Bill Text: TX SB393 | 2017-2018 | 85th Legislature | Introduced

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Bill Title: Relating to abolishing the Texas Enterprise Fund and the disposition of the balance of that fund.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-02-01 - Referred to Natural Resources & Economic Development [SB393 Detail]

Download: Texas-2017-SB393-Introduced.html

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85R1713 CLG-D
By: Burton S.B. No. 393

A BILL TO BE ENTITLED
AN ACT
relating to abolishing the Texas Enterprise Fund and the
disposition of the balance of that fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The following laws are repealed:
(1) Sections 481.078 and 481.080, Government Code;
(2) Sections 1372.031(b), (c), (d), and (e),
Government Code; and
(3) Section 303.005(a), Labor Code.
SECTION 2. (a) On September 1, 2017, the Texas Enterprise
Fund is abolished and the balance of that fund is transferred to the
general revenue fund and may be used in accordance with legislative
appropriation, except as provided by Subsections (c) and (d) of
this section.
(b) The abolishment of the Texas Enterprise Fund and the
repeal of Sections 481.078 and 481.080, Government Code, do not
affect the validity of an agreement between the governor and a grant
recipient or an entity to be awarded a grant that is entered into
under Section 481.078, Government Code, before September 1, 2017.
(c) Money that was deposited in the Texas Enterprise Fund as
a gift, grant, or donation under Section 481.078(b)(3), Government
Code, and that is encumbered by the specific terms of the gift,
grant, or donation may be spent only in accordance with the terms of
the gift, grant, or donation.
(d) Money from the Texas Enterprise Fund that is encumbered
because the money is awarded, by grant, or otherwise obligated by
agreement before September 1, 2017, but under the terms of the award
or agreement will not be distributed until a later date shall be
distributed in accordance with the terms of the award or agreement.
If the governor determines that the money will not be distributed in
accordance with the terms of the award or agreement, the governor
shall certify that fact to the comptroller. On that certification,
the comptroller shall make that money available in the general
revenue fund to be used in accordance with legislative
appropriation.
(e) On or after the effective date of this Act, the
following payments or other amounts shall be sent to the
comptroller for deposit to the general revenue fund:
(1) interest earned on the investment of money in the
Texas Enterprise Fund;
(2) any money returned or repaid by an entity pursuant
to an agreement entered into under Section 481.078, Government
Code; and
(3) any money derived from an interest the state
retained in a capital improvement pursuant to an agreement entered
into under Section 481.078, Government Code.
SECTION 3. Subchapter E, Chapter 481, Government Code, is
amended by adding Section 481.0781 to read as follows:
Sec. 481.0781. ANNUAL PROGRESS REPORT FOR GRANT RECIPIENTS
OF FORMER TEXAS ENTERPRISE FUND. (a) An entity that entered into a
grant agreement with the governor under former Section 481.078
shall submit to the governor, the lieutenant governor, and the
speaker of the house of representatives an annual progress report
on the attainment of each of the performance targets specified in
the agreement based on information compiled during the previous
calendar year of the report's due date.
(b) This section expires September 1, 2032.
SECTION 4. The heading to Section 481.079, Government Code,
is amended to read as follows:
Sec. 481.079. REPORT ON USE OF MONEY IN FORMER TEXAS
ENTERPRISE FUND.
SECTION 5. Section 481.079, Government Code, is amended by
amending Subsections (a), (a-1), and (c) and adding Subsection (d)
to read as follows:
(a) Before the beginning of each regular session of the
legislature, the governor shall submit to the lieutenant governor,
the speaker of the house of representatives, and each other member
of the legislature a report on grants made under former Section
481.078 that states:
(1) the number of direct jobs each recipient committed
to create in this state;
(2) the number of direct jobs each recipient created
in this state;
(3) the median wage of the jobs each recipient created
in this state;
(4) the amount of capital investment each recipient
committed to expend or allocate per project in this state;
(5) the amount of capital investment each recipient
expended or allocated per project in this state;
(6) the total amount of grants made to each recipient;
(7) the average amount of money granted in this state
for each job created in this state by grant recipients;
(8) the number of jobs created in this state by grant
recipients in each sector of the North American Industry
Classification System (NAICS); and
(9) of the number of direct jobs each recipient
created in this state, the number of positions created that provide
health benefits for employees.
(a-1) For grants awarded for a purpose specified by former
Section 481.078(d-1), the report must include only the amount and
purpose of each grant.
(c) The governor may require a person who received
[recipient of] a grant under former Section 481.078 to submit, on a
form the governor provides, information required to complete the
report.
(d) This section expires September 1, 2032.
SECTION 6. Section 1372.031(a), Government Code, is amended
to read as follows:
(a) Subject [Except as provided by Subsection (b) and
subject] to Sections 1372.0321, 1372.0231, and 1372.035(c), if, on
or before October 20, more than one issuer in a category described
by Section 1372.022(a)(2), (3), (4), or (6) applies for a
reservation of the state ceiling for the next program year, the
board shall grant reservations in that category in the order
determined by the board by lot.
SECTION 7. Section 1372.063, Government Code, is amended to
read as follows:
Sec. 1372.063. PRIORITY 1 CARRYFORWARD CLASSIFICATION. The
priority 1 carryforward classification applies to[:
[(1)] an issuer of a state-voted issue[; and
[(2) a state agency, other than an issuer of a
state-voted issue, that applies for a carryforward designation for
a project that:
[(A) is described by Section 1372.067(a)(2); and
[(B) the Texas Economic Development and Tourism
Office determines meets the governor's criteria for funding from
the Texas Enterprise Fund].
SECTION 8. Section 2306.2585(c), Government Code, is
amended to read as follows:
(c) The department may use any available revenue, including
legislative appropriations, appropriation transfers from the
trusteed programs within the office of the governor, including
[authorized appropriations from the Texas Enterprise Fund,]
available federal funds[,] and any [other] statutorily authorized
and appropriate funding sources transferred from the trusteed
programs within the office of the governor, for the purposes of this
section. The department shall solicit and accept gifts and grants
for the purposes of this section. The department shall use gifts
and grants received for the purposes of this section before using
any other revenue.
SECTION 9. Section 203.021(e), Labor Code, is amended to
read as follows:
(e) Money in the compensation fund may not be transferred to
the[:
[(1) Texas Enterprise Fund created under Section
481.078, Government Code; or
[(2)] Texas emerging technology fund established
under Section 490.101, Government Code.
SECTION 10. The heading to Section 303.005, Labor Code, is
amended to read as follows:
Sec. 303.005. [PARTICIPATION IN ADDITIONAL PROGRAMS;
APPLICATION REQUIREMENTS;] PRIORITY IN AWARDING GRANTS.
SECTION 11. Section 314.002(d), Labor Code, is amended to
read as follows:
(d) The commission, for the purposes of this section, may
use:
(1) money appropriated to the commission; and
(2) money that is transferred to the commission from
trusteed programs within the office of the governor, including:
(A) [appropriated money from the Texas
Enterprise Fund;
[(B)] available federal funds; and
(B) [(C)] money from [other] appropriate,
statutorily authorized funding sources.
SECTION 12. If a conflict exists between this Act and
another Act of the 85th Legislature, Regular Session, 2017, that
relates to the Texas Enterprise Fund, this Act controls without
regard to the relative dates of enactment.
SECTION 13. This Act takes effect September 1, 2017.