S.B. No. 1771
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 or its
successor 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 or its successor 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 or its
successor 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 a dedicated 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 for purposes described by this section;
(2) interest earned on the investment of money in the
fund; and
(3) gifts, grants, and other donations received for
the fund.
(c) Except as provided by Subsection (d), the fund may be
used only 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 administration of the fund is considered to be a
trusteed program within the office of the governor. The governor
may negotiate on behalf of the state regarding awarding, by grant,
money appropriated from the fund. The governor may award money
appropriated from the fund only with the express written prior
approval of the lieutenant governor and speaker of the house of
representatives.
(f) Before awarding a grant under this section, the governor
may enter into a written agreement with the entity to be awarded the
grant money specifying that:
(1) if all or any portion of the amount of the grant is
used to build a capital improvement:
(A) the state retains 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) the recipient of the grant shall, if the
capital improvement is sold:
(i) repay to the state the grant money used
to pay for the capital improvement, with interest at the rate and
according to the other terms provided by the agreement; and
(ii) share with the state a proportionate
amount of any profit realized from the sale; and
(2) if, as of a date certain provided in the agreement,
the grant recipient has not used grant money awarded under this
section for 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 or its
successor 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 or its successor.
SECTION 5. Section 312.204, Tax Code, is amended by adding
Subsection (g) to read as follows:
(g) The Texas Department of Economic Development or its
successor 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 or its successor.
SECTION 6. Section 312.402, Tax Code, is amended by adding
Subsection (f) to read as follows:
(f) The Texas Department of Economic Development or its
successor 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 or its successor.
SECTION 7. Section 313.025, Tax Code, is amended by adding
Subsection (g) to read as follows:
(g) The Texas Department of Economic Development or its
successor 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 or its successor.
SECTION 8. This Act takes effect September 1, 2003.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1771 passed the Senate on
May 5, 2003, by a viva-voce vote; May 31, 2003, Senate refused to
concur in House amendments and requested appointment of Conference
Committee; May 31, 2003, House granted request of the Senate;
June 1, 2003, Senate adopted Conference Committee Report by a
viva-voce vote.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1771 passed the House, with
amendments, on May 28, 2003, by the following vote: Yeas 139,
Nays 0, two present not voting; May 31, 2003, House granted request
of the Senate for appointment of Conference Committee;
June 1, 2003, House adopted Conference Committee Report by a
non-record vote.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor