Senate approves changes to rural economic development program, tightens grant/loan caps

The Texas Senate passed House Bill 27 65 on final reading, changing how the Rural Economic Development and Investment Program and the Texas Economic Development Fund operate.

The bill, taken up under suspension of the regular order, expands eligibility for financial assistance under the rural economic development program, allows the Texas Department of Agriculture to set repayment rules, permits fund money to be used for both loans and grants, and applies a $1,000,000 cap separately to grants and to the total outstanding loan amount per person. The measure passed final passage by a vote of 26 ayes and 5 nays.

Sponsor language presented to the Senate said the bill removes a requirement that loan repayment begin within 90 days and makes the new repayment rules effective only for new loans and grants. The bill was described on the floor as giving the administering agency more flexibility in structuring repayment and expanding options for rural recipients.

The Senate first took up the bill by suspending the regular order of business and advanced it from second reading to third reading by voice and roll calls. Senators voted to suspend the constitutional three-day rule to allow immediate final passage. The roll calls recorded the same 26-5 margin on final passage.

Senators opposing the bill were recorded in the roll calls but floor remarks in the transcript do not include extended debate or floor amendments that altered the bill text. The measure now moves forward following its passage in the Senate.

Details cited on the floor include the separate $1,000,000 caps for grants and outstanding loans per recipient, the removal of the 90-day repayment trigger, and that the changes apply only to newly issued loans or grants. The bill text and additional implementation rules are to be administered by the designated state agency.