| 1 | 1 | | 81R12503 TRH-D |
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| 2 | 2 | | By: Gattis H.B. No. 2312 |
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| 3 | 3 | | Substitute the following for H.B. No. 2312: |
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| 4 | 4 | | By: Hardcastle C.S.H.B. No. 2312 |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the creation of a rural economic development and |
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| 10 | 10 | | investment program. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. This Act shall be known as the Rural Economic |
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| 13 | 13 | | Development and Investment Act. |
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| 14 | 14 | | SECTION 2. Chapter 12, Agriculture Code, is amended by |
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| 15 | 15 | | adding Section 12.0271 to read as follows: |
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| 16 | 16 | | Sec. 12.0271. RURAL ECONOMIC DEVELOPMENT AND INVESTMENT |
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| 17 | 17 | | PROGRAM. (a) From funds appropriated for that purpose, the |
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| 18 | 18 | | commissioner shall establish and administer a financial assistance |
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| 19 | 19 | | program to encourage private economic development in rural areas. |
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| 20 | 20 | | Financial assistance under the program may be provided only to: |
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| 21 | 21 | | (1) a county with a population of not more than 75,000; |
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| 22 | 22 | | or |
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| 23 | 23 | | (2) a municipality with a population of not more than |
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| 24 | 24 | | 50,000. |
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| 25 | 25 | | (b) Financial assistance under Subsection (a) may be used |
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| 26 | 26 | | only for a project relating to: |
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| 27 | 27 | | (1) the acquisition or development of land, easements, |
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| 28 | 28 | | or rights-of-way; |
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| 29 | 29 | | (2) attracting new private enterprises to the county |
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| 30 | 30 | | or municipality, including: |
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| 31 | 31 | | (A) manufacturing facilities; |
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| 32 | 32 | | (B) freight storage facilities; |
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| 33 | 33 | | (C) distribution warehouse centers; and |
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| 34 | 34 | | (D) other nonretail private enterprises; |
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| 35 | 35 | | (3) the construction, extension, or other improvement |
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| 36 | 36 | | of: |
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| 37 | 37 | | (A) water or waste disposal facilities; or |
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| 38 | 38 | | (B) transportation infrastructure; or |
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| 39 | 39 | | (4) any other activity relating to private economic |
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| 40 | 40 | | development that the commissioner determines will encourage |
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| 41 | 41 | | economic and infrastructure development in a rural area. |
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| 42 | 42 | | (c) To further a purpose described by Subsection (b), the |
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| 43 | 43 | | commissioner may provide financial assistance to an eligible county |
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| 44 | 44 | | or municipality by: |
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| 45 | 45 | | (1) extending credit by direct loan, based on the |
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| 46 | 46 | | credit of the county or municipality; |
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| 47 | 47 | | (2) providing a credit enhancement; |
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| 48 | 48 | | (3) effectively lowering interest rates; |
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| 49 | 49 | | (4) financing a purchase or lease agreement in |
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| 50 | 50 | | connection with an economic or infrastructure development project; |
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| 51 | 51 | | or |
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| 52 | 52 | | (5) providing methods of leveraging money that have |
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| 53 | 53 | | been approved by a federal cabinet-level agency and relate to the |
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| 54 | 54 | | project for which the assistance is provided. |
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| 55 | 55 | | (d) A county or municipality that receives funds under |
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| 56 | 56 | | Subsection (c) shall segregate the funds from other funds under the |
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| 57 | 57 | | control of the county or municipality and use the funds only for a |
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| 58 | 58 | | purpose described by this section. Any funds disbursed through the |
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| 59 | 59 | | program must be repaid on terms determined by the department. |
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| 60 | 60 | | (e) The department shall adopt rules necessary to implement |
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| 61 | 61 | | this section. |
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| 62 | 62 | | SECTION 3. This Act takes effect September 1, 2009. |
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