By:  Brimer                                                       S.B. No. 1771


A BILL TO BE ENTITLED

AN ACT

relating to creation of the Texas Enterprise Fund.                            
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter E, Chapter 481, Government Code, is 
amended by adding Sections 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;         
		(3)  $390,000,000 appropriated from the economic 
stabilization fund; and
		(4)  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 Governor shall have authority to negotiate on behalf 
of the state to grant money from the fund, and may only appropriate 
funds along with the express written consent of the Lieutenant 
Governor and Speaker of the House of Representatives.
	(e)  Before granting money from the fund, the Governor, 
Lieutenant Governor, and Speaker of the House of Representatives 
must 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, upon the expiration of a date provided in the 
agreement, the grant recipient fails to use an amount awarded under 
this section for any of the purposes for which the grant was 
intended, the recipient shall repay that amount and any related 
interest to the state at the agreed rate and terms.
	SECTION 2.  This Act takes effect September 1, 2003.