Bill Text: TX HB346 | 2015-2016 | 84th Legislature | Introduced

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Bill Title: Relating to use of the money from the Texas Enterprise Fund and the Texas emerging technology fund to benefit certain historically underutilized businesses.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2015-02-12 - Referred to Economic & Small Business Development [HB346 Detail]

Download: Texas-2015-HB346-Introduced.html

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84R3256 CLG-D
By: Collier H.B. No. 346

A BILL TO BE ENTITLED
AN ACT
relating to use of the money from the Texas Enterprise Fund and the
Texas emerging technology fund to benefit certain historically
underutilized businesses.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 481.078, Government Code, is amended by
adding Subsections (n) and (o) to read as follows:
(n) To encourage the development and location of
historically underutilized businesses in this state, the governor
shall consider making grants from the fund:
(1) to recipients that are historically underutilized
businesses in this state that commit to using the grants to create
additional jobs; or
(2) to recipients that are historically underutilized
businesses from outside the state that commit to relocate to this
state.
(o) For purposes of this section:
(1) "Historically underutilized business" means:
(A) a corporation formed for the purpose of
making a profit in which 51 percent or more of all classes of the
shares of stock or other equitable securities are owned by one or
more economically disadvantaged persons who have a proportionate
interest and actively participate in the corporation's control,
operation, and management;
(B) a sole proprietorship created for the purpose
of making a profit that is completely owned, operated, and
controlled by an economically disadvantaged person;
(C) a partnership formed for the purpose of
making a profit in which 51 percent or more of the assets and
interest in the partnership are owned by one or more economically
disadvantaged persons who have a proportionate interest and
actively participate in the partnership's control, operation, and
management; or
(D) a joint venture in which each entity in the
venture is a historically underutilized business, as determined
under another paragraph of this subdivision.
(2) "Economically disadvantaged person" has the
meaning assigned by Section 2161.001.
SECTION 2. Section 481.079(a), Government Code, is amended
to read as follows:
(a) Before the beginning of each regular session of the
legislature, the governor shall submit to the lieutenant governor,
the speaker of the house of representatives, and each other member
of the legislature a report on grants made under Section 481.078
that states:
(1) the number of direct jobs each recipient committed
to create in this state;
(2) the number of direct jobs each recipient created
in this state;
(3) the median wage of the jobs each recipient created
in this state;
(4) the amount of capital investment each recipient
committed to expend or allocate per project in this state;
(5) the amount of capital investment each recipient
expended or allocated per project in this state;
(6) the total amount of grants made to each recipient;
(7) the average amount of money granted in this state
for each job created in this state by grant recipients;
(8) the number of jobs created in this state by grant
recipients in each sector of the North American Industry
Classification System (NAICS); [and]
(9) of the number of direct jobs each recipient
created in this state, the number of positions created that provide
health benefits for employees; and
(10) the total number of grant recipients that are
historically underutilized businesses and the total amount of
grants made to those recipients.
SECTION 3. Section 490.101, Government Code, is amended by
adding Subsections (j) and (k) to read as follows:
(j) To encourage the development and location of
historically underutilized businesses in this state, the governor
shall consider making awards from the fund:
(1) to recipients that are historically underutilized
businesses in this state that commit to using the awards to create
additional jobs; or
(2) to recipients that are historically underutilized
businesses from outside the state that commit to relocate to this
state.
(k) For purposes of this section:
(1) "Historically underutilized business" means:
(A) a corporation formed for the purpose of
making a profit in which 51 percent or more of all classes of the
shares of stock or other equitable securities are owned by one or
more economically disadvantaged persons who have a proportionate
interest and actively participate in the corporation's control,
operation, and management;
(B) a sole proprietorship created for the purpose
of making a profit that is completely owned, operated, and
controlled by an economically disadvantaged person;
(C) a partnership formed for the purpose of
making a profit in which 51 percent or more of the assets and
interest in the partnership are owned by one or more economically
disadvantaged persons who have a proportionate interest and
actively participate in the partnership's control, operation, and
management; or
(D) a joint venture in which each entity in the
venture is a historically underutilized business, as determined
under another paragraph of this subdivision.
(2) "Economically disadvantaged person" has the
meaning assigned by Section 2161.001.
SECTION 4. Section 490.005(b), Government Code, is amended
to read as follows:
(b) The annual report must also contain:
(1) the total number of jobs actually created by each
project receiving funding under this chapter;
(2) an analysis of the number of jobs actually created
by each project receiving funding under this chapter; [and]
(3) a brief description regarding:
(A) the methodology used to determine the
information provided under Subdivisions (1) and (2), which may be
developed in consultation with the comptroller's office;
(B) the intended outcomes of projects funded
under Subchapter D during each preceding state fiscal year; and
(C) the actual outcomes of all projects funded
under Subchapter D during each preceding state fiscal year,
including any financial impact on the state resulting from a
liquidity event involving a company whose project was funded under
that subchapter; and
(4) the total number of recipients of awards from the
fund that are historically underutilized businesses and the total
amount of awards made to those recipients.
SECTION 5. 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, 2015.