Bill Text: TX HB671 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to the operation of the capital access program and to transfers to and from the capital access fund.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2017-04-20 - Left pending in committee [HB671 Detail]
Download: Texas-2017-HB671-Introduced.html
85R3494 CLG-F | ||
By: Johnson of Dallas | H.B. No. 671 |
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relating to the operation of the capital access program and to | ||
transfers to and from the capital access fund. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 481.078, Government Code, is amended by | ||
amending Subsection (c) and adding Subsections (d-2) and (d-3) to | ||
read as follows: | ||
(c) Except as provided by Subsections (d), [ |
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(d-2), and (d-3), the fund may be used only for economic | ||
development, infrastructure development, community development, | ||
job training programs, and business incentives. | ||
(d-2) On the second day of each state fiscal biennium, the | ||
comptroller shall determine: | ||
(1) an amount equal to 10 percent of the unencumbered | ||
balance of the fund; and | ||
(2) after consultation with the bank, an amount equal | ||
to the sum of the unencumbered balance of the capital access fund | ||
and the aggregate amount of contributions made by the bank to | ||
reserve accounts established under Subchapter BB during the | ||
preceding state fiscal biennium. | ||
(d-3) If the amount determined under Subsection (d-2)(1) is | ||
greater than the amount determined under Subsection (d-2)(2), the | ||
comptroller, not later than the 30th day of the state fiscal | ||
biennium for which the determination is made, shall transfer from | ||
the fund to the credit of the capital access fund an amount equal to | ||
the difference between those amounts. | ||
SECTION 2. Section 481.404, Government Code, is amended to | ||
read as follows: | ||
Sec. 481.404. POWERS OF BANK IN ADMINISTERING CAPITAL | ||
ACCESS FUND. (a) In administering the fund, the bank has the powers | ||
necessary to carry out the purposes of this subchapter, including | ||
the power to: | ||
(1) make, execute, and deliver contracts, | ||
conveyances, and other instruments necessary to the exercise of its | ||
powers; | ||
(2) invest money at the bank's discretion in | ||
obligations determined proper by the bank, and select and use | ||
depositories for its money; | ||
(3) employ personnel and counsel and pay the persons | ||
from money in the fund legally available for that purpose; and | ||
(4) impose and collect fees and charges in connection | ||
with any transaction and provide for reasonable penalties for | ||
delinquent payment of fees or charges. | ||
(b) The bank may not transfer money out of the fund except to | ||
carry out the purposes of this subchapter. | ||
SECTION 3. Section 481.405, Government Code, is amended by | ||
adding Subsection (c-1) to read as follows: | ||
(c-1) For the purpose of determining the eligibility of a | ||
financial institution to participate in the program, the bank shall | ||
use a methodology that gives priority to financial institutions | ||
located in areas designated as enterprise zones under Chapter 2303. | ||
SECTION 4. Section 489.211(b), Government Code, is amended | ||
to read as follows: | ||
(b) The product fund is composed of proceeds of bonds issued | ||
under this subchapter, financing application fees, loan | ||
repayments, guarantee fees, royalty receipts, dividend income, | ||
money appropriated by the legislature for authorized purposes of | ||
the product fund, amounts received by the state from loans, loan | ||
guarantees, and equity investments made under this subchapter, | ||
amounts received by the state from federal grants or other sources, | ||
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required by the bank to be deposited in the product fund. The | ||
product fund contains a program account, an interest and sinking | ||
account, and other accounts that the bank authorizes to be created | ||
and maintained. Money in the product fund is available for use by | ||
the board under this subchapter. Investment earnings under the | ||
product fund must be transferred to the fund created under Section | ||
489.105. Notwithstanding any other provision of this subchapter, | ||
any money in the product fund may be used for debt service. | ||
SECTION 5. Section 489.212(b), Government Code, is amended | ||
to read as follows: | ||
(b) The small business fund is composed of proceeds of bonds | ||
issued under this subchapter, financing application fees, loan | ||
repayments, guarantee fees, royalty receipts, dividend income, | ||
money appropriated by the legislature for authorized purposes of | ||
the small business fund, amounts received by the state from loans, | ||
loan guarantees, and equity investments made under this subchapter, | ||
amounts received by the state from federal grants or other sources, | ||
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required by the bank to be deposited in the small business | ||
fund. The small business fund contains a project account, an | ||
interest and sinking account, and other accounts that the bank | ||
authorizes to be created and maintained. Money in the small | ||
business fund is available for use by the board under this | ||
subchapter. Investment earnings under the small business fund | ||
must be transferred to the fund created under Section | ||
489.105. Notwithstanding any other provision of this subchapter, | ||
any money in the small business fund may be used for debt service. | ||
SECTION 6. Section 481.415, Government Code, is repealed. | ||
SECTION 7. Notwithstanding Sections 481.078(d-2) and | ||
(d-3), Government Code, as added by this Act, not later than the | ||
30th day of the state fiscal biennium beginning September 1, 2017, | ||
the comptroller shall transfer 10 percent of the unencumbered | ||
balance of the Texas Enterprise Fund as of September 2, 2017, to the | ||
credit of the capital access fund in lieu of taking any other action | ||
under those subsections for the state fiscal biennium beginning | ||
September 1, 2017. | ||
SECTION 8. This Act takes effect September 1, 2017. |