Bill Text: TX HB2048 | 2013-2014 | 83rd Legislature | Introduced


Bill Title: Relating to the establishment of the Texas Rural Development Fund and to the establishment, operation, and funding of certain programs for rural economic development.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2013-04-17 - Left pending in committee [HB2048 Detail]

Download: Texas-2013-HB2048-Introduced.html
  83R4640 CLG-F
 
  By: Lozano H.B. No. 2048
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the establishment of the Texas Rural Development Fund
  and to the establishment, operation, and funding of certain
  programs for rural economic development.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 487.001, Government Code, is amended by
  adding Subdivision (5) to read as follows:
               (5)  "Rural area" means an area that is predominately
  rural in character as defined by the office.
         SECTION 2.  Subchapter C, Chapter 487, Government Code, is
  amended by adding Section 487.062 to read as follows:
         Sec. 487.062.  TRAINING. (a)  The office may develop and
  administer a training program related to the programs and
  activities established under Subchapters T, U, V, W, X, and Y.
         (b)  The office may contract with a public or private entity
  to develop and provide the training under this section.
         SECTION 3.  Chapter 487, Government Code, is amended by
  adding Subchapters S, T, U, V, W, X, and Y to read as follows:
  SUBCHAPTER S. TEXAS RURAL DEVELOPMENT FUND
         Sec. 487.821.  TEXAS RURAL DEVELOPMENT FUND. (a)  The Texas
  Rural Development Fund is an account in the general revenue fund.
  The account is composed of:
               (1)  legislative appropriations;
               (2)  gifts, donations, grants, and matching funds
  received under Subsection (b); and
               (3)  other money required by law to be deposited in the
  account.
         (b)  The office may solicit and accept gifts, donations,
  grants, and matching funds of money from the federal government,
  local governments, private corporations, or other persons to be
  used for the purposes of Subchapters T, U, V, W, X, and Y.
         (c)  Income from money in the account shall be credited to
  the account.
         (d)  Money in the development fund may be used only for the
  purpose of implementing and maintaining the programs established
  under Subchapters T, U, V, W, X, and Y.
  SUBCHAPTER T. RURAL ENTREPRENEURSHIP AND BUSINESS INNOVATION
  PROGRAM
         Sec. 487.831.  DEFINITIONS. In this subchapter:
               (1)  "Microenterprise" means a business in a rural area
  with not more than five employees.
               (2)  "Minimum wage" means the minimum wage set by
  federal law as of January 1, 2013.
               (3)  "Program" means the rural entrepreneurship and
  business innovation program established under this subchapter.
               (4)  "Small business" means a business in a rural area
  with not more than 200 employees.
         Sec. 487.832.  PROGRAM. The office shall create a rural
  entrepreneurship and business innovation program to:
               (1)  assist in the development and expansion of
  businesses in rural areas;
               (2)  assist entrepreneurs in rural areas; and
               (3)  recruit out-of-state businesses to locate and
  transact business in rural areas.
         Sec. 487.833.  INCENTIVES; LOANS. (a)  The program shall
  offer incentives in the form of loans to entrepreneurs and
  businesses for purposes of the creation or retention of jobs in
  rural areas.
         (b)  An eligible business or entrepreneur may apply for a
  loan under the program on an application form prescribed by the
  office.
         Sec. 487.834.  ELIGIBLE BUSINESS OR ENTREPRENEUR; BORROWING
  REQUIREMENTS.  (a)  The office may make a loan under the program to
  any of the following eligible businesses or entrepreneurs:
               (1)  microenterprises;
               (2)  small businesses;
               (3)  businesses dependent on natural resources in
  developing value-added products;
               (4)  tourism or recreation businesses;
               (5)  entrepreneurs and small businesses that provide
  broadband service access to underserved rural areas; and
               (6)  projects to develop infrastructure for the benefit
  of entrepreneurs and businesses in rural areas.
         (b)  To be eligible to receive a loan under this subchapter,
  the applicant must:
               (1)  be in good standing under the laws of the state in
  which the entity was formed or organized, as evidenced by a
  certificate issued by the secretary of state or the state official
  having custody of the records pertaining to entities or other
  organizations formed under the laws of that state; and
               (2)  owe no delinquent taxes to a taxing unit of this
  state.
         (c)  The office may require a commercial bank letter of
  credit.  The office may determine and require other terms and
  conditions, including insurance or a bank guarantee, for the making
  of a loan under the program.
         Sec. 487.835.  MAXIMUM LOAN AMOUNT.  (a)  The maximum loan
  amount to be made by the program is $35,000 for each eligible
  employee position retained or created.
         (b)  A loan made by the program may be based on the following
  schedule:
               (1)  up to $14,000 for each eligible employee position
  retained or created with wages greater than or equal to 170 percent
  and less than 200 percent of the minimum wage;
               (2)  up to $21,000 for each eligible employee position
  retained or created with wages greater than or equal to 200 percent
  and less than 250 percent of the minimum wage;
               (3)  up to $28,000 for each eligible employee position
  retained or created with wages greater than or equal to 250 percent
  and less than 300 percent of the minimum wage; and
               (4)  up to $35,000 for each eligible employee position
  retained or created with wages greater than or equal to 300 percent
  of the minimum wage.
         Sec. 487.836.  RESTRICTION ON USE OF LOAN.  A loan may not be
  used to attract a business from another location in this state,
  unless the office determines that the business would otherwise
  leave the state.
         Sec. 487.837.  LOAN TERMS. (a)  Loan interest rates must be
  based on the capacity of the borrower and the risk of the project,
  as determined by the office.
         (b)  Loan interest rates may be as low as one percent.
         Sec. 487.838.  WRITTEN AGREEMENT.  (a)  Before awarding a
  loan under this subchapter, the office shall enter into a written
  agreement with the entity to be awarded the loan money specifying
  that:
               (1)  if the office finds that the loan recipient has not
  met each of the performance targets specified in the agreement as of
  a date certain provided in the agreement:
                     (A)  the recipient shall repay the loan and any
  related interest to the state at the agreed rate and on the agreed
  terms;
                     (B)  the office will not distribute to the
  recipient any loan money that remains to be awarded under the
  agreement; and
                     (C)  the office may assess specified penalties for
  noncompliance against the recipient;
               (2)  if all or any portion of the amount of the loan is
  used to build a capital improvement, the state may:
                     (A)  retain a lien or other interest in the
  capital improvement in proportion to the percentage of the loan
  amount used to pay for the capital improvement; and
                     (B)  require the recipient of the loan, if the
  capital improvement is sold, to:
                           (i)  repay to the state the loan money used
  to pay for the capital improvement, with interest at the rate and
  according to the other terms provided by the agreement; and
                           (ii)  share with the state a proportionate
  amount of any profit realized from the sale; and
               (3)  if, as of a date certain provided in the agreement,
  the loan recipient has not used loan money awarded under this
  subchapter for the purposes for which the loan was intended, the
  recipient shall repay that amount and any related interest to the
  state at the agreed rate and on the agreed terms.
         (b)  The loan agreement may include a provision providing
  that a reasonable percentage of the total amount of the loan will be
  withheld until specified performance targets are met by the entity
  as of the date described by Subsection (a)(1).
         (c)  The office shall determine:
               (1)  the performance targets and date required to be
  contained in the loan agreement as provided by Subsection (a)(1);
  and
               (2)  if the loan agreement includes the provision
  authorized by Subsection (b), the percentage of loan money required
  to be withheld.
         Sec. 487.839.  ANNUAL PROGRESS REPORT.  An entity entering
  into a loan agreement under Section 487.838 shall submit to the
  office an annual progress report containing the information
  compiled during the previous calendar year regarding the attainment
  of each of the performance targets specified in the agreement.
         Sec. 487.840.  REPAYMENT OF LOAN.  (a)  Repayment of a loan
  under Section 487.838(a)(1)(A) may be prorated to reflect a partial
  attainment of performance targets.
         (b)  After repayment of a loan, the office may rebate to the
  borrower an amount to cover fees associated with a commercial bank
  letter of credit and all, or a portion of, the borrower's incidental
  borrowing costs.
         (c)  The office may use interest earned on any loans to repay
  any indebtedness related to the program.
         Sec. 487.841.  SUPPORT SERVICES. The office may contract to
  provide services to entrepreneurs or businesses for purposes of
  implementing the program.
         Sec. 487.842.  CHALLENGE GRANTS. The office may award
  challenge grants under the program to promote the establishment of
  community-based organizations to work in partnership with
  communities in rural areas to assist entrepreneurs through economic
  development efforts in existence at the time of the organization's
  establishment.
  SUBCHAPTER U. RURAL AREA REGIONAL PLANNING AND IMPLEMENTATION
  MATCHING GRANT PROGRAM
         Sec. 487.851.  DEFINITION. In this subchapter, "program"
  means the rural area regional planning and implementation matching
  grant program established under this subchapter.
         Sec. 487.852.  RURAL AREA REGIONAL PLANNING AND
  IMPLEMENTATION MATCHING GRANT PROGRAM. (a)  The office shall
  create the rural area regional planning and implementation matching
  grant program to foster regional collaboration for community and
  economic development in rural areas.
         (b)  The office may award matching grants for the planning
  and implementation of regionally identified objectives in a rural
  area.
         Sec. 487.853.  ELIGIBLE ENTITIES. (a)  To be awarded a
  matching grant under the program for a proposed project, an
  application, including a description of the project proposal, must
  be jointly submitted by two or more of the following entities in the
  form prescribed by the office:
               (1)  a municipality;
               (2)  a county;
               (3)  an economic development corporation;
               (4)  a community foundation;
               (5)  a faith-based organization;
               (6)  a hospital or clinic;
               (7)  an institution of higher education, as defined by
  Section 61.003, Education Code; or
               (8)  a commission, as defined by Section 391.002, Local
  Government Code.
         (b)  Entities that jointly submit an application under
  Subsection (a) must be physically located in at least:
               (1)  two or more adjacent rural counties; or
               (2)  two or more municipalities or census-designated
  places in a rural county.
         Sec. 487.854.  GRANT AWARDS. The office shall give
  preference to eligible applicants that demonstrate an inclusive
  planning and implementation process over other eligible applicants
  for an award of a matching grant under the program.
  SUBCHAPTER V. RURAL CAPACITY AND LEADERSHIP ENHANCEMENT PROGRAM
         Sec. 487.861.  DEFINITION. In this subchapter, "program"
  means the rural capacity and leadership enhancement program.
         Sec. 487.862.  PROGRAM. The office shall create the rural
  capacity and leadership enhancement program to assist
  municipalities and unincorporated communities in rural areas to:
               (1)  develop leadership capacity;
               (2)  improve the business practices of municipal
  government;
               (3)  increase awareness of the benefits of renewable
  energy;
               (4)  identify community assets that can be used to
  enhance community and economic development; and
               (5)  provide assistance for emergency services
  districts.
         Sec. 487.863.  RURAL LEADERSHIP CURRICULUM. The office may
  coordinate with an interested public junior college or public
  technical institute, as those terms are defined by Section 61.003,
  Education Code, that is located in a rural area or a consortium of
  those colleges or institutes, the Texas Rural Leadership Program,
  or another appropriate leadership program to develop and maintain a
  rural leadership curriculum to implement the program.
         Sec. 487.864.  LEADERSHIP TRAINING. The office may award a
  stipend under the program to an individual who completes training
  based on the curriculum developed under Section 487.863.
  SUBCHAPTER W. RURAL COMMUNITY ASSET STUDY MATCHING GRANT PROGRAM
         Sec. 487.871.  DEFINITION. In this subchapter, "program"
  means the rural community asset study matching grant program.
         Sec. 487.872.  RURAL COMMUNITY ASSET STUDY MATCHING GRANT
  PROGRAM. (a)  The office shall create the rural community asset
  study matching grant program to assist communities in rural areas
  in identifying community assets.
         (b)  The office may issue matching grants to fund community
  asset studies in accordance with criteria established by the
  office.
         Sec. 487.873.  ELIGIBLE ENTITIES. (a)  To be awarded a
  matching grant under the program for a proposed project, an
  application, including a description of the project proposal, must
  be jointly submitted by two or more of the following entities in the
  form prescribed by the office:
               (1)  a municipality;
               (2)  a county;
               (3)  an economic development corporation;
               (4)  a community foundation;
               (5)  a faith-based organization;
               (6)  a hospital or clinic;
               (7)  an institution of higher education, as defined by
  Section 61.003, Education Code; or
               (8)  a commission, as defined by Section 391.002, Local
  Government Code.
         (b)  The office shall give preference to eligible applicants
  that demonstrate an inclusive planning and implementation process
  over other eligible applicants for an award of a matching grant
  under the program.
         (c)  The office shall develop criteria for eligible projects
  and for the awarding of matching grants under the program.
  SUBCHAPTER X. TEXAS RURAL YOUTH CORPS PROGRAM
         Sec. 487.881.  DEFINITIONS. In this subchapter:
               (1)  "Director" means the director of the Office of
  Rural Affairs appointed under Section 12.038, Agriculture Code.
               (2)  "Program" means the Texas rural youth corps
  program.
         Sec. 487.882.  TEXAS RURAL YOUTH CORPS PROGRAM. (a)  The
  office shall create the Texas rural youth corps program to
  encourage youth participation in civic improvement activities in
  rural areas. The program shall:
               (1)  provide youth in rural areas with opportunities to
  acquire job skills while participating in community service
  activities; and
               (2)  create opportunities for youth that allow rural
  communities to enhance existing community resources and improve
  economic conditions.
         (b)  The office may designate personnel as necessary to
  administer the program.
         Sec. 487.883.  GRANTS. The director may award grants under
  the program to eligible entities for projects that meet the
  requirements of this subchapter.
         Sec. 487.884.  ELIGIBLE ENTITIES. (a)  Except as provided by
  Subsection (b), the following entities are eligible to submit an
  application as provided by Section 487.886 to receive a grant for a
  proposed project under this subchapter:
               (1)  a nonprofit organization;
               (2)  a public agency that operates a community-based
  youth employment training program;
               (3)  a community housing development organization
  certified by this state;
               (4)  a youth organization;
               (5)  a corps-based community service organization; or
               (6)  another entity authorized by the office.
         (b)  Each eligible applicant that submits an application
  under Subsection (a) must demonstrate that the applicant has at
  least three years of successful experience operating programs for
  the benefit of youth, in particular disadvantaged or at-risk youth
  populations.
         Sec. 487.885.  ELIGIBLE PROJECTS. To receive a grant under
  the program, a proposed project of an eligible applicant must
  provide, by using the services and skills of youth participants who
  are at least 12 years of age but younger than 19 years of age, at
  least one of the following services to the rural community in which
  the project is located:
               (1)  rehabilitation or construction of
  energy-efficient, affordable housing for:
                     (A)  elderly individuals;
                     (B)  veterans of the United States armed forces;
  or
                     (C)  low-income individuals and families;
               (2)  sustainable construction or rehabilitation of:
                     (A)  historic properties;
                     (B)  community facilities;
                     (C)  business incubators;
                     (D)  health care facilities;
                     (E)  cultural districts; or
                     (F)  parks or cemeteries owned or supported by
  funds of public or nonprofit entities;
               (3)  increased access to information on new technology
  and technological advances, including communications or renewable
  energy technologies;
               (4)  documentation of community history;
               (5)  identification and analysis of community assets
  through a community asset study; and
               (6)  marketing services of community assets,
  amenities, and history identified in a community history
  documentation or community asset study.
         Sec. 487.886.  GRANT APPLICATION. A grant application for a
  proposed project must be filed with the office in a form prescribed
  by the office. Each application must include:
               (1)  the amount of grant money requested;
               (2)  a description of the proposed project;
               (3)  a description of the applicant's qualifications,
  including the applicant's experience with youth, educational
  groups, and community groups;
               (4)  a list of proposed sites for construction or
  rehabilitation of housing or other buildings, if applicable;
               (5)  a description of proposed sustainable
  construction or rehabilitation activities, including an
  implementation schedule, if applicable;
               (6)  a description of the applicant's proposed
  procedures for recruiting and selecting participants in the
  project;
               (7)  a proposed budget;
               (8)  a description of proposed financing, if
  applicable;
               (9)  a list of relevant contracts or other arrangements
  between the applicant and public agencies to facilitate project
  implementation;
               (10)  a list of prospective donations, grants, or
  in-kind contributions that will supplement grant money received
  under the program; and
               (11)  other criteria as considered necessary by the
  office.
         Sec. 487.887.  PROJECT SELECTION; CRITERIA. (a)  The office
  shall establish criteria for selecting projects for the awarding of
  a grant under this subchapter.
         (b)  In establishing criteria under Subsection (a), the
  office shall:
               (1)  give preference to an applicant who can document
  the existence of matching contributions from other sources and
  support from local organizations, community leaders, and elected
  officials; and
               (2)  give preference to projects that provide
  participants with an opportunity to earn scholarship awards toward
  college tuition expenses.
         (c)  In establishing criteria under Subsection (a), the
  office may:
               (1)  give preference to an applicant who has experience
  in providing the services proposed to be provided under the
  project; and
               (2)  give preference to projects that assist youths who
  are at least 12 years of age but younger than 19 years of age who:
                     (A)  are not attending high school and have not
  received a high school diploma or high school equivalency
  certificate; or
                     (B)  attend high school or a program leading to a
  high school equivalency certificate, but have been identified as
  being at risk of dropping out of high school or the program leading
  to a high school equivalency certificate.
         Sec. 487.888.  ADVISORY BOARD; PARTICIPANT COUNCIL. On
  receipt of a grant under the program, the successful grantees shall
  establish:
               (1)  an advisory board for the project that includes:
                     (A)  senior staff that manage and operate the
  project;
                     (B)  employers and business and community leaders
  of the community; and
                     (C)  project participants; and
               (2)  a project participant council to provide comments
  and suggestions regarding project policies.
         Sec. 487.889.  ASSISTANCE FOR GRANTEES. The office shall
  provide grantees awarded a grant under the program access to
  curriculum materials created under Section 487.863, in particular
  materials that are designed to develop:
               (1)  leadership ethics;
               (2)  active citizenship;
               (3)  a sense of personal responsibility;
               (4)  critical thinking skills;
               (5)  decision-making skills;
               (6)  problem-solving skills; and
               (7)  negotiation skills.
         Sec. 487.890.  OTHER FUNDING SOURCES REQUIRED. Up to 50
  percent of a proposed project's budget must be derived from a source
  other than the award of a grant or other incentive from the office,
  as determined by the office.
         Sec. 487.891.  LIMIT ON ADMINISTRATIVE EXPENSES. A grantee
  may not spend grant money for more than eight percent of a proposed
  project's administrative costs.
         Sec. 487.892.  REPORTING REQUIREMENT. The department must
  include the following information regarding the program in its
  biennial report to the legislature under Section 487.056:
               (1)  the total number of grants and the total amount of
  grant money awarded under the program;
               (2)  the geographical distribution of grants awarded;
  and
               (3)  the number of youth and other persons
  participating in program-funded projects.
  SUBCHAPTER Y. RURAL WEALTH CREATION AND RETENTION PROGRAM
         Sec. 487.901.  DEFINITION. In this subchapter, "program"
  means the rural wealth creation and retention program.
         Sec. 487.902.  RURAL WEALTH CREATION AND RETENTION PROGRAM.
  The office shall create a rural wealth creation and retention
  program to assist rural communities in:
               (1)  identifying community wealth;
               (2)  educating residents about the benefits of
  charitable giving; and
               (3)  encouraging the creation of community foundations
  in those areas to build sustainable local wealth and decrease
  long-term dependence on state and federal resources.
         Sec. 487.903.  CONTRACT FOR SERVICES. (a)  The office may
  contract with other entities to provide services under the program.
         (b)  In making a decision to contract with an entity under
  Subsection (a), the office shall give preference to an entity with a
  proven history of providing assistance to community foundations.
         Sec. 487.904.  SUPPORT SERVICES. The office, or a
  contracting entity under Section 487.903, may provide support
  services for the implementation of the program, including financial
  management, strategic development, and education training.
         Sec. 487.905.  FEE. The office, or a contracting entity
  under Section 487.903, may charge a fee for services provided under
  the program. The amount of the fee shall be determined by the
  office.
         SECTION 4.  Not later than March 1, 2014, the commissioner of
  agriculture shall adopt any necessary rules for the fund
  established under Subchapter S, Chapter 487, Government Code, as
  added by this Act, and the programs established under Subchapters T
  through Y, Chapter 487, Government Code, as added by this Act.
         SECTION 5.  Implementation of the programs established under
  Subchapters T through Y, Chapter 487, Government Code, as added by
  this Act, is contingent on appropriation of funding by the
  legislature.
         SECTION 6.  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, 2013.
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