1-1                                   AN ACT
 1-2     relating to transfer of the Office of Rural Affairs to the
 1-3     Department of Agriculture.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 481.0067, Government Code, is transferred
 1-6     to Chapter 12, Agriculture Code, and redesignated as Section
 1-7     12.038, Agriculture Code, to read as follows:
 1-8           Sec. 12.038 [481.0067].  OFFICE OF RURAL AFFAIRS.  (a)  The
 1-9     department shall establish and maintain an Office of Rural Affairs.
1-10     The office shall be headed by a rural affairs director.  To be
1-11     eligible to serve as the rural affairs director, a person must have
1-12     demonstrated a strong commitment to and involvement in economic
1-13     development activities in rural areas.
1-14           (b)  The Office of Rural Affairs shall:
1-15                 (1)  develop a rural resource guide and provide the
1-16     information to rural areas through print and electronic media and
1-17     through use of the Texas Business and Community Economic
1-18     Development Clearinghouse;
1-19                 (2)  provide information to state agencies on the
1-20     effects of proposed policies or actions that affect rural areas;
1-21                 (3)  cosponsor meetings, to the extent practical, in
1-22     cooperation with public and private educational institutions to
1-23     disseminate information beneficial to rural areas;
1-24                 (4)  identify potential opportunities for businesses in
 2-1     rural areas and assist these businesses to maximize those
 2-2     opportunities;
 2-3                 (5)  conduct an analysis of the available federal,
 2-4     state, and local government and rural economic development business
 2-5     outreach and data services in rural areas of this state by
 2-6     examining the availability of:
 2-7                       (A)  computerized economic development databases
 2-8     that provide data for existing and prospective businesses and
 2-9     communities in rural areas of this state; and
2-10                       (B)  business information outreach service
2-11     offices or centers that provide comprehensive technical assistance,
2-12     research, consulting services, training, and other services to
2-13     businesses in rural areas; and
2-14                 (6)  perform any other functions necessary to carry out
2-15     the purposes of this section.
2-16           (c)  In administering this section, the department may:
2-17                 (1)  employ and set the compensation of personnel to
2-18     carry out the Office of Rural Affairs' functions under this
2-19     section; and
2-20                 (2)  consult with:
2-21                       (A)  experts and authorities in the fields of
2-22     rural development, economic development, and community development;
2-23                       (B)  individuals with regulatory, legal,
2-24     economic, or financial expertise, including members of the academic
2-25     community; and
2-26                       (C)  individuals who represent the public
2-27     interest.
 3-1           (d)  Each state agency must, on request, furnish the Office
 3-2     of Rural Affairs with reports and other information necessary to
 3-3     enable the Office of Rural Affairs to carry out the purposes of
 3-4     this section.
 3-5           (e)  The Office of Rural Affairs may accept gifts, grants,
 3-6     and donations from sources other than the state for the purpose of
 3-7     performing specific projects, studies, or procedures or to provide
 3-8     assistance to rural areas.
 3-9           (f)  Not later than October 15 of each even-numbered year,
3-10     the department shall submit to the governor and the legislature a
3-11     report containing specific information regarding each of the
3-12     functions performed by the Office of Rural Affairs, including
3-13     recommendations regarding issues that affect the rural areas of the
3-14     state.
3-15           SECTION 2.  (a)  This Act takes effect September 1, 2001.
3-16           (b)  As soon as practicable after the effective date of this
3-17     Act, but not later than January 1, 2002:
3-18                 (1)  all powers, duties, rights, and obligations of the
3-19     Texas Department of Economic Development relating to the Office of
3-20     Rural Affairs are transferred to the commissioner of agriculture
3-21     and the Department of Agriculture, as provided by this Act;
3-22                 (2)  except as provided by Subsection (c) of this
3-23     section, all assets, liabilities, personnel, equipment, data,
3-24     documents, facilities, and other items relating to the Office of
3-25     Rural Affairs are transferred from the Texas Department of Economic
3-26     Development to the Department of Agriculture; and
3-27                 (3)  any appropriation to the Texas Department of
 4-1     Economic Development relating to the Office of Rural Affairs is
 4-2     transferred to the Department of Agriculture.
 4-3           (c)  The governing board of the Texas Department of Economic
 4-4     Development may decide whether to transfer to the Department of
 4-5     Agriculture:
 4-6                 (1)  personnel who perform both duties that relate to
 4-7     the Office of Rural Affairs and duties that do not relate to the
 4-8     Office of Rural Affairs; and
 4-9                 (2)  assets used by both the Office of Rural Affairs
4-10     and divisions of the Texas Department of Economic Development other
4-11     than the Office of Rural Affairs.
4-12           (d)  The officers and employees of the Texas Department of
4-13     Economic Development and the Department of Agriculture shall
4-14     cooperate fully with the transfer.
4-15           (e)  The transfer of functions under Subsection (b) of this
4-16     section shall occur on the date specified in an interagency
4-17     contract among the governing board of the Texas Department of
4-18     Economic Development, the director of the Office of Rural Affairs,
4-19     and the Department of Agriculture.
4-20           (f)  Notwithstanding the change in law made by this Act, the
4-21     governing board of the Texas Department of Economic Development
4-22     retains all powers and duties relating to the Office of Rural
4-23     Affairs until the effective date of the transfer under Subsection
4-24     (b) of this section.
4-25           (g)  A change in law made by this Act does not affect the
4-26     validity of any action taken by the governing board of the Texas
4-27     Department of Economic Development relating to the Office of Rural
 5-1     Affairs before the effective date of the transfer under Subsection
 5-2     (b) of this section.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 819 was passed by the House on April
         30, 2001, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 819 was passed by the Senate on May
         17, 2001, by the following vote:  Yeas 30, Nays 0, 1 present, not
         voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor