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A BILL TO BE ENTITLED
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AN ACT
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relating to the Rural Economic Development and Investment Program |
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and the Texas economic development fund. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 12.0271(a) and (b), Agriculture Code, |
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are amended to read as follows: |
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(a) From funds appropriated for that purpose, the |
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commissioner shall establish and administer a financial assistance |
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program to encourage private economic development in rural areas. |
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Financial assistance under the program may be provided only to: |
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(1) a county with a population of not more than 200,000 |
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[75,000]; |
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(2) a municipality with a population of not more than |
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50,000; [or] |
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(3) a public utility owned by a municipality described |
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by Subdivision (2); |
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(4) a political subdivision not described by |
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Subdivision (1) or (2), including a special district, that is |
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wholly or partly located in a county described by Subdivision (1); |
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or |
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(5) an economic development corporation, [or] |
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community development financial institution, or other lender that |
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primarily represents a county or municipality described by this |
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subsection. |
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(b) Financial assistance under Subsection (a) may be used |
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only for a project relating to: |
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(1) the acquisition or development of land, easements, |
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or rights-of-way; |
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(2) attracting new private enterprises to the county |
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or municipality, including: |
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(A) manufacturing facilities; |
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(B) freight storage facilities; |
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(C) distribution warehouse centers; [and] |
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(D) mineral extraction activities, as defined by |
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Section 2270.0051, Government Code; and |
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(E) other nonretail private enterprises; |
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(3) the construction, extension, or other improvement |
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of: |
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(A) water or waste disposal facilities; [or] |
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(B) transportation infrastructure; or |
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(C) energy generation, transmission, and |
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distribution facilities; or |
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(4) any other activity relating to private economic |
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development that the commissioner determines will encourage |
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economic and infrastructure development in a rural area. |
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SECTION 2. Section 12.0272(b), Agriculture Code, is amended |
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to read as follows: |
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(b) Money in the Texas economic development fund is |
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dedicated to and may be appropriated only to the department for the |
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purposes of administering, continuing, implementing, or |
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maintaining: |
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(1) an economic development program originally |
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established as part of the department's implementation of the State |
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Small Business Credit Initiative; or [and] |
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(2) one or more of the department's economic |
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development programs: |
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(A) established to encourage the export of Texas |
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agricultural products or products manufactured in rural Texas; or |
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(B) established through an agreement with a |
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federal agency, foreign governmental entity, local governmental |
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entity, nonprofit organization, private entity, public university, |
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or state governmental entity to encourage rural economic |
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development in this state. |
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SECTION 3. Section 12.0273, Agriculture Code, is amended by |
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amending Subsections (c), (d), and (e) and adding Subsections (e-1) |
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and (h) to read as follows: |
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(c) The term of a loan made using money from the fund may not |
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exceed 20 years. [A loan must require monthly payments of principal |
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and interest beginning not later than the 90th day after the date |
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the loan is made.] |
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(d) The department shall administer the fund as a perpetual |
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source of financing for loans and grants under this section. The |
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department shall use payments of principal and interest to make |
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additional loans and grants. Subject to Subsection (f), the |
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department may use any money in the fund to make additional loans |
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and grants. |
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(e) The cumulative amount of [loans and] grants to any |
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person using money from the fund may not exceed $1 million. |
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(e-1) The maximum aggregate amount of outstanding loans to |
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any one person at any time using money from the fund may not exceed |
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$1 million. |
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(h) The department may adopt rules for the repayment of a |
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loan or grant made under this section. |
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SECTION 4. Section 12.0273, Agriculture Code, as amended by |
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this Act, applies only to a loan or grant made on or after the |
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effective date of this Act. |
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SECTION 5. This Act takes effect September 1, 2025. |