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A BILL TO BE ENTITLED
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AN ACT
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relating to the Texas Enterprise Fund. |
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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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amending Subsection (f) and adding Subsections (m), (n), (o), and |
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(p) to read as follows: |
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(f) Before awarding a grant under this section, the governor |
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shall enter into a written agreement with the entity to be awarded |
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the grant money specifying that: |
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(1) if the governor finds that the grant recipient has |
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not met each of the performance targets specified in the agreement |
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as of a date certain provided in the agreement: |
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(A) the recipient shall repay the full amount of |
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the grant and any related interest to the state at the agreed rate |
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[and on the agreed terms]; |
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(B) the governor will not distribute to the |
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recipient any grant money that remains to be awarded under the |
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agreement; and |
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(C) the governor may assess specified penalties |
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for noncompliance against the recipient; |
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(2) if all or any portion of the amount of the grant is |
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used to build a capital improvement, the state may: |
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(A) retain a lien or other interest in the |
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capital improvement in proportion to the percentage of the grant |
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amount used to pay for the capital improvement; and |
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(B) require the recipient of the grant, if the |
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capital improvement is sold, to: |
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(i) repay to the state the grant money used |
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to pay for the capital improvement, with interest at the rate and |
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according to the other terms provided by the agreement; and |
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(ii) share with the state a proportionate |
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amount of any profit realized from the sale; and |
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(3) if, as of a date certain provided in the agreement, |
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the grant recipient has not used grant money awarded under this |
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section for the purposes for which the grant was intended, the |
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recipient shall repay that amount and any related interest to the |
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state at the agreed rate [and on the agreed terms]. |
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(m) In a calendar year at least 25 percent of the grant |
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agreements entered into must contain a provision that requires all |
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of the jobs created under the agreement to be created in a county |
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that has: |
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(1) a population of less than 250,000; |
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(2) a family income that is in the lower 3 quartiles of |
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family income for the state as determined by the United States |
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Department of Housing and Urban Development; |
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(3) and target and promote appropriate sized companies |
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of approximately 25 to 200 employees that would benefit counties of |
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under 250,000. |
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(n) The governor may not award a grant to a business that |
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intends to use grant money for the development or establishment of a |
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retail business that would be in direct competition with an |
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existing business in this state and would have a negative impact on |
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the existing business. |
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(o) Before August 31, 2024, the Sunset Advisory Commission |
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shall conduct an extensive review of the Texas Enterprise Fund |
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program that is similar to the review of an agency under Chapter 325 |
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(Texas Sunset Act). The commission shall make recommendations on |
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the abolition or continuation of the program in a report submitted |
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to the governor and the legislature on or before August 31, 2024. |
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(p) This section and Sections 481.079 and 481.080 expire |
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September 1, 2025. |
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SECTION 2. Subchapter E, Chapter 481, Government Code, is |
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amended by adding Section 481.081 to read as follows: |
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Sec. 481.081. APPLICATION FOR CERTAIN GRANTS. (a) The |
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office shall develop a streamlined application and review process |
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for a request for a grant of less than $5 million under Section |
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481.078. |
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(b) The application may not be more than four pages long. |
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SECTION 3. Sections 481.078(f-2) and (j), Government Code, |
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are repealed. |
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SECTION 4. The changes in law made by this Act apply only to |
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an application for a grant filed on or after the effective date of |
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this Act. An application for a grant that is filed before the |
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effective date of this Act is governed by the law in effect on the |
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date the application was filed, and the former law is continued in |
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effect for that purpose. |
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SECTION 5. Section 481.078(m), Government Code, as added by |
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this Act, applies only in a calendar year that begins after the |
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effective date of this Act. |
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SECTION 6. This Act takes effect September 1, 2015. |