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  By: Davis, West  S.B. No. 1496
         (In the Senate - Filed March 7, 2013; March 18, 2013, read
  first time and referred to Committee on Economic Development;
  April 11, 2013, reported favorably by the following vote:  Yeas 4,
  Nays 1; April 11, 2013, sent to printer.)
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to use of the money from the Texas Enterprise Fund and the
  Texas emerging technology fund to benefit certain historically
  underutilized businesses.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 481.078, Government Code, is amended by
  adding Subsections (n) and (o) to read as follows:
         (n)  To encourage the development and location of
  historically underutilized businesses in this state, the governor
  shall consider making grants from the fund:
               (1)  to recipients that are historically underutilized
  businesses in this state that commit to using the grants to create
  additional jobs; or
               (2)  to recipients that are historically underutilized
  businesses from outside the state that commit to relocate to this
  state.
         (o)  For purposes of this section:
               (1)  "Historically underutilized business" means:
                     (A)  a corporation formed for the purpose of
  making a profit in which 51 percent or more of all classes of the
  shares of stock or other equitable securities are owned by one or
  more economically disadvantaged persons who have a proportionate
  interest and actively participate in the corporation's control,
  operation, and management;
                     (B)  a sole proprietorship created for the purpose
  of making a profit that is completely owned, operated, and
  controlled by an economically disadvantaged person;
                     (C)  a partnership formed for the purpose of
  making a profit in which 51 percent or more of the assets and
  interest in the partnership are owned by one or more economically
  disadvantaged persons who have a proportionate interest and
  actively participate in the partnership's control, operation, and
  management; or
                     (D)  a joint venture in which each entity in the
  venture is a historically underutilized business, as determined
  under another paragraph of this subdivision.
               (2)  "Economically disadvantaged person" has the
  meaning assigned by Section 2161.001.
         SECTION 2.  Subsection (a), Section 481.079, Government
  Code, is amended to read as follows:
         (a)  Before the beginning of each regular session of the
  legislature, the governor shall submit to the lieutenant governor,
  the speaker of the house of representatives, and each other member
  of the legislature a report on grants made under Section 481.078
  that states:
               (1)  the number of direct jobs each recipient committed
  to create in this state;
               (2)  the number of direct jobs each recipient created
  in this state;
               (3)  the median wage of the jobs each recipient created
  in this state;
               (4)  the amount of capital investment each recipient
  committed to expend or allocate per project in this state;
               (5)  the amount of capital investment each recipient
  expended or allocated per project in this state;
               (6)  the total amount of grants made to each recipient;
               (7)  the average amount of money granted in this state
  for each job created in this state by grant recipients;
               (8)  the number of jobs created in this state by grant
  recipients in each sector of the North American Industry
  Classification System (NAICS); [and]
               (9)  of the number of direct jobs each recipient
  created in this state, the number of positions created that provide
  health benefits for employees; and
               (10)  the total number of grant recipients that are
  historically underutilized businesses and the total amount of
  grants made to those recipients.
         SECTION 3.  Section 490.101, Government Code, is amended by
  adding Subsections (j) and (k) to read as follows:
         (j)  To encourage the development and location of
  historically underutilized businesses in this state, the governor
  shall consider making awards from the fund:
               (1)  to recipients that are historically underutilized
  businesses in this state that commit to using the awards to create
  additional jobs; or
               (2)  to recipients that are historically underutilized
  businesses from outside the state that commit to relocate to this
  state.
         (k)  For purposes of this section:
               (1)  "Historically underutilized business" means:
                     (A)  a corporation formed for the purpose of
  making a profit in which 51 percent or more of all classes of the
  shares of stock or other equitable securities are owned by one or
  more economically disadvantaged persons who have a proportionate
  interest and actively participate in the corporation's control,
  operation, and management;
                     (B)  a sole proprietorship created for the purpose
  of making a profit that is completely owned, operated, and
  controlled by an economically disadvantaged person;
                     (C)  a partnership formed for the purpose of
  making a profit in which 51 percent or more of the assets and
  interest in the partnership are owned by one or more economically
  disadvantaged persons who have a proportionate interest and
  actively participate in the partnership's control, operation, and
  management; or
                     (D)  a joint venture in which each entity in the
  venture is a historically underutilized business, as determined
  under another paragraph of this subdivision.
               (2)  "Economically disadvantaged person" has the
  meaning assigned by Section 2161.001.
         SECTION 4.  Subsection (b), Section 490.005, Government
  Code, is amended to read as follows:
         (b)  The annual report must also contain:
               (1)  the total number of jobs actually created by each
  project receiving funding under this chapter;
               (2)  an analysis of the number of jobs actually created
  by each project receiving funding under this chapter; [and]
               (3)  a brief description regarding:
                     (A)  the methodology used to determine the
  information provided under Subdivisions (1) and (2), which may be
  developed in consultation with the comptroller's office;
                     (B)  the intended outcomes of projects funded
  under Subchapter D during each preceding state fiscal year; and
                     (C)  the actual outcomes of all projects funded
  under Subchapter D during each preceding state fiscal year,
  including any financial impact on the state resulting from a
  liquidity event involving a company whose project was funded under
  that subchapter; and
               (4)  the total number of recipients of awards from the
  fund that are historically underutilized businesses and the total
  amount of awards made to those recipients.
         SECTION 5.  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, 2013.
 
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