H.B. No. 1309
1-1 AN ACT
1-2 relating to the composition and authority of the Texas Agricultural
1-3 Finance Authority.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 58.012(a) and (b), Agriculture Code, are
1-6 amended to read as follows:
1-7 (a) The authority is governed by a board of directors
1-8 composed of the commissioner of agriculture, the director of the
1-9 Institute for International Agribusiness Studies at Prairie View
1-10 A&M University, and seven <four> members appointed by the governor
1-11 with the advice and consent of the senate. An appointed member
1-12 must be from one of the following categories with at least one
1-13 member but not more than two members from each category:
1-14 (1) elected or appointed officials of a municipality
1-15 or county;
1-16 (2) representatives of lending institutions chartered
1-17 by the state or federal government who are knowledgeable about
1-18 agricultural lending practices;
1-19 (3) representatives of agricultural businesses; or
1-20 (4) representatives of chambers of commerce,
1-21 foundations, trade associations, institutions of higher education,
1-22 or other entities involved in agricultural matters.
1-23 (b) The appointed members of the board serve staggered terms
1-24 of two years, with the terms of three <two> members expiring on
2-1 January 1 of each even-numbered year and the terms of four <two>
2-2 members expiring on January 1 of each odd-numbered year.
2-3 SECTION 2. Section 58.021, Agriculture Code, is amended by
2-4 adding Subsections (c) and (d) to read as follows:
2-5 (c) Except as provided by this subsection, the maximum
2-6 aggregate amount of loans made to or guaranteed, insured,
2-7 coinsured, or reinsured under this subchapter for a single eligible
2-8 agricultural business by the authority from funds provided by the
2-9 authority is $2 million. The authority may make, guarantee,
2-10 insure, coinsure, or reinsure a loan for a single eligible
2-11 agricultural business that results in an aggregate amount exceeding
2-12 $2 million, but not exceeding $5 million, if the action is approved
2-13 by a two-thirds vote of the membership of the board.
2-14 (d) Except for programs administered by the authority in
2-15 Chapter 59, Agriculture Code, the authority shall give preference
2-16 to loans, loan guarantees, loan insurance, coinsurance, or
2-17 reinsurance, and any other financing mechanism to value-added
2-18 agricultural businesses. The authority may decline to provide
2-19 financial assistance to businesses whose primary purpose is to
2-20 establish or expand conventional agricultural production.
2-21 SECTION 3. (a) As soon as possible after the effective date
2-22 of this Act, the governor shall appoint the additional members to
2-23 the board of the Texas Agricultural Finance Authority in accordance
2-24 with Section 58.012, Agriculture Code, as amended by this Act. The
2-25 governor shall appoint two members to serve initial terms expiring
2-26 January 1, 1995, and one member to serve an initial term expiring
2-27 January 1, 1996.
3-1 (b) Until all members have taken office, a quorum of the
3-2 authority is a majority of the number of voting members who are
3-3 qualified.
3-4 (c) A board member who was appointed before the effective
3-5 date of Section 2 of this Act and who does not meet the
3-6 requirements for appointed members imposed by Section 58.012(a),
3-7 Agriculture Code, as amended by this Act, may continue to serve for
3-8 the remainder of the member's term, but is not eligible for
3-9 reappointment unless at the time of reappointment the member meets
3-10 the requirements of Section 58.012(a), Agriculture Code, as amended
3-11 by this Act.
3-12 SECTION 4. (a) Except as provided by Subsection (b) of this
3-13 section, this Act takes effect January 1, 1994.
3-14 (b) Section 2 of this Act takes effect immediately.
3-15 SECTION 5. The importance of this legislation and the
3-16 crowded condition of the calendars in both houses create an
3-17 emergency and an imperative public necessity that the
3-18 constitutional rule requiring bills to be read on three several
3-19 days in each house be suspended, and this rule is hereby suspended,
3-20 and that this Act take effect and be in force according to its
3-21 terms, and it is so enacted.