1-1 By: Counts (Senate Sponsor - Carriker) H.B. No. 1309
1-2 (In the Senate - Received from the House May 5, 1993;
1-3 May 6, 1993, read first time and referred to Committee on Natural
1-4 Resources; May 17, 1993, reported adversely, with favorable
1-5 Committee Substitute by the following vote: Yeas 8, Nays 0;
1-6 May 17, 1993, sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Sims x
1-10 Truan x
1-11 Armbrister x
1-12 Barrientos x
1-13 Bivins x
1-14 Brown x
1-15 Carriker x
1-16 Lucio x
1-17 Montford x
1-18 Ratliff x
1-19 Shelley x
1-20 COMMITTEE SUBSTITUTE FOR H.B. No. 1309 By: Carriker
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to the composition and authority of the Texas Agricultural
1-24 Finance Authority.
1-25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-26 SECTION 1. Sections 58.012(a) and (b), Agriculture Code, are
1-27 amended to read as follows:
1-28 (a) The authority is governed by a board of directors
1-29 composed of the commissioner of agriculture, the director of the
1-30 Institute for International Agribusiness Studies at Prairie View
1-31 A&M University, and seven <four> members appointed by the governor
1-32 with the advice and consent of the senate. An appointed member
1-33 must be from one of the following categories with at least one
1-34 member but not more than two members from each category:
1-35 (1) elected or appointed officials of a municipality
1-36 or county;
1-37 (2) representatives of lending institutions chartered
1-38 by the state or federal government who are knowledgeable about
1-39 agricultural lending practices;
1-40 (3) representatives of agricultural businesses; or
1-41 (4) representatives of chambers of commerce,
1-42 foundations, trade associations, institutions of higher education,
1-43 or other entities involved in agricultural matters.
1-44 (b) The appointed members of the board serve staggered terms
1-45 of two years, with the terms of three <two> members expiring on
1-46 January 1 of each even-numbered year and the terms of four <two>
1-47 members expiring on January 1 of each odd-numbered year.
1-48 SECTION 2. Section 58.021, Agriculture Code, is amended by
1-49 adding Subsections (c) and (d) to read as follows:
1-50 (c) Except as provided by this subsection, the maximum
1-51 aggregate amount of loans made to or guaranteed, insured,
1-52 coinsured, or reinsured under this subchapter for a single eligible
1-53 agricultural business by the authority from funds provided by the
1-54 authority is $2 million. The authority may make, guarantee,
1-55 insure, coinsure, or reinsure a loan for a single eligible
1-56 agricultural business that results in an aggregate amount exceeding
1-57 $2 million, but not exceeding $5 million, if the action is approved
1-58 by a two-thirds vote of the membership of the board.
1-59 (d) Except for programs administered by the authority in
1-60 Chapter 59, Agriculture Code, the authority shall give preference
1-61 to loans, loan guarantees, loan insurance, coinsurance, or
1-62 reinsurance, and any other financing mechanism to value-added
1-63 agricultural businesses. The authority may decline to provide
1-64 financial assistance to businesses whose primary purpose is to
1-65 establish or expand conventional agricultural production.
1-66 SECTION 3. (a) As soon as possible after the effective date
1-67 of this Act, the governor shall appoint the additional members to
1-68 the board of the Texas Agricultural Finance Authority in accordance
2-1 with Section 58.012, Agriculture Code, as amended by this Act. The
2-2 governor shall appoint two members to serve initial terms expiring
2-3 January 1, 1995, and one member to serve an initial term expiring
2-4 January 1, 1996.
2-5 (b) Until all members have taken office, a quorum of the
2-6 authority is a majority of the number of voting members who are
2-7 qualified.
2-8 (c) A board member who was appointed before the effective
2-9 date of Section 2 of this Act and who does not meet the
2-10 requirements for appointed members imposed by Section 58.012(a),
2-11 Agriculture Code, as amended by this Act, may continue to serve for
2-12 the remainder of the member's term, but is not eligible for
2-13 reappointment unless at the time of reappointment the member meets
2-14 the requirements of Section 58.012(a), Agriculture Code, as amended
2-15 by this Act.
2-16 SECTION 4. (a) Except as provided by Subsection (b) of this
2-17 section, this Act takes effect January 1, 1994.
2-18 (b) Section 2 of this Act takes effect immediately.
2-19 SECTION 5. The importance of this legislation and the
2-20 crowded condition of the calendars in both houses create an
2-21 emergency and an imperative public necessity that the
2-22 constitutional rule requiring bills to be read on three several
2-23 days in each house be suspended, and this rule is hereby suspended,
2-24 and that this Act take effect and be in force according to its
2-25 terms, and it is so enacted.
2-26 * * * * *
2-27 Austin,
2-28 Texas
2-29 May 17, 1993
2-30 Hon. Bob Bullock
2-31 President of the Senate
2-32 Sir:
2-33 We, your Committee on Natural Resources to which was referred H.B.
2-34 No. 1309, have had the same under consideration, and I am
2-35 instructed to report it back to the Senate with the recommendation
2-36 that it do not pass, but that the Committee Substitute adopted in
2-37 lieu thereof do pass and be printed.
2-38 Sims,
2-39 Chairman
2-40 * * * * *
2-41 WITNESSES
2-42 No witnesses appeared on H.B. No. 1309.