Bill Text: TX HB3544 | 2015-2016 | 84th Legislature | Introduced

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Bill Title: Relating to the Texas Enterprise Fund.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2015-04-02 - Left pending in committee [HB3544 Detail]

Download: Texas-2015-HB3544-Introduced.html

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By: Springer H.B. No. 3544

A BILL TO BE ENTITLED
AN ACT
relating to the Texas Enterprise Fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 481.078, Government Code, is amended by
amending Subsection (f) and adding Subsections (m), (n), (o), and
(p) to read as follows:
(f) Before awarding a grant under this section, the governor
shall enter into a written agreement with the entity to be awarded
the grant money specifying that:
(1) if the governor finds that the grant recipient has
not met each of the performance targets specified in the agreement
as of a date certain provided in the agreement:
(A) the recipient shall repay the full amount of
the grant and any related interest to the state at the agreed rate
[and on the agreed terms];
(B) the governor will not distribute to the
recipient any grant money that remains to be awarded under the
agreement; and
(C) the governor may assess specified penalties
for noncompliance against the recipient;
(2) if all or any portion of the amount of the grant is
used to build a capital improvement, the state may:
(A) retain a lien or other interest in the
capital improvement in proportion to the percentage of the grant
amount used to pay for the capital improvement; and
(B) require the recipient of the grant, if the
capital improvement is sold, to:
(i) repay to the state the grant money used
to pay for the capital improvement, with interest at the rate and
according to the other terms provided by the agreement; and
(ii) share with the state a proportionate
amount of any profit realized from the sale; and
(3) if, as of a date certain provided in the agreement,
the grant recipient has not used grant money awarded under this
section for the purposes for which the grant was intended, the
recipient shall repay that amount and any related interest to the
state at the agreed rate [and on the agreed terms].
(m) In a calendar year at least 25 percent of the grant
agreements entered into must contain a provision that requires all
of the jobs created under the agreement to be created in a county
that has:
(1) a population of less than 250,000;
(2) a family income that is in the lower 3 quartiles of
family income for the state as determined by the United States
Department of Housing and Urban Development;
(3) and target and promote appropriate sized companies
of approximately 25 to 200 employees that would benefit counties of
under 250,000.
(n) The governor may not award a grant to a business that
intends to use grant money for the development or establishment of a
retail business that would be in direct competition with an
existing business in this state and would have a negative impact on
the existing business.
(o) Before August 31, 2024, the Sunset Advisory Commission
shall conduct an extensive review of the Texas Enterprise Fund
program that is similar to the review of an agency under Chapter 325
(Texas Sunset Act). The commission shall make recommendations on
the abolition or continuation of the program in a report submitted
to the governor and the legislature on or before August 31, 2024.
(p) This section and Sections 481.079 and 481.080 expire
September 1, 2025.
SECTION 2. Subchapter E, Chapter 481, Government Code, is
amended by adding Section 481.081 to read as follows:
Sec. 481.081. APPLICATION FOR CERTAIN GRANTS. (a) The
office shall develop a streamlined application and review process
for a request for a grant of less than $5 million under Section
481.078.
(b) The application may not be more than four pages long.
SECTION 3. Sections 481.078(f-2) and (j), Government Code,
are repealed.
SECTION 4. The changes in law made by this Act apply only to
an application for a grant filed on or after the effective date of
this Act. An application for a grant that is filed before the
effective date of this Act is governed by the law in effect on the
date the application was filed, and the former law is continued in
effect for that purpose.
SECTION 5. Section 481.078(m), Government Code, as added by
this Act, applies only in a calendar year that begins after the
effective date of this Act.
SECTION 6. This Act takes effect September 1, 2015.