Bill Text: TX SB1293 | 2013-2014 | 83rd Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to creating a disadvantaged business assistance program to be operated by the Texas Department of Transportation.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2013-04-30 - Not again placed on intent calendar [SB1293 Detail]

Download: Texas-2013-SB1293-Introduced.html

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83R10524 AJZ-F
By: West S.B. No. 1293

A BILL TO BE ENTITLED
AN ACT
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. 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 can 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 disadvantaged
business 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 has priority over all other claims against the person.
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, 2013.