BILL ANALYSIS
Senate Research Center C.S.H.B. 394
81R36401 JE-F By: Rose et al. (Van de Putte)
Committee Report (Substituted)
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
The Texas Enterprise Fund (TEF) was created to attract new jobs and employers to Texas. The fund is intended to create economic development incentives, but there are currently no statutory requirements in place specifying how the grants are awarded, although applicants generally are judged on job creation and wages, capital investments, financial strength, business history, and public/private sector support. More specifically, there is nothing encouraging the incentives to be directed to promote small business development.
Small businesses in Texas deserve to receive the same opportunities from the state to foster their businesses. Small businesses create two-thirds of all new jobs in the state, but too often, small business owners need help in developing their business plans and succeeding. If they were able to receive grant money from the TEF, they could more easily establish their role as prominent contributors to the state's economy.
C.S.H.B. 394 relates to the use of the money from TEF to benefit small businesses.
RULEMAKING AUTHORITY
SECTION BY SECTION ANALYSIS
SECTION 1. Sets forth a policy statement.
SECTION 2. Amends Section 481.078, Government Code, by adding Subsections (k) and (l), as follows:
(k) Requires the governor, to encourage the creation, development and location of small businesses in this state, to consider making grants from the Texas Enterprise Fund to recipients that are small businesses in this state that commit to using the grants to create additional jobs or small businesses from outside the state that commit to relocate to this state.
(l) Defines, for purposes of Subsection (k), "small business."
SECTION 3. Effective date: upon passage or September 1, 2009.