Bill Text: TX HB3942 | 2019-2020 | 86th Legislature | Comm Sub


Bill Title: Relating to establishing a program to assist small businesses by increasing access to capital.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2019-04-25 - Committee report sent to Calendars [HB3942 Detail]

Download: Texas-2019-HB3942-Comm_Sub.html
  86R13777 GRM-F
 
  By: Perez, Morales H.B. No. 3942
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to establishing a program to assist small businesses by
  increasing access to capital.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 481, Government Code, is amended by
  adding Subchapter CC to read as follows:
  SUBCHAPTER CC. SMALL BUSINESS CAPITAL ACCESS PROGRAM
         Sec. 481.451.  DEFINITIONS. In this subchapter:
               (1)  "Capital access loan" has the meaning assigned by
  Section 481.401.
               (2)  "Community development financial institution" has
  the meaning assigned by 12 U.S.C. Section 4702.
               (3)  "Default rate" means the percentage of loans made
  that did not meet the payment terms during a period specified by the
  bank.
               (4)  "Program" means the small business capital access
  program established under this subchapter.
               (5)  "Small business" has the meaning assigned by
  Section 481.401.
         Sec. 481.452.  PROGRAM FUNDING; PURPOSE. (a) The program
  shall be funded by direct appropriation.
         (b)  The program shall expand access to capital for small
  businesses to create jobs in this state.
         Sec. 481.453.  PROGRAM ADMINISTRATION. The community
  development financial institution administering the program shall
  provide capital access loans to small businesses that face barriers
  in accessing capital.  The institution administering the program
  shall give special emphasis to small businesses that have
  difficulty in accessing capital.
         Sec. 481.454.  OVERSIGHT. (a) A community development
  financial institution participating in the program shall report
  quarterly to the bank:
               (1)  the names of businesses that have received capital
  access loans;
               (2)  the current balance of all outstanding loans made
  under the program;
               (3)  the default rate on existing loans; and
               (4)  any other information the bank requires.
         (b)  A community development financial institution
  participating in the program shall prepare a detailed financial
  statement each quarter.
         (c)  A community development financial institution shall
  allow the bank to inspect the institution's financial records on
  request.
         Sec. 481.455.  PROGRAM REPORT. The bank shall issue an
  annual status report on the program. The bank shall deliver its
  report to the governor, the lieutenant governor, the speaker of the
  house, and the standing committees of the legislature with primary
  jurisdiction for small business and economic development.
         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.
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