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 - Dead) 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 |
|
||
|
||
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. |