SB1465 —

Compared against the Texas statutes as published AI-generated reading aid — verify against the official bill.

This bill amends 1 section(s) of the Texas statutes: Section 501.008, Local Government Code.

• SUBCHAPTER E. TEXAS SMALL AND RURAL COMMUNITY SUCCESS FUND Sec. 489.251. DEFINITION. In this subchapter, "fund" means the Texas small and rural community success fund established by Section 489.252. Sec. 489.252. TEXAS SMALL AND RURAL COMMUNITY SUCCESS FUND. (a) The Texas small and rural community success fund is created as a trust fund held outside the state treasury by the comptroller as trustee. The comptroller shall hold money in the fund in escrow and in trust for and on behalf of the bank and the owners of bonds issued under Section 489.253. (b) The fund consists of: (1) proceeds from the issuance of bonds under Section 489.253; (2) payments of principal and interest on loans made under this subchapter; (3) loan origination fees imposed on loans made under this subchapter; (4) investment earnings described by Subsection (e); and (5) any other money received by the bank under this subchapter. (c) The fund may be used only: (1) to make loans to economic development corporations for eligible projects as authorized by Chapters 501, 504, and 505, Local Government Code; (2) to pay the bank's necessary and reasonable costs of administering the program established by this subchapter, including the payment of letter of credit fees and credit rating fees; (3) to pay the principal of and interest on bonds issued under Section 489.253; (4) to pay reasonable fees and other costs incurred by the bank in administering the fund; and (5) for any other purpose authorized by this subchapter. (d) The bank, in coordination with the comptroller, may provide for the establishment and maintenance of separate accounts or sub-accounts in the fund, including interest and sinking accounts, reserve accounts, program accounts, or other accounts. The accounts and sub-accounts must be kept and held in escrow and in trust as provided by Subsection (a). (e) Pending use, the comptroller may invest and reinvest the money in the fund in investments authorized by law for state funds. Earnings on the investments shall be credited to the fund. (f) The bank may use money in the fund for the purposes specified by and according to the procedures established by this subchapter. This state may take action with respect to the fund only as specified by this subchapter and only in accordance with the resolutions of the executive director of the office adopted under Section 489.253. Sec. 489.253. REVENUE-BASED BONDS AUTHORIZED. (a) The bank, the office, or the office's successor agency may provide for the issuance, sale, and retirement of bonds, including obligations in the form of commercial paper notes, to provide funding for economic development purposes as authorized by Section 52-a, Article III, Texas Constitution, and this subchapter. (b) The bonds are special obligations of the bank and the principal of and interest on the bonds must be payable solely from the revenues derived by the bank under this subchapter, including loan repayments secured by a pledge of the local economic development sales and use tax revenues imposed by municipalities for the benefit of economic development corporations created under Chapters 504 and 505, Local Government Code. The bonds do not constitute an indebtedness of this state, the office, or the bank in the meaning of the Texas Constitution or of any statutory limitation. The bonds do not constitute a pecuniary liability of this state, the office, or the bank or constitute a charge against the general credit of this state, the office, or the bank, or against the taxing power of this state. The limitations provided by this subsection must be stated plainly on the face of each bond. (c) The executive director of the office by resolution may provide for the bonds to: (1) be executed and delivered at any time in one or more series as a single issue or as several issues; (2) be in any denomination and form, including registered uncertificated bonds not represented by written instruments and commonly known as book-entry obligations, th

  amended

• Section 501.008, Local Government Code

  A → (a) Except as provided by Subsection (b), a (b) A Type A or Type B corporation may obtain a loan from the Texas small and rural community success fund program under Subchapter E, Chapter 489, Government Code, for eligible projects as authorized by this subtitle. To secure the loan, the Type A or Type B corporation may pledge revenue from the sales and use tax imposed by the corporation's authorizing municipality under Chapter 504 or 505, as applicable, for the benefit of the corporation.

  amended

• Sec. 501.108. PROJECTS RELATED TO BROADBAND NETWORK INFRASTRUCTURE EXPANSION. In this subtitle, "project" includes the land, equipment, expenditures, and improvements that are found by the board of directors to be suitable for the expansion of broadband network infrastructure. Sec. 501.109. PROJECTS RELATED TO ASSISTANCE FOR SMALL BUSINESSES AFFECTED BY DECLARED DISASTER. (a) For the purposes of Subsection (b), "small business" means a corporation, partnership, sole proprietorship, or other legal entity that: (1) is formed for the purpose of making a profit; (2) is independently owned and operated; and (3) has fewer than 100 employees residing in this state. (b) In this subtitle, "project" includes expenditures that are found by the board of directors to be suitable to assist the economic recovery of small businesses whose operation was restricted by an order, proclamation, or regulation issued by the governor or the governing body of a political subdivision during a declared state of disaster under Chapter 418, Government Code.

  amended