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A BILL TO BE ENTITLED
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AN ACT
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relating to financing programs and activities related to rural |
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economic development. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 58.032, Agriculture Code, is amended by |
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amending Subsection (a) and adding Subsection (i) to read as |
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follows: |
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(a) The Texas agricultural fund is a fund in the state |
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treasury that may be appropriated for the purposes of this chapter |
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or for rural development programs administered by the Texas |
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Economic Development Bank as authorized by Chapter 489, Government |
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Code. |
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(i) Notwithstanding Subsections (b), (c), (d), (e), (f), |
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(g), and (h), the Texas Economic Development Bank may establish and |
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maintain accounts in the Texas agricultural fund. |
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SECTION 2. Section 489.101(a), Government Code, is amended |
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to read as follows: |
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(a) The office shall establish the Texas Economic |
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Development Bank for the purpose of: |
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(1) providing globally competitive, cost-effective |
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state incentives to expanding businesses operating in this state |
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and businesses relocating to this state; [and] |
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(2) ensuring that communities and businesses in this |
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state have access to capital for economic development purposes; and |
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(3) providing financial assistance for economic |
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development projects, including projects for rural areas of this |
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state under Subchapter E. |
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SECTION 3. Section 489.105(b), Government Code, is amended |
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to read as follows: |
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(b) The fund consists of: |
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(1) appropriations for the implementation and |
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administration of this chapter; |
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(2) investment earnings under the capital access fund |
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established under Section 481.402; |
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(3) fees charged under Subchapter BB, Chapter 481; |
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(4) interest earned on the investment of money in the |
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fund; |
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(5) fees charged under this chapter; |
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(6) investment earnings from the programs |
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administered by the bank; |
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(7) amounts transferred under Section 2303.504(b)[,
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as amended by Article 2, Chapter 1134, Acts of the 77th Legislature,
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Regular Session, 2001]; |
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(8) investment earnings under the Texas product |
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development fund under Section 489.211; |
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(9) investment earnings under the Texas small business |
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incubator fund under Section 489.212; [and] |
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(10) investment earnings under the rural development |
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account in the Texas agriculture fund under Subchapter E; and |
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(11) any other amounts received by the state under |
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this chapter. |
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SECTION 4. Section 489.106, Government Code, is amended to |
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read as follows: |
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Sec. 489.106. ADMINISTRATION OF FUND, ACCOUNT, AND CHAPTER. |
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The office shall administer the fund and the rural development |
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account in the Texas agriculture fund. In administering the fund, |
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the rural development account in the Texas agriculture fund, and |
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this chapter, the office has the powers necessary to carry out the |
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purposes of this chapter, including the power to: |
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(1) make, execute, and deliver contracts, |
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conveyances, and other instruments; |
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(2) impose and collect fees and charges in connection |
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with any transaction and provide for reasonable penalties for |
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delinquent payments or performance; [and] |
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(3) issue bonds for financial assistance to stimulate |
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the economy in rural areas of this state under Subchapter E; and |
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(4) issue bonds for other economic development |
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projects, as [that term is] defined by Section 501.101, Local |
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Government Code, or Section 505.151, 505.152, 505.153, 505.154, |
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505.155, or 505.156, Local Government Code. |
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SECTION 5. Section 489.108, Government Code, is amended to |
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read as follows: |
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Sec. 489.108. PROGRAMS, SERVICES, ACCOUNTS, AND FUNDS UNDER |
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BANK'S DIRECTION. Notwithstanding any other law, the bank shall |
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perform the duties and functions of the office with respect to the |
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following programs, services, accounts, and funds: |
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(1) the Texas Small Business Industrial Development |
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Corporation established under Chapter 503, Local Government Code; |
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(2) the capital access program established under |
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Section 481.405; |
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(3) the Texas leverage fund; |
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(4) the linked deposit program established under |
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Section 481.193; |
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(5) the enterprise zone program established under |
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Chapter 2303; |
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(6) the industrial revenue bond program; |
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(7) the defense economic readjustment zone program |
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established under Chapter 2310; |
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(8) the Empowerment Zone and Enterprise Community |
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grant program established under Section 481.025; [and] |
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(9) the renewal community program; and |
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(10) the rural development account in the Texas |
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agriculture fund. |
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SECTION 6. Chapter 489, Government Code, is amended by |
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adding Subchapter E to read as follows: |
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SUBCHAPTER E. RURAL DEVELOPMENT ACCOUNT |
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Sec. 489.251. PURPOSE. Financial assistance is a |
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commitment made by the bank for the purpose of stimulating economic |
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development in rural areas of this state. |
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Sec. 489.252. DEFINITIONS. In this subchapter: |
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(1) "Anticipation note" means a note issued by an |
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eligible issuer and purchased by the bank under Section 1431.014. |
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(2) "Financial assistance" means a loan, loan |
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guarantee, or equity investment from the rural development account |
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to an applicant under this subchapter. |
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(3) "Rural area" has the meaning assigned by Section |
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58.002, Agriculture Code. |
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Sec. 489.253. RURAL DEVELOPMENT ACCOUNT. The rural |
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development account is a dedicated account in the Texas agriculture |
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fund for the purpose of financing rural economic development |
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projects authorized by Section 49-f(g), Article III, Texas |
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Constitution. |
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Sec. 489.254. BONDS. (a) The bank may issue general |
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obligation bonds, up to the amounts authorized by Section 49-f(g), |
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Article III, Texas Constitution, to fund rural economic development |
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projects under this subchapter. |
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(b) An amount of not more than five percent of the total |
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amount of bonds issued may be used to pay administrative fees |
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involved in selling the bonds. |
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Sec. 489.255. MANAGEMENT OF RURAL DEVELOPMENT ACCOUNT. (a) |
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Repayments of financial assistance under any program funded wholly |
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or partly with the proceeds of general obligation bonds issued in |
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accordance with Section 489.254 shall be deposited first in the |
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interest and sinking account as prescribed by the bank's |
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resolutions authorizing the bonds, and second in the reserve |
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account for the bonds until that account is fully funded as |
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prescribed by the bank's resolutions. The rural development |
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account and all accounts within that account shall be kept and |
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maintained at the direction of the bank and held in trust by the |
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comptroller for and on behalf of the bank and the owners of the |
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bonds issued in accordance with Section 489.254, and may be used |
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only as provided by this subchapter. Pending its use, money in the |
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rural development account shall be invested as prescribed by the |
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resolution by which the bonds were issued. |
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(b) If during the time any general obligation bonds are |
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payable from the rural development account the bank determines that |
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there will not be sufficient money in the interest and sinking |
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account for the bonds during the following fiscal year to pay the |
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principal of or interest on the bonds that is to come due during the |
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following fiscal year, the comptroller shall transfer to the fund |
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the first money coming into the state treasury not otherwise |
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appropriated by the constitution in an amount sufficient to pay the |
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obligations. |
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(c) The bank may receive, and shall deposit in the rural |
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development account appropriations, grants, donations, earned |
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federal funds, and the proceeds of any investment pools operated by |
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the comptroller that are related to rural economic development |
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projects under this subchapter. |
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(d) The rural development account includes grants and |
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donations made for the purposes of rural economic development |
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projects administered by the bank and any other money received |
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under this subchapter. Notwithstanding Section 404.071, income and |
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interest earned on money in the rural development account shall be |
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deposited to the credit of the account. The fund is exempt from the |
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application of Section 403.095. |
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(e) The bank shall attempt to administer the rural |
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development account in a manner that makes private donations to the |
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account an eligible itemized deduction for federal income taxation |
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purposes. |
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Sec. 489.256. FINANCIAL ASSISTANCE FOR RURAL ECONOMIC |
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DEVELOPMENT PROJECTS. (a) The bank may provide financial |
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assistance from available funds held in the rural development |
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account to an applicant for a rural economic development project. |
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(b) The bank may purchase anticipation notes from an |
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eligible issuer for the purpose of securing a financial commitment |
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made by the bank for a rural economic development project. |
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Sec. 489.257. APPLICATION FOR FINANCIAL ASSISTANCE. (a) |
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The office by rule shall adopt applicant eligibility standards and |
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prescribe the application process, including the creation of any |
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forms and the setting of necessary fees to cover the implementation |
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of this subchapter. |
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(b) An applicant for financial assistance under this |
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subchapter must submit to the office with the application: |
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(1) project financial information required by the |
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office; |
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(2) any applicable feasibility or economic impact |
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statements; |
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(3) a statement of the applicant's employment or |
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managerial history; |
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(4) security to be pledged by the applicant for |
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financial commitments made by the bank from the rural development |
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account; |
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(5) documentation of other forms of equity or other |
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financial assistance from state, federal, or private resources that |
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will be committed to the project; and |
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(6) a statement regarding how the commitment of the |
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bank is projected to induce capital investment, create or preserve |
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jobs, or provide other economic development benefits in a rural |
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area. |
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(c) The bank may consider only applications that |
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demonstrate reasonable assurance that the projected revenues will |
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be sufficient to repay any financial assistance approved by the |
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bank. |
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(d) After considering the application and all other |
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information the bank considers relevant, the bank shall approve or |
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deny the application and promptly notify the applicant of the |
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decision. |
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Sec. 489.258. RULES. The office may adopt rules, policies, |
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and procedures necessary or reasonable to implement this |
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subchapter. |
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SECTION 7. Section 1431.014(a), Government Code, is amended |
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to read as follows: |
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(a) Notwithstanding any other provision of this chapter, an |
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issuer participating in a rural economic development program |
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established by the Texas Economic Development Bank [Agricultural
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Finance Authority] may sell to the Texas Economic Development Bank |
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[authority] an anticipation note issued for a purpose described by |
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Section 1431.004(a)(1), provided that the note matures before the |
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30th anniversary of the date the note is issued. |
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SECTION 8. This Act takes effect September 1, 2013. |