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A BILL TO BE ENTITLED
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AN ACT
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relating to use of the money from the Texas Enterprise Fund and the |
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Texas emerging technology fund to benefit certain historically |
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underutilized businesses. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 481.078, Government Code, is amended by |
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adding Subsections (n) and (o) to read as follows: |
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(n) To encourage the development and location of |
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historically underutilized businesses in this state, the governor |
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shall consider making grants from the fund: |
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(1) to recipients that are historically underutilized |
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businesses in this state that commit to using the grants to create |
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additional jobs; or |
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(2) to recipients that are historically underutilized |
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businesses from outside the state that commit to relocate to this |
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state. |
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(o) For purposes of this section: |
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(1) "Historically underutilized business" means: |
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(A) a corporation formed for the purpose of |
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making a profit in which 51 percent or more of all classes of the |
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shares of stock or other equitable securities are owned by one or |
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more economically disadvantaged persons who have a proportionate |
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interest and actively participate in the corporation's control, |
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operation, and management; |
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(B) a sole proprietorship created for the purpose |
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of making a profit that is completely owned, operated, and |
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controlled by an economically disadvantaged person; |
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(C) a partnership formed for the purpose of |
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making a profit in which 51 percent or more of the assets and |
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interest in the partnership are owned by one or more economically |
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disadvantaged persons who have a proportionate interest and |
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actively participate in the partnership's control, operation, and |
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management; or |
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(D) a joint venture in which each entity in the |
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venture is a historically underutilized business, as determined |
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under another paragraph of this subdivision. |
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(2) "Economically disadvantaged person" has the |
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meaning assigned by Section 2161.001. |
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SECTION 2. Section 481.079(a), Government Code, is amended |
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to read as follows: |
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(a) Before the beginning of each regular session of the |
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legislature, the governor shall submit to the lieutenant governor, |
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the speaker of the house of representatives, and each other member |
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of the legislature a report on grants made under Section 481.078 |
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that states: |
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(1) the number of direct jobs each recipient committed |
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to create in this state; |
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(2) the number of direct jobs each recipient created |
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in this state; |
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(3) the median wage of the jobs each recipient created |
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in this state; |
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(4) the amount of capital investment each recipient |
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committed to expend or allocate per project in this state; |
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(5) the amount of capital investment each recipient |
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expended or allocated per project in this state; |
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(6) the total amount of grants made to each recipient; |
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(7) the average amount of money granted in this state |
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for each job created in this state by grant recipients; |
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(8) the number of jobs created in this state by grant |
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recipients in each sector of the North American Industry |
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Classification System (NAICS); [and] |
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(9) of the number of direct jobs each recipient |
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created in this state, the number of positions created that provide |
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health benefits for employees; and |
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(10) the total number of grant recipients that are |
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historically underutilized businesses and the total amount of |
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grants made to those recipients. |
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SECTION 3. Section 490.101, Government Code, is amended by |
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adding Subsections (j) and (k) to read as follows: |
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(j) To encourage the development and location of |
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historically underutilized businesses in this state, the governor |
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shall consider making awards from the fund: |
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(1) to recipients that are historically underutilized |
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businesses in this state that commit to using the awards to create |
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additional jobs; or |
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(2) to recipients that are historically underutilized |
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businesses from outside the state that commit to relocate to this |
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state. |
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(k) For purposes of this section: |
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(1) "Historically underutilized business" means: |
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(A) a corporation formed for the purpose of |
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making a profit in which 51 percent or more of all classes of the |
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shares of stock or other equitable securities are owned by one or |
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more economically disadvantaged persons who have a proportionate |
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interest and actively participate in the corporation's control, |
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operation, and management; |
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(B) a sole proprietorship created for the purpose |
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of making a profit that is completely owned, operated, and |
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controlled by an economically disadvantaged person; |
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(C) a partnership formed for the purpose of |
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making a profit in which 51 percent or more of the assets and |
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interest in the partnership are owned by one or more economically |
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disadvantaged persons who have a proportionate interest and |
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actively participate in the partnership's control, operation, and |
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management; or |
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(D) a joint venture in which each entity in the |
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venture is a historically underutilized business, as determined |
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under another paragraph of this subdivision. |
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(2) "Economically disadvantaged person" has the |
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meaning assigned by Section 2161.001. |
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SECTION 4. Section 490.005(b), Government Code, is amended |
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to read as follows: |
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(b) The annual report must also contain: |
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(1) the total number of jobs actually created by each |
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project receiving funding under this chapter; |
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(2) an analysis of the number of jobs actually created |
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by each project receiving funding under this chapter; [and] |
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(3) a brief description regarding: |
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(A) the methodology used to determine the |
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information provided under Subdivisions (1) and (2), which may be |
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developed in consultation with the comptroller's office; |
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(B) the intended outcomes of projects funded |
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under Subchapter D during each preceding state fiscal year; and |
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(C) the actual outcomes of all projects funded |
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under Subchapter D during each preceding state fiscal year, |
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including any financial impact on the state resulting from a |
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liquidity event involving a company whose project was funded under |
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that subchapter; and |
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(4) the total number of recipients of awards from the |
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fund that are historically underutilized businesses and the total |
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amount of awards made to those recipients. |
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SECTION 5. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2013. |