By: Ashby (Senate Sponsor - Eltife) H.B. No. 2667

(In the Senate - Received from the House May 6, 2015; May 7, 2015, read first time and referred to Committee on Natural Resources and Economic Development; May 13, 2015, reported favorably by the following vote: Yeas 10, Nays 0; May 13, 2015, sent to printer.) Click here to see the committee vote

COMMITTEE VOTE

YeaNayAbsentPNV

FraserX

EstesX

BirdwellX

HallX

HancockX

HinojosaX

LucioX

NicholsX

SeligerX

UrestiX

ZaffiriniX

A BILL TO BE ENTITLED

AN ACT

relating to the abolishment of certain programs administered by the Texas Economic Development Bank.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. The following laws are repealed:

(1) Subchapter N, Chapter 481, Government Code; and

(2) Chapter 503, Local Government Code.

SECTION 2. Section 447.013(i), Government Code, is amended to read as follows:

(i) A recipient of a grant or loan under this section is encouraged to purchase goods and services from small businesses and historically underutilized businesses, as those terms are defined by former Section 481.191, as that section existed on January 1, 2015 [Government Code].

SECTION 3. Section 489.108, Government Code, is amended to read as follows:

Sec. 489.108. PROGRAMS, SERVICES, AND FUNDS UNDER BANK'S DIRECTION. Notwithstanding any other law, the bank shall perform the duties and functions of the office with respect to the following programs, services, and funds:

(1) [the Texas Small Business Industrial Development Corporation established under Chapter 503, Local Government Code;

[(2)] the capital access program established under Section 481.405;

(2) [(3)] the Texas leverage fund;

(3) [(4) the linked deposit program established under Section 481.193;

[(5)] the enterprise zone program established under Chapter 2303;

(4) [(6)] the industrial revenue bond program;

(5) [(7)] the defense economic readjustment zone program established under Chapter 2310;

(6) [(8)] the Empowerment Zone and Enterprise Community grant program established under Section 481.025; and

(7) [(9)] the renewal community program.

SECTION 4. Section 39.909(a), Utilities Code, is amended to read as follows:

(a) In this section, "small business" and "historically underutilized business" have the meanings assigned by former Section 481.191, Government Code, as that section existed on January 1, 2015.

SECTION 5. Section 52.256(a), Utilities Code, is amended to read as follows:

(a) In this section, "small business" and "historically underutilized business" have the meanings assigned by former Section 481.191, Government Code, as that section existed on January 1, 2015.

SECTION 6. (a) The Texas Economic Development Bank shall reject any application for a linked deposit loan submitted to the bank before the effective date of this Act for which a linked deposit has not been made in accordance with Subchapter N, Chapter 481, Government Code, as that subchapter existed immediately before being repealed by this Act.

(b) Notwithstanding the repeal by this Act of Subchapter N, Chapter 481, Government Code, Subchapter N is continued in effect for the limited purpose of allowing the Texas Economic Development Bank to administer linked deposits made before the effective date of this Act and to pursue the bank's remedies under that subchapter if:

(1) a recipient of a loan to which a deposit is linked defaults on the loan; or

(2) a lending institution that makes a loan for which a linked deposit is made fails to comply with that subchapter.

SECTION 7. As soon as practicable after the effective date of this Act, the Texas Economic Development Bank shall send to the comptroller for deposit in the general revenue fund any revenue or other money of the Texas Small Business Industrial Development Corporation held in financial institutions as provided by Section 503.055, Local Government Code, as that section existed immediately before that section's repeal by this Act.

SECTION 8. This Act takes effect September 1, 2015.

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