84R1771 JAM-D By: González H.B. No. 74 A BILL TO BE ENTITLED AN ACT relating to financial assistance administered by the Texas Department of Housing and Community Affairs in certain rural areas. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Sections 2306.004(28-a) and (36), Government Code, are amended to read as follows: (28-a) "Rural area" means an area that is located: (A) outside the boundaries of a primary metropolitan statistical area or a metropolitan statistical area; or (B) within the boundaries of a primary metropolitan statistical area or a metropolitan statistical area, if the [statistical] area: (i) has a population of 25,000 or less and does not share a boundary with an urban area; or (ii) is designated by the department as a rural area under Section 2306.0075. (36) "Urban area" means the area that is located within the boundaries of a primary metropolitan statistical area or a metropolitan statistical area other than an area described by Subdivision (28-a)(B) [or eligible for funding as described by Subdivision (28-a)(C)]. SECTION 2. Subchapter A, Chapter 2306, Government Code, is amended by adding Section 2306.0075 to read as follows: Sec. 2306.0075. DESIGNATION OF CERTAIN AREAS AS RURAL. (a) This section applies only to an area that: (1) is located within the boundaries of a primary metropolitan statistical area or a metropolitan statistical area; and (2) has a population of 10,000 or less. (b) A statistical area described by Subsection (a) may apply to the department for designation as a rural area under Section 2306.004(28-a)(B)(ii) for purposes of receiving financial assistance administered by the department under this chapter. (c) The department shall adopt rules governing the process by which statistical areas are designated as rural areas under this section. The rules must: (1) establish procedures regarding the submission of applications under this section; (2) provide additional eligibility standards for making the designations authorized by this section; and (3) ensure that financial assistance provided to a designated rural area complies with any applicable federal requirements regarding that assistance. SECTION 3. This Act takes effect September 1, 2015.