Bill Text: TX HB208 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to creating a disadvantaged business assistance program to be operated by the Texas Department of Transportation.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2019-02-19 - Referred to Transportation [HB208 Detail]
Download: Texas-2019-HB208-Introduced.html
| 86R2623 AJZ-F | ||
| By: Reynolds | H.B. No. 208 | |
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| relating to creating a disadvantaged business assistance program to | ||
| be operated by the Texas Department of Transportation. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter I, Chapter 201, Transportation Code, | ||
| is amended by adding Section 201.7025 to read as follows: | ||
| Sec. 201.7025. DISADVANTAGED BUSINESS ASSISTANCE PROGRAM. | ||
| (a) The commission by rule may establish a program for assisting | ||
| businesses that are identified as disadvantaged businesses under | ||
| the program established under Section 201.702. | ||
| (b) The department may establish, as an account in the state | ||
| highway fund, a revolving fund to provide financing to foster and | ||
| stimulate the development of the businesses. The revolving fund may | ||
| be composed of financing application fees, loan repayments, | ||
| guarantee fees, dividend income, donations, contributions, or | ||
| money appropriated by the legislature for purposes for which the | ||
| fund may be used, amounts received by the state from federal grants | ||
| or other sources, and any other amounts received under this section | ||
| and required by the department to be deposited in the revolving | ||
| fund. Money that is dedicated for another purpose, including money | ||
| that is required to be used for public roadways by the Texas | ||
| Constitution or federal law, may not be deposited in the revolving | ||
| fund. Interest earned on the money in the revolving fund shall be | ||
| credited to the revolving fund. | ||
| (c) Money in the revolving fund established under this | ||
| section may be used only to provide financing, including loans, to | ||
| foster and stimulate the development of businesses that are | ||
| identified as disadvantaged businesses under the program | ||
| established under Section 201.702 and for the purposes of that | ||
| program, particularly to help remove barriers to the participation | ||
| of disadvantaged businesses in department contracts and to assist | ||
| the development of those businesses so that they are able to compete | ||
| successfully in the marketplace without program assistance. | ||
| (d) Financing from the revolving fund established under | ||
| this section must be on terms and conditions that the department | ||
| determines to be reasonable, appropriate, and consistent with the | ||
| purposes and objectives of this section and the program established | ||
| under Section 201.702. | ||
| (e) The commission shall adopt rules governing the terms and | ||
| conditions of the financing, specifically including requirements | ||
| for appropriate security or collateral, equity interest, and the | ||
| rights and remedies of the department in the event of a default on a | ||
| loan. The rules must include a requirement that applicants report | ||
| to the department on the use of money distributed from the fund. | ||
| (f) A claim of the state for a payment owed to the state | ||
| under this section by a person who has been provided financing under | ||
| this section is considered a state debt for purposes of Section | ||
| 403.055, Government Code., Government Code. | ||
| 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, 2019. | ||
