PART 1. TEXAS DEPARTMENT OF AGRICULTURE
CHAPTER 29. ECONOMIC DEVELOPMENT
SUBCHAPTER B. RURAL ECONOMIC DEVELOPMENT CAPITAL FOR TEXAS PROGRAM
The Texas Department of Agriculture (Department) adopts new Title 4, Part 1, Chapter 29, Subchapter B, §§29.21, 29.25, and 29.27 - 29.32, concerning the Jobs for Texas, Capital for Texas, and Rural Economic Development Capital for Texas Programs, without changes to the proposed text as published in the September 25, 2020, edition of the Texas Register (45 TexReg 6633). These rules will not be republished. Sections 29.20, 29.22 - 29.24, and 29.26 are adopted with changes to the proposed text as published in the September 25, 2020, edition of the Texas Register (45 TexReg 6633). Sections 29.20, 29.23, 29.24, and 29.26 are adopted with minor changes to make grammatical corrections. Section 29.22 is adopted with minor changes to the definition of rural area to ensure consistent application with other Department programs. These rules will be republished.
The adopted rules provide for the continued administration and eventual conclusion of the existing Jobs for Texas and Capital for Texas Programs, and the creation and implementation of rules related to the Rural Economic Development Capital for Texas (RED C4T) Program, which replaces the former Jobs for Texas and Capital for Texas Programs. The adopted rules are related to the RED C4T Program application procedures, eligibility requirements, selection procedures and other program policies and procedures.
No comments were received on the proposal.
The new rules are adopted under §12.016 of the Texas Agriculture Code, which authorizes the Department to adopt rules as necessary for the administration of its powers and duties under the Agriculture Code, and §12.0272 of the Texas Agriculture Code, which establishes the Texas Economic Development Fund which is appropriated to the Department for the purpose of administering, establishing, implementing, or maintaining economic development programs.
The code affected by the adoption is Texas Agriculture Code, Chapter 12.
§29.20.Purpose.
(a) The Capital for Texas Program was established effective January 20, 2016, using part of the funds allocated to the Department through the U.S. Department of the Treasury's (Treasury) State Small Business Credit Initiative (SSBCI) program, to provide funding to Community Development Financial Institutions (CDFIs) in support of small business lending in rural communities of this State.
(b) The Department's Allocation Agreement with the Treasury expired on March 31, 2017, while the authority and duty of the Treasury to administer the SSBCI program terminated on September 27, 2017. However, the SSBCI Act, Policy Guidelines, Compliance Standards and Allocation Agreement continue to apply to the first use of funds from the allocation made to the Department.
(c) The SSBCI Act, Policy Guidelines, Compliance Standards and Allocation Agreement do not apply to the recycling of SSBCI funds by the Department, or by a participating venture capital firm on behalf of the Department, after March 31, 2017.
(d) The purpose of these rules is to establish regulations for the Rural Economic Development Capital for Texas (RED C4T) Program to continue the Department's small business lending and investment programs using recycled SSBCI funds generated from SSBCI loan repayments and returns on SSBCI investments received or realized by the Department as a result of loans and investments made under the Capital for Texas and Jobs for Texas (J4T) Programs, as well as other state funding from the Texas Economic Development Fund.
§29.22.Definitions.
The following definitions shall apply to this subchapter:
(1) Act - The State Small Business Credit Initiative Act of 2010, Public Law 111-240, as amended.
(2) Agreement - A Performance Agreement entered into between the Department and an eligible recipient selected to participate in the C4T Programs, including all amendments to the Agreement.
(3) Agricultural Business - A business that is or proposes to be engaged in producing, processing, marketing, or exporting of an agricultural product, or that is or proposes to be engaged in an agricultural-related business in rural areas of Texas, including a business that provides recreational activities associated with the enjoyment of nature or the outdoors on agricultural land.
(4) Allocation Agreement - The Department's August 15, 2011 Allocation Agreement with the Treasury, as amended effective April 18, 2012 and January 20, 2016.
(5) Capital for Texas Program - The program established through the Allocation Agreement to provide funding to Community Development Financial Institutions (CDFIs) in support of small business lending in rural communities of this State.
(6) Department - The Texas Department of Agriculture.
(7) Family Relationship - Defined by Title 5, Chapter 573, Subchapter A, §573.002 of the Texas Government Code as a relationship within the third degree of consanguinity or second degree of affinity.
(8) Fund Manager - A venture capital firm selected by the Department to administer all or a portion of the J4T Program.
(9) Investment - An allocation of funds, either in the form of a grant or a loan, by the Department to an eligible Recipient of the RED C4T Program. The Recipient administers and manages the funds on behalf of the Department ensuring all funds administered meet the objectives and requirements of the RED C4T Program as defined in this subchapter and the Agreement between the Department and Recipient.
(10) Jobs for Texas Program - The venture capital program established by the Department pursuant to the Allocation Agreement, also referred to as the "J4T Program".
(11) Other Funds - Gifts, loans, donations, aid, appropriations, guaranties, allocations, subsidies, grants, or contributions received by the Department under Section 12.027(g) of the Texas Agriculture Code, and which have been deposited in the Texas Economic Development Fund; interest and income earned on the investment of money in the Texas Economic Development Fund not resulting from an SSBCI investment or loan; and other money required by law to be deposited in the Texas Economic Development Fund.
(12) Recipient - An organization selected by the Department to administer all or a portion of the RED C4T Program.
(13) Recycled Funds - Money in the Texas Economic Development Fund resulting from an exit from an investment or repayment of a loan, including all money, deposits, distributions, dividends, earnings, gain, income, interest, proceeds, profits, program income, rents, returns of capital, returns on investments, revenue, royalties, or yields received or realized by the Department as a result of an investment or loan made under the J4T, Capital for Texas or RED C4T Programs.
(14) Recycling - The use of Recycled Funds in the Texas Economic Development Fund by the Department, or by a Recipient selected by the Department.
(15) Rural area - An area which is predominately rural in character and which is not adjacent to a Metropolitan Statistical Area (MSA); an unincorporated area or a city with a population under 50,000; or a county with a nonmetropolitan population of less than 200,000.
(16) Rural Economic Development Capital for Texas Program - The Department's rural economic development program established by this subchapter, also referred to as "RED C4T Program".
(17) Small Business - A business with 99 or fewer employees.
(18) Solicitation Document - A document used to request potential vendors to offer a quote, bid, or proposal to acquire goods, supplies, grants, and services. Solicitation document may also be referred to as a notice of funding availability, request for application, request for proposal, request for quotation, or invitation to bid.
(19) SSBCI Funds - Money received by the Department pursuant to the Allocation Agreement.
(20) State - The State of Texas.
§29.23.Jobs for Texas Program for Initial Investments Using SSBCI Funds.
(a) The J4T Program is continued by the Department for all initial investments of SSBCI Funds.
(b) The Act, Compliance Standards and Policy Guidelines apply to all initial investments of SSBCI Funds.
(c) All terms and conditions of Agreements entered into between the Department and Fund Managers in the administration of the J4T Program continue to apply to the Department and Fund Managers until those Agreements expire or are terminated according to their terms.
(d) The purpose of these rules is to ensure the continued administration and orderly conclusion of the J4T Program, and to establish regulations for the recycling of SSBCI funds generated from returns on investments made under this program.
§29.24.Capital for Texas Program for Initial Loans Using SSBCI Funds.
(a) The Capital for Texas Program is continued by the Department for all initial loans made with SSBCI Funds.
(b) The Act, Compliance Standards and Policy Guidelines for all initial loans made with SSBCI Funds.
(c) All terms and conditions of Agreements entered into between the Department and CDFIs in the administration of the Capital for Texas Program continue to apply to the Department and CDFIs until those Agreements expire or are terminated according to their terms.
(d) The purpose of these rules is to ensure the continued administration and orderly conclusion of the Capital for Texas Program, and to establish regulations for the recycling of SSBCI funds generated from loan repayments under this program.
§29.26.RED C4T Recipient Eligibility Requirements.
(a) An applicant is eligible for an investment from the Department if, at minimum, it:
(1) Demonstrates its ability to administer and mobilize RED C4T funds to meet program objectives;
(2) Demonstrates it has sufficient funds to adequately leverage a RED C4T investment according to the Agreement and the program's Policy and Procedures;
(3) Is a legal entity formed, existing and in good standing under the laws of the United States of America and the State;
(4) Meets eligibility requirements defined in this subchapter and the solicitation document issued by the Department; and
(5) Is legally authorized to do business in this State and has a principal place of business in the State.
(b) Eligible expenditures. The proceeds of the RED C4T investment provided by the Department may be used only to finance loans and/or grants that meet the requirements set forth in this subchapter, the program's Policy and Procedures, and the Agreement signed by the Department and Recipient. All RED C4T loans and grants shall be approved by the Department in the Agreement.
(c) Ineligible expenditures. Any expenditure that is not identified in the approved budget filed with the application, or is otherwise prevented by regulation or statute, is not eligible for financing. RED C4T funds may not finance any loan and/or grant that is listed as a prohibited investment in §29.31 of this subchapter.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on December 9, 2020.
TRD-202005366
Skyler Shafer
Assistant General Counsel
Texas Department of Agriculture
Effective date: December 29, 2020
Proposal publication date: September 25, 2020
For further information, please call: (512) 936-9360
CHAPTER 71. BEES
The Texas Apiary Inspection Service (TAIS) adopts the amendments to 4 TAC §§71.1, 71.11, 71.22, 71.23, 71.51, and 71.53 without changes to the proposed text as published in the October 30, 2020, issue of the Texas Register (45 TexReg 7675). TAIS also adopts the new sections 4 TAC §§71.9, 71.10, and 71.12 without changes to the proposed text as published in the October 30, 2020 issue of the Texas Register (45 TexReg 7675). These rules will not be republished.
There were no comments received from the public regarding any of the proposed changes to this rule.
SUBCHAPTER A. GENERAL PROVISIONS
The amendments, as well as the addition of §71.9, §71.10 adopted under the Texas Agriculture Code, §§131.021, which authorizes the Chief Apiary Inspector to adopt rules with the goal of treating, eradicating, and suppressing infectious diseases of honey bees.
The adopted amendments and new §71.9 and §71.10 implement the Texas Agriculture Code, §§131.001 - 131.122.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on December 9, 2020.
TRD-202005369
Lynda Cook
Assistant General Counsel
Office of the State Entomologist
Effective date: December 29, 2020
Proposal publication date: October 30, 2020
For further information, please call: (979) 845-9713
The repeal of §71.7 is adopted under the Texas Agriculture Code, §§131.021, which authorizes the Chief Apiary Inspector to adopt rules with the goal of treating, eradicating, and suppressing infectious diseases of honey bees.
The adopted repeal of §71.7 implements the Texas Agriculture Code, §§131.001 - 131.122.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on December 9, 2020.
TRD-202005370
Lynda Cook
Assistant General Counsel
Office of the State Entomologist
Effective date: December 29, 2020
Proposal publication date: October 30, 2020
For further information, please call: (979) 845-9713
The amendments, as well as the addition of §71.12 are adopted under the Texas Agriculture Code, §§131.021, which authorizes the Chief Apiary Inspector to adopt rules with the goal of treating, eradicating, and suppressing infectious diseases of honey bees.
The adopted amendments and new §71.12 implement the Texas Agriculture Code, §§131.001 - 131.122.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on December 9, 2020.
TRD-202005371
Lynda Cook
Assistant General Counsel
Office of the State Entomologist
Effective date: December 29, 2020
Proposal publication date: October 30, 2020
For further information, please call: (979) 845-9713
The repeal of §71.21 are adopted under the Texas Agriculture Code, §§131.021, which authorizes the Chief Apiary Inspector to adopt rules with the goal of treating, eradicating, and suppressing infectious diseases of honey bees.
The adopted repeal of §71.21 implements the Texas Agriculture Code, §§131.001 - 131.122.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on December 9, 2020.
TRD-202005372
Lynda Cook
Assistant General Counsel
Office of the State Entomologist
Effective date: December 29, 2020
Proposal publication date: October 30, 2020
For further information, please call: (979) 845-9713
The amendments are adopted under the Texas Agriculture Code, §§131.021, which authorizes the Chief Apiary Inspector to adopt rules with the goal of treating, eradicating, and suppressing infectious diseases of honey bees.
The adopted amendments implement the Texas Agriculture Code, §§131.001 - 131.122.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on December 9, 2020.
TRD-202005373
Lynda Cook
Assistant General Counsel
Office of the State Entomologist
Effective date: December 29, 2020
Proposal publication date: October 30, 2020
For further information, please call: (979) 845-9713
The amendments are adopted under the Texas Agriculture Code, §§131.021, which authorizes the Chief Apiary Inspector to adopt rules with the goal of treating, eradicating, and suppressing infectious diseases of honey bees.
The adopted amendments implement the Texas Agriculture Code, §§131.001 - 131.122.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on December 9, 2020.
TRD-202005374
Lynda Cook
Assistant General Counsel
Office of the State Entomologist
Effective date: December 29, 2020
Proposal publication date: October 30, 2020
For further information, please call: (979) 845-9713