By: Gattis H.B. No. 2312
A BILL TO BE ENTITLED
AN ACT
relating to the creation of a rural economic development and
investment program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. This Act shall be known as the Rural Economic
Development and Investment Act.
SECTION 2. Chapter 12, Agriculture Code, is amended by
adding Section 12.0271 to read as follows:
Sec. 12.0271. RURAL ECONOMIC DEVELOPMENT AND INVESTMENT
PROGRAM. (a) From funds appropriated for that purpose, the
commissioner shall establish and administer a financial assistance
program to encourage private economic development in rural areas.
Financial assistance under the program may be provided only to:
(1) a county with a population of not more than 75,000;
or
(2) a municipality with a population of not more than
50,000.
(b) Financial assistance under Subsection (a) may be used
only for a project relating to:
(1) the acquisition or development of land, easements,
or rights-of-way;
(2) attracting new private enterprises to the county
or municipality, including:
(A) manufacturing facilities;
(B) freight storage facilities;
(C) distribution warehouse centers; and
(D) other nonretail private enterprises;
(3) the construction, extension, or other improvement
of:
(A) water or waste disposal facilities; or
(B) transportation infrastructure; or
(4) any other activity relating to private economic
development that the commissioner determines will encourage
economic and infrastructure development in a rural area.
(c) To further a purpose described by Subsection (b), the
commissioner may provide financial assistance to an eligible county
or municipality by:
(1) extending credit by direct loan, based on the
credit of the county or municipality;
(2) providing a credit enhancement;
(3) effectively lowering interest rates;
(4) financing a purchase or lease agreement in
connection with an economic or infrastructure development project;
or
(5) providing methods of leveraging money that have
been approved by the United States department of agriculture,
interior, or commerce, and relate to the project for which the
assistance is provided.
(d) A county or municipality that receives funds under
Subsection (c) shall segregate the funds from other funds under the
control of the county or municipality and use the funds only for a
purpose described by this section. Any funds disbursed through the
program must be repaid on terms determined by the department.
(e) The department shall adopt rules necessary to implement
this section.
SECTION 3. This Act takes effect September 1, 2009.