Bill Text: TX HB3708 | 2021-2022 | 87th Legislature | Introduced

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Bill Title: Relating to the establishment of the Small Business Disaster Recovery Grant Program.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2021-03-22 - Referred to International Relations & Economic Development [HB3708 Detail]

Download: Texas-2021-HB3708-Introduced.html

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By: Neave H.B. No. 3708

A BILL TO BE ENTITLED
AN ACT
relating to the establishment of the Small Business Disaster
Recovery Grant Program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 481, Government Code, is amended by
adding Subchapter EE to read as follows:
SUBCHAPTER EE. SMALL BUSINESS DISASTER RECOVERY GRANT PROGRAM
Sec. 481.601. DEFINITIONS. In this subchapter:
(1) "Disaster declaration" means a declaration by the
governor of a state of disaster under Section 418.014.
(2) "Executive director" means the executive director
of the Texas Economic Development and Tourism Office.
(3) "Grant program" means the Small Business Disaster
Recovery Grant Program established under this subchapter.
(4) "Historically underutilized business" has the
meaning assigned by Section 2161.001.
(5) "Small business" has the meaning assigned by
Section 481.401.
Sec. 481.602. ESTABLISHMENT OF GRANT PROGRAM. The office
shall establish and administer the Small Business Disaster Recovery
Grant Program to assist small businesses located in an area subject
to a disaster declaration in recovering from the disaster.
Sec. 481.603. SMALL BUSINESS DISASTER RECOVERY GRANT
PROGRAM ACCOUNT. (a) The Small Business Disaster Recovery Grant
Program account is a dedicated account in the general revenue fund.
(b) The account consists of:
(1) money appropriated to the account by the
legislature;
(2) interest earned on the deposit and investment of
money in the account; and
(3) gifts, grants, and other donations contributed to
the office for the grant program.
(c) Money in the account may be spent only to make grants to
small businesses under the grant program.
(d) Notwithstanding Subsection (c), the office may spend
money in the account to provide assistance to nonprofit
organizations that serve small and historically underutilized
businesses for the purpose of assisting the businesses in applying
for grants under this subchapter.
Sec. 481.604. ELIGIBILITY AND PRIORITY FOR GRANT. (a) To be
eligible to receive a grant under this subchapter, a small business
must:
(1) be organized under the laws of this state;
(2) be in good standing under the laws of this state;
and
(b) The office shall by rule develop a method for
prioritizing among small businesses for receipt of grants under
this subchapter. In developing the prioritization method, the
office must:
(1) prioritize businesses that are ineligible for or
have not directly received federal grant assistance related to the
disaster declaration; and
(2) award grants to small businesses in the following
order of priority:
(A) small businesses with fewer than 10
employees;
(B) small businesses with more than 10 but fewer
than 50 employees; and
(C) small businesses with 50 or more employees.
Sec. 481.605. USES OF GRANT. A small business may use a
grant received under this subchapter:
(1) to pay the small business's payroll costs,
including costs associated with rehiring laid off employees; or
(2) for any other legitimate business purpose
identified by the office.
Sec. 481.606. APPLICATION FOR GRANT. (a) The office shall
develop and implement an application process for a small business
to receive a grant under this subchapter.
(b) The office shall publish information regarding applying
for a grant under this subchapter to the office's Internet website
in at least English and Spanish.
Sec. 481.607. GRANT PROGRAM RULES. (a) The executive
director shall adopt rules necessary to implement this subchapter.
(b) The office shall post the rules on the office's Internet
website.
Sec. 481.608. REPORT. Not later than December 1 of each
even-numbered year, the office shall prepare and submit to the
governor, the lieutenant governor, and each member of the
legislature a report that includes:
(1) the total dollar amount of grants provided under
this subchapter during the two-year period preceding that date; and
(2) information regarding the small businesses that
received a grant under this subchapter during the two-year period
preceding that date.
SECTION 2. This Act takes effect September 1, 2021.