LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
 
March 28, 2025

TO:
Honorable Ryan Guillen, Chair, House Committee on Agriculture & Livestock
 
FROM:
Jerry McGinty, Director, Legislative Budget Board
 
IN RE:
HB2765 by Guillen (relating to the Rural Economic Development and Investment Program and the Texas economic development fund.), Committee Report 1st House, Substituted

The fiscal implications of the bill cannot be determined because the revenue implications from the amounts of potential loans, grants, and repayments are unknown.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

The bill amends the Agricultural Code to expand eligibility for and uses of funds granted through the Texas Economic Development Fund No. 183 (TEDF). The bill would increase the size of eligible counties, add two categories of entities eligible for assistance, and also add two categories of projects qualifying for financial support through the TEDF. The bill would increase flexibility for grantees and TEDF administrators by removing statutory loan repayment terms and allowing the department to adopt its own repayment terms through agency rulemaking. The bill would remove the requirement that monthly payments of principal and interest begin not later than the 90th day after the date the loan is made from the TEDF. The bill would also change the maximum amount for loans and grants to any one person from $1.0 million combined to a $1.0 million maximum for grants and a $1.0 million maximum for loans. 

Appropriations from the TEDF are estimated in the Department of Agriculture's (TDA) bill pattern except that TDA must retain a minimum balance of $2,225,593 in the fund, as required by Agriculture Code, Section 12.0273. Based on information provided by TDA the agency assumes that any costs associated with the bill could be absorbed using existing resources. 

Based on information provided by the Comptroller of Public Accounts the revenue implications from the amounts of potential loans, grants, and repayments are unknown.

Local Government Impact

The fiscal implications of the bill cannot be determined at this time.


Source Agencies:
304 Comptroller of Public Accounts, 551 Department of Agriculture
LBB Staff:
JMc, TUf, MW, RSTE