S.B. No. 699
AN ACT
1-1 relating to the farm and ranch finance program.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 59.012, Agriculture Code, is amended to
1-4 read as follows:
1-5 Sec. 59.012. Disposition of Bond Proceeds. (a) Except as
1-6 provided by Subsection <Subsections> (b) <and (c)> of this section,
1-7 proceeds from the sale of the bonds, other than refunding bonds,
1-8 shall be deposited in the state treasury to the credit of the fund.
1-9 (b) The board may provide for transferring to the interest
1-10 and sinking account from the proceeds of the sale of bonds or from
1-11 the available money in the fund directly an amount that, together
1-12 with the accrued interest received, is sufficient to pay interest
1-13 becoming due during the fiscal year in which the bonds are sold and
1-14 to establish appropriate reserves.
1-15 <(c) At the timely request of the authority, the board shall
1-16 provide for transferring from the proceeds of the sale of bonds or
1-17 from available money in the fund directly an amount certified by
1-18 the authority as reasonable and necessary to cover the costs of
1-19 administering the program. That amount shall be deposited in the
1-20 state treasury to the credit of a special fund to be known as the
1-21 farm and ranch administrative expense fund.>
1-22 SECTION 2. Section 59.021, Agriculture Code, is amended by
1-23 adding Subsection (i) to read as follows:
1-24 (i) In addition to other uses provided by this chapter, the
2-1 authority may use money in the fund to pay costs and expenses of
2-2 administering the program.
2-3 SECTION 3. Subsection (c), Section 59.022, Agriculture Code,
2-4 is amended to read as follows:
2-5 (c) The authority may set and collect fees the authority
2-6 considers reasonable and necessary to cover the expenses of
2-7 administering the program or considers in the best interest of the
2-8 program. Those fees shall be deposited in the state treasury to
2-9 the credit of the farm and ranch finance program <administrative
2-10 expense> fund. An applicant for financial assistance participating
2-11 in the program shall pay the costs of applying for, participating
2-12 in, and administering and servicing the program, in amounts the
2-13 authority considers reasonable and necessary. Any cost not paid by
2-14 an applicant shall be paid from the fund.
2-15 SECTION 4. Section 59.024, Agriculture Code, is amended to
2-16 read as follows:
2-17 Sec. 59.024. APPLICATION; Eligibility. (a) To borrow money
2-18 from the fund, a person must submit an application to the authority
2-19 that contains an acceptable agricultural business plan for the land
2-20 proposed to be purchased that assures the authority the applicant
2-21 intends to use the land for the primary purpose of farming or
2-22 ranching.
2-23 (b) To be eligible to borrow money from the fund, a person,
2-24 at the time of application, must:
2-25 (1) provide evidence to the authority that
2-26 demonstrates that the person has at least three years of experience
2-27 relevant to the person's agricultural business plan for the land
3-1 proposed to be purchased <be a member of a household that has
3-2 derived at least 25 percent of its gross income from a farm or
3-3 ranch for the preceding three years>; and
3-4 (2) have a net worth of less than $400,000 <$250,000>.
3-5 SECTION 5. Section 59.025, Agriculture Code, is amended to
3-6 read as follows:
3-7 Sec. 59.025. MAXIMUM AMOUNT OF LOAN <DOWN PAYMENT>.
3-8 <(a)> A loan under this chapter may not exceed the lesser of:
3-9 (1) $150,000; or
3-10 (2) an amount equal to 95 percent of the lesser of the
3-11 purchase price of the land or the land's appraised value under
3-12 Section 59.028<, less the down payment required under this
3-13 subsection. If the purchase price of land purchased with financial
3-14 assistance under this chapter is $150,000 or less, the minimum down
3-15 payment is equal to five percent of the purchase price. If the
3-16 purchase price exceeds $150,000, the minimum down payment is an
3-17 amount equal to the sum of five percent of the purchase price plus
3-18 the amount equal to the difference between the purchase price and
3-19 $150,000>.
3-20 <(b) The authority shall provide by rule for the period
3-21 during which and the manner in which the down payment provided for
3-22 under Subsection (a) of this section shall be paid to the
3-23 authority.>
3-24 <(c) If the sale is not consummated, the authority shall
3-25 refund the down payment to the borrower.>
3-26 SECTION 6. (a) The change in law made by this Act does not
3-27 affect a loan made under Chapter 59, Agriculture Code, before the
4-1 effective date of this Act, without regard to whether the sale of
4-2 land for which the loan was made is consummated before the
4-3 effective date of this Act.
4-4 (b) If a down payment is paid to the Texas Agricultural
4-5 Finance Authority under Section 59.025, Agriculture Code, before
4-6 the effective date of this Act, and the sale of land for which the
4-7 down payment was paid is not consummated, the authority shall
4-8 refund the down payment to the borrower in accordance with
4-9 Subsection (c), Section 59.025, Agriculture Code, before its
4-10 amendment by this Act, and the former law is continued in effect
4-11 for that purpose.
4-12 (c) The farm and ranch administrative expense fund is
4-13 abolished.
4-14 SECTION 7. This Act takes effect September 1, 1995.
4-15 SECTION 8. The importance of this legislation and the
4-16 crowded condition of the calendars in both houses create an
4-17 emergency and an imperative public necessity that the
4-18 constitutional rule requiring bills to be read on three several
4-19 days in each house be suspended, and this rule is hereby suspended.