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A BILL TO BE ENTITLED
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AN ACT
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relating to use of the money from the Texas Enterprise Fund to |
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benefit certain historically underutilized businesses. |
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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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adding Subsections (m), (n), and (o) to read as follows: |
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(m) To encourage the development and location of |
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historically underutilized businesses in this state, the governor |
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shall make grants from the fund: |
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(1) to recipients that are historically underutilized |
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businesses in this state that commit to using the grants to create |
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additional jobs; or |
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(2) to recipients that are historically underutilized |
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businesses from outside the state that commit to relocate to this |
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state. |
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(n) The governor shall ensure, to the extent there are a |
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sufficient number of qualified applicants described by Subsection |
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(m), that the percentage of the total dollar amount of grants |
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awarded each state fiscal year to recipients described by that |
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subsection is not less than the percentage of the total dollar |
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amount of contracts awarded by state agencies to historically |
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underutilized businesses, as defined by Section 2161.001, during |
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the applicable state fiscal year as reported by the comptroller in |
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the consolidated report required under Section 2161.121. |
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(o) For purposes of this section: |
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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 51 percent or more of all classes of the |
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shares of stock or other equitable securities are owned by one or |
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more economically disadvantaged persons who have a proportionate |
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interest and actively participate in the corporation's control, |
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operation, and management; |
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(B) a sole proprietorship created for the purpose |
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of making a profit that is completely owned, operated, and |
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controlled by an economically disadvantaged person; |
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(C) a partnership formed for the purpose of |
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making a profit in which 51 percent or more of the assets and |
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interest in the partnership are owned by one or more economically |
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disadvantaged persons who have a proportionate interest and |
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actively participate in the partnership's control, operation, and |
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management; or |
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(D) a joint venture in which each entity in the |
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venture is a historically underutilized business, as determined |
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under another paragraph of this subdivision. |
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(2) "Economically disadvantaged person" has the |
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meaning assigned by Section 2161.001. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2017. |