1-1 AN ACT
1-2 relating to the family 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 or
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:
1-14 (1) provide evidence to the authority that
1-15 demonstrates that the person has at least three years of experience
1-16 relevant to the person's agricultural business plan for the land
1-17 proposed to be purchased; and
1-18 (2) have a net worth of less than $400,000 [$300,000].
1-19 SECTION 2. Section 59.025, Agriculture Code, is amended to
1-20 read as follows:
1-21 Sec. 59.025. Maximum Amount of Loan. A loan under this
1-22 chapter may not exceed the lesser of:
1-23 (1) $250,000 [$150,000]; or
1-24 (2) an amount equal to 95 percent of the lesser of the
2-1 purchase price of the land or the land's appraised value under
2-2 Section 59.028.
2-3 (b) The board shall provide by rule for the period during
2-4 which and the manner in which the down payment provided for under
2-5 Subsection (a) of this section shall be paid to the board.
2-6 (c) If the sale is not consummated, the board shall refund
2-7 the down payment to the borrower.
2-8 SECTION 3. Section 252.082, Agriculture Code, is amended to
2-9 read as follows:
2-10 Sec. 252.082. Use of Fund Income. The balance and income of
2-11 the farm and ranch loan security fund is transferred to the farm
2-12 and ranch finance program fund, established by Section 49-f,
2-13 Article III, Texas Constitution, to be used to administer the farm
2-14 and ranch finance program [The commissioner shall use the income
2-15 from the farm and ranch loan security fund for the following
2-16 purposes:]
2-17 [(1) the grant programs under Sections 44.004, 44.005,
2-18 and 44.006 of this code, in an amount not to exceed $350,000;]
2-19 [(2) the produce recovery fund under Chapter 103 of
2-20 this code, in an amount not to exceed $237,000;]
2-21 [(3) the farm and ranch finance program fund,
2-22 established by Article III, Section 49-f, of the Texas
2-23 Constitution, in an amount not to exceed $600,000;]
2-24 [(4) the Texas-Israel Semi-Arid Fund under Chapter 45
2-25 of this code, in an amount not to exceed $250,000;]
2-26 [(5) a program administered by the department to
2-27 reduce the use of pesticides in the production of agricultural
3-1 crops, in an amount not to exceed $400,000; and]
3-2 [(6) the program for the benefit of young farmers
3-3 under Chapter 253 of this code, in an amount not to exceed the
3-4 income balance from the farm and ranch loan security fund].
3-5 SECTION 4. The importance of this legislation and the
3-6 crowded condition of the calendars in both houses create an
3-7 emergency and an imperative public necessity that the
3-8 constitutional rule requiring bills to be read on three several
3-9 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2499 was passed by the House on April
18, 1997, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 2499 was passed by the Senate on May
15, 1997, by the following vote: Yeas 31, Nays 0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor