87R6541 SMT-D
 
  By: Lucio III H.B. No. 2720
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the authority of a Type A economic development
  corporation to provide grants and loans to small businesses during
  a declared state of disaster.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 504, Local Government Code, is amended
  by adding Subchapter D-1 to read as follows:
  SUBCHAPTER D-1. PROJECTS AUTHORIZED DURING DISASTER
         Sec. 504.181.  APPLICABILITY. This subchapter applies only
  to a Type A corporation authorized by a municipality that is wholly
  or partly located in an area declared to be in a state of disaster by
  the governor under Chapter 418, Government Code.
         Sec. 504.182.  AUTHORITY FOR CERTAIN PROJECTS. (a) For a
  Type A corporation to which the subchapter applies, in this
  subtitle, "project" includes a program to provide grants and loans
  to small businesses during a declared state of disaster to promote
  recovery from the disaster.
         (b)  A Type A corporation that provides a grant or loan under
  this subchapter must establish criteria to be used in determining
  which businesses may receive the grant or loan and the permitted
  uses of the grant or loan.
         Sec. 504.183.  LIMITATION ON REVENUE SPENT ON PROJECTS. A
  Type A corporation may spend not more than 10 percent of the sales
  and use tax revenue received by the corporation under this chapter
  to establish and operate a project authorized by this subchapter.
         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, 2021.