85R3657 AJZ-F     By: Reynolds H.B. No. 858       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.  Money that is dedicated for another purpose, including money   that is required to be used for public roadways by the Texas   Constitution or federal law, may not 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 are able to 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 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 is considered a state debt for purposes of Section   403.055, Government Code.          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, 2017.