10 TAC §§185.2 - 185.4
The Texas Department of Economic Development (department)
proposes amendments to §§185.2 - 185.4 of Chapter 185, concerning
Rules for Texas Small Business Industrial Development Corporation Revenue
Bond Programs.
The proposed amendments change the name of the Texas Economic Development
Commission to the Texas Department of Economic Development to reflect the
abolishment of the Texas Department of Commerce by Senate Bill 932 of the
75th Legislature and the transfer of that agency's functions to the department,
effective September 1, 1997. The proposed amendments also change all references
to the Section 503 Loan Program to the Section 504 Loan Program, as the 503
Loan Program no longer exists.
Craig Pinkley, Director of Finance, has determined that for each year of
the first five years that the amendments will be in effect there will be no
fiscal implications to the state or to local governments as a result of enforcing
or administering the amendments. No cost or reduction in cost to either government
or the public is anticipated as a result of the amendments. There will be
no impact on small businesses or micro businesses. No economic cost is anticipated
to persons as a result of the proposed 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
enforcing the rules will be the avoidance of any confusion that may be caused
by incorrect wording, legal citations or agency names. No economic costs are
anticipated to persons who are required to comply with the proposed amendments.
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 amendments are proposed pursuant to Government Code, §481.0044(a),
which directs the Governing Board of the Department to adopt rules necessary
for the administration of the Department, and Government Code, Chapter 2001,
Subchapter B, which prescribes the standards for rulemaking by state agencies.
Government Code, Chapter 481 is affected by this proposal.
§185.2. Definitions.
(a)
The following words and terms, when used in this chapter,
shall have the following meanings, unless the context clearly indicates otherwise.
(1)
Act -- The Development Corporation Act of 1979, as amended,
Texas Civil Statutes, Article 5190.6, and includes the
department's
[
commission's
] rules and regulations promulgated thereunder.
(2)
Applicant -- Any person engaged in a trade or business
for profit who is or may be classified as a small business concern and, if
authorized in the program guidelines, may include any person who proposes
to acquire or construct a project for the specific purpose of leasing or selling
the completed project to one or more small business concern(s) on terms and
conditions prescribed by the corporation.
(3)
Bond program -- Any bond program adopted and implemented
by the corporation for the issuance of its single or composite issue bonds.
(4)
CDC -- Either a profit or nonprofit corporation created
pursuant to applicable state law and certified by SBA as a certified development
company for purposes of SBA's Section
504
[
503
] loan
program or other SBA loan program.
(5)
Code -- The Internal Revenue Code of 1954, as amended,
and includes the applicable treasury regulations proposed or promulgated thereunder.
[
(6)
Commission -- The Texas
Economic Development Commission or any successor to its duties.]
(6)
[
(7)
] Composite issue -- The
pooling by the corporation of two or more series of its bonds for the purpose
of marketing and sale, with each series representing a separate project.
(7)
[
(8)
] Corporation -- The Texas
Small Business Industrial Development Corporation, as created and implemented
pursuant to the Act, §4(b).
(8)
Department -- Texas Department
of Economic Development or any successor to its duties.
(9)
Governing body -- The
department
[
commission
], acting by and through its board of directors.
(10)
Participant -- Any qualified lending institution
or CDC accepted to participate in a bond program by the corporation, and,
where applicable, by any third-party guarantor or insurer of a corporation
loan or bond issue.
(11)
Person -- Any individual, general or limited partnership,
corporation, association, or other legal entity.
(12)
Program guidelines -- The guidelines defining the
scope and limitations of a bond program as adopted by the corporation's board
and approved by the governing body of the unit.
(13)
SBA - The Small Business Administration of the United
States of America, or any successor to its duties.
(14)
Single issue -- A single series of bonds issued
by the corporation representing one project.
(15)
Small business concern -- A person which either:
(A)
is a "small business" within the meaning of that term
as set forth in the Small Business Assistance Act of 1975, Texas Civil Statutes,
Article 5190.3, on the date on which an application for a loan, other than
an SBA deferred participation of Section
504
[
503
] loan,
is filed with a participant; or
(B)
meets the applicable employment, sales, and/or receipts
standards established by SBA in connection with either SBA's Deferred Participation
(guaranty) Loan Program or Section
504
[
503
] Loan Program
which are in effect on:
(i)
the date an SBA deferred participation loan application
is filed with SBA; or
(ii)
the date an SBA Section
504
[
503
]
loan application is filed with a CDC; or
(iii)
the date an application for a loan, other than an SBA
deferred participation or Section
504
[
503
] loan, is
filed with a participant; or
(C)
meets the applicable employment, sales, receipts, and/or
other standards of any other direct loan, grant, loan participation, loan
guaranty, or loan insurance program of the state or the United States incorporated
into a bond program which are in effect on the date an application is filed
with the party designated by law or regulation to receive such application.
(16)
State -- The State of Texas.
(17)
Unit -- The state.
(b)
Each word, term, or phrase not otherwise defined in this
section shall have the same meaning as it has in the Act.
§185.3. Bonds.
(a)-(c)
(No change.)
(d)
Bond procedures. The corporation shall file its bond procedures
and any supplements or amendments thereto with the
department
[
commission
] as required by the Act. Initial bond procedures and any
supplements or amendments thereto must be approved by the governing body of
the unit prior to filing with the
department
[
commission
].
§185.4. Projects.
(a)
Project eligibility. To be eligible for financing under
any bond program, a project must meet certain minimum requirements. In general,
a project must:
(1)
(No change.)
(2)
consist of land, buildings, equipment, facilities,
and improvements (whether one or more), and otherwise meet the definition
of a project set forth in the Act,
§2(11)
[
§2(10)
];
(3)-(5)
(No change.)
(b)-(d)
(No change.)
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 March 3, 2000.
TRD-200001676
Gary Rosenquest
Chief Financial Officer
Texas Department of Economic Development
Earliest possible date of adoption: April 16, 2000
For further information, please call: (512) 936-0177