Part 5.
TEXAS DEPARTMENT OF ECONOMIC DEVELOPMENT
Chapter 172.
TEXAS RURAL ECONOMIC DEVELOPMENT PROGRAM
10 TAC §172.1
The Texas Department of Economic Development (department)
proposes amendments to Chapter 172. Texas Rural Economic Development Program,
concerning the provision of standards of eligibility and application procedures
for a loan guaranty under the Rural Economic Development Act.
The proposed amendments are necessary to accurately reflect current law
and to allow for the adoption of new rules. Senate Bill 932 of the 75th Legislature,
which abolished the Texas Department of Commerce and created the Texas Department
of Economic Development, also abolished the Texas Department of Commerce policy
board and created a new governing board for the Department. All references
to the Texas Department of Commerce and the policy board have been amended
to accurately reflect current law.
Craig Pinkley, Director of Finance, has determined that for each year of
the first five years that the amendments are in effect there will be no fiscal
implications to the state or to local governments as a result of the amendments.
No cost to either government or the public will result from the amendments.
There will be no impact on small businesses or microbusinesses. No economic
cost is anticipated to persons as a result of the amendments.
Mr. Pinkley has also determined that for each year of the first five years
the amendments are in effect the public benefit anticipated as a result of
the amendments will be the avoidance of any confusion that may be caused by
incorrect references or legal citations. No economic costs are anticipated
to persons who are required to comply with the proposed repeal.
Written comments on the proposed amendments may be hand-delivered to DeAnn
Luper, Legal Assistant, Texas Department of Economic Development, 1700 North
Congress, Suite 130, Austin, Texas 78701, mailed to P.O. Box 12728, Austin,
Texas 78711-2728, or faxed to (512) 936-0415, within 30 days of publication.
The amendments are proposed pursuant to Government Code, §481.0044(a),
which directs the Governing Board of the department to adopt rules for administration
of department programs, and Government Code, Chapter 2001, Subchapter B which
prescribes the standards for rulemaking by state agencies.
Texas Government Code, Chapter 481, is affected by this proposal.
§172.1.General Provisions.
(a)
Introduction. Pursuant to the authority granted by the
Texas Rural Economic Development Act, Texas Government Code, Chapter 481,
Subchapter F; and the Administrative Procedure Act, the Texas Government Code,
Chapter 2001, the Texas Department of
Economic Development
[
(b)
Purpose. It is the purpose of the Texas Rural Economic
Development Act to establish a program which promotes economic development
and employment in rural communities across the state. Communities in this
state are at a critical disadvantage in competing with communities in other
states for location or expansion of businesses because of the availability
of financing and other special incentives. The purpose of the new sections
is to provide standards of eligibility and application procedures for a loan
guaranty under the Rural Economic Development Act.
(c)
Definition of terms. The following words and terms, when
used in this section, shall have the following meanings, unless the context
clearly indicates otherwise.
(1)
Act--The Texas Rural Economic Development Act, Texas Government
Code, Chapter 481, Subchapter F.
(2)
Applicant--The private lender or user filing an application
with the department for a loan guaranty.
(3)
Application--An application, including supporting documentation,
for participation in the program pursuant to the Act and this chapter.
(4)
Business day--A day in which the department is open for
business. The term shall not include any Saturday, Sunday, or traditional
holiday officially observed by the state. The department's normal business
hours are 8:00 a.m. to 5:00 p.m. each business day.
(5)
City--Any municipality of the state incorporated under
the provisions of any general or special law, or the home-rule amendment to
the constitution.
(6)
County--Any county of the State of Texas.
(7)
Department--Texas Department of
Economic Development
[
(8)
Eligible enterprise--Pari-mutuel racing or a private-for-profit
enterprise, new or existing, whose primary activity includes either providing
a service, producing a product, or selling merchandise.
(9)
Equity--The user's contribution to a project in the form
of cash, land, or depreciable property.
(10)
Executive director--The executive director of the department
or his or her designee.
(11)
Federal agency--The United States of America, the president
of the United States of America, and any department of or corporation, agency,
or instrumentality heretofore or hereafter created, designated, or established
by the United States of America.
(12)
Fund--Texas Rural Economic Development Fund.
(13)
Guaranty amount--With respect to loans made by financial
institutions, is a sum measured in terms of United States dollars, that in
the case of default by the borrower, guarantees repayment of the loan, not
to exceed 75% or 90% of the loan outstanding. This amount may not exceed $350,000,
except in those instances where substantial job creation is a major component.
(14)
Guarantee-to-reserve ratio--A ratio established by the
governing
[
(15)
Historically underutilized business--
(A)
a corporation formed for the purpose of making a profit
in which at least 51% of all classes of the shares of stock or other equitable
securities is owned by one or more persons who are members of certain groups
including Black Americans, Hispanic Americans, women, Asian Pacific Americans,
and American Indians;
(B)
a sole proprietorship formed for the purpose of making
a profit that is 100% owned, operated, and controlled by a person described
by subparagraph (A) of this paragraph;
(C)
a partnership formed for the purpose of making a profit
in which 51% of the assets and interest in the partnership is owned by one
or more persons described by subparagraph (A) of this paragraph. Those persons
must have proportionate interest and demonstrate active participation in the
control, operation, and management of the partnership's affairs; or
(D)
a joint venture in which each entity in the joint venture
is a historically underutilized business under this subdivision.
(16)
Loan review committee--A committee consisting of department
staff members selected by the department's executive director to review eligible
projects for consideration.
(17)
New enterprise--A private-for-profit enterprise which
has actively been in business for a period of less than one year.
(18)
Governing
[
(19)
Private lender--A lending institution, including a bank,
savings bank, saving and loan association, trust company, or insurance company,
or an individual or municipal corporation that the department determines is
an experienced and sophisticated investor.
(20)
Program--Texas Rural Economic Development Program.
(21)
Project--The land, building, equipment, facilities and
improvements (one or more), and working capital found by the department to
be required or suitable for the promotion of and for use by an eligible enterprise,
irrespective of whether in existence or required to be acquired or constructed
after the making of such finding by the department.
(22)
Qualified application--A completed application, including
all documents and information required by the department and submitted by
a user or private lender for a project.
(23)
Rural area--A city having a population of 50,000 or less,
or the unincorporated area of a county, which has a population of 200,000
or less and which is predominantly rural in character. Population is to be
determined by the decennial census or federal census estimate, whichever is
most recently published by the United States Bureau of Census.
(24)
Staff--The staff of the department.
(25)
State--State of Texas.
(26)
State auditor--State auditor of the State of Texas.
(27)
User--An individual, partnership, corporation, or any
other private entity found by the department to be financially responsible
to assume the obligation in connection with a project.
(d)
Conflicts of interest.
(1)
A member of the
governing
[
(2)
With respect to a direct or indirect interest, other than
an interest prohibited by paragraph (1) of this subsection, in a contract
or agreement under this chapter on which the member of the
governing
[
(3)
A contract or agreement made in violation of this subsection
is void.
(e)
Examination of records. Any party requesting the examination
of records pursuant to the Texas
Public Information
[
(f)
Written communication with the department. Applications
and other written communications to the department should be addressed to
the attention of the Business Development Division, Capital Development, Texas
Department of
Economic Development
[
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State, on August 14, 2000.
TRD-200005700
Tracye McDaniel
Deputy Executive Director
Texas Department of Economic Development
Earliest possible date of adoption: September 24, 2000
For further information, please call: (512) 936-0177
Subchapter A. BUSINESS PERMIT OFFICE
10 TAC §§182.1 - 182.4
(Editor's note: The text of the following sections proposed for
repeal will not be published. The sections may be examined in the offices
of the Texas Department of Economic Development or in the Texas Register office,
Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)
The Texas Department of Economic Development (department)
proposes the repeal of 10 Texas Administrative Code, Chapter 182. Small Business
Assistance, Subchapter A. Business Permit Office in its entirety, concerning
the procedure by which the department allows applicants to obtain permit and/or
license application forms and related information required to be completed
in order to obtain a particular state issued license or permit. The repeal
is necessary to accurately reflect current law and to allow the adoption of
new rules.
Melvin Wrenn, Director, Clearinghouse and Research, has determined that
for each year of the first five years that the repeal will be in effect there
will be no fiscal implications to the state or to local governments as a result
of the repeal. No cost to either government or the public will result from
the repeal. There will be no impact on small businesses or microbusinesses.
No economic cost is anticipated to persons as a result of the repeal.
Mr. Wrenn has also determined that for each year of the first five years
the repeal is in effect the public benefit anticipated as a result of the
repeal will be the avoidance of any confusion that may be caused by incorrect
wording or legal citations. No economic costs are anticipated to persons who
are required to comply with the proposed repeal.
Written comments on this proposed review may be hand-delivered to DeAnn
Luper, Legal Assistant, Texas Department of Economic Development, 1700 North
Congress, Suite 130, Austin, Texas 78701, mailed to P.O. Box 12728, Austin,
Texas 78711-2728, or faxed to (512) 936-0415, within 30 days of publication.
The repeal is proposed pursuant to Government Code, §481.0044(a),
which directs the Governing Board of the department to adopt rules for administration
of department programs, and Government Code, Chapter 2001, Subchapter B which
prescribes the standards for rulemaking by state agencies.
Texas Government Code, Chapter 481, is affected by this proposal. Subchapter
A. Business Permit Office
§182.1.Definitions.
§182.2.Comprehensive Application Procedure.
§182.3.Comprehensive Application Request Form.
§182.4.Agency Response Form.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State, on August 14, 2000.
TRD-200005696
Tracye McDaniel
Deputy Executive Director
Texas Department of Economic Development
Earliest possible date of adoption: September 24, 2000
For further information, please call: (512) 936-0177
Subchapter A. OFFICE OF PERMIT ASSISTANCE
Commerce
] prescribes the following sections regarding practice and procedure
before the department in the administration and implementation of the Rural
Economic Development Fund.
Commerce
].
policy
] board to determine the amount of guaranties
exceeding the amount in the fund, which ratio cannot exceed two to one. The
ratio shall be two to one effective January 1, 1994, and shall remain in effect
until
governing
[
policy
] board adjusts. The
governing
[
policy
] board must review annually the ratio and adjust
it if appropriate, based upon the payment experience of the loans and any
recommendations of the state auditor. The state auditor must review annually
the loan program and make recommendations to the
governing
[
policy
] board by September 1 of each year. For the initial period, the
state auditor must recommend a ratio to the
governing
[
policy
] board by December 1, 1993, which will be effective through September
1, 1994.
Policy
] board
Governing
[
Policy
] board of the Texas Department of
Economic
Development
[
Commerce
].
policy
]
board, committee, agent, or employee of the department, in his or her own
name or in the name of a nominee, may not hold an ownership interest of more
than 7- 1/2% or in excess of $50,000 of the fair market value of an association,
trust, corporation, partnership, or other entity that is, in its own name
or in the name of a nominee, party to a contract or agreement under this chapter
on which the member of the
governing
[
policy
] board,
loan review committee, agent, or employee may be called on to act or vote.
policy
] board, loan review committee, agent, or employee
may be called on to act or vote, the member of the
governing
[
policy
] board, committee, agent, or employee shall disclose the interest
to the department before the taking of final action by the department concerning
the contract or agreement, and shall disclose the nature and extent of the
interest and his or her acquisition of it. This disclosure shall be publicly
acknowledged by the department and kept a part of its file. A member of the
governing
[
policy
] board, loan review committee, agent, or
employee who holds such interest may not be officially involved in regard
to the contract or agreement, may not vote on a matter relating to the contract
or agreement, and may not communicate with other members, agents, or employees
concerning the contract or agreement.
Open
Records
] Act, Texas Government Code, Chapter 552 [
(Vernon's Session
Laws 1993)
] shall indicate in writing the specific nature of the document
to be viewed, and if photocopying is desired, the appropriate fee must accompany
the request.
Commerce
], P.O.
Box 12728, Austin, Texas 78711.
Chapter 182.
SMALL BUSINESS ASSISTANCE
Chapter 182.
BUSINESS ASSISTANCE