79R3841 DWS-D

By:  Lucio, Zaffirini, Shapleigh                                  S.B. No. 277



A BILL TO BE ENTITLED

AN ACT

relating to use of money in 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 
adding Subsections (g)-(i) to read as follows:
	(g)  To increase the effectiveness of the fund, the governor 
may enter into an interagency agreement with the Texas Workforce 
Commission involving use of money from the fund in conjunction with 
money from the skills development fund created under Chapter 303, 
Labor Code, to better recruit new businesses to this state, expand 
existing businesses in this state, and maximize the state's efforts 
in creating new jobs.
	(h)  In making a grant of money from the fund, the governor 
may develop a mechanism that gives greater consideration to:
		(1)  potential recipients who commit to locating a new 
business or expanding an existing business, or who have located a 
new business or expanded an existing business, in an area that:
			(A)  has an average median household income at 
least 25 percent below the state average, and an average monthly 
unemployment rate at least 25 percent above the state average, for 
the most recent three consecutive years for which statistics are 
available;
			(B)  is adjacent to this state's border with the 
United Mexican States; or
			(C)  is a rural area, as defined by Section 
2306.6702; and          
		(2)  potential recipients who are investing a greater 
percentage of the recipients' own money in the financed enterprise 
or who commit to specific payroll requirements, including minimum 
median wages or salaries for employees.
	(i)  The governor may use money from the fund to support 
development of industry clusters, including industry clusters that 
capitalize on regional resources near the border of this state and 
the United Mexican States.
	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 December 1 of each even-numbered year, the 
governor shall submit to the lieutenant governor, the speaker of 
the house of representatives, and each other member of the 
legislature a report outlining a long-range plan for use of money in 
the Texas Enterprise Fund.  The report must include:
		(1)  proposed initiatives for the legislature's 
consideration to stimulate greater economic development and 
promote strategic industry growth in this state;
		(2)  data describing the use of money from the fund 
since the fund's creation; and
		(3)  an analysis of the effect of the fund on job 
creation and retention, including the number of direct and indirect 
jobs expected from and created by recipients and the median wages or 
salary of the recipients' employees.
	(b)  The governor may require a recipient to provide any 
information necessary for completion of the report, except as 
otherwise provided by law.
	SECTION 3.  This Act takes effect September 1, 2005.