1-1     By:  Patterson, et al. (Senate Sponsor - Haywood)     H.B. No. 2499

 1-2           (In the Senate - Received from the House April 21, 1997;

 1-3     April 23, 1997, read first time and referred to Committee on

 1-4     Natural Resources; May 8, 1997, reported favorably by the following

 1-5     vote:  Yeas 8, Nays 0; May 8, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the family farm and ranch finance program.

 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-10           SECTION 1.  Section 59.024, Agriculture Code, is amended to

1-11     read as follows:

1-12           Sec. 59.024.  Application; Eligibility.  (a)  To borrow money

1-13     from the fund, a person must submit an application to the authority

1-14     that contains an acceptable agricultural business plan for the land

1-15     proposed to be purchased that assures the authority the applicant

1-16     intends to use the land for the primary purpose of farming or

1-17     ranching.

1-18           (b)  To be eligible to borrow money from the fund, a person,

1-19     at the time of application, must:

1-20                 (1)  provide evidence to the authority that

1-21     demonstrates that the person has at least three years of experience

1-22     relevant to the person's agricultural business plan for the land

1-23     proposed to be purchased; and

1-24                 (2)  have a net worth of less than $400,000 [$300,000].

1-25           SECTION 2.  Section 59.025, Agriculture Code, is amended to

1-26     read as follows:

1-27           Sec. 59.025.  Maximum Amount of Loan.  A loan under this

1-28     chapter may not exceed the lesser of:

1-29                 (1)  $250,000 [$150,000]; or

1-30                 (2)  an amount equal to 95 percent of the lesser of the

1-31     purchase price of the land or the land's appraised value under

1-32     Section 59.028.

1-33           (b)  The board shall provide by rule for the period during

1-34     which and the manner in which the down payment provided for under

1-35     Subsection (a) of this section shall be paid to the board.

1-36           (c)  If the sale is not consummated, the board shall refund

1-37     the down payment to the borrower.

1-38           SECTION 3.  Section 252.082, Agriculture Code, is amended to

1-39     read as follows:

1-40           Sec. 252.082.  Use of Fund Income.  The balance and income of

1-41     the farm and ranch loan security fund is transferred to the farm

1-42     and ranch finance program fund, established by Section 49-f,

1-43     Article III, Texas Constitution, to be used to administer the farm

1-44     and ranch finance program [The commissioner shall use the income

1-45     from the farm and ranch loan security fund for the following

1-46     purposes:]

1-47                 [(1)  the grant programs under Sections 44.004, 44.005,

1-48     and 44.006 of this code, in an amount not to exceed $350,000;]

1-49                 [(2)  the produce recovery fund under Chapter 103 of

1-50     this code, in an amount not to exceed $237,000;]

1-51                 [(3)  the farm and ranch finance program fund,

1-52     established by Article III, Section 49-f, of the Texas

1-53     Constitution, in an amount not to exceed $600,000;]

1-54                 [(4)  the Texas-Israel Semi-Arid Fund under Chapter 45

1-55     of this code, in an amount not to exceed $250,000;]

1-56                 [(5)  a program administered by the department to

1-57     reduce the use of pesticides in the production of agricultural

1-58     crops, in an amount not to exceed $400,000; and]

1-59                 [(6)  the program for the benefit of young farmers

1-60     under Chapter 253 of this code, in an amount not to exceed the

1-61     income balance from the farm and ranch loan security fund].

1-62           SECTION 4.  The importance of this legislation and the

1-63     crowded condition of the calendars in both houses create an

1-64     emergency and an imperative public necessity that the

 2-1     constitutional rule requiring bills to be read on three several

 2-2     days in each house be suspended, and this rule is hereby suspended.

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