| |
| |
|
|
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. |