER 481. TEXAS [DEPARTMENT OF] ECONOMIC DEVELOPMENT OFFICE
SECTION 1.02. Section 481.001, Government Code, is amended
by adding Subdivision (5) to read as follows:
(5) "Office" means the Texas Economic Development
Office.
SECTION 1.03. Section 481.002, Government Code, is amended
to read as follows:
Sec. 481.002. OFFICE [DEPARTMENT]. The Texas [Department
of] Economic Development Office is an office within the office of
the governor [agency of the state].
SECTION 1.04. Section 481.003, Government Code, is amended
to read as follows:
Sec. 481.003. SUNSET PROVISION. The Texas [Department of]
Economic Development Office is subject to Chapter 325 (Texas Sunset
Act). Unless continued in existence as provided by that chapter,
the office [department] is abolished and this chapter expires
September 1, 2012 [2003].
SECTION 1.05. Section 481.0042, Government Code, is amended
by amending Subsections (a), (b), (c), and (e), and adding
Subsection (f) to read as follows:
(a) A person may not [serve as a public member of the
governing board or] be the executive director or an employee of the
office employed in a "bona fide executive, administrative, or
professional capacity," as that phrase is used for purposes of
establishing an exemption to the overtime provisions of the federal
Fair Labor Standards Act of 1938 (29 U.S.C. Section 201 et seq.),
and its subsequent amendments, [department] if the person:
(1) is employed by, participates in the management of,
or is a paid consultant of a business entity that contracts with the
office [department];
(2) owns or controls, directly or indirectly, more
than a 10 percent interest in a business entity or other
organization that contracts with the office [department];
(3) uses or receives a substantial amount of tangible
goods, services, or funds from the office [department], other than
compensation or reimbursement authorized by law for employee
salaries and benefits [or for governing board membership,
attendance, and expenses]; or
(4) is an officer, employee, or paid consultant of a
trade association of businesses in the field of economic
development or that contracts with the office [department].
(b) A person may not [serve as a public member of the
governing board or] be the executive director or an employee of the
office [department] if the person's spouse:
(1) is employed by, participates in the management of,
or is a paid consultant of a business entity that contracts with the
office [department];
(2) owns or controls, directly or indirectly, more
than a 10 percent interest in a business entity or other
organization that contracts with the office [department];
(3) uses or receives a substantial amount of tangible
goods, services, or funds from the office [department]; or
(4) is an officer, manager, or paid consultant of a
trade association of businesses in the field of economic
development or that contracts with the office [department].
(c) For the purposes of this section, a trade association is
a nonprofit, cooperative, and voluntarily joined association of
business or professional competitors in this state designed to
assist its members and its industry or profession in dealing with
mutual business or professional problems and in promoting their
common interest.
(e) A person may not be [a member of the governing board or]
the executive director or an employee of the office [department] if
the person is required to register as a lobbyist under Chapter 305
because of the person's activities for compensation on behalf of a
business entity that has an interest in a contract with the office
[department] or a profession related to the operation of the office
[department].
(f) A person may not act as the general counsel to the office
if the person is required to register as a lobbyist under Chapter
305, Government Code, because of the person's activities for
compensation on behalf of a profession related to the operation of
the office.
SECTION 1.06. Subchapter A, Chapter 481, Government Code,
is amended by adding Section 481.0045 to read as follows:
Sec. 481.0045. NEGOTIATED RULEMAKING AND ALTERNATIVE
DISPUTE RESOLUTION POLICY. (a) The office shall develop and
implement a policy to encourage the use of:
(1) negotiated rulemaking procedures under Chapter
2008 for the adoption of office rules; and
(2) appropriate alternative dispute resolution
procedures under Chapter 2009 to assist in the resolution of
internal and external disputes under the office's jurisdiction.
(b) The office's procedures relating to alternative dispute
resolution must conform, to the extent possible, to any model
guidelines issued by the State Office of Administrative Hearings
for the use of alternative dispute resolution by state agencies.
(c) The office shall designate a trained person to:
(1) coordinate the implementation of the policy
adopted under Subsection (a);
(2) serve as a resource for any training needed to
implement the procedures for negotiated rulemaking or alternative
dispute resolution; and
(3) collect data concerning the effectiveness of those
procedures, as implemented by the office.
SECTION 1.07. The heading to Section 481.005, Government
Code, is amended to read as follows:
Sec. 481.005. EXECUTIVE DIRECTOR; [GOVERNING BOARD]
DUTIES.
SECTION 1.08. Sections 481.005(a), (c), and (d), Government
Code, are amended to read as follows:
(a) The governor [governing board] shall appoint [employ]
an executive director of the office [department] who serves at the
pleasure of the governor [governing board].
(c) The executive director shall manage the affairs of the
office [department] under the direction of the governor [governing
board. The executive director shall provide administrative support
to the members of the governing board that is necessary for the
performance of the functions of the members].
(d) The executive director [members of the governing board]
shall direct the activities of the office [department] and, in
performing that duty, shall establish policy, adopt rules, evaluate
the implementation of new legislation that affects the office's
[department's] duties, review and comment on the office's
[department's] budget, prepare an annual report of the office's
[department's] activities, conduct investigations and studies, and
develop long-range plans for the future goals and needs of the
office [department]. [The members of the policy board may not be
involved in the daily operation of the department.]
SECTION 1.09. Section 481.0065(a), Government Code, is
amended to read as follows:
(a) The office [department] shall:
(1) establish and maintain an Office of Defense
Affairs; and
(2) appoint a director to manage the Office of Defense
Affairs.
SECTION 1.10. Section 481.008, Government Code, is amended
to read as follows:
Sec. 481.008. AUDIT. (a) The financial transactions of the
office [department] are subject to audit by:
(1) the state auditor in accordance with Chapter 321;
or
(2) a private auditing firm.
(b) The state auditor shall inform the executive director
[presiding officer of the governing board] when a financial audit
of the office [department] is not included in the audit plan for the
state for a fiscal year. The executive director [governing board]
shall ensure that the department is audited under Subsection (a)(2)
during those fiscal years.
SECTION 1.11. Section 481.010, Government Code, is amended
by amending Subsections (a), (b), (e), and (f), and adding
Subsection (i) to read as follows:
(a) The executive director shall employ personnel necessary
for the performance of office [department] functions. In addition
to other personnel, the executive director shall employ a human
rights officer and an internal auditor. The internal auditor shall
report directly to the governor [governing board] and may consult
with the executive director or the executive director's designee.
(b) The executive director or the executive director's
designee shall provide to office [governing board members and
department] employees, as often as necessary, information
regarding their qualifications for [office or] employment under
this chapter and their responsibilities under applicable laws
relating to standards of conduct for state [officers or] employees.
(e) The executive director or the executive director's
designee shall develop a system of annual performance evaluations.
All merit pay for office [department] employees must be based on the
system established under this subsection.
(f) The executive director or the executive director's
designee shall prepare and maintain a written policy statement to
assure implementation of a program of equal employment opportunity
under which all personnel transactions are made without regard to
race, color, disability, sex, religion, age, or national origin.
The policy statement must include:
(1) personnel policies, including policies relating
to recruitment, evaluation, selection, appointment, training, and
promotion of personnel that are in compliance with requirements of
the Commission on Human Rights;
(2) a comprehensive analysis of the office
[department] work force that meets federal and state guidelines;
(3) procedures by which a determination can be made of
significant underuse in the office [department] work force of all
persons for whom federal or state guidelines encourage a more
equitable balance; and
(4) reasonable methods to appropriately address those
areas of significant underuse.
(i) The executive director or the executive director's
designee shall provide to office employees information and training
on the benefits and methods of participation in the State Employee
Incentive Program.
SECTION 1.12. Section 481.011, Government Code, is amended
to read as follows:
Sec. 481.011. FISCAL REPORT. The executive director shall
file annually with the governor and the presiding officer of each
house of the legislature a complete and detailed written report
accounting for all funds received and disbursed by the office
[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.
SECTION 1.13. Section 481.012, Government Code, is amended
to read as follows:
Sec. 481.012. PUBLIC INTEREST INFORMATION AND COMPLAINTS.
(a) The office [department] shall prepare information of public
interest describing the functions of the office [department] and
the office's [department's] procedures by which complaints are
filed with and resolved by the office [department]. The office
[department] shall make the information available to the public and
appropriate state agencies. The office shall provide to the person
filing the complaint and to each person who is a subject of the
complaint a copy of the office's policies and procedures relating
to complaint investigation and resolution.
(b) The office [department] shall keep an information file
about each complaint filed with the office [department] that the
office [department] has authority to resolve. The file must
include:
(1) the name of the person who filed the complaint;
(2) the date the complaint is received by the office;
(3) the subject matter of the complaint;
(4) the name of each person contacted in relation to
the complaint;
(5) a summary of the results of the review or
investigation of the complaint; and
(6) an explanation of the reason the file was closed,
if the office closed the file without taking action other than to
investigate the complaint.
(c) If a written complaint is filed with the office
[department] that the office [department] has authority to resolve,
the office [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.
(d) [(c)] The office [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 office's
[department's] programs. The office [governing board] shall also
comply with federal and state laws for program and facility
accessibility.
(e) [(d)] The executive director [governing board] by rule
shall establish methods by which consumers and service recipients
are notified of the name, mailing address, and telephone number of
the office [department] for the purpose of directing complaints to
the office [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 OFFICE [DEPARTMENT]
SECTION 1.15. Section 481.021, Government Code, is amended
to read as follows:
Sec. 481.021. GENERAL POWERS OF OFFICE [DEPARTMENT]. (a)
The office [department] may:
(1) adopt and enforce rules necessary to carry out
this chapter;
(2) adopt and use an official seal;
(3) accept gifts, grants, or loans from and contract
with any entity;
(4) sue and be sued;
(5) acquire and convey property or an interest in
property;
(6) procure insurance and pay premiums on insurance of
any type, in accounts, and from insurers as the office [department]
considers necessary and advisable to accomplish any of the office's
[department's] purposes;
(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;
(8) sell advertisements in any medium; and
(9) exercise any other power necessary to carry out
this chapter.
(b) Except as otherwise provided by this chapter, money paid
to the office [department] under this chapter shall be deposited in
the state treasury.
(c) The office [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 office
[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 office [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 OFFICE [DEPARTMENT]. The
office [department] shall:
(1) market and promote the state as a premier business
location and tourist destination;
(2) 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, including
business incentive programs;
(4) provide to businesses and communities in the state
assistance with exporting products and services to international
markets; and
(5) serve as a central source of economic research and
information [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;
[(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
[(8) seek funding of 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
office [department] shall perform the administrative duties
prescribed under:
(1) Chapter 1433; and
(2) the Development Corporation Act of 1979 (Article
5190.6, Vernon's Texas Civil Statutes).
(b) The office [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 office [department] may not use money from the
general revenue fund to support the Texas leverage fund.
SECTION 1.18. 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 office [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 governor or the
governor's designee and the executive director serve as nonvoting,
ex officio members of the board. The corporation has the powers and
is subject to the limitations provided for the office [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 office [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 office [department].
(f) The Texas Economic Development Corporation and any
other corporation whose charter specifically dedicates the
corporation's activities to the benefit of the office 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 1.19. Section 481.025, Government Code, is amended
to read as follows:
Sec. 481.025. EMPOWERMENT ZONE AND ENTERPRISE COMMUNITY
PROGRAM. The office [department] is the agency of this state
responsible for administering the Empowerment Zone and Enterprise
Community grant program in this state. The office [department]
shall cooperate with appropriate federal and local agencies as
necessary to administer the grant program.
SECTION 1.20. Subchapter B, Chapter 481, Government Code,
is amended by adding Section 481.026 to read as follows:
Sec. 481.026. TECHNOLOGICAL SOLUTIONS. The office shall
develop and implement a policy that requires the executive director
and the staff of the office to research and propose appropriate
technological solutions to improve the ability of the office to
perform its mission. The technological solutions must include
measures to ensure that the public is able to easily find
information about the office through the Internet, and that persons
who have a reason to use the office's services are able to use the
Internet to interact with the office and to access any service that
can be provided effectively through the Internet. The policy shall
also ensure that the proposed technological solutions are cost
effective and developed through the office's planning processes.
SECTION 1.21. Sections 481.027(a)-(e), Government Code,
are amended to read as follows:
(a) The office [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
foreign 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 foreign offices
established by the office [department] and share the overhead and
operating expenses of the foreign offices. Other state agencies
and the office [department] may enter 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 executive director prior to its execution.
(b) The foreign 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 office [department] and the institutions may enter
contracts for this purpose. Chapter 771 does not apply to those
contracts.
(c) The office [department] shall maintain regional offices
in locations specified in the General Appropriations Act.
(d) The office [department] may collect fees for the use of
the foreign 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 foreign offices under this section.
(e) Chapter 2175 applies to the operation and maintenance of
the foreign offices. No other provisions of Subtitle D, Title 10,
apply to the operation and maintenance of the foreign offices, or to
transactions of the office [department] that are authorized by this
section.
SECTION 1.22. Section 481.029, Government Code, is amended
to read as follows:
Sec. 481.029. COST RECOVERY. The office [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 1.23. Section 481.043, Government Code, is amended
to read as follows:
Sec. 481.043. GENERAL POWERS AND DUTIES RELATING TO
INTERNATIONAL TRADE. The office [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 1.24. Section 481.047, Government Code, is amended
to read as follows:
Sec. 481.047. CONFIDENTIALITY. Information collected by
the office [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 1.25. Section 481.0725, Government Code, is amended
to read as follows:
Sec. 481.0725. GENERAL POWERS AND DUTIES. The office
[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;
(2) [(3)] develop a comprehensive business
recruitment marketing plan;
(3) [(4)] participate in international and domestic
trade shows, trade missions, marketing trips, and seminars; and
(4) [(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 1.26. Section 481.073(c), Government Code, is
amended to read as follows:
(c) The office [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
office'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 office's [department's] bonds in classes
of investments that the executive director [board] determines.
SECTION 1.27. Section 481.075, Government Code, is amended
to read as follows:
Sec. 481.075. PROGRAM RULES. (a) The executive director
[department] shall adopt rules to establish criteria for
determining which users may participate in programs established by
the office [department] under this subchapter. The office
[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 executive director [governing board] must approve all leases
and sale and loan agreements made under this subchapter [except
that the governing board may delegate this approval authority to
the executive director].
(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
office [department] considers reasonable and necessary.
SECTION 1.28. Section 481.121(2), Government Code, is
amended to read as follows:
(2) "Permit office [Office]" means the Texas Economic
Development Office's [department's] business permit office.
SECTION 1.29. Section 481.122, Government Code, is amended
to read as follows:
Sec. 481.122. CREATION. The business permit office is an
office within the Texas Economic Development Office [department].
SECTION 1.30. Section 481.123, Government Code, is amended
to read as follows:
Sec. 481.123. DUTIES. The permit office 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 permit
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 permit office;
(10) adopt rules, procedures, instructions, and forms
required to carry out the functions, powers, and duties of the
permit 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.
SECTION 1.31. Sections 481.124(a), (b), (c), (d), (f), and
(h), Government Code, are amended to read as follows:
(a) The permit office shall develop and by rule implement a
comprehensive application procedure to expedite the identification
and processing of required permits. The permit office shall
specify the permits to which the comprehensive application
procedure applies. A comprehensive application must be made on a
form prescribed by the permit office. The permit 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.
(b) Use of the comprehensive application procedure by the
applicant is optional. On request the permit office shall assist an
applicant in preparing a comprehensive application, describe the
procedures involved, and provide other appropriate information
from the comprehensive permit information file.
(c) On receipt of a comprehensive application from an
applicant, the permit office shall immediately notify in writing
each state agency having a possible interest in the proposed
business undertaking, project, or activity with respect to permits
that are or may be required.
(d) Not later than the 25th day after the date of receipt of
the notice, the state agency shall specify to the permit office each
permit under its jurisdiction that is or may be required for the
business undertaking, project, or activity described in the
comprehensive application and shall indicate each permit fee to be
charged.
(f) The permit office shall promptly provide the applicant
with application forms and related information for all permits
specified by the interested state agencies and shall advise the
applicant that the forms are to be completed and submitted to the
appropriate state agencies.
(h) Each state agency having jurisdiction over a permit to
which the comprehensive application procedure applies shall
designate an officer or employee to act as permit liaison officer to
cooperate with the permit office in carrying out this subchapter.
SECTION 1.32. Sections 481.125(a), (b), (d), and (e),
Government Code, are amended to read as follows:
(a) The permit office shall compile a comprehensive list of
all state permits required of a person desiring to operate a
business enterprise in the state.
(b) To the extent possible, the permit office shall organize
the list according to the types of businesses affected and shall
publish the list in a comprehensive permit handbook.
(d) The permit office shall periodically update the
handbook.
(e) The permit office shall make the handbook available to
persons interested in establishing a business enterprise, public
libraries, educational institutions, and the state agencies listed
in the handbook.
SECTION 1.33. Section 481.126, Government Code, is amended
to read as follows:
Sec. 481.126. ASSISTANCE OF OTHER STATE AGENCIES. Each
state agency, on request of the permit office, shall provide
assistance, services, facilities, and data to enable the permit
office to carry out its duties. An agency is not required to
provide information made confidential by a constitution, statute,
or judicial decision.
SECTION 1.34. Sections 481.127(a), (c), and (d), Government
Code, are amended to read as follows:
(a) Each state agency required to review, approve, or grant
permits for business undertakings, projects, or activities shall
report to the permit office in a form prescribed by the permit
office on each type of review, approval, or permit administered by
the agency.
(c) The permit office shall prepare an information file on
state agency permit requirements and shall develop methods for
maintenance, revision, update, and ready access. The permit office
shall provide comprehensive permit information based on that file.
(d) The permit office may prepare and distribute
publications, guides, and other materials to serve the convenience
of permit applicants and explain permit requirements affecting
business, including requirements involving multiple permits or
regulation by more than one state agency.
SECTION 1.35. Section 481.128, Government Code, is amended
to read as follows:
Sec. 481.128. NO CHARGES FOR SERVICES. The permit office
shall provide its services without charge.
SECTION 1.36. Section 481.129, Government Code, is amended
to read as follows:
Sec. 481.129. ENVIRONMENTAL PERMITS. The permit office
shall consult and cooperate with the Natural Resource Conservation
Commission in conducting any studies on permits issued by the
Natural Resource Conservation Commission. The Natural Resource
Conservation Commission shall cooperate fully in the study and
analysis of the procedures involving the issuance of permits by
that commission and shall, in any report issued, evaluate all
alternatives for improving the process pursuant to the permit
office's responsibilities under Section 481.123. The permit office
and the Natural Resource Conservation Commission shall jointly
submit any report required under Section 481.123.
SECTION 1.37. Sections 481.167(a), (d), and (e), Government
Code, are amended to read as follows:
(a) The office [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 office [department] shall obtain from other state
agencies appropriate information needed by the office [department]
to carry out its duties under this subchapter.
(e) The comptroller shall assist the office [department] in
furthering the purposes of this subchapter by allowing the office
[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 1.38. Section 481.172, Government Code, is amended
to read as follows:
Sec. 481.172. DUTIES. The office [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) cooperate fully with the Parks and Wildlife
Department, the Texas Department of Transportation, the Texas
Historical Commission, and the Texas Commission on the Arts in all
matters relating to promotion of tourism; and
(9) [(8)] promote and encourage the horse racing and
greyhound racing industry, if funds are appropriated for the
promotion or encouragement.
SECTION 1.39. Section 481.174, Government Code, is amended
to read as follows:
Sec. 481.174. ADVERTISEMENTS IN TOURISM PROMOTIONS. (a)
The office [department] may sell advertisements in travel
promotions in any medium.
(b) The executive director [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.
(d) The office is not required to follow the purchasing
goals and procedures prescribed by Section 2161.181 and Subchapter
F, Chapter 2161, for purchases made in connection with out-of-state
tourism advertising, including advertising placement services.
SECTION 1.40. Sections 481.193(a), (b), (d), (e), (f), and
(h), Government Code, are amended to read as follows:
(a) The office [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) The executive director [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 office [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 office [department].
(f) After reviewing each linked deposit loan application,
the executive director [of the 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 office [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 1.41. 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 office
[department].
(b) The office [department] shall monitor compliance with
this subchapter and inform the comptroller of noncompliance on the
part of an eligible lending institution.
SECTION 1.42. Section 481.198, Government Code, is amended
to read as follows:
Sec. 481.198. MARKETING. (a) The office [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.
(b) Not later than January 1 of each odd-numbered year, the
office [department] shall prepare and deliver to the governor,
lieutenant governor, speaker of the house of representatives, and
clerks of the standing committees of the senate and house of
representatives with primary jurisdiction over commerce and
economic development a report concerning the office's
[department's] efforts in promoting the linked deposit program
during the preceding two years.
SECTION 1.43. Section 481.211, Government Code, is amended
to read as follows:
Sec. 481.211. POWERS AND DUTIES. The office [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 1.44. 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 office [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 office [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 office [department] may charge a reasonable access
fee in connection with this subchapter.
SECTION 1.45. 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 office
[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 1.46. Section 481.402(c), Government Code, is
amended to read as follows:
(c) Money in the fund may be appropriated only to the office
[department] for use in carrying out the purposes of this
subchapter.
SECTION 1.47. Section 481.404, Government Code, is amended
to read as follows:
Sec. 481.404. POWERS OF OFFICE [DEPARTMENT] IN
ADMINISTERING CAPITAL ACCESS FUND. In administering the fund, the
office [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 office's [department's]
discretion in obligations determined proper by the office
[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 1.48. Sections 481.405(a)-(d), Government Code,
are amended to read as follows:
(a) The office [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 office [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 office [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
office [department] that sets out the terms and conditions under
which the office [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 1.49. Section 481.406(a), Government Code, is
amended to read as follows:
(a) The executive director [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 1.50. Sections 481.407(a) and (d), Government Code,
are amended to read as follows:
(a) Except as otherwise provided by this subchapter, the
office [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.
(d) A capital access loan may be sold on the secondary
market under conditions as may be determined by the office
[department].
SECTION 1.51. Sections 481.408(a), (c), and (d), Government
Code, are amended to read as follows:
(a) On approval by the office [department] and after
entering into a participation agreement with the office
[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 office
[department], within the period prescribed by the office
[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 office [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 1.52. 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 office [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 office [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 1.53. 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 office [department], borrower, and
institution to a reserve account under this subchapter. The office
[department] shall withdraw monthly or quarterly from a reserve
account the amount of the interest earned by the state. The office
[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 office [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 office [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 office
[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 1.54. 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 office
[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 office [department] considers
appropriate;
(2) state the total amount of loans for which the
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 1.55. Section 481.412(a), Government Code, is
amended to read as follows:
(a) The office [department] shall submit to the legislature
an annual status report on the program's activities.
SECTION 1.56. Section 481.414, Government Code, is amended
to read as follows:
Sec. 481.414. GIFTS AND GRANTS. The office [department]
may accept gifts, grants, and donations from any source for the
purposes of this subchapter.
SECTION 1.57. 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
[and the department shall be considered to be the governing body].
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. The
governor or the governor's designee and the executive director of
the Texas Economic Development Office serve as nonvoting ex officio
members of the board.
SECTION 1.58. (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 1.59. On September 1, 2003:
(1) a rule, standard, or form adopted by the Texas
Department of Economic Development or the department's governing
board is a rule, standard, or form of the Texas Economic Development
Office and remains in effect until changed by the executive
director of the office;
(2) a reference in law to the Texas Department of
Economic Development or its governing board means the Texas
Economic Development Office;
(3) a proceeding involving the Texas Department of
Economic Development is transferred without change in status to the
Texas Economic Development Office, and the Texas Economic
Development Office assumes, without a change in status, the
position of the Texas Department of Economic Development in a
proceeding 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 are
transferred to the Texas Economic Development Office;
(5) all property, including records, in the custody of
the Texas Department of Economic Development becomes the property
of the Texas Economic Development Office; and
(6) all funds appropriated by the legislature to the
Texas Department of Economic Development are transferred to the
Texas Economic Development Office.
SECTION 1.60. (a) The executive director of the Texas
Department of Economic Development serving on the effective date of
this Act does not automatically become the executive director of
the Texas Economic Development Office. To become the executive
director of the Texas Economic Development Office, 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 does not
automatically become an employee of the Texas Economic Development
Office. To become an employee of the Texas Economic Development
Office, a person must apply for a position at the Texas Economic
Development Office and the person's employment in that capacity
must be approved by the governor or the executive director of the
office.
SECTION 1.61. A function or activity performed by the Texas
Department of Economic Development is transferred to the Texas
Economic Development Office as provided by this Act.
SECTION 1.62. The Texas Department of Economic Development
or the Texas Economic Development Office, as applicable, shall
establish a transition plan for the transfer described in Section
1.59 of this Act. The plan must include a reasonable timetable for
the effective reconstruction of the department's mission,
strategies, performance measures, functions, and staff, as they
relate to key economic clusters in this state.
SECTION 1.63. The following laws are repealed:
(1) Chapter 146, Education Code;
(2) Sections 481.001(1), (3), and (4), 481.004,
481.0041, 481.0043, 481.0044, 481.005(b), 481.006, 481.0068,
481.007, 481.010(c), 481.0231, 481.028, 481.041, 481.045, 481.059,
481.071, 481.073(a) and (b), 481.077, 481.084, 481.087, 481.1665,
481.168, 481.171, 481.201, and 481.403, Government Code;
(3) Subchapters G and CC, Chapter 481, Government
Code;
(4) Chapter 484, Government Code; and
(5) Section 39, Development Corporation Act of 1979
(Article 5190.6, Vernon's Texas Civil Statutes).
ARTICLE 2. CONSOLIDATION OF TOURISM FUNCTIONS
SECTION 2.01. Chapter 12, Agriculture Code, is amended by
adding Section 12.039 to read as follows:
Sec. 12.039. TOURISM-RELATED ACTIVITIES PROHIBITED.
Notwithstanding any other provision of this chapter, the department
may not promote tourism, conduct activities related to tourism, or
make expenditures related to tourism.
SECTION 2.02. Subchapter B, Chapter 86, Education Code, is
amended by adding Section 86.025 to read as follows:
Sec. 86.025. TOURISM-RELATED ACTIVITIES PROHIBITED. (a)
Notwithstanding any other provision of this chapter, the board or
the university may not promote tourism, conduct activities related
to tourism, or make expenditures related to tourism.
(b) The section does not prohibit the board or the
university from promoting the university or attracting visitors to
the university.
SECTION 2.03. Subchapter A, Chapter 88, Education Code, is
amended by adding Section 88.003 to read as follows:
Sec. 88.003. TOURISM-RELATED ACTIVITIES PROHIBITED.
Notwithstanding any other provision of this chapter, an agency or
service of The Texas A&M University System may not promote tourism,
conduct activities related to tourism, or make expenditures related
to tourism.
SECTION 2.04. Subchapter A, Chapter 411, Government Code,
is amended by adding Section 411.0203 to read as follows:
Sec. 411.0203. TOURISM-RELATED ACTIVITIES PROHIBITED.
Notwithstanding any other provision of this chapter, the department
may not promote tourism, conduct activities related to tourism, or
make expenditures related to tourism.
SECTION 2.05. Chapter 443, Government Code, is amended by
adding Section 443.029 to read as follows:
Sec. 443.029. TOURISM-RELATED ACTIVITIES PROHIBITED.
Notwithstanding any other provision of this chapter, the board may
not promote tourism, conduct activities related to tourism, or make
expenditures related to tourism.
SECTION 2.06. Chapter 455, Government Code, is amended by
adding Section 445.014 to read as follows:
Sec. 445.014. TOURISM-RELATED ACTIVITIES PROHIBITED. (a)
Notwithstanding any other provision of this chapter, the museum or
the State Preservation Board may not promote tourism, conduct
activities related to tourism, or make expenditures related to
tourism.
(b) The section does not prohibit the museum or the State
Preservation Board from promoting the museum or attracting visitors
to the museum.
SECTION 2.07. Chapter 485, Government Code, is amended by
adding Section 485.008 to read as follows:
Sec. 485.008. TOURISM-RELATED ACTIVITIES PROHIBITED.
Notwithstanding any other provision of this chapter, the office may
not promote tourism, conduct activities related to tourism, or make
expenditures related to tourism.
SECTION 2.08. Subchapter C, Chapter 31, Natural Resources
Code, is amended by adding Section 31.069 to read as follows:
Sec. 31.069. TOURISM-RELATED ACTIVITIES PROHIBITED.
Notwithstanding any other provision of this chapter, the land
office may not promote tourism, conduct activities related to
tourism, or make expenditures related to tourism.
SECTION 2.09. (a) On September 1, 2003:
(1) all functions performed by the Department of
Agriculture, Texas A&M University, The Texas A&M University System,
the Department of Public Safety of the State of Texas, the State
Preservation Board, the Music, Film, Television, and Multimedia
Office, and the General Land Office relating to tourism are
transferred to the Texas Economic Development Office, the Texas
Department of Transportation, the Parks and Wildlife Department,
the Texas Historical Commission, or the Texas Commission on the
Arts; and
(2) all employees of the Department of Agriculture,
Texas A&M University, The Texas A&M University System, the
Department of Public Safety of the State of Texas, the State
Preservation Board, the Music, Film, Television, and Multimedia
Office, and the General Land Office that primarily perform
functions relating to tourism are transferred to the Texas Economic
Development Office, the Texas Department of Transportation, the
Parks and Wildlife Department, the Texas Historical Commission, or
the Texas Commission on the Arts.
(b) The governor shall determine the manner in which the
functions and employees are transferred under Subsection (a) of
this section.
ARTICLE 3. EFFECTIVE DATE
SECTION 3.01. This Act takes effect September 1, 2003.