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A BILL TO BE ENTITLED
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AN ACT
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relating to the abolishment of certain programs and funds |
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administered 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. The following laws are repealed: |
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(1) Subchapter N, Chapter 481, Government Code; |
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(2) Subchapter BB, Chapter 481, Government Code; |
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(3) Subchapter D, Chapter 489, Government Code; and |
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(4) Chapter 503, Local Government Code. |
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SECTION 2. Section 447.013, Government Code, is amended by |
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amending Subsection (i) and adding Subsection (j) to read as |
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follows: |
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(i) A recipient of a grant or loan under this section is |
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encouraged to purchase goods and services from small businesses and |
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historically underutilized businesses[, as those terms are defined
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by Section 481.191, Government Code]. |
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(j) For the purposes of Subsection (i): |
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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 at least 51 percent of all classes of the |
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shares of stock or other equitable securities is owned by one or |
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more persons who are members of certain groups, including black |
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Americans, Hispanic Americans, women, Asian Pacific Americans, and |
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American Indians; |
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(B) a sole proprietorship formed for the purpose |
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of making a profit that is 100 percent owned, operated, and |
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controlled by a person described by Paragraph (A); |
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(C) a partnership formed for the purpose of |
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making a profit in which 51 percent of the assets and interest in |
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the partnership is owned by one or more persons described by |
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Paragraph (A). Those persons must have proportionate interest and |
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demonstrate active participation in the control, operation, and |
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management of the partnership's affairs; or |
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(D) a joint venture in which each entity in the |
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joint venture is a historically underutilized business under this |
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subdivision. |
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(2) "Small business" means a corporation, |
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partnership, sole proprietorship, or other legal entity that: |
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(A) is domiciled in this state; |
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(B) is formed to make a profit; |
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(C) is independently owned and operated; and |
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(D) employs fewer than 100 full-time employees. |
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SECTION 3. Section 489.105(b), Government Code, is amended |
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to read as follows: |
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(b) The fund consists of: |
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(1) appropriations for the implementation and |
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administration of this chapter; |
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(2) [investment earnings under the capital access fund
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established under Section 481.402;
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[(3) fees charged under Subchapter BB, Chapter 481;
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[(4)] interest earned on the investment of money in |
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the fund; |
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(3) [(5)] fees charged under this chapter; |
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(4) [(6)] investment earnings from the programs |
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administered by the bank; |
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(5) [(7)] amounts transferred under Section |
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2303.504(b), as amended by Article 2, Chapter 1134, Acts of the 77th |
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Legislature, Regular Session, 2001; and |
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(6) [(8)
investment earnings under the Texas product
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development fund under Section 489.211;
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[(9)
investment earnings under the Texas small
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business incubator fund under Section 489.212; and
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[(10)] any other amounts received by the state under |
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this chapter. |
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SECTION 4. Section 489.108, Government Code, is amended to |
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read as follows: |
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Sec. 489.108. PROGRAMS, SERVICES, AND FUNDS UNDER BANK'S |
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DIRECTION. Notwithstanding any other law, the bank shall perform |
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the duties and functions of the office with respect to the following |
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programs, services, and funds: |
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(1) [the Texas Small Business Industrial Development
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Corporation established under Chapter 503, Local Government Code;
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[(2)
the capital access program established under
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Section 481.405;
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[(3)] the Texas leverage fund; |
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(2) [(4)
the linked deposit program established under
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Section 481.193;
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[(5)] the enterprise zone program established under |
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Chapter 2303; |
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(3) [(6)] the industrial revenue bond program; |
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(4) [(7)] the defense economic readjustment zone |
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program established under Chapter 2310; |
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(5) [(8)] the Empowerment Zone and Enterprise |
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Community grant program established under Section 481.025; and |
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(6) [(9)] the renewal community program. |
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SECTION 5. Section 39.909(a), Utilities Code, is amended to |
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read as follows: |
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(a) In this section: |
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(1) "Small [, "small] business" means a corporation, |
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partnership, sole proprietorship, or other legal entity that: |
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(A) is domiciled in this state; |
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(B) is formed to make a profit; |
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(C) is independently owned and operated; and |
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(D) employs fewer than 100 full-time employees. |
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(2) "Historically [and "historically] underutilized |
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business" means: |
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(A) a corporation formed for the purpose of |
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making a profit in which at least 51 percent of all classes of the |
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shares of stock or other equitable securities is owned by one or |
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more persons who are members of certain groups, including black |
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Americans, Hispanic Americans, women, Asian Pacific Americans, and |
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American Indians; |
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(B) a sole proprietorship formed for the purpose |
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of making a profit that is 100 percent owned, operated, and |
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controlled by a person described by Paragraph (A); |
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(C) a partnership formed for the purpose of |
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making a profit in which 51 percent of the assets and interest in |
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the partnership is owned by one or more persons described by |
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Paragraph (A). Those persons must have proportionate interest and |
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demonstrate active participation in the control, operation, and |
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management of the partnership's affairs; or |
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(D) a joint venture in which each entity in the |
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joint venture is a historically underutilized business under this |
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subdivision [have the meanings assigned by Section 481.191,
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Government Code]. |
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SECTION 6. Section 52.256(a), Utilities Code, is amended to |
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read as follows: |
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(a) In this section: |
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(1) "Small [, "small] business" means a corporation, |
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partnership, sole proprietorship, or other legal entity that: |
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(A) is domiciled in this state; |
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(B) is formed to make a profit; |
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(C) is independently owned and operated; and |
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(D) employs fewer than 100 full-time employees. |
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(2) "Historically [and "historically] underutilized |
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business" means: |
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(A) a corporation formed for the purpose of |
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making a profit in which at least 51 percent of all classes of the |
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shares of stock or other equitable securities is owned by one or |
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more persons who are members of certain groups, including black |
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Americans, Hispanic Americans, women, Asian Pacific Americans, and |
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American Indians; |
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(B) a sole proprietorship formed for the purpose |
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of making a profit that is 100 percent owned, operated, and |
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controlled by a person described by Paragraph (A); |
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(C) a partnership formed for the purpose of |
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making a profit in which 51 percent of the assets and interest in |
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the partnership is owned by one or more persons described by |
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Paragraph (A). Those persons must have proportionate interest and |
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demonstrate active participation in the control, operation, and |
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management of the partnership's affairs; or |
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(D) a joint venture in which each entity in the |
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joint venture is a historically underutilized business under this |
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subdivision [have the meanings assigned by Section 481.191,
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Government Code]. |
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SECTION 7. (a) The Texas Economic Development Bank shall |
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reject any application for a linked deposit loan submitted to the |
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bank before the effective date of this Act for which a linked |
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deposit has not been made in accordance with Subchapter N, Chapter |
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481, Government Code, as that subchapter existed immediately before |
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being repealed by this Act. |
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(b) Notwithstanding the repeal by this Act of Subchapter N, |
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Chapter 481, Government Code, Subchapter N is continued in effect |
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for the limited purpose of allowing the Texas Economic Development |
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Bank to administer linked deposits made before the effective date |
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of this Act and to pursue the bank's remedies under that subchapter |
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if: |
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(1) a recipient of a loan to which a deposit is linked |
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defaults on the loan; or |
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(2) a lending institution that makes a loan for which a |
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linked deposit is made fails to comply with that subchapter. |
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SECTION 8. On the effective date of this Act the Texas |
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Economic Development Bank shall allocate any unencumbered balance |
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of the capital access fund to programs administered by the bank |
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under Section 489.108, Government Code, as amended by this Act. |
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SECTION 9. (a) Notwithstanding the repeal by this Act of |
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Subchapter D, Chapter 489, Government Code, Subchapter D is |
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continued in effect for the limited purpose of allowing the Texas |
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Economic Development Bank to: |
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(1) administer any outstanding loans entered into |
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under that subchapter before the effective date of this Act; and |
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(2) satisfy any bond obligations or pay any other |
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obligations, contractual or otherwise, incurred under that |
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subchapter before the effective date of this Act. |
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(b) After all the obligations described by Subsection |
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(a)(2) of this section have been paid or satisfied, the Texas |
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Economic Development Bank shall allocate any remaining balances of |
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the Texas product development fund and the Texas small business |
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incubator fund to programs administered by the bank under Section |
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489.108, Government Code, as amended by this Act. |
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SECTION 10. As soon as practicable after the effective date |
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of this Act, the Texas Economic Development Bank shall send to the |
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comptroller for deposit in the general revenue fund any revenue or |
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other money of the Texas Small Business Industrial Development |
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Corporation held in financial institutions as provided by Section |
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503.055, Local Government Code, as that section existed immediately |
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before that section's repeal by this Act. |
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SECTION 11. This Act takes effect September 1, 2015. |