By: Button, Cook, Pitts, Deshotel, Giddings, H.B. No. 1277

et al.

A BILL TO BE ENTITLED

AN ACT

relating to the Texas Enterprise Fund, including the use of money from the fund, the terms of a grant agreement, and the duties of a grant recipient or entity that acquires a grant recipient.

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

SECTION 1. (a) Money appropriated from the Texas Enterprise Fund under Section 481.078, Government Code, for the state fiscal biennium beginning September 1, 2009, and ending August 31, 2011, may be used for incentives to retain businesses in this state that are considering relocating to a location outside of this state, including a location outside of the United States.

(b) This section expires January 1, 2012.

SECTION 2. Section 481.078, Government Code, is amended by amending Subsection (c) and adding Subsection (m) to read as follows:

(c) Except as provided by Subsection (d), the fund may be used only for economic development, infrastructure development, community development, job training programs, and business incentives, including incentives to retain businesses in this state that are considering relocating to a location outside of this state, including a location outside of the United States, subject to Subsection (m).

(m) This subsection applies only to a state fiscal biennium on the first day of which the unemployment rate for this state, as determined by the federal Bureau of Labor Statistics, is seven percent or more. Money appropriated from the fund for a state fiscal biennium to which this subsection applies may be used for incentives to retain businesses in this state that are considering relocating to a location outside of this state, including a location outside of the United States.

SECTION 3. Section 481.078, Government Code, is amended by adding Subsections (f-1) and (f-2) to read as follows:

(f-1) An entity that acquires, by merger, acquisition, or other transfer, ownership or control of a grant recipient shall:

(1) report the change in ownership or control to the governor; and

(2) comply with the terms and conditions of the grant agreement entered into by the grant recipient and any other requirement imposed on the grant recipient in connection with the grant award.

(f-2) The grant agreement must include a provision regarding the requirements of Subsection (f-1). A grant recipient that is the subject of a merger, acquisition, or other transfer of ownership or control shall include language in each contract relating to the transfer that informs the acquiring entity of its duties and obligations under Subsection (f-1).

SECTION 4. Section 481.078, Government Code, is amended by adding Subsection (g-1) to read as follows:

(g-1) The grant agreement shall include a provision requiring that the grant recipient provide a health benefit plan to its employees used in any activity or project financed by the grant.

SECTION 5. Sections 481.078(f-1) and (f-2), Government Code, as added by this Act, 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 6. (a) Except as provided by Subsection (b) of this section, this Act takes effect September 1, 2009.

(b) Section 2 of this Act takes effect September 1, 2011.