H.B. No. 2004         AN ACT   relating to the Texas economic development fund for the Department   of Agriculture.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Sections 12.0272(a) and (b), Agriculture Code,   are amended to read as follows:          (a)  The Texas economic development fund is a fund in the   state treasury. The fund consists of:                (1)  all interest, income, revenue, and other assets   associated with economic development programs established using   money allocated and paid to the department under the August 15,   2011, allocation agreement between the department and the United   States Department of the Treasury, as amended, to implement the   State Small Business Credit Initiative Act of 2010 (12 U.S.C.   Section 5701 et seq.);                (2)  all money, deposits, distributions, dividends,   earnings, gain, income, interest, proceeds, profits, program   income, rents, returns of capital, returns on investments,   royalties, revenue, or yields received or realized by the   department as a result of an investment made by or on behalf of the   department pursuant to the August 15, 2011, allocation agreement   between the department and the United States Department of the   Treasury, as amended;                (3)  gifts, loans, donations, aid, appropriations,   guaranties, allocations, subsidies, grants, or contributions   received under Sections 12.022 and [Section] 12.027(g);                (4)  interest and income earned on the investment of   money in the fund; and                (5)  other money required by law to be deposited in the   fund.          (b)  Money in the Texas economic development fund is   dedicated to and may be appropriated only to the department for the   purposes [purpose] of administering, continuing [establishing],   implementing, or maintaining:                (1)  an economic development program originally   established as part of the department's implementation of the State   Small Business Credit Initiative; and                (2)  [under this section and is dedicated to and may be   used only for the administration, establishment, implementation,   or maintenance of] 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 2.  Chapter 12, Agriculture Code, is amended by   adding Section 12.0273 to read as follows:          Sec. 12.0273.  LIMITATIONS ON LOANS AND GRANTS FROM TEXAS   ECONOMIC DEVELOPMENT FUND.  (a)  The department may use money in the   Texas economic development fund only to make loans and grants in the   manner provided by this section for the purposes provided by   Section 12.0272(b).          (b)  The recipient of a grant using money from the fund must   provide matching funds in an amount equal to 25 percent of the   amount of the grant.          (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.          (e)  The cumulative amount of loans and grants to any person   using money from the fund may not exceed $1 million.          (f)  The department shall retain in the fund in the state   treasury an amount of money equal to at least 25 percent of the   amount of money in the fund on January 1, 2017.          (g)  Not later than December 1 of each even-numbered year,   the department shall submit a report on the status of the fund,   including loans and grants made using money from the fund, to the   governor, lieutenant governor, speaker of the house of   representatives, and chairs of the house and senate committees with   primary jurisdiction over the department.          SECTION 3.  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, 2017.       ______________________________ ______________________________      President of the Senate Speaker of the House                   I certify that H.B. No. 2004 was passed by the House on May 6,   2017, by the following vote:  Yeas 126, Nays 16, 2 present, not   voting; and that the House concurred in Senate amendments to H.B.   No. 2004 on May 24, 2017, by the following vote:  Yeas 126, Nays 19,   2 present, not voting.     ______________________________   Chief Clerk of the House               I certify that H.B. No. 2004 was passed by the Senate, with   amendments, on May 22, 2017, by the following vote:  Yeas 25, Nays   5.     ______________________________   Secretary of the Senate      APPROVED: __________________                   Date                       __________________                 Governor