78R2383 ATP-D
By: Brimer S.B. No. 659
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the economic development coordinator;
the abolition of the Texas Department of Economic Development and
the transfer of its functions to the economic development
coordinator; and the establishment of economic and business
development programs to be administered by the economic development
coordinator.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. CREATION OF ECONOMIC DEVELOPMENT COORDINATOR;
ABOLITION OF TEXAS DEPARTMENT OF ECONOMIC DEVELOPMENT AND TRANSFER
OF FUNCTIONS TO ECONOMIC DEVELOPMENT COORDINATOR
SECTION 1.01. The heading to Chapter 481, Government Code,
is amended to read as follows:
CHAPTER 481. [TEXAS DEPARTMENT OF] ECONOMIC DEVELOPMENT
COORDINATOR
SECTION 1.02. Section 481.001, Government Code, is amended
by adding Subdivisions (5) and (6) to read as follows:
(5) "Coordinator" means the economic development
coordinator.
(6) "Identified potential new prospect" means a
business identified as a potential new prospect under Section
481.142.
SECTION 1.03. Section 481.002, Government Code, is amended
to read as follows:
Sec. 481.002. ESTABLISHMENT; PURPOSE [DEPARTMENT]. (a)
The economic development coordinator [Texas Department of Economic
Development] is established as a position in the office of the
governor [an agency of the state].
(b) The coordinator shall direct business development
initiative efforts in this state.
(c) The main mission of the coordinator is job creation.
SECTION 1.04. Subchapter A, Chapter 481, Government Code,
is amended by adding Section 481.0021 to read as follows:
Sec. 481.0021. APPOINTMENT. The governor shall appoint the
coordinator to serve a two-year term.
SECTION 1.05. Section 481.003, Government Code, is amended
to read as follows:
Sec. 481.003. SUNSET PROVISION. The economic development
coordinator [Texas Department of Economic Development] is subject
to Chapter 325 (Texas Sunset Act). Unless continued in existence as
provided by that chapter, the position of the coordinator
[department] is abolished and this chapter expires September 1,
2015 [2003].
SECTION 1.06. Sections 481.0042(a), (b), and (e),
Government Code, are amended to read as follows:
(a) A person may not serve as the coordinator [a public
member of the governing board] or be [the executive director or] an
employee of the coordinator [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
coordinator [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 coordinator [department];
(3) uses or receives a substantial amount of tangible
goods, services, or funds from the coordinator [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 that contracts with the coordinator
[department].
(b) A person may not serve as the coordinator [a public
member of the governing board] or be [the executive director or] an
employee of the coordinator [department] if the person's spouse:
(1) participates in the management of or is a paid
consultant of a business entity that contracts with the coordinator
[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 coordinator [department];
(3) uses or receives a substantial amount of tangible
goods, services, or funds from the coordinator [department]; or
(4) is an officer, manager, or paid consultant of a
trade association of businesses that contracts with the coordinator
[department].
(e) A person may not be the coordinator [a member of the
governing board or the executive director] or an employee of the
coordinator [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 coordinator [department] or a profession
related to the operation of the coordinator [department].
SECTION 1.07. Sections 481.0044(a), (d), (e), and (f),
Government Code, are amended to read as follows:
(a) The coordinator [governing board] shall adopt rules
necessary for the administration of the coordinator's [department]
programs [and may adopt rules for its internal management and
control].
(d) The coordinator [governing board] shall report to the
governor annually and to the legislature at each regular session on
the coordinator's [department's] activities. The report must
include:
(1) a description of the activities of the coordinator
[governing board and the department] during the preceding calendar
year;
(2) a description of the efforts of the coordinator
[governing board and the department] to promote and market the
coordinator's [department's] economic development programs and
services, including the Texas Business and Community Economic
Development Clearinghouse;
(3) a description of the efforts of the coordinator
[governing board and the department] to obtain federal and private
funding to accomplish the goals of the coordinator [department];
(4) recommendations to the legislature on issues
related to economic development and the business climate of the
state; and
(5) an assessment of the effectiveness of the
agreements executed under Section 481.028(b).
(e) In addition to the information required by Subsection
(d), the coordinator [governing board] shall include in the report
under that subsection:
(1) a listing of the properties in this state that are
compiled and reported to the coordinator [department] under Section
23.03, Tax Code;
(2) a listing of the school districts in this state,
classified according to the categories established by Sections
313.022 and 313.052, Tax Code;
(3) a listing of prospective projects identified by
the coordinator [business development division of the department]
that proposed to invest at least $100 million in this state,
including prospective projects that worked with the coordinator
[department] or of which the coordinator [department] was aware but
that located in another state or country;
(4) information identifying the other state or country
in which a prospective project located and stating the primary
reason identified by the coordinator [department] that the
prospective project did not locate in this state; and
(5) an assessment as to 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.
(f) The comptroller shall assist the coordinator [governing
board and the department] in complying with Subsection (e).
SECTION 1.08. Section 481.0065(a), Government Code, is
amended to read as follows:
(a) The coordinator [department] shall:
(1) establish and maintain an Office of Defense
Affairs; and
(2) appoint a director to manage the Office of Defense
Affairs.
SECTION 1.09. Sections 481.0068(a) and (e), Government
Code, are amended to read as follows:
(a) The Office of Small Business Assistance is an office
within the governor's office under the direction of the coordinator
[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.
(e) Not later than October 15 of each even-numbered year,
the coordinator [department] shall submit to the governor[,
governing board,] and the legislature a report containing specific
information regarding each of the functions performed by the Office
of Small Business Assistance, including recommendations regarding
issues that affect small businesses of the state.
SECTION 1.10. Section 481.007, Government Code, is amended
to read as follows:
Sec. 481.007. ADVISORY COMMITTEES. The coordinator
[executive director or the governing board] may appoint advisory
committees to assist the coordinator [executive director or the
governing board] in the performance of the coordinator's [their]
duties. A member of an advisory committee appointed by the
coordinator [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 1.11. Section 481.008, Government Code, is amended
to read as follows:
Sec. 481.008. AUDIT. (a) The financial transactions of the
coordinator [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 governor [presiding
officer of the governing board] when a financial audit of the
coordinator [department] is not included in the audit plan for the
state for a fiscal year. The governor [governing board] shall
ensure that the coordinator [department] is audited under
Subsection (a)(2) during those fiscal years.
SECTION 1.12. Section 481.010, Government Code, is amended
to read as follows:
Sec. 481.010. PERSONNEL. (a) The coordinator [executive
director] shall employ personnel necessary for the performance of
the coordinator's [department] functions. In addition to other
personnel, the coordinator [executive director] shall employ a
human rights officer and an internal auditor. The internal auditor
shall report directly to the coordinator [governing board] and may
consult with the coordinator [executive director] or the
coordinator's [executive director's] designee.
(b) The coordinator [executive director] shall provide to
the coordinator's [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.
(c) The coordinator [governing board and executive
director] shall [jointly] develop and implement policies that
clearly define the [respective] responsibilities of the
coordinator's [members of the governing board and the executive
director and] staff [of the department] in accordance with this
chapter.
(d) The coordinator [executive director] or the
coordinator's [executive director's] designee shall develop an
intraagency career ladder program. The program shall require
intraagency postings of all non-entry-level positions concurrently
with any public posting.
(e) The coordinator [executive director] or the
coordinator's [executive director's] designee shall develop a
system of annual performance evaluations. All merit pay for
[department] employees of the coordinator must be based on the
system established under this subsection.
(f) The coordinator [executive director] or the
coordinator's [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 coordinator's
[department] work force that meets federal and state guidelines;
(3) procedures by which a determination can be made of
significant underuse in the coordinator's [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.
(g) A policy statement prepared under Subsection (f) must
cover an annual period, be updated annually and reviewed by the
Commission on Human Rights for compliance with Subsection (f)(1)[,
and be filed with the governor's office].
(h) The governor's office shall deliver a biennial report to
the legislature based on the information prepared [received] under
Subsection (g). The report may be made separately or as a part of
other biennial reports made to the legislature.
SECTION 1.13. Section 481.011, Government Code, is amended
to read as follows:
Sec. 481.011. FISCAL REPORT. The coordinator [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 coordinator [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 1.14. Section 481.012, Government Code, is amended
to read as follows:
Sec. 481.012. PUBLIC INTEREST INFORMATION AND COMPLAINTS.
(a) The coordinator [department] shall prepare information of
public interest describing the functions of the coordinator
[department] and the coordinator's [department's] procedures by
which complaints are filed with and resolved by the coordinator
[department]. The coordinator [department] shall make the
information available to the public and appropriate state agencies.
(b) The coordinator [department] shall keep an information
file about each complaint filed with the coordinator [department]
that the coordinator [department] has authority to resolve. If a
written complaint is filed with the coordinator [department] that
the coordinator [department] has authority to resolve, the
coordinator [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 coordinator [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
coordinator's [department's] programs. The coordinator [governing
board] shall also comply with federal and state laws for program and
facility accessibility.
(d) The coordinator [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
coordinator [department] for the purpose of directing complaints to
the coordinator [department].
SECTION 1.15. The heading to Subchapter B, Chapter 481,
Government Code, is amended to read as follows:
SUBCHAPTER B. GENERAL POWERS AND DUTIES OF COORDINATOR
[DEPARTMENT]
SECTION 1.16. Section 481.021, Government Code, is amended
to read as follows:
Sec. 481.021. GENERAL POWERS OF COORDINATOR [DEPARTMENT].
(a) The coordinator [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 coordinator
[department] considers necessary and advisable to accomplish any of
the coordinator'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 coordinator [department] under this chapter shall be
deposited in the state treasury.
(c) The coordinator [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
coordinator [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 coordinator [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 1.17. Subchapter B, Chapter 481, Government Code,
is amended by adding Section 481.0215 to read as follows:
Sec. 481.0215. COORDINATION OF ECONOMIC DEVELOPMENT
EFFORTS. (a) The coordinator shall work with the legislature and
state agencies to identify grants and programs at all levels of
government and to maximize access to federal funds for economic
development.
(b) At the direction of the governor, the coordinator shall
work with each state agency that administers a program relating to
job training or job creation, including the Texas Workforce
Commission, the Department of Agriculture, and the Office of Rural
Affairs, to address the challenges facing the agencies relating to
job training and job creation.
(c) The coordinator shall direct the Texas Economic
Development Corporation to form partnerships or enter into
agreements with private entities and develop connections with
existing businesses in this state for the purpose of improving the
marketing of this state through networking and clarifying the
potential of the businesses for expansion.
SECTION 1.18. Section 481.022, Government Code, is amended
to read as follows:
Sec. 481.022. GENERAL DUTIES OF COORDINATOR [DEPARTMENT].
The coordinator [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;
(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 coordinator's [department]
programs and activities from federal, state, and private sources.
SECTION 1.19. Section 481.023, Government Code, is amended
to read as follows:
Sec. 481.023. ADMINISTRATION OF OTHER STATUTES. (a) The
coordinator [department] shall perform the administrative duties
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 coordinator [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 coordinator [department] may not use money from the
general revenue fund to support the Texas leverage fund.
SECTION 1.20. Section 481.0231, Government Code, is amended
to read as follows:
Sec. 481.0231. DEVELOPMENT CORPORATION TRAINING SEMINAR.
(a) The coordinator [department], 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 coordinator [department] may include in the seminar
any information regarding training programs offered by the
coordinator [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 coordinator [department] shall issue a certificate
of completion to each person who completes the training seminar.
(d) The coordinator [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 coordinator [department] may enter into an
agreement for the provision of a training seminar developed under
this section by any person determined by the coordinator
[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 1.21. Section 481.024, Government Code, is amended
by amending Subsections (a), (e), and (f), and adding Subsections
(g) and (h) 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 coordinator [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 coordinator 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
coordinator [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 coordinator [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 coordinator [department].
(f) The Texas Economic Development Corporation and any
other corporation whose charter specifically dedicates the
corporation's activities to the benefit of the economic development
coordinator 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.
(g) The board of directors shall comply with the
coordinator's directions.
(h) The corporation is a state agency for purposes of
Chapter 321 and a governmental body for purposes of Chapters 551 and
552.
SECTION 1.22. Section 481.025, Government Code, is amended
to read as follows:
Sec. 481.025. EMPOWERMENT ZONE AND ENTERPRISE COMMUNITY
PROGRAM. The coordinator [department] is [the agency of this
state] responsible for administering the Empowerment Zone and
Enterprise Community grant program in this state. The coordinator
[department] shall cooperate with appropriate federal and local
agencies as necessary to administer the grant program.
SECTION 1.23. Sections 481.027(a)-(e), Government Code,
are amended to read as follows:
(a) The coordinator [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
coordinator [department] and share the overhead and operating
expenses of the offices. State [Other state] agencies and the
coordinator [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 coordinator [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 coordinator [department] and the institutions may
enter contracts for this purpose. Chapter 771 does not apply to
those contracts.
(c) The coordinator [department] shall maintain regional
offices in locations specified in the General Appropriations Act.
(d) The coordinator [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 coordinator [department] that are authorized by this section.
SECTION 1.24. Sections 481.028(a), (b), and (d), Government
Code, are amended to read as follows:
(a) The coordinator [department] shall initiate
negotiations for and enter into a memorandum of understanding with
any [other] state agency involved in economic development to
cooperate in program planning and budgeting.
(b) The coordinator [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 coordinator
[department] and the [other] state agency shall be adopted as a rule
of the coordinator and the [each department or] agency.
SECTION 1.25. Section 481.029, Government Code, is amended
to read as follows:
Sec. 481.029. COST RECOVERY. The coordinator [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 1.26. Section 481.043, Government Code, is amended
to read as follows:
Sec. 481.043. GENERAL POWERS AND DUTIES RELATING TO
INTERNATIONAL TRADE. The coordinator [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 1.27. Section 481.045, Government Code, is amended
to read as follows:
Sec. 481.045. POWERS TO BE INTERPRETED BROADLY. The powers
of the coordinator [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 coordinator [department].
SECTION 1.28. Section 481.047, Government Code, is amended
to read as follows:
Sec. 481.047. CONFIDENTIALITY. Information collected by
the coordinator [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 1.29. Section 481.071, Government Code, is amended
to read as follows:
Sec. 481.071. LEGISLATIVE FINDINGS. The legislature finds
that:
(1) the coordinator [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 coordinator [department] should actively seek
private funding to supplement the coordinator's [department's]
marketing and advertising efforts.
SECTION 1.30. Section 481.0725, Government Code, is amended
to read as follows:
Sec. 481.0725. GENERAL POWERS AND DUTIES. The coordinator
[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;
(6) use market research to establish a state-level
marketing program targeted at business decision makers, to take
advantage of the economic development programs of this state, and
to achieve the goal of making this state a business destination; and
(7) establish a lead generation program to identify
potential employers and business citizens and to form networks with
existing businesses in this state.
SECTION 1.31. Section 481.073, Government Code, is amended
to read as follows:
Sec. 481.073. POWERS AND DUTIES RELATING TO FINANCING. (a)
The coordinator [department] shall act on behalf of the state to
carry out the public purposes of this subchapter and of the
Development Corporation Act. The coordinator [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 coordinator [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 coordinator [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
coordinator'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 coordinator's [department's] bonds in
classes of investments that the coordinator [board] determines.
SECTION 1.32. Section 481.075, Government Code, is amended
to read as follows:
Sec. 481.075. PROGRAM RULES. (a) The coordinator
[department] shall adopt rules to establish criteria for
determining which users may participate in programs established by
the coordinator [department] under this subchapter. The
coordinator [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 coordinator [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
coordinator [department] considers reasonable and necessary.
SECTION 1.33. 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 coordinator
[department] may use money in the fund to establish a reserve fund,
in an amount determined by the coordinator [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 coordinator [department] may [also] deposit proceeds of bonds
[funds] issued under [Subchapter E of] this chapter in the fund.
SECTION 1.34. Subchapter G, Chapter 481, Government Code,
is amended to read as follows:
SUBCHAPTER G. STATEWIDE AND REGIONAL ECONOMIC DEVELOPMENT PLANS
[PLAN]
Sec. 481.101. COORDINATED ECONOMIC DEVELOPMENT PLANS
[PLAN]. (a) The coordinator [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.
(b) The coordinator shall use industry cluster analysis to
develop statewide and regional economic development plans to assist
regions of this state in targeting industries with the greatest
growth potential for effective development. The plans shall be
designed to enable local economic development organizations to
allocate resources to develop local marketing and workforce
development plans.
Sec. 481.102. INITIAL PLANS [PLAN]; UPDATES. (a) [No later
than September 1, 2002, the department shall adopt the
comprehensive state economic development plan.
[(b)] Each fifth [following] year after 2002, the
coordinator [department], in consultation with the comptroller,
shall update the plan developed under Section 481.101(a).
(b) No later than September 1, 2004, the coordinator shall
adopt the state and regional economic development plans developed
under Section 481.101(b). Each fifth following year the
coordinator shall update the plan.
Sec. 481.103. USE OF PLANS [PLAN]. (a) The [state]
economic development plans [plan] shall be a guide to state
economic development policy. The coordinator [department] shall
take the plans [plan] into consideration in matters coming before
it.
(b) The coordinator [department] shall disseminate the
plans [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.
(c) Local economic development efforts that produce a cost
to the state may adopt the goals and standards established by the
state economic development plan developed under Section
481.101(a).
Sec. 481.104. RULES. The coordinator [department] by rule
shall adopt guidance principles for the [state] economic
development plans [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.
Sec. 481.105. DELIVERY OF PLANS [PLAN] AND UPDATES. The
coordinator [department] shall promptly deliver each [the state]
economic development plan and each update of each [the] plan to the
governor, the lieutenant governor, and the speaker of the house of
representatives and present each [the] plan for review to the
appropriate legislative committees. The plans [plan] and updates
must include legislative recommendations that the coordinator
[department] believes are needed and desirable to facilitate more
voluntary economic development.
SECTION 1.35. Section 481.121(2), Government Code, is
amended to read as follows:
(2) "Office" means the coordinator's [department's]
business permit office.
SECTION 1.36. Section 481.122, Government Code, is amended
to read as follows:
Sec. 481.122. CREATION. The business permit office is an
office within the governor's office under the direction of the
coordinator [department].
SECTION 1.37. Chapter 481, Government Code, is amended by
adding Subchapter I to read as follows:
SUBCHAPTER I. IDENTIFICATION OF POTENTIAL NEW PROSPECTS; TAX
INCENTIVE PROPOSAL
Sec. 481.141. TAX INCENTIVE RECOMMENDATIONS. The
coordinator shall formulate tax incentive programs designed to
competitively recruit businesses to this state. Not later than
December 1 of each even-numbered year, the coordinator shall
recommend the programs to the legislature.
Sec. 481.142. IDENTIFICATION OF POTENTIAL NEW PROSPECTS.
If the coordinator determines that tax incentives would encourage a
business entity to expand in or relocate to this state, the
coordinator shall enter an order identifying the business as a
potential new prospect.
Sec. 481.143. IDENTIFICATION OF AREAS ELIGIBLE FOR
DESIGNATION AS REINVESTMENT ZONE. The coordinator may identify
areas that are eligible for designation as reinvestment zones under
Chapter 311 or 312, Tax Code. The coordinator shall inform a
governing body of a municipality or county that has the authority to
designate an area as a reinvestment zone under Chapter 311 or 312,
Tax Code, that the coordinator has identified an area in the
municipality or county as eligible for designation as a
reinvestment zone under this section.
Sec. 481.144. TAX INCENTIVES FOR IDENTIFIED POTENTIAL NEW
PROSPECTS. (a) The coordinator shall compile a tax incentive
package for each business identified as a potential new prospect
under Section 481.142. A tax incentive package may:
(1) provide that the identified potential new prospect
is eligible for increased tax credits under Section 171.723,
171.753, or 171.803, Tax Code;
(2) recommend that a taxing unit enter into a tax
abatement agreement with an identified potential new prospect under
Chapter 311 or 312, Tax Code; and
(3) recommend that a school district grant an
identified potential new prospect a limitation on appraised value
under Chapter 313, Tax Code.
(b) An identified potential new prospect is eligible for any
tax incentives proposed by the coordinator if the proposal is
approved by:
(1) the governor;
(2) the comptroller; and
(3) the lieutenant governor.
Sec. 481.145. ASSISTANCE. The comptroller and the Texas
Workforce Commission shall assist the coordinator in compiling the
information necessary to make recommendations under this
subchapter.
SECTION 1.38. Chapter 481, Government Code, is amended by
adding Subchapter J to read as follows:
SUBCHAPTER J. FUNDING FOR JOBS CREATION AND SKILLS DEVELOPMENT
Sec. 481.151. JOBS CREATION FUND. (a) The jobs creation
fund is an account in the general revenue fund.
(b) The jobs creation fund is composed of:
(1) money transferred into the fund under Section
204.143, Labor Code;
(2) money transferred into the fund as provided by
Section 57.043, Utilities Code;
(3) gifts, grants, and other donations received by the
coordinator for the fund; and
(4) any amounts appropriated by the legislature for
the fund.
(c) Money in the jobs creation fund may be used only for the
jobs creation fund program.
(d) The coordinator may recommend to the legislature that an
amount be appropriated from the economic stabilization fund to the
jobs creation fund.
Sec. 481.152. RAINY DAY FUND. (a) The jobs creation rainy
day fund is established as a special trust fund in the custody of
the comptroller separate and apart from all public money or funds of
this state.
(b) The jobs creation rainy day fund is composed of:
(1) money transferred to the fund as provided by
Section 204.143, Labor Code; and
(2) any other money received by the coordinator for
deposit in the fund.
(c) The coordinator may use money in the jobs creation rainy
day fund if the coordinator determines that, after consulting with
the comptroller, the jobs creation fund contains insufficient money
to cover the amounts appropriated by the legislature to operate the
jobs creation fund program and that:
(1) the unemployment rate in this state is 125 percent
of the average unemployment rate in this state during the preceding
three years; or
(2) a severe economic dislocation is occurring in a
specific region of this state.
(d) The coordinator by rule shall define "severe economic
dislocation" for purposes of Subsection (c). In adopting a
definition, the coordinator shall consider employment-related
factors, including:
(1) massive layoffs in a region of this state caused
by:
(A) the closure of military bases;
(B) the effect of the implementation of the North
American Free Trade Agreement;
(C) employer relocations; or
(D) other analogous situations; and
(2) the number of jobs lost in a region compared to the
region's usual rates of employment.
(e) If the coordinator approves the use of money from the
jobs creation rainy day fund because of a severe economic
dislocation occurring in a specific region of the state, the
coordinator may use the money allocated from the jobs creation
rainy day fund solely for projects located in the affected region.
Sec. 481.153. JOBS CREATION FUND PROGRAM. (a) The jobs
creation fund program is created in the office of the governor as a
workforce development incentive program to enhance employment
opportunities and to increase the competitiveness of the existing
workforce in this state.
(b) The jobs creation fund program shall give priority to
training new workers, retraining workers who have lost their jobs,
and upgrading technical skills for incumbent workers.
(c) The coordinator shall administer the program.
(d) The coordinator shall adopt rules as necessary to
implement the program.
Sec. 481.154. TRAINING FOR IDENTIFIED POTENTIAL NEW
PROSPECTS. The jobs creation fund program shall provide training
for employees of identified potential new prospects through
agreements with local technical schools, labor union training
programs, local community colleges, or higher education extension
agencies.
Sec. 481.155. REFUND OF UNEXPENDED AMOUNTS. The
coordinator, in consultation with the Texas Employment Commission,
shall adopt rules to provide for the refund of unexpended amounts in
the jobs creation fund to employers that paid the jobs creation and
training assessment imposed under Section 204.141, Labor Code, for
the period during which the unexpended amounts were collected.
Sec. 481.156. RECOMMENDATIONS FOR SKILLS DEVELOPMENT FUND.
The coordinator, with the assistance of the Texas Workforce
Commission, shall make recommendations to the governor for
enhancing the skills development fund to meet the needs of
identified potential new prospects.
SECTION 1.39. Section 481.1665, Government Code, is amended
to read as follows:
Sec. 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 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
coordinator's [department's] Internet website.
(b) The notice required by Subsection (a) must contain:
(1) the Internet address of the coordinator's
[department's] website; and
(2) the toll-free telephone number of the
clearinghouse.
SECTION 1.40. Sections 481.167(a), (b), (d), and (e),
Government Code, are amended to read as follows:
(a) The coordinator [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.
(b) The clearinghouse shall collect and disseminate
information on federal, state, local, and private:
(1) business development programs, including
financial assistance and business incentive programs;
(2) business development services, including
technical assistance, workshops, business incubators, training,
and useful publications;
(3) [rural and urban community economic development
programs, including loans, grants, and other funding sources;
[(4)] rural and urban community economic development
services, including technical assistance, workshops, training, and
useful publications;
(4) [(5)] small business programs and services and
useful publications;
(5) [(6)] defense economic adjustment programs and
services and useful publications; and
(6) [(7)] international trade programs, services, and
useful publications.
(d) The coordinator [department] shall obtain from [other]
state agencies appropriate information needed by the coordinator
[department] to carry out the coordinator's [its] duties under this
subchapter.
(e) The comptroller shall assist the coordinator
[department] in furthering the purposes of this subchapter by
allowing the coordinator [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 1.41. Section 481.168(a), Government Code, is
amended to read as follows:
(a) The attorney general, the comptroller, the coordinator
[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.
SECTION 1.42. Subchapter K, Chapter 481, Government Code,
is amended by adding Section 481.169 to read as follows:
Sec. 481.169. ADVISORY BOARD OF ECONOMIC DEVELOPMENT
STAKEHOLDERS. (a) An advisory board of economic development
stakeholders is created to assist the coordinator.
(b) The governor shall appoint seven members to the advisory
board. The governor shall appoint three of the initial members to
two-year terms, and shall appoint four of the initial members to
four-year terms. Thereafter, the governor shall appoint each
member of the advisory board to a four-year term.
(c) The advisory board shall collect and disseminate
information on federal, state, local, and private community
economic development programs, including loans, grants, and other
funding sources.
SECTION 1.43. Section 481.172, Government Code, as amended
by Chapters 1041 and 1275, Acts of the 75th Legislature, Regular
Session, 1997, is amended to read as follows:
Sec. 481.172. DUTIES. (a) The coordinator [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) direct the efforts of [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;[.]
(9) [(8)] promote and encourage the horse racing and
greyhound racing industry, if funds are appropriated for the
promotion or encouragement; and
(10) develop a marketing plan to promote the beauty,
diversity, and entertainment values offered by this state.
(b) The Parks and Wildlife Department, the Texas Department
of Transportation, the Texas Historical Commission, and the Texas
Commission on the Arts shall comply with a direction given by the
coordinator relating to the promotion of tourism.
SECTION 1.44. Subchapter L, Chapter 481, Government Code,
is amended by adding Sections 481.1721 and 481.1722 to read as
follows:
Sec. 481.1721. HERITAGE TOURISM. (a) The coordinator may
promote the appreciation of historic sites, structures, or objects
in this state through a program designed to develop tourism in this
state.
(b) The coordinator shall promote heritage tourism by
assisting persons, including local governments, organizations, and
individuals, in the preservation, enhancement, and promotion of
heritage and cultural attractions in this state. The program must
include efforts to:
(1) raise the standards of heritage and cultural
attractions around this state;
(2) foster heritage preservation and education;
(3) encourage regional cooperation and promotion of
heritage and cultural attractions; and
(4) foster effective local tourism leadership and
organizational skills.
Sec. 481.1722. HIGHWAY TOURISM AND ADVERTISING. (a) The
coordinator may compile and publish for distribution documents,
including bulletins and pamphlets, to:
(1) disseminate information relating to highway
construction, repair, maintenance, and upkeep;
(2) advertise the highways of this state; and
(3) attract traffic to this state.
(b) A document compiled or published under Subsection (a)
shall contain information relating to:
(1) the highways of this state;
(2) public parks, recreational grounds, scenic
places, and other public places or objects of interest;
(3) distances;
(4) historical facts; or
(5) other items or matters of interest and value to the
general public and road users.
(c) The coordinator may make or cause to be made maps
showing the highways of this state and the municipalities and other
places of interest served and reached by the highways. The
coordinator may publish and distribute the maps in a manner
determined by the coordinator to best benefit the public.
(d) Single copies of documents, maps, and other travel
materials distributed by the coordinator under this section shall
be provided free of charge. The coordinator by rule may require
payment for large quantities of the materials in an amount
sufficient to recover its direct and indirect production costs and
may authorize the free distribution of multiple copies if the
distribution will maximize the coordinator's resources for
advertising the highways of this state and promoting travel to and
within this state. Money paid to the coordinator under this section
shall be deposited to the credit of the tourism account in the
general revenue fund to finance the coordinator's tourism
activities. Section 403.095 does not apply to funds deposited in
the tourism account under this subsection.
(e) The coordinator shall maintain and operate travel
information centers at the principal gateways to this state 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.
(f) The coordinator may:
(1) purchase advertising space in periodicals of
national circulation or time on broadcasting facilities;
(2) contract with a recognized and financially
responsible advertising agency that has a minimum of five years of
experience in handling accounts of similar scope;
(3) contract for space in magazines, papers, or
periodicals for the publication of advertising or other
information that the coordinator determines is useful and
informative to persons outside this state; or
(4) contract with a motion picture producer or another
person for the taking of moving or still pictures in this state and
provide for the showing of the films.
(g) The coordinator may accept contributions from private
persons to fund the coordinator's activities under this section and
may deposit the contributions in a bank to be used at the discretion
of the coordinator in compliance with the wishes of the donor, to
the extent practicable.
(h) The coordinator may contract with private entities for
the production, marketing, and distribution of pamphlets,
bulletins, documents, and other travel materials published under
Subsection (a) on terms considered by the coordinator to be
beneficial to this state, including terms providing cost savings.
A contract may include cooperative strategies considered by the
coordinator to be cost-beneficial and may provide for the
acceptance of paid advertising in the travel materials if the
quality and quantity of the travel materials is maintained.
(i) The coordinator may sell promotional items such as
calendars, books, prints, caps, light clothing, or other items
approved by the coordinator as advertising the resources of this
state. All proceeds from the sale of the items shall be deposited
to the credit of the tourism account in the general revenue fund to
finance the coordinator's tourism activities. Section 403.095 does
not apply to funds deposited in the tourism account under this
subsection.
SECTION 1.45. Section 481.174, Government Code, is amended
to read as follows:
Sec. 481.174. ADVERTISEMENTS IN TOURISM PROMOTIONS. (a)
The coordinator [department] may sell advertisements in travel
promotions in any medium.
(b) The coordinator [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
coordinator [department] as provided by Section 156.251, Tax Code.
SECTION 1.46. Sections 481.193(a), (b), (d), (e), (f), and
(h), Government Code, are amended to read as follows:
(a) The coordinator [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 coordinator [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 coordinator [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 coordinator [department].
(f) After reviewing each linked deposit loan application,
the coordinator [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 coordinator [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 1.47. 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
coordinator [department].
(b) The coordinator [department] shall monitor compliance
with this subchapter and inform the comptroller of noncompliance on
the part of an eligible lending institution.
SECTION 1.48. Section 481.198, Government Code, is amended
to read as follows:
Sec. 481.198. MARKETING. (a) The coordinator [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
coordinator [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 coordinator's
[department's] efforts in promoting the linked deposit program
during the preceding two years.
SECTION 1.49. 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 coordinator [department] providing for coordination and
planning of and giving priority to loans made under the
commission's Main Street program.
SECTION 1.50. Section 481.211, Government Code, is amended
to read as follows:
Sec. 481.211. POWERS AND DUTIES. The coordinator
[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 1.51. 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 coordinator [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 coordinator [department] shall maintain the [create a] web site
established by the Texas Department of Economic Development to
publish business-related information on the Internet. The web site
must provide connections to other business-related web sites.
(c) The coordinator [department] may charge a reasonable
access fee in connection with this subchapter.
SECTION 1.52. Subchapter P, Chapter 481, Government Code,
is amended by adding Section 481.213 to read as follows:
Sec. 481.213. ADVANCED TECHNOLOGY RESOURCE CENTER. (a) In
this section, "center" means the Advanced Technology Resource
Center.
(b) The coordinator shall establish the center to study and
collect information relating to emerging industries, including
microelectronics, telecommunications, and biotechnology.
(c) The coordinator shall appoint an advisory board
composed of individuals with contacts with or experience in
private-sector or higher education research and development
establishments. The advisory board shall administer the center,
stay informed of new technology, and advise the coordinator of new
prospects for quality future employment.
(d) The center, with the assistance of the coordinator,
shall establish and maintain an Internet site that provides the
public with access to the information compiled under this section.
SECTION 1.53. Section 481.379(b), Government Code, is
amended to read as follows:
(b) The design committee is composed of members appointed by
the coordinator [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 1.54. 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
coordinator [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 1.55. Section 481.402(c), Government Code, is
amended to read as follows:
(c) Money in the fund may be appropriated only to the
coordinator [department] for use in carrying out the purposes of
this subchapter.
SECTION 1.56. Sections 481.403(a), (b), and (c), Government
Code, are amended to read as follows:
(a) At the beginning of each fiscal year, the coordinator
[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 coordinator [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 1.57. Section 481.404, Government Code, is amended
to read as follows:
Sec. 481.404. POWERS OF COORDINATOR [DEPARTMENT] IN
ADMINISTERING CAPITAL ACCESS FUND. In administering the fund, the
coordinator [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 the
coordinator's [its] powers;
(2) invest money at the coordinator's [department's]
discretion in obligations determined proper by the coordinator
[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 1.58. Sections 481.405(a)-(d), Government Code,
are amended to read as follows:
(a) The coordinator [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 coordinator [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 coordinator [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
coordinator [department] that sets out the terms and conditions
under which the coordinator [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 1.59. Sections 481.407(a) and (d), Government Code,
are amended to read as follows:
(a) Except as otherwise provided by this subchapter, the
coordinator [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 coordinator
[department].
SECTION 1.60. Sections 481.408(a), (c), and (d), Government
Code, are amended to read as follows:
(a) On approval by the coordinator [department] and after
entering into a participation agreement with the coordinator
[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 coordinator
[department], within the period prescribed by the coordinator
[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 coordinator [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 1.61. 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 coordinator [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 coordinator [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 1.62. Sections 481.410(b), (c), and (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 coordinator [department], borrower, and
institution to a reserve account under this subchapter. The
coordinator [department] shall withdraw monthly or quarterly from a
reserve account the amount of the interest earned by the state. The
coordinator [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 coordinator [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 coordinator [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
coordinator [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 1.63. 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 coordinator
[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 coordinator [department] considers
appropriate;
(2) state the total amount of loans for which the
coordinator [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 1.64. Section 481.412(a), Government Code, is
amended to read as follows:
(a) The coordinator [department] shall submit to the
legislature an annual status report on the program's activities.
SECTION 1.65. Section 481.414, Government Code, is amended
to read as follows:
Sec. 481.414. GIFTS AND GRANTS. The coordinator
[department] may accept gifts, grants, and donations from any
source for the purposes of this subchapter.
SECTION 1.66. Section 481.452, Government Code, is amended
to read as follows:
Sec. 481.452. INITIATIVE UNIT. (a) The coordinator
[department] shall appoint to serve on the Texas-Mexico Commerce
and International Relations Initiative Unit at least one
representative of the coordinator [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.
(b) The coordinator [department] shall designate one of the
members of the initiative unit to serve as the presiding officer of
the unit.
SECTION 1.67. Section 481.453, Government Code, is amended
to read as follows:
Sec. 481.453. COORDINATION OF AGENCIES AND OFFICES. The
coordinator [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 coordinator [department] and
each agency and office represented by the initiative unit, should
take.
SECTION 1.68. 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 coordinator [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 coordinator [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 1.69. 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 coordinator [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 1.70. Section 481.456, Government Code, is amended
to read as follows:
Sec. 481.456. PARTNERSHIP TO UPDATE CLEARINGHOUSE. The
coordinator [department] shall form a partnership with the agencies
and offices represented by the initiative unit to ensure that the
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 1.71. Section 481.459, Government Code, is amended
to read as follows:
Sec. 481.459. PERFORMANCE OF FUNCTIONS OF COORDINATOR
[DEPARTMENT]. If another state agency or office assumes the
functions of the coordinator [department], that agency or office
shall perform the functions of the coordinator [department] under
this subchapter.
SECTION 1.72. (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 1.73. On September 1, 2003:
(1) all functions and activities performed by the
Texas Department of Economic Development or the department's
governing board immediately before that date are transferred to the
economic development coordinator;
(2) all employees of the Texas Department of Economic
Development become employees of the economic development
coordinator;
(3) 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 economic development
coordinator and remains in effect until changed by the coordinator;
(4) a reference in law to the Texas Department of
Economic Development, the department's governing board, or the
department's predecessor agency means the economic development
coordinator;
(5) a proceeding involving the Texas Department of
Economic Development is transferred without change in status to the
economic development coordinator, and the economic development
coordinator 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;
(6) all money, contracts, leases, rights, and
obligations of the Texas Department of Economic Development are
transferred to the economic development coordinator;
(7) all property, including records, in the custody of
the Texas Department of Economic Development becomes the property
of the economic development coordinator;
(8) all funds appropriated by the legislature to the
Texas Department of Economic Development are transferred to the
economic development coordinator; and
(9) the executive director of the Texas Department of
Economic Development serving on the effective date of this Act
becomes an employee of the economic development coordinator as
provided by this Act.
SECTION 1.74. Sections 481.001(1) and (4), 481.004,
481.0041, 481.0043, 481.0044(b) and (c), 481.005, 481.006,
481.059, 481.077, 481.084, and 481.403(d), Government Code, are
repealed.
ARTICLE 2. CHANGES RELATING TO CONSOLIDATION OF TOURISM
PROMOTION EFFORTS
SECTION 2.01. Chapter 12, Agriculture Code, is amended by
adding Section 12.0176 to read as follows:
Sec. 12.0176. TOURISM PROMOTION EFFORTS UNDER DIRECTION OF
ECONOMIC DEVELOPMENT COORDINATOR. An effort by the department to
promote tourism is subject to the direction of the economic
development coordinator. The department shall comply with a
direction given by the economic development coordinator relating to
the promotion of tourism.
SECTION 2.02. Chapter 442, Government Code, is amended by
adding Section 442.0055 to read as follows:
Sec. 442.0055. TOURISM PROMOTION EFFORTS UNDER DIRECTION OF
ECONOMIC DEVELOPMENT COORDINATOR. An effort by the commission to
promote tourism is subject to the direction of the economic
development coordinator. The commission shall comply with a
direction given by the economic development coordinator relating to
the promotion of tourism.
SECTION 2.03. Section 444.030(b), Government Code, is
amended to read as follows:
(b) The commission shall enter into an agreement as required
by Subsection (a) with the:
(1) Texas [Central] Education Agency regarding the
arts in education program in the public schools; and
(2) Music, Film, Television, and Multimedia Office in
the governor's office regarding work with the state's music and film
industries[; and
[(3) Texas Department of Commerce, Texas Department of
Transportation, and Parks and Wildlife Department regarding state
tourism promotion efforts].
SECTION 2.04. Subchapter B, Chapter 444, Government Code,
is amended by adding Section 444.032 to read as follows:
Sec. 444.032. TOURISM PROMOTION EFFORTS UNDER DIRECTION OF
ECONOMIC DEVELOPMENT COORDINATOR. An effort by the commission to
promote tourism is subject to the direction of the economic
development coordinator. The commission shall comply with a
direction given by the economic development coordinator relating to
the promotion of tourism.
SECTION 2.05. Subchapter B, Chapter 11, Parks and Wildlife
Code, is amended by adding Section 11.0305 to read as follows:
Sec. 11.0305. TOURISM PROMOTION EFFORTS UNDER DIRECTION OF
ECONOMIC DEVELOPMENT COORDINATOR. An effort by the department to
promote tourism is subject to the direction of the economic
development coordinator. The department shall comply with a
direction given by the economic development coordinator relating to
the promotion of tourism.
SECTION 2.06. Subchapter D, Chapter 201, Transportation
Code, is amended by adding Section 201.210 to read as follows:
Sec. 201.210. TOURISM PROMOTION EFFORTS UNDER DIRECTION OF
ECONOMIC DEVELOPMENT COORDINATOR. An effort by the department to
promote tourism is subject to the direction of the economic
development coordinator. The department shall comply with a
direction given by the economic development coordinator relating to
the promotion of tourism.
SECTION 2.07. The following laws are repealed:
(1) Sections 442.005(s) and (t), Government Code; and
(2) Sections 3(a)-(d), Chapter 193, Acts of the 56th
Legislature, Regular Session, 1959 (Article 6144e, Vernon's Texas
Civil Statutes).
SECTION 2.08. (a) On September 1, 2003:
(1) all functions and activities performed by the
Texas Historical Commission immediately before that date relating
to the promotion of historical tourism are transferred to the
economic development coordinator;
(2) all employees of the Texas Historical Commission
who primarily perform duties relating to the promotion of
historical tourism become employees of the economic development
coordinator;
(3) a rule, standard, or form adopted by the Texas
Historical Commission relating to the promotion of historical
tourism is a rule, standard, or form of the economic development
coordinator and remains in effect until altered by the economic
development coordinator;
(4) a reference in law to the Texas Historical
Commission that relates to functions and activities performed by
the Texas Historical Commission relating to the promotion of
historical tourism means the economic development coordinator;
(5) a proceeding involving the Texas Historical
Commission that is related to functions and activities performed by
the Texas Historical Commission relating to the promotion of
historical tourism is transferred without change in status to the
economic development coordinator, and the economic development
coordinator assumes without a change in status the position of the
Texas Historical Commission in a proceeding relating to functions
and activities performed by the Texas Historical Commission
relating to the promotion of historical tourism to which the Texas
Historical Commission is a party;
(6) all money, contracts, leases, rights, and
obligations of the Texas Historical Commission related to functions
and activities performed by the Texas Historical Commission
relating to the promotion of historical tourism are transferred to
the economic development coordinator;
(7) all property, including records, in the custody of
the Texas Historical Commission related to functions and activities
performed by the Texas Historical Commission relating to the
promotion of historical tourism becomes property of the economic
development coordinator; and
(8) all funds appropriated by the legislature to the
Texas Historical Commission for purposes related to functions and
activities performed by the Texas Historical Commission relating to
the promotion of historical tourism are transferred to the economic
development coordinator.
(b) On September 1, 2003:
(1) all functions and activities performed by the
Texas Department of Transportation immediately before that date
under Sections 3(a)-(d), Chapter 193, Acts of the 56th Legislature,
Regular Session, 1959 (Article 6144e, Vernon's Texas Civil
Statutes), including the operation of travel information centers,
are transferred to the economic development coordinator;
(2) all employees of the Texas Department of
Transportation who primarily perform duties under Sections
3(a)-(d), Chapter 193, Acts of the 56th Legislature, Regular
Session, 1959 (Article 6144e, Vernon's Texas Civil Statutes),
including the operation of travel information centers, become
employees of the economic development coordinator;
(3) a rule, standard, or form adopted by the Texas
Department of Transportation under Sections 3(a)-(d), Chapter 193,
Acts of the 56th Legislature, Regular Session, 1959 (Article 6144e,
Vernon's Texas Civil Statutes), is a rule, standard, or form of the
economic development coordinator and remains in effect until
altered by the economic development coordinator;
(4) a reference in law to the Texas Department of
Transportation that relates to functions and activities performed
by the Texas Department of Transportation under Sections 3(a)-(d),
Chapter 193, Acts of the 56th Legislature, Regular Session, 1959
(Article 6144e, Vernon's Texas Civil Statutes), means the economic
development coordinator;
(5) a proceeding involving the Texas Department of
Transportation that is related to functions and activities
performed by the Texas Department of Transportation under Sections
3(a)-(d), 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 economic development
coordinator, and the economic development coordinator 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 Texas Department of Transportation under Sections
3(a)-(d), Chapter 193, Acts of the 56th Legislature, Regular
Session, 1959 (Article 6144e, Vernon's Texas Civil Statutes), to
which the Texas Department of Transportation is a party;
(6) all money, contracts, leases, rights, and
obligations of the Texas Department of Transportation related to
functions and activities performed by the Texas Department of
Transportation under Sections 3(a)-(d), Chapter 193, Acts of the
56th Legislature, Regular Session, 1959 (Article 6144e, Vernon's
Texas Civil Statutes), are transferred to the economic development
coordinator;
(7) all property, including records, in the custody of
the Texas Department of Transportation related to functions and
activities performed by the Texas Department of Transportation
under Sections 3(a)-(d), Chapter 193, Acts of the 56th Legislature,
Regular Session, 1959 (Article 6144e, Vernon's Texas Civil
Statutes), becomes property of the economic development
coordinator; and
(8) all funds appropriated by the legislature to the
Texas Department of Transportation for purposes related to
functions and activities performed by the Texas Department of
Transportation under Sections 3(a)-(d), Chapter 193, Acts of the
56th Legislature, Regular Session, 1959 (Article 6144e, Vernon's
Texas Civil Statutes), are transferred to the economic development
coordinator.
ARTICLE 3. TAX INCENTIVES FOR IDENTIFIED POTENTIAL NEW PROSPECTS
SECTION 3.01. Sections 171.723(a) and (d), Tax Code, are
amended to read as follows:
(a) The credit for any report equals 10 [five] percent of
the sum of:
(1) the excess of qualified research expenses incurred
in this state during the period upon which the tax is based over the
base amount for this state; and
(2) the basic research payments determined under
Section 41(e)(1)(A), Internal Revenue Code, for this state during
the period upon which the tax is based.
(d) In computing the credit under this section:
(1) [,] a corporation may multiply by two the amount of
any qualified research expenses and basic research payments made in
a strategic investment area; or
(2) a corporation that is eligible for an increased
credit as provided by Section 481.144, Government Code, may
multiply by two the amount of any qualified research expenses and
basic research payments made on or before the third anniversary of
the date on which the corporation is identified as a potential new
prospect.
SECTION 3.02. Section 171.751(9), Tax Code, as effective
September 1, 2003, is amended to read as follows:
(9) "Qualifying job" means a new permanent full-time
job that:
(A) [is located in:
[(i) a strategic investment area;
[(ii) a county within this state with a
population of less than 50,000, if the job is created by a business
primarily engaged in agricultural processing; or
[(iii) an enterprise zone or a readjustment
zone, regardless of whether the job meets the qualifications
prescribed by Paragraphs (B)-(F), if the job is created by a
qualified business that has been designated as an enterprise
project or defense readjustment project, respectively;
[(B)] requires at least 1,600 hours of work a
year;
(B) [(C)] pays at least 110 percent of the county
average weekly wage for the county where the job is located;
(C) [(D)] is covered by a group health benefit
plan for which the business pays at least 80 percent of the premiums
or other charges assessed under the plan for the employee;
(D) [(E)] is not transferred from one area in
this state to another area in this state; and
(E) [(F)] is not created to replace a previous
employee.
SECTION 3.03. Section 171.751(9), Tax Code, as effective
January 1, 2005, is amended to read as follows:
(9) "Qualifying job" means a new permanent full-time
job that:
(A) [is located in:
[(i) a strategic investment area; or
[(ii) a county within this state with a
population of less than 50,000, if the job is created by a business
primarily engaged in agricultural processing;
[(B)] requires at least 1,600 hours of work a
year;
(B) [(C)] pays at least 110 percent of the county
average weekly wage for the county where the job is located;
(C) [(D)] is covered by a group health benefit
plan for which the business pays at least 80 percent of the premiums
or other charges assessed under the plan for the employee;
(D) [(E)] is not transferred from one area in
this state to another area in this state; and
(E) [(F)] is not created to replace a previous
employee.
SECTION 3.04. Section 171.753, Tax Code, is amended to read
as follows:
Sec. 171.753. CALCULATION OF CREDIT. (a) A corporation may
establish a credit equal to five percent of the total wages and
salaries paid by the corporation for qualifying jobs during the
period upon which the tax is based.
(b) A corporation that is eligible for an increased credit
as provided by Section 481.144, Government Code, may establish a
credit equal to:
(1) for the period on or before the third anniversary
of the date on which the corporation is identified as a potential
new prospect under Section 481.142, Government Code:
(A) 20 percent of the total wages and salaries
paid by the corporation for qualifying jobs during the period upon
which the tax is based; or
(B) 40 percent of the total wages and salaries
paid by the corporation for qualifying jobs in a strategic
investment area during the period upon which the tax is based; and
(2) for the period after the third anniversary and on
or before the sixth anniversary of the date on which the corporation
is identified as a potential new prospect under Section 481.142,
Government Code:
(A) 10 percent of the total wages and salaries
paid by the corporation for qualifying jobs during the period upon
which the tax is based; or
(B) 20 percent of the total wages and salaries
paid by the corporation for qualifying jobs in a strategic
investment area during the period upon which the tax is based.
SECTION 3.05. Section 171.755(a), Tax Code, is amended to
read as follows:
(a) The total credit claimed under this subchapter for a
report, including the amount of any carryforward credit under
Section 171.756, may not exceed 50 percent of the amount of
franchise tax due for the report before any other applicable tax
credits. This subsection does not apply to a corporation that is
eligible for an increased credit as provided by Section 481.144,
Government Code, on or before the third anniversary of the date on
which the corporation is identified as a potential new prospect
under Section 481.142, Government Code.
SECTION 3.06. Section 171.801(2), Tax Code, as effective
September 1, 2003, is amended to read as follows:
(2) "Qualified capital investment" means tangible
personal property first placed in service in this state [a
strategic investment area, first placed in service in a county with
a population of less than 50,000 by a corporation primarily engaged
in agricultural processing, or first placed in service in an
enterprise zone or defense readjustment zone by a qualified
business that has been designated as an enterprise project or
readjustment project, respectively, and] that is described in
Section 1245(a), Internal Revenue Code, such as engines, machinery,
tools, and implements used in a trade or business or held for
investment and subject to an allowance for depreciation, cost
recovery under the accelerated cost recovery system, or
amortization. The term does not include real property or buildings
and their structural components. Property that is leased under a
capitalized lease is considered a "qualified capital investment,"
but property that is leased under an operating lease is not
considered a "qualified capital investment." Property expensed
under Section 179, Internal Revenue Code, is not considered a
"qualified capital investment."
SECTION 3.07. Section 171.801(2), Tax Code, as effective
January 1, 2005, is amended to read as follows:
(2) "Qualified capital investment" means tangible
personal property first placed in service in this state [a
strategic investment area, or first placed in service in a county
with a population of less than 50,000 by a corporation primarily
engaged in agricultural processing, and] that is described in
Section 1245(a), Internal Revenue Code, such as engines, machinery,
tools, and implements used in a trade or business or held for
investment and subject to an allowance for depreciation, cost
recovery under the accelerated cost recovery system, or
amortization. The term does not include real property or buildings
and their structural components. Property that is leased under a
capitalized lease is considered a "qualified capital investment,"
but property that is leased under an operating lease is not
considered a "qualified capital investment." Property expensed
under Section 179, Internal Revenue Code, is not considered a
"qualified capital investment."
SECTION 3.08. Section 171.803, Tax Code, is amended to read
as follows:
Sec. 171.803. CALCULATION OF CREDIT. (a) A corporation may
establish a credit equal to 7.5 percent of the qualified capital
investment during the period upon which the tax is based. A
corporation may establish a credit equal to 15 percent of the
qualified capital investment first placed into service in a
strategic investment area during the period upon which the tax is
based.
(b) A corporation that is eligible for an increased credit
as provided by Section 481.144, Government Code, may establish a
credit equal to:
(1) 20 percent of a qualified capital investment
during the period upon which the tax is based, on or before the
third anniversary of the date on which a corporation is identified
as a potential new prospect under Section 481.142, Government Code;
and
(2) 10 percent of a qualified capital investment
during the period upon which the tax is based, after the third
anniversary and on or before the sixth anniversary of the date on
which the corporation is identified as a potential new prospect
under Section 481.142, Government Code.
SECTION 3.09. Section 311.0125, Tax Code, is amended by
adding Subsection (e) to read as follows:
(e) In determining whether to approve an agreement to abate
taxes on real property in a reinvestment zone under Subsection (b),
the board of directors of the reinvestment zone and the governing
body of a taxing unit shall consider any recommendation made by the
economic development coordinator.
SECTION 3.10. Section 312.204, Tax Code, is amended by
adding Subsection (g) to read as follows:
(g) In determining whether to enter into a tax abatement
agreement under this section, the governing body of a municipality
shall consider any recommendation made by the economic development
coordinator.
SECTION 3.11. Section 312.402, Tax Code, is amended by
adding Subsection (f) to read as follows:
(f) In determining whether to enter into a tax abatement
agreement under this section, the commissioners court of a county
shall consider any recommendation made by the economic development
coordinator.
SECTION 3.12. Section 313.025, Tax Code, is amended by
adding Subsection (g) to read as follows:
(g) In determining whether to grant an application, the
governing body of the school district shall consider any
recommendation made by the economic development coordinator.
ARTICLE 4. CHANGES RELATING TO JOBS CREATION FUNDING
SECTION 4.01. Section 204.006(a), Labor Code, is amended to
read as follows:
(a) A person's contribution rate for the calendar year in
which the person becomes an employer is the greater of:
(1) the rate established for that year for the major
group to which the employer is assigned under Section 204.004; or
(2) two and six-tenths [seven-tenths] percent.
SECTION 4.02. Section 204.062(a), Labor Code, is amended to
read as follows:
(a) In addition to the general tax computed under Subchapter
C, an employer entitled to an experience rate shall pay a
replenishment tax at the rate computed by:
(1) dividing the numerator described by Subsection (b)
by the denominator described by Subsection (c);
(2) multiplying that result by 100 to obtain a
percentage; [and]
(3) rounding that result to the nearest hundredth; and
(4) subtracting 0.1 from the resulting quotient.
SECTION 4.03. Chapter 204, Labor Code, is amended by adding
Subchapter H to read as follows:
SUBCHAPTER H. JOBS CREATION AND TRAINING ASSESSMENT; FUNDS
Sec. 204.141. JOBS CREATION AND TRAINING ASSESSMENT. (a)
In addition to any other taxes imposed by this subtitle, a jobs
creation and training assessment is imposed on each employer paying
contributions under this subtitle as a separate assessment of
one-tenth percent of wages paid by the employer.
(b) The commission shall deposit the revenue from the jobs
creation and training assessment to the credit of the holding fund
created under Section 204.142.
(c) The jobs creation and training assessment is due at the
same time, collected in the same manner, and subject to the same
penalties and interest as other contributions assessed under this
subtitle.
Sec. 204.142. HOLDING FUND. (a) The holding fund is a
special trust fund in the custody of the comptroller separate and
apart from all public money or funds of this state.
(b) The comptroller shall administer the holding fund in
accordance with the directions of the commission. Interest
accruing on amounts in the holding fund shall be deposited
quarterly to the credit of the compensation fund.
Sec. 204.143. TRANSFER TO JOBS CREATION FUND. (a) If, on
September 1 of a year, the commission determines that the amount in
the compensation fund will exceed 100 percent of its floor as
computed under Section 204.061 on the next October 1 computation
date, the commission shall transfer from the holding fund created
under Section 204.142:
(1) 80 percent of the amount in the holding fund to the
jobs creation fund created under Section 481.151, Government Code;
and
(2) 20 percent of the amount in the holding fund to the
jobs creation rainy day fund created under Section 481.152,
Government Code.
(b) If, on September 1 of a year, the commission determines
that the amount in the compensation fund will be at or below 100
percent of its floor as computed under Section 204.061 on the next
October 1 computation date, the commission shall transfer to the
compensation fund as is necessary to raise the amount in the
compensation fund to 100 percent of its floor, up to and including
the entire amount in the holding fund. The commission shall
transfer any remaining balance in the holding fund to the jobs
creation fund and the jobs creation rainy day fund in the
percentages prescribed by Subsection (a).
SECTION 4.04. Section 57.043, Utilities Code, is amended by
adding Subsection (d) to read as follows:
(d) The comptroller may, at the request of the governor,
transfer money from the telecommunications infrastructure fund to
the jobs creation fund to be used for training programs and distance
learning.
ARTICLE 5. EFFECTIVE DATE; TRANSITION
SECTION 5.01. (a) Except as provided by Subsection (b) of
this section, this Act takes effect September 1, 2003.
(b) Sections 3.03 and 3.07 of this Act take effect September
1, 2005.
SECTION 5.02. The changes in law made by Article 3 of this
Act apply only to taxes imposed on or after the effective date of
this Act. Taxes imposed before the effective date of this Act are
governed by the law as it existed immediately before that date, and
the former law is continued in effect for purposes of liability for
and collection of those taxes.