By: Rose, et al. (Senate Sponsor - Van de Putte) H.B. No. 394

(In the Senate - Received from the House March 30, 2009; April 7, 2009, read first time and referred to Committee on Economic Development; May 23, 2009, reported adversely, with favorable Committee Substitute by the following vote: Yeas 5, Nays 0; May 23, 2009, sent to printer.)

COMMITTEE SUBSTITUTE FOR H.B. No. 394 By: Eltife

A BILL TO BE ENTITLED

AN ACT

relating to use of the money from the Texas Enterprise Fund to benefit small businesses.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The vital importance of small businesses to the economy of this state and the well-being of its residents requires that it be the policy of this state to encourage the creation and location of small businesses in this state and promote opportunities for those businesses to prosper.

SECTION 2. Section 481.078, Government Code, is amended by adding Subsections (k) and (l) to read as follows:

(k) To encourage the creation, development, and location of small businesses in this state, the governor shall consider making grants from the fund to recipients that are:

(1) small businesses in this state that commit to using the grants to create additional jobs; or

(2) small businesses from outside the state that commit to relocate to this state.

(l) For purposes of Subsection (k), "small business" means a legal entity, including a corporation, partnership, or sole proprietorship, that:

(1) is formed for the purpose of making a profit;

(2) is independently owned and operated; and

(3) has fewer than 100 employees.

SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.

* * * * *