85R9026 CLG-D

By: Miles S.B. No. 795

A BILL TO BE ENTITLED

AN ACT

relating to use of the money from the Texas Enterprise 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 (m), (n), and (o) to read as follows:

(m) To encourage the development and location of historically underutilized businesses in this state, the governor shall make 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.

(n) The governor shall ensure, to the extent there are a sufficient number of qualified applicants described by Subsection (m), that the percentage of the total dollar amount of grants awarded each state fiscal year to recipients described by that subsection is not less than the percentage of the total dollar amount of contracts awarded by state agencies to historically underutilized businesses, as defined by Section 2161.001, during the applicable state fiscal year as reported by the comptroller in the consolidated report required under Section 2161.121.

(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. 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, 2017.