86R2623 AJZ-F
 
  By: Reynolds H.B. No. 208
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to creating a disadvantaged business assistance program to
  be operated by the Texas Department of Transportation.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter I, Chapter 201, Transportation Code,
  is amended by adding Section 201.7025 to read as follows:
         Sec. 201.7025.  DISADVANTAGED BUSINESS ASSISTANCE PROGRAM.
  (a) The commission by rule may establish a program for assisting
  businesses that are identified as disadvantaged businesses under
  the program established under Section 201.702.
         (b)  The department may establish, as an account in the state
  highway fund, a revolving fund to provide financing to foster and
  stimulate the development of the businesses. The revolving fund may
  be composed of financing application fees, loan repayments,
  guarantee fees, dividend income, donations, contributions, or
  money appropriated by the legislature for purposes for which the
  fund may be used, amounts received by the state from federal grants
  or other sources, and any other amounts received under this section
  and required by the department to be deposited in the revolving
  fund.  Money that is dedicated for another purpose, including money
  that is required to be used for public roadways by the Texas
  Constitution or federal law, may not be deposited in the revolving
  fund.  Interest earned on the money in the revolving fund shall be
  credited to the revolving fund.
         (c)  Money in the revolving fund established under this
  section may be used only to provide financing, including loans, to
  foster and stimulate the development of businesses that are
  identified as disadvantaged businesses under the program
  established under Section 201.702 and for the purposes of that
  program, particularly to help remove barriers to the participation
  of disadvantaged businesses in department contracts and to assist
  the development of those businesses so that they are able to compete
  successfully in the marketplace without program assistance.
         (d)  Financing from the revolving fund established under
  this section must be on terms and conditions that the department
  determines to be reasonable, appropriate, and consistent with the
  purposes and objectives of this section and the program established
  under Section 201.702.
         (e)  The commission shall adopt rules governing the terms and
  conditions of the financing, specifically including requirements
  for appropriate security or collateral, equity interest, and the
  rights and remedies of the department in the event of a default on a
  loan. The rules must include a requirement that applicants report
  to the department on the use of money distributed from the fund.
         (f)  A claim of the state for a payment owed to the state
  under this section by a person who has been provided financing under
  this section is considered a state debt for purposes of Section
         403.055, Government Code., Government Code.
         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, 2019.