SRC-JXG S.B. 706 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 706
By: Ogden
Finance
3/15/1999
As Filed


DIGEST 

The 1998 drought is one of the worst in recorded history for agricultural
producers in Texas. The combined loss from crops, livestock, and forestry
totaled nearly $2.5 million, with a negative impact on the economy of
nearly $6 billion. Last year, the crop value of cotton, corn, grain,
sorghum, and hay dropped 23 percent, while livestock value dropped 12
percent. Federal relief efforts and crop insurance do not cover these types
of losses. S.B. 706 would establish  a framework for the state to provide
relief to agricultural producers who suffered uninsurable losses during a
federal disaster, and would provide agricultural producers an economic
incentive to remain in production. 
 
PURPOSE

As proposed, S.B. 706 provides disaster relief to agricultural producers,
and an economic incentive to remain in production; also provides penalties
for fraud. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to Texas Department of Agriculture in
SECTION 1 (Sections 255.004 and 255.011, Agriculture Code) of this bill.  
 
SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 8, Agriculture Code, by adding Chapter 255, as
follows: 

CHAPTER 255. DISASTER RELIEF PROGRAM

 Sec. 255.001. DEFINITION. Defines "agriculture," "commissioner," and
"department." 

 Sec. 255.002. FINDINGS. Sets forth findings of the legislature regarding
agriculture. 

 Sec. 255.003. PURPOSES. Sets forth certain purposes of this chapter.

Sec. 255.004. AGRICULTURAL DISASTER RELIEF PROGRAM. Authorizes the Texas
Department of Agriculture (department) to adopt rules and administer an
agricultural disaster relief program to be implemented by order of the
governor in a county which has been declared a federal disaster area. 

Sec. 255.005. IMPLEMENTATION OF PROGRAM. Provides that this chapter is
implemented only by order of the governor and is subject to specific
appropriation by the legislature. Authorizes the legislature to appropriate
funds to provide assistance for one or more of the agricultural sciences as
described by Section 255.001(a). Provides that any unexpected funds
appropriated for the purposes of this chapter are subject to Section
403.095, Government Code. 

Sec. 255.006. DISASTER RELIEF REIMBURSEMENT. Authorizes a person eligible
for reimbursement under this chapter to apply for reimbursement of a
portion of the person's feed, seed, seedling, and fertilizer costs incurred
in the year following a federal disaster declaration on the land described
by Section 255.007, subject to Section 255.006. Provides that the maximum
reimbursement allowed to a person under this chapter is the least of 30
percent of the costs described by Subsection (a); $15,000; or two times the
amount of property taxes paid on the land described by Section 255.007 for
the year during which the disaster occurred. 

Sec. 255.007. ELIGIBILITY FOR REIMBURSEMENT. Provides that a person engaged
in agriculture as a commercial endeavor who has suffered uninsurable
economic loss as a result of a disaster and has not received federal relief
funds to address that loss is eligible to receive reimbursement under this
chapter on certain land. 

Sec. 255.008. APPLICATION REQUIREMENTS. Requires the department to make
application forms for reimbursement available through the county offices of
the Texas Agricultural Extension Service. Requires an applicant to submit
with the application certain information. 

Sec. 255.009. APPROVAL OF APPLICATION. Requires the department to institute
an application period not to exceed 90 days to the greatest extent
possible. Provides that the department has sole authority to approve
applications under this chapter. Requires the department to pay the person
the appropriate amount of reimbursement under Section 255.006, if the
department approves an application. Requires the department to pay the
claims on a pro rata basis, if insufficient funds are available to pay in
full all claims for reimbursement approved in any year.  

Sec. 255.010. FRAUD. Provides that a person commits fraud, if the person
intentionally or knowingly makes a false statement or supplies false
information, or directs another person to make  a false statement or supply
false information, in an application, receipt, or record required under
this chapter. Provides that an offense under this section is a state jail
felony.  

Sec. 255.011. ADMINISTRATION. Requires the department to administer this
chapter and to adopt rules for that purpose, including rules for the
verification of eligibility for reimbursement and rules for application for
reimbursement. Authorizes the department to contract with a state or
federal agency to assist the department in administering this chapter.  
 
SECTION 11. Effective date: September 1, 1999.

SECTION 12. Emergency clause.