SRC-MAX H.B. 2499 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 2499
By: Patterson (Haywood)
Subcommittee on Agriculture
4-29-97
Engrossed


DIGEST 

In 1993, legislation was passed that moved the Farm and Ranch Finance
program from the Veteran's Land Board to the Texas Department of
Agriculture.  The purpose of the program is to provide affordable
financing to eligible farmers and ranchers in order to purchase land for a
base of operation.  Since its inception, the program has issued only one
loan and there are concerns that the lack of inactivity within the program
is due to the low net worth and loan caps.  This bill raises the Farm and
Ranch Finance program net worth and loan caps and transfers funds to this
program. 

PURPOSE

As proposed, H.B. 2499 set forth certain provisions regarding the family
farm and ranch program. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 59.024, Agriculture Code, to require a person,
to be eligible to borrow money from the fund, at the time of application
to have a net worth of less than $400,000 rather than $300,000.   

SECTION 2. Amends Section 59.025, Agriculture Code, to prohibit a loan
under this chapter from exceeding the lesser of $250,000, rather than
$150,000, or an amount equal to  95 percent of the lesser of certain
prices regarding the land.   

SECTION 3. Amends Section 252.082, Agriculture Code, to provide that the
balance and income of the farm and ranch loan security fund is transferred
to the farm and ranch finance program fund, established by Section 49-f,
Article III, Texas Constitution, to be used to administer the farm and
ranch finance program.  Deletes existing text of Section 252.082 regarding
the use of the income from the farm and ranch loan security fund. 

SECTION 4. Emergency clause.
  Effective date:  90 days after adjournment.