TITLE 10. COMMUNITY DEVELOPMENT

PART 5. OFFICE OF THE GOVERNOR, ECONOMIC DEVELOPMENT AND TOURISM OFFICE

CHAPTER 181. TEXAS LEVERAGE FUND PROGRAM

The Office of the Governor, Economic Development and Tourism Office ("Office") proposes the repeal of 10 TAC §§181.1 - 181.10, concerning the Texas Leverage Fund.

EXPLANATION OF PROPOSED REPEALS

The Texas Leverage Fund was established by a 1992 Master Resolution of the former Texas Department of Commerce to provide an additional source of financing to communities with Economic Development Corporations that have adopted the Texas Economic Development Sales and Use Tax (Type A/Type B). The Texas Economic Development Bank ("Bank") performs the duties and functions of the Office under Texas Government Code Chapter 489 with respect to the Texas Leverage Fund.

The Master Resolution expired on August 31, 2022, and was not renewed. Because statutory authority to amend and extend the Master Resolution was unclear, the Bank stopped accepting new loan applications. All commercial paper issued under the Master Resolution has been paid off, and the Office has completed its winddown of program operations under that Master Resolution-based framework. Statutory authority for a successor program under Texas Government Code Chapter 489, Subchapter E remains; however, 10 TAC Chapter 181 implements the former Master Resolution-based structure and is obsolete. Accordingly, the proposed repeal removes obsolete regulations.

The repeal of §§181.1 - 181.10 removes the entirety of 10 TAC Chapter 181.

FISCAL NOTE

Adriana Cruz, Executive Director of the Economic Development and Tourism Office, Office of the Governor, has determined that for each year of the first five years the proposed repeals are in effect, no fiscal implications are anticipated for state or local governments as a result of enforcing or administering the proposed repeal.

LOCAL EMPLOYMENT IMPACT STATEMENT

Mrs. Cruz has also determined that the proposed repeal is not expected to have a measurable effect on local employment or local economies; therefore, the Office is not required to prepare a local employment impact statement under Texas Government Code §2001.022.

PUBLIC BENEFIT AND COSTS

Mrs. Cruz has determined that for each year of the first five years the proposed repeal is in effect, the public benefit anticipated as a result of enforcing or administering this repeal will be administrative efficiency and conformity with current law. Because the program has been wound up and no longer has participants, there are no measurable anticipated economic costs to persons required to comply with the proposed repeal and there will be no anticipated adverse economic effect on small businesses, micro-businesses, or rural communities. Because the Office has determined that the proposed repeal will have no adverse economic effect on small businesses, micro-businesses, or rural communities, preparation of an Economic Impact Statement and a Regulatory Flexibility Analysis, as detailed under Texas Government Code §2006.002, is not required.

GOVERNMENT GROWTH IMPACT STATEMENT

Pursuant to Government Code § 2001.0221, the Office has determined that for each year of the first five years the repeal is in effect:

the repeal does not create or eliminate a government program;

it does not require the creation or elimination of positions;

it does not require an increase or decrease in future legislative appropriations;

it does not affect fees paid to the agency;

it does not create a new regulation;

it repeals existing regulations;

it does not change the number of individuals subject to regulation; and

it does not positively or adversely affect this state's economy.

TAKINGS IMPACT ASSESSMENT

Mrs. Cruz has determined that the proposed repeal does not affect private real property interests and does not restrict, limit, or impose a burden on an owner's rights to the owner's private real property that would otherwise exist in the absence of government action. As a result, the proposed repeal does not constitute a taking or require a takings impact assessment under Government Code §2007.043.

SUBMISSION OF COMMENTS

Comments on the proposed repeal may be submitted for 30 days following the date of publication of this notice in the Texas Register by mail to William Jackson, Office of the Governor, Economic Development and Tourism Office, P.O. Box 12428, Austin, Texas 78711, or by email to william.jackson@gov.texas.gov with the subject line "Texas Leverage Fund Program Rule Review."

STATUTORY AUTHORITY

This repeal is proposed under Texas Government Code §489.002, which authorizes the Office to adopt rules necessary to carry out the purposes of Chapter 489.

CROSS REFERENCE TO STATUTE

Texas Government Code, §§489.002 and 489.108. No other statutes, articles, or codes are affected by the proposed repeal.

§181.1. Texas Leverage Fund General Rules.

§181.2. Definitions.

§181.3. Program.

§181.4. Program Loan Limitations.

§181.5. Eligible Projects.

§181.6. Consideration of Applications by the Office.

§181.7. Contents of Application.

§181.8. General Terms and Conditions of the Office's Financial Commitment.

§181.9. Loan Closing.

§181.10. Loan Administration.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 5, 2026.

TRD-202601111

Adriana Cruz

Executive Director

Office of the Governor, Economic Development and Tourism Office

Earliest possible date of adoption: April 19, 2026

For further information, please call: (512) 463-2000