79R2828 CLG-D
By: Barrientos S.B. No. 638
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
adding Subsection (e-1) to read as follows:
(e-1) In making a grant of money from the fund, the governor
shall develop a mechanism that gives greater consideration to
potential recipients who commit to using grant money to purchase
goods and services that result in the creation or retention of jobs
in this state.
SECTION 2. Section 481.078, Government Code, is amended by
amending Subsection (f) and adding Subsections (g)-(h) 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 job creation targets, wage level targets, and
other 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; and
(B) the governor will not distribute to the
recipient any grant money that remains to be awarded under the
agreement;
(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.
(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 job creation targets, wage level
targets, and other 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 date required to be contained in the grant
agreement as provided by Subsection (f)(1);
(2) the job creation targets, wage level targets, and
other performance targets required to be contained in the grant
agreement as provided by Subsection (f)(1); and
(3) if the grant agreement includes the provision
authorized by Subsection (g), the percentage of grant money
required to be withheld.
SECTION 3. Subchapter E, Chapter 481, Government Code, is
amended by adding Sections 481.079 and 481.080 to read as follows:
Sec. 481.079. ECONOMIC AND FISCAL IMPACT STATEMENT FOR
CERTAIN GRANT PROPOSALS. (a) Before the governor awards a grant
under Section 481.078 to an entity for a proposed initiative, the
office shall prepare a statement that, specifically and in detail,
assesses the direct and indirect economic impact that approval of
the grant will have on the residents of this state.
(b) The statement must include:
(1) for the period covered by the grant:
(A) the estimated number of jobs to be created in
this state by the potential recipient each biennium; and
(B) the estimated median wage of the jobs to be
created in this state by the potential recipient each biennium;
(2) the additional amount of ad valorem taxes, sales
and use taxes, and fee revenues projected to be generated each year
by governmental entities of this state;
(3) the projected earnings of the potential recipient
resulting from the proposed initiative or initiatives;
(4) the amount of any franchise tax revenue projected
to be generated by this state;
(5) the total amount of tax credits, local incentives,
and other money or credits estimated to be distributed to the
proposed grant recipient by governmental entities of this state;
and
(6) any other information the office considers
necessary to include in the statement.
Sec. 481.080. ANNUAL REPORT ON TEXAS ENTERPRISE FUND. (a)
Not later than September 1 of each year, 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:
(1) states the total number of jobs each recipient has
created in this state;
(2) describes the tax credits, local incentives, and
other money or credits distributed to each recipient by
governmental entities of this state;
(3) states the total amount of tax credits, local
incentives, and other money or credits distributed to each
recipient by governmental entities of this state;
(4) states the geographical distribution of grants by
county;
(5) includes the most recent audited consolidated
annual financial statement of each recipient; and
(6) includes a summary of the statement prepared for
each grant proposal under Section 481.079.
(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, any
information necessary for completion of the report.
SECTION 4. 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 5. This Act takes effect September 1, 2005.