Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By Lewis of Orange H.B. No. 1998
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to statewide water conservation initiatives.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Chapter 44, Agriculture Code, is amended to read
1-5 as follows:
1-6 Sec. 44.007. LINKED DEPOSIT PROGRAM. (a) The board shall
1-7 establish a linked deposit program to encourage commercial lending
1-8 for the enhanced production, processing, and marketing of certain
1-9 agricultural crops and for the financing [purchase] of water
1-10 conservation projects or equipment for agricultural production
1-11 purposes.
1-12 (b) The board shall promulgate rules for the loan portion of
1-13 the linked deposit program. The rules must include:
1-14 (1) a list of the categories of crops customarily
1-15 grown in Texas;
1-16 (2) a list of crops that are alternative agricultural
1-17 crops;
1-18 (3) a list of crops the production of which has
1-19 declined markedly because of natural disasters; and
1-20 (4) identification of [the] projects and types of
1-21 equipment considered as water conservation projects or equipment
1-22 for agricultural production purposes.
1-23 (c) In order to participate in the linked deposit program,
1-24 an eligible lending institution may solicit loan applications from
2-1 eligible borrowers.
2-2 (d) After reviewing an application and determining that the
2-3 applicant is eligible and creditworthy, the eligible lending
2-4 institution shall send the application for a linked deposit loan to
2-5 the board.
2-6 (e) The eligible lending institution shall certify the
2-7 interest rate applicable to the specific eligible borrower and
2-8 attach it to the application sent to the board or the board's
2-9 designee.
2-10 (f) After reviewing each linked deposit loan application,
2-11 the board or the board's designee shall recommend to the state
2-12 treasurer the acceptance or rejection of the application.
2-13 (g) After acceptance of the application, the state treasurer
2-14 shall place a linked deposit with the applicable eligible lending
2-15 institution for the period the treasurer considers appropriate.
2-16 The state treasurer may not place a deposit for a period extending
2-17 beyond the state fiscal biennium in which it is placed. Subject to
2-18 the limitation described by Section 44.010 of this chapter, the
2-19 treasurer may place time deposits at an interest rate described by
2-20 Section 44.001(5)(A) of this chapter, notwithstanding any order of
2-21 the State Depository Board to the contrary.
2-22 (h) Before the placing of a linked deposit, the eligible
2-23 lending institution and the state, represented by the state
2-24 treasurer and the board or the board's designee, shall enter into a
2-25 written deposit agreement containing the conditions on which the
2-26 linked deposit is made.
2-27 (i) If a lending institution holding linked deposits ceases
2-28 to be a state depository, the state treasurer may withdraw the
2-29 linked deposits.
2-30 (j) The board may adopt rules that create a procedure for
3-1 determining priorities for loans granted under this chapter. Each
3-2 rule adopted must state the policy objective of the rule. The
3-3 policy objectives of the rules may include preferences to:
3-4 (1) achieve adequate geographic distribution of loans;
3-5 (2) assist certain industries;
3-6 (3) encourage certain practices including water
3-7 conservation; and
3-8 (4) encourage value-added processing of agricultural
3-9 products.
3-10 Sec. 44.008. COMPLIANCE. (a) On accepting a linked
3-11 deposit, an eligible lending institution must loan money to
3-12 eligible borrowers in accordance with the deposit agreement and
3-13 this chapter. The eligible lending institution shall forward a
3-14 compliance report to the board.
3-15 (b) The board shall monitor compliance with this chapter and
3-16 inform the state treasurer of noncompliance on the part of an
3-17 eligible lending institution.
3-18 Sec. 44.009. STATE LIABILITY PROHIBITED. The state is not
3-19 liable to an eligible lending institution for payment of the
3-20 principal, interest, or any late charges on a loan made to an
3-21 eligible borrower. A delay in payment or default on a loan by an
3-22 eligible borrower does not affect the validity of the deposit
3-23 agreement. Linked deposits are not an extension of the state's
3-24 credit within the meaning of any state constitutional prohibition.
3-25 Sec. 44.010. LIMITATIONS IN PROGRAM. (a) At any one time,
3-26 not more than $15 [5] million, of which $10 million may only be
3-27 used to finance water conservation projects, may be placed in
3-28 linked deposits under this chapter.
3-29 (b) The maximum amount of a loan under this chapter to
3-30 process and market Texas agricultural crops is $500,000. The
4-1 maximum amount of a loan under this chapter to produce alternative
4-2 agricultural crops in this state is $250,000. The maximum amount
4-3 of a loan under this chapter to finance [purchase] water
4-4 conservation projects or equipment for agricultural production
4-5 purposes is $250,000.
4-6 (c) A loan granted pursuant to this chapter must be applied
4-7 to the purchase or lease of land, equipment, seed, fertilizer,
4-8 direct marketing facilities, or processing facilities, or to
4-9 payment for professional services.
4-10 (d) A loan granted pursuant to this chapter, when used to
4-11 finance eligible water conservation projects or equipment, may be
4-12 applied to existing debt resulting from the financing of water
4-13 conservation projects or equipment for agricultural purposes as
4-14 defined by board rule.
4-15 SECTION 2. Subtitle C, Chapter 11, Tax Code, is amended by
4-16 adding a new Section 11.49 to read as follows:
4-17 Sec. 11.49. CERTAIN WATER CONSERVATION INITIATIVES. The
4-18 governing body of a taxing unit by official action of the body
4-19 adopted in the manner required by law for official actions may
4-20 exempt from taxation part or all of the assessed value of property
4-21 upon which approved water conservation initiatives have been
4-22 implemented. For purposes of this section, approved water
4-23 conservation initiatives shall be designated pursuant to an
4-24 ordinance or other law adopted by the governing unit.
4-25 SECTION 3. Chapter 2155.44, General Government Code, is
4-26 amended by adding a new Subsection (d) to read as follows:
4-27 Sec. 2155.444. PREFERENCE TO TEXAS AND UNITED STATES
4-28 PRODUCTS. (a) The commission and all state agencies making
4-29 purchase of goods, including agricultural products, shall give
4-30 preference to those produced or grown in this state or offered by
5-1 Texas bidders as follows:
5-2 (1) goods produced in this state or offered by Texas
5-3 bidders shall equally be given preference if the cost to the state
5-4 and quality are equal; and
5-5 (2) agricultural products grown in this state shall be
5-6 given first preference and agricultural products offered by Texas
5-7 bidders shall be given second preference, if the cost to the state
5-8 and quality are equal.
5-9 (b) If goods, including agricultural products, produced or
5-10 grown in this state or offered by Texas bidders are not equal in
5-11 cost and quality to other products, then goods, including
5-12 agricultural products, produced or grown in other states of the
5-13 United States shall be given preference over foreign products if
5-14 the cost to the state and quality are equal.
5-15 (c) In this section, "agricultural products" includes
5-16 textiles and other similar products.
5-17 (d) The commission and all state agencies making purchase of
5-18 vegetation for landscaping purposes, including plants, shall give
5-19 preference to vegetation native to Texas if the cost to the state
5-20 and quality are equal.
5-21 SECTION 4. The importance of this legislation and the
5-22 crowded condition of the calendars in both houses create an
5-23 emergency and an imperative public necessity that the
5-24 constitutional rule requiring bills to be read on three several
5-25 days in each house be suspended, and this rule is hereby suspended,
5-26 and that this Act take effect and be in force from and after its
5-27 passage, and it is so enacted.