Bill Text: TX HB2004 | 2017-2018 | 85th Legislature | Enrolled

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Bill Title: Relating to the Texas economic development fund for the Department of Agriculture.

Sponsorship: Partisan Bill (Republican 2)

Status: (Passed) 2017-06-09 - Effective immediately [HB2004 Detail]

Download: Texas-2017-HB2004-Enrolled.html

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H.B. No. 2004

AN ACT
relating to the Texas economic development fund for the Department
of Agriculture.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 12.0272(a) and (b), Agriculture Code,
are amended to read as follows:
(a) The Texas economic development fund is a fund in the
state treasury. The fund consists of:
(1) all interest, income, revenue, and other assets
associated with economic development programs established using
money allocated and paid to the department under the August 15,
2011, allocation agreement between the department and the United
States Department of the Treasury, as amended, to implement the
State Small Business Credit Initiative Act of 2010 (12 U.S.C.
Section 5701 et seq.);
(2) all money, deposits, distributions, dividends,
earnings, gain, income, interest, proceeds, profits, program
income, rents, returns of capital, returns on investments,
royalties, revenue, or yields received or realized by the
department as a result of an investment made by or on behalf of the
department pursuant to the August 15, 2011, allocation agreement
between the department and the United States Department of the
Treasury, as amended;
(3) gifts, loans, donations, aid, appropriations,
guaranties, allocations, subsidies, grants, or contributions
received under Sections 12.022 and [Section] 12.027(g);
(4) interest and income earned on the investment of
money in the fund; and
(5) other money required by law to be deposited in the
fund.
(b) Money in the Texas economic development fund is
dedicated to and may be appropriated only to the department for the
purposes [purpose] of administering, continuing [establishing],
implementing, or maintaining:
(1) an economic development program originally
established as part of the department's implementation of the State
Small Business Credit Initiative; and
(2) [under this section and is dedicated to and may be
used only for the administration, establishment, implementation,
or maintenance of] one or more of the department's economic
development programs:
(A) established to encourage the export of Texas
agricultural products or products manufactured in rural Texas; or
(B) established through an agreement with a
federal agency, foreign governmental entity, local governmental
entity, nonprofit organization, private entity, public university,
or state governmental entity to encourage rural economic
development in this state.
SECTION 2. Chapter 12, Agriculture Code, is amended by
adding Section 12.0273 to read as follows:
Sec. 12.0273. LIMITATIONS ON LOANS AND GRANTS FROM TEXAS
ECONOMIC DEVELOPMENT FUND. (a) The department may use money in the
Texas economic development fund only to make loans and grants in the
manner provided by this section for the purposes provided by
Section 12.0272(b).
(b) The recipient of a grant using money from the fund must
provide matching funds in an amount equal to 25 percent of the
amount of the grant.
(c) The term of a loan made using money from the fund may not
exceed 20 years. A loan must require monthly payments of principal
and interest beginning not later than the 90th day after the date
the loan is made.
(d) The department shall administer the fund as a perpetual
source of financing for loans and grants under this section. The
department shall use payments of principal and interest to make
additional loans and grants.
(e) The cumulative amount of loans and grants to any person
using money from the fund may not exceed $1 million.
(f) The department shall retain in the fund in the state
treasury an amount of money equal to at least 25 percent of the
amount of money in the fund on January 1, 2017.
(g) Not later than December 1 of each even-numbered year,
the department shall submit a report on the status of the fund,
including loans and grants made using money from the fund, to the
governor, lieutenant governor, speaker of the house of
representatives, and chairs of the house and senate committees with
primary jurisdiction over the department.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2017.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2004 was passed by the House on May 6,
2017, by the following vote: Yeas 126, Nays 16, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 2004 on May 24, 2017, by the following vote: Yeas 126, Nays 19,
2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 2004 was passed by the Senate, with
amendments, on May 22, 2017, by the following vote: Yeas 25, Nays
5.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor