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Texas House Bill HB1715

Texas 2009 - 81st Regular

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11 81R2308 CLG-F
22 By: Gonzalez Toureilles, Homer, Keffer, H.B. No. 1715
33 McReynolds, Swinford, et al.
44
55
66 A BILL TO BE ENTITLED
77 AN ACT
88 relating to the establishment of the Texas Rural Development Fund
99 and to the establishment, operation, and funding of certain
1010 programs for rural economic development.
1111 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1212 SECTION 1. Section 487.001, Government Code, is amended by
1313 adding Subdivision (3) to read as follows:
1414 (3) "Rural area" means an area that is predominately
1515 rural in character as defined by the office.
1616 SECTION 2. Subchapter C, Chapter 487, Government Code, is
1717 amended by adding Section 487.062 to read as follows:
1818 Sec. 487.062. TRAINING. (a) The office may develop and
1919 administer a training program related to the programs and
2020 activities established under Subchapters S, T, U, V, W, and X.
2121 (b) The office may contract with a public or private entity
2222 to develop and provide the training under this section.
2323 SECTION 3. Chapter 487, Government Code, is amended by
2424 adding Subchapters R through X to read as follows:
2525 SUBCHAPTER R. TEXAS RURAL DEVELOPMENT FUND
2626 Sec. 487.801. TEXAS RURAL DEVELOPMENT FUND. (a) The Texas
2727 Rural Development Fund is an account in the general revenue fund.
2828 The account is composed of:
2929 (1) legislative appropriations;
3030 (2) gifts, donations, grants, and matching funds
3131 received under Subsection (b); and
3232 (3) other money required by law to be deposited in the
3333 account.
3434 (b) The office may solicit and accept gifts, donations,
3535 grants, and matching funds of money from the federal government,
3636 local governments, private corporations, or other persons to be
3737 used for the purposes of Subchapters S, T, U, V, W, and X.
3838 (c) Income from money in the account shall be credited to
3939 the account.
4040 (d) Money in the development fund may be used only for the
4141 purpose of implementing and maintaining the programs established
4242 under Subchapters S, T, U, V, W, and X.
4343 SUBCHAPTER S. RURAL ENTREPRENEURSHIP AND BUSINESS INNOVATION
4444 PROGRAM
4545 Sec. 487.851. DEFINITIONS. In this subchapter:
4646 (1) "Microenterprise" means a business in a rural area
4747 with not more than five employees.
4848 (2) "Minimum wage" means the minimum wage set by
4949 federal law as of January 1, 2009.
5050 (3) "Program" means the rural entrepreneurship and
5151 business innovation program established under this subchapter.
5252 (4) "Small business" means a business in a rural area
5353 with not more than 250 employees.
5454 Sec. 487.852. PROGRAM. The office shall create a rural
5555 entrepreneurship and business innovation program to:
5656 (1) assist in the development and expansion of
5757 businesses in rural areas;
5858 (2) assist entrepreneurs in rural areas; and
5959 (3) recruit out-of-state businesses to locate and
6060 transact business in rural areas.
6161 Sec. 487.853. INCENTIVES. (a) The program shall offer
6262 incentives in the form of loans to entrepreneurs and businesses for
6363 purposes of the creation or retention of jobs in rural areas.
6464 (b) An eligible business or entrepreneur may apply for a
6565 loan under the program on an application form prescribed by the
6666 office.
6767 (c) To be eligible for a loan, a loan applicant must provide
6868 at least five percent of the equity for each project. The office
6969 may consider the amount of equity provided by an applicant in
7070 scoring a loan application. An eligible business or entrepreneur
7171 is not eligible for more than one loan for each created or retained
7272 job.
7373 (d) The office may make a loan under the program to any of
7474 the following eligible businesses or entrepreneurs:
7575 (1) microenterprises;
7676 (2) small businesses;
7777 (3) businesses dependent on natural resources in
7878 developing value-added products;
7979 (4) tourism or recreation businesses;
8080 (5) entrepreneurs and businesses that expand
8181 broadband service access for rural areas; and
8282 (6) projects to develop infrastructure for the benefit
8383 of entrepreneurs and businesses in rural areas.
8484 (e) The maximum loan amount to be made by the program is
8585 $35,000 for each eligible employee position retained or created.
8686 (f) A loan made by the program may be based on the following
8787 schedule:
8888 (1) up to $14,000 for each eligible employee position
8989 retained or created with wages greater than or equal to 170 percent
9090 and less than 200 percent of the minimum wage;
9191 (2) up to $21,000 for each eligible employee position
9292 retained or created with wages greater than or equal to 200 percent
9393 and less than 250 percent of the minimum wage;
9494 (3) up to $28,000 for each eligible employee position
9595 retained or created with wages greater than or equal to 250 percent
9696 and less than 300 percent of the minimum wage; and
9797 (4) up to $35,000 for each eligible employee position
9898 retained or created with wages greater than or equal to 300 percent
9999 of the minimum wage.
100100 (g) After job creation, the office may forgive up to 25
101101 percent of the total amount of a loan made under this section.
102102 (h) A loan may not be used to attract a business from another
103103 location in this state, unless the office determines that the
104104 business would otherwise leave the state.
105105 Sec. 487.854. LOAN TERMS. (a) Loan interest rates must be
106106 based on the capacity of the borrower and the risk of the project,
107107 as determined by the office.
108108 (b) Loan interest rates may be as low as zero percent.
109109 Sec. 487.855. SUPPORT SERVICES. The office may contract to
110110 provide services to entrepreneurs or businesses for purposes of
111111 implementing the program.
112112 Sec. 487.856. CHALLENGE GRANTS. The office may award
113113 challenge grants under the program to promote the establishment of
114114 community-based organizations to work in partnership with
115115 communities in rural areas to assist entrepreneurs through economic
116116 development efforts in existence at the time of the organization's
117117 establishment.
118118 SUBCHAPTER T. RURAL AREA REGIONAL PLANNING AND IMPLEMENTATION
119119 MATCHING GRANT PROGRAM
120120 Sec. 487.901. DEFINITION. In this subchapter, "program"
121121 means the rural area regional planning and implementation matching
122122 grant program established under this subchapter.
123123 Sec. 487.902. RURAL AREA REGIONAL PLANNING AND
124124 IMPLEMENTATION MATCHING GRANT PROGRAM. (a) The office shall
125125 create the rural area regional planning and implementation matching
126126 grant program to foster regional collaboration for community and
127127 economic development in rural areas.
128128 (b) The office may award matching grants for the planning
129129 and implementation of regionally identified objectives in a rural
130130 area.
131131 Sec. 487.903. ELIGIBLE ENTITIES. (a) To be awarded a
132132 matching grant under the program for a proposed project, an
133133 application, including a description of the project proposal, must
134134 be jointly submitted by two or more of the following entities in the
135135 form prescribed by the office:
136136 (1) a municipality;
137137 (2) a county;
138138 (3) an economic development corporation;
139139 (4) a community foundation;
140140 (5) a faith-based organization;
141141 (6) a hospital or clinic;
142142 (7) an institution of higher education, as defined by
143143 Section 61.003, Education Code; or
144144 (8) a commission, as defined by Section 391.002, Local
145145 Government Code.
146146 (b) Entities that jointly submit an application under
147147 Subsection (a) must be physically located in at least:
148148 (1) two or more adjacent rural counties; or
149149 (2) two or more municipalities or census-designated
150150 places in a rural county.
151151 Sec. 487.904. GRANT AWARDS. The office shall give
152152 preference to eligible applicants that demonstrate an inclusive
153153 planning and implementation process over other eligible applicants
154154 for an award of a matching grant under the program.
155155 SUBCHAPTER U. RURAL CAPACITY AND LEADERSHIP ENHANCEMENT PROGRAM
156156 Sec. 487.951. DEFINITION. In this subchapter, "program"
157157 means the rural capacity and leadership enhancement program.
158158 Sec. 487.952. PROGRAM. The office shall create the rural
159159 capacity and leadership enhancement program to assist
160160 municipalities and unincorporated communities in rural areas to:
161161 (1) develop leadership capacity;
162162 (2) improve the business practices of municipal
163163 government;
164164 (3) increase awareness of the benefits of renewable
165165 energy;
166166 (4) identify community assets that can be used to
167167 enhance community and economic development; and
168168 (5) provide assistance for emergency services
169169 districts.
170170 Sec. 487.953. RURAL LEADERSHIP CURRICULUM. The office may
171171 coordinate with an interested public junior college or public
172172 technical institute, as those terms are defined by Section 61.003,
173173 Education Code, that is located in a rural area or a consortium of
174174 those colleges or institutes, the Texas Rural Leadership Program,
175175 or another appropriate leadership program to develop and maintain a
176176 rural leadership curriculum to implement the program.
177177 Sec. 487.954. LEADERSHIP TRAINING. The office may award a
178178 stipend under the program to an individual who completes training
179179 based on the curriculum developed under Section 487.953.
180180 SUBCHAPTER V. RURAL COMMUNITY ASSET STUDY MATCHING GRANT PROGRAM
181181 Sec. 487.1001. DEFINITION. In this subchapter, "program"
182182 means the rural community asset study matching grant program.
183183 Sec. 487.1002. RURAL COMMUNITY ASSET STUDY MATCHING GRANT
184184 PROGRAM. (a) The office shall create the rural community asset
185185 study matching grant program to assist communities in rural areas
186186 in identifying community assets.
187187 (b) The office may issue matching grants to fund community
188188 asset studies in accordance with criteria established by the
189189 office.
190190 Sec. 487.1003. ELIGIBLE ENTITIES. (a) To be awarded a
191191 matching grant under the program for a proposed project, an
192192 application, including a description of the project proposal, must
193193 be jointly submitted by two or more of the following entities in the
194194 form prescribed by the office:
195195 (1) a municipality;
196196 (2) a county;
197197 (3) an economic development corporation;
198198 (4) a community foundation;
199199 (5) a faith-based organization;
200200 (6) a hospital or clinic;
201201 (7) an institution of higher education, as defined by
202202 Section 61.003, Education Code; or
203203 (8) a commission, as defined by Section 391.002, Local
204204 Government Code.
205205 (b) The office shall give preference to eligible applicants
206206 that demonstrate an inclusive planning and implementation process
207207 over other eligible applicants for an award of a matching grant
208208 under the program.
209209 (c) The office shall develop criteria for eligible projects
210210 and for the awarding of matching grants under the program.
211211 SUBCHAPTER W. TEXAS RURAL YOUTH CORPS PROGRAM
212212 Sec. 487.1051. DEFINITIONS. In this subchapter:
213213 (1) "Executive director" means the executive director
214214 of the Office of Rural Community Affairs.
215215 (2) "Program" means the Texas rural youth corps
216216 program.
217217 Sec. 487.1052. TEXAS RURAL YOUTH CORPS PROGRAM. (a) The
218218 office shall create the Texas rural youth corps program to
219219 encourage youth participation in civic improvement activities in
220220 rural areas. The program shall:
221221 (1) provide youth in rural areas with opportunities to
222222 acquire job skills while participating in community service
223223 activities; and
224224 (2) create opportunities for youth that allow rural
225225 communities to enhance existing community resources and improve
226226 economic conditions.
227227 (b) The office may designate personnel as necessary to
228228 administer the program.
229229 Sec. 487.1053. GRANTS. The executive director may award
230230 grants under the program to eligible entities for projects that
231231 meet the requirements of this subchapter.
232232 Sec. 487.1054. ELIGIBLE ENTITIES. (a) Except as provided
233233 by Subsection (b), the following entities are eligible to submit an
234234 application as provided by Section 487.1056 to receive a grant for a
235235 proposed project under this subchapter:
236236 (1) a nonprofit organization;
237237 (2) a public agency that operates a community-based
238238 youth employment training program;
239239 (3) a community housing development organization
240240 certified by this state;
241241 (4) a youth organization;
242242 (5) a corps-based community service organization; or
243243 (6) another entity authorized by the office.
244244 (b) Each eligible applicant that submits an application
245245 under Subsection (a) must demonstrate that the applicant has at
246246 least three years of successful experience operating programs for
247247 the benefit of youth, in particular disadvantaged or at-risk youth
248248 populations.
249249 Sec. 487.1055. ELIGIBLE PROJECTS. To receive a grant under
250250 the program, a proposed project of an eligible applicant must
251251 provide, by using the services and skills of youth participants who
252252 are at least 12 years of age but younger than 19 years of age, at
253253 least one of the following services to the rural community in which
254254 the project is located:
255255 (1) rehabilitation or construction of
256256 energy-efficient, affordable housing for:
257257 (A) elderly individuals;
258258 (B) veterans of the United States armed forces;
259259 or
260260 (C) low-income individuals and families;
261261 (2) sustainable construction or rehabilitation of:
262262 (A) historic properties;
263263 (B) community facilities;
264264 (C) business incubators;
265265 (D) health care facilities;
266266 (E) cultural districts; or
267267 (F) parks or cemeteries owned or supported by
268268 funds of public or nonprofit entities;
269269 (3) increased access to information on new technology
270270 and technological advances, including communications or renewable
271271 energy technologies;
272272 (4) documentation of community history;
273273 (5) identification and analysis of community assets
274274 through a community asset study; and
275275 (6) marketing services of community assets,
276276 amenities, and history identified in a community history
277277 documentation or community asset study.
278278 Sec. 487.1056. GRANT APPLICATION. A grant application for
279279 a proposed project must be filed with the office in a form
280280 prescribed by the office. Each application must include:
281281 (1) the amount of grant money requested;
282282 (2) a description of the proposed project;
283283 (3) a description of the applicant's qualifications,
284284 including the applicant's experience with youth, educational
285285 groups, and community groups;
286286 (4) a list of proposed sites for construction or
287287 rehabilitation of housing or other buildings, if applicable;
288288 (5) a description of proposed sustainable
289289 construction or rehabilitation activities, including an
290290 implementation schedule, if applicable;
291291 (6) a description of the applicant's proposed
292292 procedures for recruiting and selecting participants in the
293293 project;
294294 (7) a proposed budget;
295295 (8) a description of proposed financing, if
296296 applicable;
297297 (9) a list of relevant contracts or other arrangements
298298 between the applicant and public agencies to facilitate project
299299 implementation;
300300 (10) a list of prospective donations, grants, or
301301 in-kind contributions that will supplement grant money received
302302 under the program; and
303303 (11) other criteria as considered necessary by the
304304 office.
305305 Sec. 487.1057. PROJECT SELECTION; CRITERIA. (a) The
306306 office shall establish criteria for selecting projects for the
307307 awarding of a grant under this subchapter.
308308 (b) In establishing criteria under Subsection (a), the
309309 office shall:
310310 (1) give preference to an applicant who can document
311311 the existence of matching contributions from other sources and
312312 support from local organizations, community leaders, and elected
313313 officials; and
314314 (2) give preference to projects that provide
315315 participants with an opportunity to earn scholarship awards toward
316316 college tuition expenses.
317317 (c) In establishing criteria under Subsection (a), the
318318 office may:
319319 (1) give preference to an applicant who has experience
320320 in providing the services proposed to be provided under the
321321 project; and
322322 (2) give preference to projects that assist youths who
323323 are at least 12 years of age but younger than 19 years of age who:
324324 (A) are not attending high school and have not
325325 received a high school diploma or high school equivalency
326326 certificate; or
327327 (B) attend high school or a program leading to a
328328 high school equivalency certificate, but have been identified as
329329 being at risk of dropping out of high school or the program leading
330330 to a high school equivalency certificate.
331331 Sec. 487.1058. ADVISORY BOARD; PARTICIPANT COUNCIL. On
332332 receipt of a grant under the program, the successful grantees shall
333333 establish:
334334 (1) an advisory board for the project that includes:
335335 (A) senior staff that manage and operate the
336336 project;
337337 (B) employers and business and community leaders
338338 of the community; and
339339 (C) project participants; and
340340 (2) a project participant council to provide comments
341341 and suggestions regarding project policies.
342342 Sec. 487.1059. ASSISTANCE FOR GRANTEES. The office shall
343343 provide grantees awarded a grant under the program access to
344344 curriculum materials created under Section 487.953, in particular
345345 materials that are designed to develop:
346346 (1) leadership ethics;
347347 (2) active citizenship;
348348 (3) a sense of personal responsibility;
349349 (4) critical thinking skills;
350350 (5) decision-making skills;
351351 (6) problem-solving skills; and
352352 (7) negotiation skills.
353353 Sec. 487.1060. OTHER FUNDING SOURCES REQUIRED. Up to 50
354354 percent of a proposed project's budget must be derived from a source
355355 other than the award of a grant or other incentive from the office,
356356 as determined by the office.
357357 Sec. 487.1061. LIMIT ON ADMINISTRATIVE EXPENSES. A grantee
358358 may not spend grant money for more than 15 percent of a proposed
359359 project's administrative costs.
360360 Sec. 487.1062. REPORTING REQUIREMENT. The office must
361361 include the following information regarding the program in its
362362 biennial report to the legislature under Section 487.056:
363363 (1) the total number of grants and the total amount of
364364 grant money awarded under the program;
365365 (2) the geographical distribution of grants awarded;
366366 and
367367 (3) the number of youth and other persons
368368 participating in program-funded projects.
369369 SUBCHAPTER X. RURAL WEALTH CREATION AND RETENTION PROGRAM
370370 Sec. 487.1101. DEFINITION. In this subchapter, "program"
371371 means the rural wealth creation and retention program.
372372 Sec. 487.1102. RURAL WEALTH CREATION AND RETENTION PROGRAM.
373373 The office shall create a rural wealth creation and retention
374374 program to assist rural communities in:
375375 (1) identifying community wealth;
376376 (2) educating residents about the benefits of
377377 charitable giving; and
378378 (3) encouraging the creation of community foundations
379379 in those areas to build sustainable local wealth and decrease
380380 long-term dependence on state and federal resources.
381381 Sec. 487.1103. CONTRACT FOR SERVICES. (a) The office may
382382 contract with other entities to provide services under the program.
383383 (b) In making a decision to contract with an entity under
384384 Subsection (a), the office shall give preference to an entity with a
385385 proven history of providing assistance to community foundations.
386386 Sec. 487.1104. SUPPORT SERVICES. The office, or a
387387 contracting entity under Section 487.1103, may provide support
388388 services for the implementation of the program, including financial
389389 management, strategic development, and education training.
390390 Sec. 487.1105. FEE. The office, or a contracting entity
391391 under Section 487.1103, may charge a fee for services provided
392392 under the program. The amount of the fee shall be determined by the
393393 office.
394394 SECTION 4. Not later than March 1, 2010, the board of the
395395 Office of Rural Community Affairs shall adopt any necessary rules
396396 for the fund established under Subchapter R, Chapter 487,
397397 Government Code, as added by this Act, and the programs established
398398 under Subchapters S through X, Chapter 487, Government Code, as
399399 added by this Act.
400400 SECTION 5. Implementation of the programs established under
401401 Subchapters S through X, Chapter 487, Government Code, as added by
402402 this Act, is contingent on appropriation of funding by the
403403 legislature.
404404 SECTION 6. This Act takes effect immediately if it receives
405405 a vote of two-thirds of all the members elected to each house, as
406406 provided by Section 39, Article III, Texas Constitution. If this
407407 Act does not receive the vote necessary for immediate effect, this
408408 Act takes effect September 1, 2009.