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A BILL TO BE ENTITLED
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AN ACT
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relating to creating a disadvantaged business assistance program to |
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be operated by the Texas Department of Transportation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter I, Chapter 201, Transportation Code, |
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is amended by adding Section 201.7025 to read as follows: |
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Sec. 201.7025. DISADVANTAGED BUSINESS ASSISTANCE PROGRAM. |
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(a) The commission by rule may establish a program for assisting |
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businesses that are identified as disadvantaged businesses under |
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the program established under Section 201.702. |
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(b) The department may establish, as an account in the state |
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highway fund, a revolving fund to provide financing to foster and |
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stimulate the development of the businesses. The revolving fund may |
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be composed of financing application fees, loan repayments, |
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guarantee fees, dividend income, donations, contributions, or |
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money appropriated by the legislature for purposes for which the |
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fund may be used, amounts received by the state from federal grants |
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or other sources, and any other amounts received under this section |
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and required by the department to be deposited in the revolving |
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fund. Money that is dedicated for another purpose, including money |
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that is required to be used for public roadways by the Texas |
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Constitution or federal law, may not be deposited in the revolving |
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fund. Interest earned on the money in the revolving fund shall be |
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credited to the revolving fund. |
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(c) Money in the revolving fund established under this |
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section may be used only to provide financing, including loans, to |
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foster and stimulate the development of businesses that are |
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identified as disadvantaged businesses under the program |
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established under Section 201.702 and for the purposes of that |
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program, particularly to help remove barriers to the participation |
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of disadvantaged businesses in department contracts and to assist |
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the development of those businesses so that they are able to compete |
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successfully in the marketplace without program assistance. |
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(d) Financing from the revolving fund established under |
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this section must be on terms and conditions that the department |
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determines to be reasonable, appropriate, and consistent with the |
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purposes and objectives of this section and the program established |
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under Section 201.702. |
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(e) The commission shall adopt rules governing the terms and |
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conditions of the financing, specifically including requirements |
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for appropriate security or collateral, equity interest, and the |
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rights and remedies of the department in the event of a default on a |
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loan. The rules must include a requirement that applicants report |
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to the department on the use of money distributed from the fund. |
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(f) A claim of the state for a payment owed to the state |
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under this section by a person who has been provided financing under |
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this section is considered a state debt for purposes of Section |
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403.055, Government Code., Government Code. |
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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, 2019. |