CHAPTER 503. TEXAS SMALL BUSINESS INDUSTRIAL DEVELOPMENT CORPORATION
LOCAL GOVERNMENT CODE
TITLE 12. PLANNING AND DEVELOPMENT
SUBTITLE C1. ADDITIONAL PLANNING AND DEVELOPMENT PROVISIONS
APPLYING TO MORE THAN ONE TYPE OF LOCAL GOVERNMENT
CHAPTER 503. TEXAS SMALL BUSINESS INDUSTRIAL
DEVELOPMENT CORPORATION
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 503.001. STATUS AS CORPORATION. (a) The Texas Small
Business Industrial Development Corporation is a corporation
under this subtitle and shall be organized and governed in
accordance with this subtitle.
(b) The corporation has the powers of and is subject to the
limitations applicable to a corporation under this subtitle,
except as otherwise provided by this chapter.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.01, eff. April 1, 2009.
Sec. 503.002. ACTION ON BEHALF OF STATE. (a) For purposes of
this subtitle, this state is considered to be the unit that
authorized creation of the Texas Small Business Industrial
Development Corporation.
(b) The corporation shall act on behalf of this state to
implement the public purposes of this subtitle.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.01, eff. April 1, 2009.
Sec. 503.003. INCONSISTENCY WITH OTHER PROVISION OF SUBTITLE.
To the extent this chapter is inconsistent with another provision
of this subtitle relating to the existence, powers, limitations,
organization, operation, or affairs of the Texas Small Business
Industrial Development Corporation, this chapter controls.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.01, eff. April 1, 2009.
SUBCHAPTER B. OPERATION OF CORPORATION
Sec. 503.051. BOARD OF DIRECTORS. (a) The governor shall
appoint the board of directors of the Texas Small Business
Industrial Development Corporation.
(b) The governor or the governor's designee and the executive
director of the economic development office serve as nonvoting ex
officio members of the board.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.01, eff. April 1, 2009.
Sec. 503.052. LIMITATION ON LIABILITY. A director, officer,
employee, or member of the economic development office acting on
behalf of the Texas Small Business Industrial Development
Corporation is not personally liable:
(1) for damage, loss, or injury resulting from the performance
of the person's duties under this subtitle; or
(2) on any commitment or agreement executed on behalf of the
corporation under this subtitle.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.01, eff. April 1, 2009.
Sec. 503.053. EXPENDITURES; APPROVAL OF PROGRAMS. (a) Expenses
that the Texas Small Business Industrial Development Corporation
incurs in operating and administering the corporation's programs
and affairs, including expenses for employees and program
assistance or development, shall be paid out of fees collected or
revenue generated under this subtitle.
(b) Each program or expenditure of the corporation must be
approved on behalf of this state by the Texas Economic
Development Bank.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.01, eff. April 1, 2009.
Sec. 503.054. USE OF MONEY BY TEXAS ECONOMIC DEVELOPMENT BANK.
Money of the Texas Small Business Industrial Development
Corporation may not be used or made available for use by the
Texas Economic Development Bank except to reimburse the bank for
expenses the bank incurs in its official capacity on behalf of
the corporation.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.01, eff. April 1, 2009.
Sec. 503.055. DEPOSITORY. Revenue and other money of the Texas
Small Business Industrial Development Corporation shall be
deposited with one or more financial institutions that the
corporation's board of directors chooses for that purpose.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.01, eff. April 1, 2009.
SUBCHAPTER C. SPECIFIC POWERS AND LIMITATIONS ON POWERS
Sec. 503.101. FINANCING FOR USERS. In addition to exercising
any other power of a corporation under this subtitle, the Texas
Small Business Industrial Development Corporation may:
(1) make a loan through the purchase of or participation in, and
pledge, negotiate, or sell, bonds, notes, and other evidences of
indebtedness of a user to finance a project that represents a
direct loan, a grant, or a loan participation, or the repayment
of which is wholly or partly insured or otherwise guaranteed, by
the United States, this state, or an agency, department, or
instrumentality of the United States or this state; and
(2) otherwise directly or indirectly provide financing for a
user in the manner that the corporation determines to be
necessary or convenient for the performance of the corporation's
public purposes, functions, and duties under this subtitle.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.01, eff. April 1, 2009.
Sec. 503.102. ADDITIONAL PROJECTS AUTHORIZED. (a)
Notwithstanding any other provision of this subtitle, "project"
includes use of amounts financed through the Texas Small Business
Industrial Development Corporation's purchase of bonds, notes, or
other evidences of indebtedness of a user under this chapter if
the corporation's board of directors finds the use to be required
or suitable for promoting economic development in this state.
(b) A finding under Subsection (a) may be based solely on review
by the corporation's board of directors of the criteria used to
determine eligibility of a user to obtain a direct loan, a grant,
a loan participation, insurance, or another guarantee from the
United States, this state, or an agency or instrumentality of the
United States or this state.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.01, eff. April 1, 2009.
Sec. 503.103. BONDS. (a) The Texas Small Business Industrial
Development Corporation may not issue bonds.
(b) All bonds issued and delivered by the Texas Small Business
Industrial Development Corporation before September 1, 1987, and
all proceedings authorizing those bonds are incontestable.
(c) Proceeds of bonds issued before September 1, 1987, may be
used:
(1) to pay all or part of the cost of a project regardless of
whether the cost or project was, before that date, within the
definitions of those terms under the Texas Department of Commerce
Act, Chapter 374, Acts of the 70th Legislature, Regular Session,
1987; or
(2) for any other purpose authorized by this subtitle.
Added by Acts 2007, 80th Leg., R.S., Ch.
885, Sec. 3.01, eff. April 1, 2009.