| 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 Rural Economic Development and Investment Program |
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| 10 | 10 | | and the Texas economic development fund. |
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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. Sections 12.0271(a) and (b), Agriculture Code, |
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| 13 | 13 | | are amended to read as follows: |
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| 14 | 14 | | (a) From funds appropriated for that purpose, the |
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| 15 | 15 | | commissioner shall establish and administer a financial assistance |
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| 16 | 16 | | program to encourage private economic development in rural areas. |
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| 17 | 17 | | Financial assistance under the program may be provided only to: |
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| 18 | 18 | | (1) a county with a population of not more than 200,000 |
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| 19 | 19 | | [75,000]; |
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| 20 | 20 | | (2) a municipality with a population of not more than |
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| 21 | 21 | | 50,000; [or] |
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| 22 | 22 | | (3) a public utility owned by a municipality described |
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| 23 | 23 | | by Subdivision (2); |
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| 24 | 24 | | (4) a political subdivision not described by |
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| 25 | 25 | | Subdivision (1) or (2), including a special district, that is |
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| 26 | 26 | | wholly or partly located in a county described by Subdivision (1); |
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| 27 | 27 | | or |
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| 28 | 28 | | (5) an economic development corporation, [or] |
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| 29 | 29 | | community development financial institution, or other lender that |
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| 30 | 30 | | primarily represents a county or municipality described by this |
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| 31 | 31 | | subsection. |
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| 32 | 32 | | (b) Financial assistance under Subsection (a) may be used |
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| 33 | 33 | | only for a project relating to: |
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| 34 | 34 | | (1) the acquisition or development of land, easements, |
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| 35 | 35 | | or rights-of-way; |
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| 36 | 36 | | (2) attracting new private enterprises to the county |
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| 37 | 37 | | or municipality, including: |
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| 38 | 38 | | (A) manufacturing facilities; |
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| 39 | 39 | | (B) freight storage facilities; |
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| 40 | 40 | | (C) distribution warehouse centers; [and] |
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| 41 | 41 | | (D) mineral extraction activities, as defined by |
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| 42 | 42 | | Section 2270.0051, Government Code; and |
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| 43 | 43 | | (E) other nonretail private enterprises; |
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| 44 | 44 | | (3) the construction, extension, or other improvement |
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| 45 | 45 | | of: |
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| 48 | 50 | | (4) any other activity relating to private economic |
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| 49 | 51 | | development that the commissioner determines will encourage |
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| 50 | 52 | | economic and infrastructure development in a rural area. |
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| 51 | 53 | | SECTION 2. Section 12.0272(b), Agriculture Code, is amended |
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| 52 | 54 | | to read as follows: |
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| 53 | 55 | | (b) Money in the Texas economic development fund is |
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| 54 | 56 | | dedicated to and may be appropriated only to the department for the |
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| 55 | 57 | | purposes of administering, continuing, implementing, or |
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| 56 | 58 | | maintaining: |
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| 57 | 59 | | (1) an economic development program originally |
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| 58 | 60 | | established as part of the department's implementation of the State |
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| 59 | 61 | | Small Business Credit Initiative; or [and] |
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| 60 | 62 | | (2) one or more of the department's economic |
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| 61 | 63 | | development programs: |
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| 62 | 64 | | (A) established to encourage the export of Texas |
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| 63 | 65 | | agricultural products or products manufactured in rural Texas; or |
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| 64 | 66 | | (B) established through an agreement with a |
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| 65 | 67 | | federal agency, foreign governmental entity, local governmental |
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| 66 | 68 | | entity, nonprofit organization, private entity, public university, |
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| 67 | 69 | | or state governmental entity to encourage rural economic |
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| 68 | 70 | | development in this state. |
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| 69 | 71 | | SECTION 3. Section 12.0273, Agriculture Code, is amended by |
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| 70 | 72 | | amending Subsections (c), (d), and (e) and adding Subsections (e-1) |
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| 71 | 73 | | and (h) to read as follows: |
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| 72 | 74 | | (c) The term of a loan made using money from the fund may not |
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| 73 | 75 | | exceed 20 years. [A loan must require monthly payments of principal |
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| 74 | 76 | | and interest beginning not later than the 90th day after the date |
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| 75 | 77 | | the loan is made.] |
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| 76 | 78 | | (d) The department shall administer the fund as a perpetual |
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| 77 | 79 | | source of financing for loans and grants under this section. The |
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| 78 | 80 | | department shall use payments of principal and interest to make |
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| 79 | 81 | | additional loans and grants. Subject to Subsection (f), the |
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| 80 | 82 | | department may use any money in the fund to make additional loans |
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| 81 | 83 | | and grants. |
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| 82 | 84 | | (e) The cumulative amount of [loans and] grants to any |
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| 83 | 85 | | person using money from the fund may not exceed $1 million. |
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| 84 | 86 | | (e-1) The maximum aggregate amount of outstanding loans to |
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| 85 | 87 | | any one person at any time using money from the fund may not exceed |
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| 86 | 88 | | $1 million. |
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| 87 | 89 | | (h) The department may adopt rules for the repayment of a |
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| 88 | 90 | | loan or grant made under this section. |
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| 89 | 91 | | SECTION 4. Section 12.0273, Agriculture Code, as amended by |
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| 90 | 92 | | this Act, applies only to a loan or grant made on or after the |
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| 91 | 93 | | effective date of this Act. |
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| 92 | 94 | | SECTION 5. This Act takes effect September 1, 2025. |
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