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79R4444 CLG-D
By: Ritter H.B. No. 2649
A BILL TO BE ENTITLED
AN ACT
relating to the award of a grant and reporting requirements under
the Texas Enterprise Fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 481.078, Government Code, is amended by
amending Subsection (f) and adding Subsections (g)-(j) to read as
follows:
(f) Before awarding a grant under this section, the governor
shall [may] enter into a written agreement with the entity to be
awarded the grant money specifying that:
(1) if the governor finds that the grant recipient has
not met each of the performance targets specified in the agreement
as of a date certain provided in the agreement:
(A) the recipient shall repay the grant and any
related interest to the state at the agreed rate and on the agreed
terms;
(B) the governor will not distribute to the
recipient any grant money that remains to be awarded under the
agreement; and
(C) the governor may assess specified penalties
for noncompliance against the recipient;
(2) 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]
(3) [(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;
and
(4) the entity shall disclose to the governor any
event or circumstance that arises during the period covered by the
agreement that could significantly impact the entity's financial
condition or could otherwise affect the entity's ability to comply
with the terms of the agreement, including:
(A) a lawsuit filed against the recipient; or
(B) if the entity is a business entity, the death
of a principal owner or general partner of the entity.
(g) The grant agreement may include a provision providing
that a reasonable percentage of the total amount of the grant will
be withheld until specified performance targets are met by the
entity as of the date described by Subsection (f)(1).
(h) The governor, after consultation with the speaker of the
house of representatives and the lieutenant governor, shall
determine:
(1) the performance targets and date required to be
contained in the grant agreement as provided by Subsection (f)(1);
and
(2) if the grant agreement includes the provision
authorized by Subsection (g), the percentage of grant money
required to be withheld.
(i) An entity entering into a grant agreement under this
section shall submit to the governor, lieutenant governor, and
speaker of the house of representatives a quarterly progress report
containing the information compiled during the previous quarter
regarding the attainment of each of the performance targets
specified in the agreement.
(j) Repayment of a grant under Subsection (f)(1)(A) may be
prorated to reflect a partial attainment of performance targets.
SECTION 2. Subchapter E, Chapter 481, Government Code, is
amended by adding Section 481.079 to read as follows:
Sec. 481.079. REPORT ON USE OF MONEY IN TEXAS ENTERPRISE
FUND. (a) Before the beginning of each regular session of the
legislature, the governor shall submit to the lieutenant governor,
speaker of the house of representatives, and each other member of
the legislature a report on grants made under Section 481.078 that
states:
(1) the number of direct jobs each recipient promised
to create in this state;
(2) the number of direct jobs each recipient created
in this state;
(3) the median wage of the jobs each recipient created
in this state;
(4) the amount of capital investment each recipient
promised to expend or allocate per project in this state;
(5) the amount of capital investment each recipient
expended or allocated per project in this state;
(6) the total amount of grants made to each recipient;
(7) the total amount of tax credits, local incentives,
and other money or credits distributed to each recipient by
governmental entities of this state;
(8) the percentage of money granted to recipients with
fewer than 100 employees;
(9) the geographical distribution of grants by county;
(10) the average amount of money granted in this state
for each job created in this state by grant recipients;
(11) the number of jobs created in this state by grant
recipients in each sector of the North American Industry
Classification System (NAICS); and
(12) the effect of grants on employment, personal
income, and capital investment in this state and in each regional
planning commission area.
(b) The report may not include information that is made
confidential by law.
(c) The governor may require a recipient of a grant under
Section 481.078 to submit, on a form the governor provides,
information required to complete the report.
SECTION 3. The changes in law made by this Act to Section
481.078, Government Code, apply only to an agreement that is
entered into on or after the effective date of this Act. An
agreement that is entered into before the effective date of this Act
is governed by the law in effect on the date the agreement was
entered into, and the former law is continued in effect for that
purpose.
SECTION 4. This Act takes effect September 1, 2005.