By: Brimer, Ellis S.B. No. 1771
A BILL TO BE ENTITLED
AN ACT
relating to economic development programs and funding.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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 executive director of the department 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 executive director
of the department shall work with each state agency that
administers a program relating to job training or job creation,
including the Texas Workforce Commission, the Council on Workforce
and Economic Competitiveness, 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 executive director of the department may 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 2. Subchapter E, Chapter 481, Government Code, is
amended by adding Section 481.078 to read as follows:
Sec. 481.078. TEXAS ENTERPRISE FUND. (a) The Texas
enterprise fund is an account in the general revenue fund.
(b) The following amounts shall be deposited in the fund:
(1) any amounts appropriated by the legislature for
the fund;
(2) interest earned on the investment of money in the
fund; and
(3) gifts, grants, and other donations received for
the fund.
(c) The fund may be used for economic development,
infrastructure development, community development, job training
programs, and business incentives.
(d) The fund may be temporarily used by the comptroller for
cash management purposes.
(e) The governor may negotiate on behalf of the state to
grant money from the fund and may only direct the use of money from
the fund with the express written consent of the Legislative Budget
Board.
(f) Before granting money from the fund, the governor may
enter into a written agreement with the entity being granted funds
specifying that:
(1) if all or any portion of the amount of the grant is
used to build infrastructure or make any other type of capital
improvement, the state must:
(A) retain a lien or other interest in the
capital improvement in proportion to the percentage of the grant
amount used to pay for the capital improvement; and
(B) ensure that if the capital improvement is
sold, the recipient repays the department, with interest at the
agreed rate and terms, any state money used to pay for the capital
improvement and shares with this state a proportionate amount of
any profit realized from the sale; and
(2) if, on the expiration of a date provided in the
agreement, the grant recipient fails to use an amount awarded under
this section for any of the purposes for which the grant was
intended, the recipient shall repay that amount and any related
interest to the state at the agreed rate and on the agreed terms.
SECTION 3. 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 department.
(b) The advisory board is composed of seven members who
serve staggered four-year terms. The governor shall appoint three
members, the lieutenant governor shall appoint two members, and the
speaker of the house of representatives shall appoint two members
to the advisory board. The governor, lieutenant governor, and
speaker of the house of representatives shall each appoint one of
the initial members to a two-year term. Thereafter, each member of
the advisory board shall be appointed 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 4. Section 311.0125, Tax Code, is amended by adding
Subsection (e) to read as follows:
(e) The Texas Department of Economic Development may
recommend that a taxing unit enter into a tax abatement agreement
with a person under this chapter. 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 Texas Department of Economic
Development.
SECTION 5. Section 312.204, Tax Code, is amended by adding
Subsection (g) to read as follows:
(g) The Texas Department of Economic Development may
recommend that a taxing unit enter into a tax abatement agreement
with a person under this chapter. 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 Texas Department of Economic Development.
SECTION 6. Section 312.402, Tax Code, is amended by adding
Subsection (f) to read as follows:
(f) The Texas Department of Economic Development may
recommend that a taxing unit enter into a tax abatement agreement
with a person under this chapter. 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 Texas Department of Economic Development.
SECTION 7. Section 313.025, Tax Code, is amended by adding
Subsection (g) to read as follows:
(g) The Texas Department of Economic Development may
recommend that a school district grant a person a limitation on
appraised value under this chapter. In determining whether to
grant an application, the governing body of the school district
shall consider any recommendation made by the Texas Department of
Economic Development.
SECTION 8. This Act takes effect September 1, 2003.