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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of the Small Business Disaster |
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Recovery Grant Program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 481, Government Code, is amended by |
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adding Subchapter EE to read as follows: |
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SUBCHAPTER EE. SMALL BUSINESS DISASTER RECOVERY GRANT PROGRAM |
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Sec. 481.601. DEFINITIONS. In this subchapter: |
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(1) "Disaster declaration" means a declaration by the |
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governor of a state of disaster under Section 418.014. |
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(2) "Executive director" means the executive director |
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of the Texas Economic Development and Tourism Office. |
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(3) "Grant program" means the Small Business Disaster |
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Recovery Grant Program established under this subchapter. |
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(4) "Historically underutilized business" has the |
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meaning assigned by Section 2161.001. |
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(5) "Small business" has the meaning assigned by |
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Section 481.401. |
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Sec. 481.602. ESTABLISHMENT OF GRANT PROGRAM. The office |
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shall establish and administer the Small Business Disaster Recovery |
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Grant Program to assist small businesses located in an area subject |
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to a disaster declaration in recovering from the disaster. |
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Sec. 481.603. SMALL BUSINESS DISASTER RECOVERY GRANT |
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PROGRAM ACCOUNT. (a) The Small Business Disaster Recovery Grant |
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Program account is a dedicated account in the general revenue fund. |
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(b) The account consists of: |
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(1) money appropriated to the account by the |
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legislature; |
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(2) interest earned on the deposit and investment of |
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money in the account; and |
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(3) gifts, grants, and other donations contributed to |
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the office for the grant program. |
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(c) Money in the account may be spent only to make grants to |
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small businesses under the grant program. |
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(d) Notwithstanding Subsection (c), the office may spend |
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money in the account to provide assistance to nonprofit |
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organizations that serve small and historically underutilized |
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businesses for the purpose of assisting the businesses in applying |
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for grants under this subchapter. |
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Sec. 481.604. ELIGIBILITY AND PRIORITY FOR GRANT. (a) To be |
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eligible to receive a grant under this subchapter, a small business |
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must: |
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(1) be organized under the laws of this state; |
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(2) be in good standing under the laws of this state; |
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and |
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(b) The office shall by rule develop a method for |
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prioritizing among small businesses for receipt of grants under |
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this subchapter. In developing the prioritization method, the |
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office must: |
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(1) prioritize businesses that are ineligible for or |
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have not directly received federal grant assistance related to the |
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disaster declaration; and |
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(2) award grants to small businesses in the following |
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order of priority: |
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(A) small businesses with fewer than 10 |
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employees; |
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(B) small businesses with more than 10 but fewer |
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than 50 employees; and |
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(C) small businesses with 50 or more employees. |
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Sec. 481.605. USES OF GRANT. A small business may use a |
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grant received under this subchapter: |
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(1) to pay the small business's payroll costs, |
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including costs associated with rehiring laid off employees; or |
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(2) for any other legitimate business purpose |
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identified by the office. |
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Sec. 481.606. APPLICATION FOR GRANT. (a) The office shall |
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develop and implement an application process for a small business |
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to receive a grant under this subchapter. |
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(b) The office shall publish information regarding applying |
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for a grant under this subchapter to the office's Internet website |
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in at least English and Spanish. |
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Sec. 481.607. GRANT PROGRAM RULES. (a) The executive |
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director shall adopt rules necessary to implement this subchapter. |
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(b) The office shall post the rules on the office's Internet |
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website. |
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Sec. 481.608. REPORT. Not later than December 1 of each |
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even-numbered year, the office shall prepare and submit to the |
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governor, the lieutenant governor, and each member of the |
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legislature a report that includes: |
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(1) the total dollar amount of grants provided under |
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this subchapter during the two-year period preceding that date; and |
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(2) information regarding the small businesses that |
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received a grant under this subchapter during the two-year period |
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preceding that date. |
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SECTION 2. This Act takes effect September 1, 2021. |