By Patterson                                          H.B. No. 1167
       74R3977 JRD-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the farm and ranch finance program.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 59.024, Agriculture Code, is amended to
    1-5  read as follows:
    1-6        Sec. 59.024.  APPLICATION; Eligibility.  (a)  To borrow money
    1-7  from the fund, a person must submit an application to the authority
    1-8  that contains an acceptable agricultural business plan for the land
    1-9  proposed to be purchased that assures the authority the applicant
   1-10  intends to use the land for the primary purpose of farming and
   1-11  ranching.
   1-12        (b)  To be eligible to borrow money from the fund, a person,
   1-13  at the time of application, must provide evidence to the authority
   1-14  that demonstrates that the person has at least three years of
   1-15  experience relevant to the person's agricultural business plan for
   1-16  the land proposed to be purchased<:>
   1-17              <(1)  be a member of a household that has derived at
   1-18  least 25 percent of its gross income from a farm or ranch for the
   1-19  preceding three years; and>
   1-20              <(2)  have a net worth of less than $250,000>.
   1-21        SECTION 2.  Section 59.025, Agriculture Code, is amended to
   1-22  read as follows:
   1-23        Sec. 59.025.  MAXIMUM AMOUNT OF LOAN <DOWNPAYMENT>.  <(a)>  A
   1-24  loan under this chapter may not exceed the lesser of:
    2-1              (1)  $150,000; or
    2-2              (2)  an amount equal to 95% of the lesser of the
    2-3  purchase price of the land or the land's appraised value under
    2-4  Section 59.028<, less the down payment required under this
    2-5  subsection.  If the purchase price of land purchased with financial
    2-6  assistance under this chapter is $150,000 or less, the minimum down
    2-7  payment is equal to five percent of the purchase price>.  <If the
    2-8  purchase price exceeds $150,000, the minimum down payment is an
    2-9  amount equal to the sum of five percent of the purchase price plus
   2-10  the amount equal to the difference between the purchase price and
   2-11  $150,000.>
   2-12        <(b)  The authority shall provide by rule for the period
   2-13  during which and the manner in which the down payment provided for
   2-14  under Subsection (a) of this section shall be paid to the
   2-15  authority.>
   2-16        <(c)  If the sale is not consummated, the authority shall
   2-17  refund the down payment to the borrower.>
   2-18        SECTION 3.  (a)  The change in law made by this Act does not
   2-19  affect a loan made under Chapter 59, Agriculture Code, before the
   2-20  effective date of this Act, without regard to whether the sale of
   2-21  land for which the loan was made is consummated before the
   2-22  effective date of this Act.
   2-23        (b)  If a down payment is paid to the Texas Agricultural
   2-24  Finance Authority under Section 59.025, Agriculture Code, before
   2-25  the effective date of this Act, and the sale of land for which the
   2-26  down payment was paid is not consummated, the authority shall
   2-27  refund the down payment to the borrower in accordance with Section
    3-1  59.025(c), Agriculture Code, before its amendment by this Act, and
    3-2  the former law is continued in effect for this purpose.
    3-3        SECTION 4.  This Act takes effect September 1, 1995.
    3-4        SECTION 5.  The importance of this legislation and the
    3-5  crowded condition of the calendars in both houses create an
    3-6  emergency and an imperative public necessity that the
    3-7  constitutional rule requiring bills to be read on three several
    3-8  days in each house be suspended, and this rule is hereby suspended.