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A BILL TO BE ENTITLED
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AN ACT
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relating to the allocation of Texas Economic Development Bank |
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resources. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter BB, Section 481, Government Code, is |
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amended by adding Section 481.415 to read as follows: |
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SECTION 481.415. ALLOCATION OF BANK RESOURCES |
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Sec. 481.415. ALLOCATION OF BANK RESOURCES. |
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Notwithstanding other provisions in this subchapter, the bank may |
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allocate resources, including money held in, or due to, the Capital |
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Access Fund account in the General Revenue fund, to bank programs |
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specified in Section 489.108, Government Code and Chapter 489, |
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Subchapter D, Texas Government Code. The bank is specifically |
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authorized to transfer funds held and deposited to the Capital |
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Access Fund to the Product Development Fund created in Section |
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489.211, Government Code and the Small Business Incubator Fund |
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created in Section 489.212, Government Code. Funds transferred by |
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the bank be used by the bank, without further limitation, to make |
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loans to a small or medium-sized business or to a nonprofit |
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organization; be used by the business, governmental or nonprofit |
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organization for any project, activity, or enterprise in this state |
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that fosters economic development; or be held in reserve accounts |
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created as a condition for the extension of financial assistance by |
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the bank. |
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SECTION 2. Chapter 489, Government Code, is amended as |
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follows: |
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Sec. 489.211. TEXAS PRODUCT DEVELOPMENT FUND. (a) The |
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Texas product development fund is a revolving fund in the state |
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treasury. |
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(b) The product fund is composed of proceeds of bonds issued |
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under this subchapter, financing application fees, loan |
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repayments, guarantee fees, royalty receipts, dividend income, |
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money appropriated by the legislature for authorized purposes of |
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the product fund, amounts received by the state from loans, loan |
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guarantees, and equity investments made under this subchapter, |
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amounts received by the state from federal grants or other sources, |
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amounts transferred from the Capital Access Fund pursuant to |
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Section 481.415, Government Code, and any other amounts received |
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under this subchapter and required by the bank to be deposited in |
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the product fund. The product fund contains a program account, an |
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interest and sinking account, and other accounts that the bank |
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authorizes to be created and maintained. Money in the product fund |
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is available for use by the board under this subchapter. Investment |
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earnings under the product fund must be transferred to the fund |
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created under Section 489.105. Notwithstanding any other provision |
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of this subchapter, any money in the product fund may be used for |
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debt service. |
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(c) Money in the program account of the product fund, minus |
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the costs of issuance of bonds under this subchapter and necessary |
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costs of administering the product fund, may be used only to provide |
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financing to aid in the development and production, including the |
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commercialization, of new or improved products in this state. The |
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bank shall provide financing from the product fund on the terms and |
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conditions that the bank determines to be reasonable, appropriate, |
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and consistent with the purposes and objectives of the product fund |
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and this subchapter, for the purpose of aiding in the development |
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and production of new or improved products in this state. |
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Sec. 489.212. SMALL BUSINESS INCUBATOR FUND. (a) The Texas |
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small business incubator fund is a revolving fund in the state |
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treasury. |
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(b) The small business fund is composed of proceeds of bonds |
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issued under this subchapter, financing application fees, loan |
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repayments, guarantee fees, royalty receipts, dividend income, |
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money appropriated by the legislature for authorized purposes of |
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the small business fund, amounts received by the state from loans, |
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loan guarantees, and equity investments made under this subchapter, |
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amounts received by the state from federal grants or other sources, |
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amounts transferred from the Capital Access Fund pursuant to |
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Section 481.415, Government Code, and any other amounts received |
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under this subchapter and required by the bank to be deposited in |
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the small business fund. The small business fund contains a project |
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account, an interest and sinking account, and other accounts that |
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the bank authorizes to be created and maintained. Money in the small |
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business fund is available for use by the board under this |
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subchapter. Investment earnings under the small business fund must |
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be transferred to the fund created under Section 489.105. |
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Notwithstanding any other provision of this subchapter, any money |
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in the small business fund may be used for debt service. |
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(c) Money in the project account of the small business fund, |
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minus the costs of issuance of bonds under this subchapter and |
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necessary costs of administering the small business fund, may be |
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used only to provide financing to foster and stimulate the |
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development of small businesses in this state. The bank shall |
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provide financing from the small business fund on the terms and |
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conditions that the bank determines to be reasonable, appropriate, |
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and consistent with the purposes and objectives of the small |
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business fund and this subchapter, for the purpose of fostering and |
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stimulating the development of new or existing small businesses in |
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this state. |
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SECTION 3. This Act takes effect September 1, 2013. |