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A BILL TO BE ENTITLED
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AN ACT
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relating to the allocation and transfer of money from the capital |
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access fund by the Texas Economic Development Bank. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter BB, Chapter 481, Government Code, is |
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amended by adding Section 481.415 to read as follows: |
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Sec. 481.415. ALLOCATION AND TRANSFER OF MONEY FROM CAPITAL |
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ACCESS FUND. (a) Notwithstanding any other provision of this |
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subchapter, the bank may allocate money held in or due to the |
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capital access fund to programs administered by the bank under |
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Section 489.108 or Subchapter D, Chapter 489. The bank may transfer |
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money from the capital access fund to the Texas product development |
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fund or the Texas small business incubator fund. |
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(b) Notwithstanding Subchapter D, Chapter 489, the bank may |
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use money transferred under Subsection (a) to make loans to small or |
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medium-sized businesses, governmental entities, or nonprofit |
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organizations. A business, governmental entity, or nonprofit |
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organization that receives a loan under this subsection may: |
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(1) use the money for any project, activity, or |
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enterprise in this state that fosters economic development; or |
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(2) hold the money in a reserve account created as a |
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condition of the extension of the loan. |
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SECTION 2. Section 489.211(b), Government Code, is amended |
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to read as follows: |
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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 under Section |
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481.415, and any other amounts received under this subchapter and |
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required by the bank to be deposited in the product fund. The |
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product fund contains a program account, an interest and sinking |
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account, and other accounts that the bank authorizes to be created |
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and maintained. Money in the product fund is available for use by |
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the board under this subchapter. Investment earnings under the |
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product fund must be transferred to the fund created under Section |
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489.105. Notwithstanding any other provision of this subchapter, |
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any money in the product fund may be used for debt service. |
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SECTION 3. Section 489.212(b), Government Code, is amended |
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to read as follows: |
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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 under Section |
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481.415, and any other amounts received under this subchapter and |
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required by the bank to be deposited in the small business fund. |
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The small business fund contains a project account, an interest and |
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sinking account, and other accounts that the bank authorizes to be |
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created and maintained. Money in the small business fund is |
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available for use by the board under this subchapter. Investment |
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earnings under the small business fund must be transferred to the |
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fund created under Section 489.105. Notwithstanding any other |
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provision of this subchapter, any money in the small business fund |
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may be used for debt service. |
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SECTION 4. This Act takes effect September 1, 2013. |
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