89R6116 SCF-F     By: Guillen H.B. No. 2765       A BILL TO BE ENTITLED   AN ACT   relating to the Rural Economic Development and Investment Program   and the Texas economic development fund.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Sections 12.0271(a) and (b), Agriculture Code,   are amended to read as follows:          (a)  From funds appropriated for that purpose, the   commissioner shall establish and administer a financial assistance   program to encourage private economic development in rural areas.   Financial assistance under the program may be provided only to:                (1)  a county with a population of not more than 200,000    [75,000];                (2)  a municipality with a population of not more than   50,000; [or]                (3)  a public utility owned by a municipality described   by Subdivision (2);                (4)  a political subdivision not described by   Subdivision (1) or (2), including a special district, that is   wholly or partly located in a county described by Subdivision (1);   or                (5)  an economic development corporation, [or]   community development financial institution, or other lender that   primarily represents a county or municipality described by this   subsection.          (b)  Financial assistance under Subsection (a) may be used   only for a project relating to:                (1)  the acquisition or development of land, easements,   or rights-of-way;                (2)  attracting new private enterprises to the county   or municipality, including:                      (A)  manufacturing facilities;                      (B)  freight storage facilities;                      (C)  distribution warehouse centers; [and]                      (D)  mineral extraction activities, as defined by   Section 2270.0051, Government Code; and                      (E)  other nonretail private enterprises;                (3)  the construction, extension, or other improvement   of:                      (A)  water or waste disposal facilities; [or]                      (B)  transportation infrastructure; or                      (C)  energy generation, transmission, and   distribution facilities; or                (4)  any other activity relating to private economic   development that the commissioner determines will encourage   economic and infrastructure development in a rural area.          SECTION 2.  Section 12.0272(b), Agriculture Code, is amended   to read as follows:          (b)  Money in the Texas economic development fund is   dedicated to and may be appropriated only to the department for the   purposes of administering, continuing, implementing, or   maintaining:                (1)  an economic development program originally   established as part of the department's implementation of the State   Small Business Credit Initiative; or [and]                (2)  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 3.  Section 12.0273, Agriculture Code, is amended by   amending Subsections (c), (d), and (e) and adding Subsections (e-1)   and (h) to read as follows:          (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. Subject to Subsection (f), the   department may use any money in the fund 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.          (e-1)  The maximum aggregate amount of outstanding loans to   any one person at any time using money from the fund may not exceed   $1 million.          (h)  The department may adopt rules for the repayment of a   loan or grant made under this section.          SECTION 4.  Section 12.0273, Agriculture Code, as amended by   this Act, applies only to a loan or grant made on or after the   effective date of this Act.          SECTION 5.  This Act takes effect September 1, 2025.