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.
2-3 * * * * *