76R10589 T
By Counts, Swinford, Junell H.B. No. 3050
Substitute the following for H.B. No. 3050:
By Hardcastle C.S.H.B. No. 3050
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the administration of certain loan programs by the
1-3 Texas Agricultural Finance Authority and to the promotion of the
1-4 development of agriculture-related rural businesses.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 44.001, Agriculture Code, is amended to
1-7 read as follows:
1-8 Sec. 44.001. Definitions. In this chapter:
1-9 (1) ["Small business incubator" means a nonprofit
1-10 development agency that provides concentrated business assistance
1-11 services to new small agricultural enterprises.]
1-12 [(2)] "Eligible lending institution" means a financial
1-13 institution that makes commercial loans, is a depository of state
1-14 funds, and agrees to participate in the linked deposit program and
1-15 to provide collateral equal to the amount of linked deposits placed
1-16 with it.
1-17 (2) [(3)] "Eligible borrower" means a person who is in
1-18 the business or entering the business of:
1-19 (A) processing and marketing agricultural crops
1-20 in this state;
1-21 (B) producing alternative agricultural crops in
1-22 this state;
1-23 (C) producing agricultural crops in this state
1-24 the production of which has declined [markedly] because of natural
2-1 disasters; or
2-2 (D) producing agricultural crops in this state
2-3 using water conservation equipment for agricultural production
2-4 purposes.
2-5 (3) [(4)] "Alternative agricultural crops" means crops
2-6 not customarily grown in this state but that could feasibly be
2-7 produced in this state.
2-8 (4) [(5)] "Linked deposit" means a time deposit
2-9 governed by a written deposit agreement between the state and an
2-10 eligible lending institution that provides:
2-11 (A) that the eligible lending institution pay
2-12 interest on the deposit at a rate that is not less than the greater
2-13 of:
2-14 (i) the current market rate of a United
2-15 States treasury bill or note of comparable maturity minus two
2-16 percent; or
2-17 (ii) 1.5 percent;
2-18 (B) that the state not withdraw any part of the
2-19 deposit before the expiration of a period set by a written advance
2-20 notice of the intention to withdraw; and
2-21 (C) that the eligible lending institution agree
2-22 to lend the value of the deposit to an eligible borrower at a
2-23 maximum rate that is the linked deposit [current market] rate [of a
2-24 United States treasury bill or note of comparable maturity] plus a
2-25 maximum of four percent.
2-26 (5) [(6)] "Microenterprise" means a small business
2-27 located in a rural area in which the owner operates [and the
3-1 owner's family provide the bulk of the management and a significant
3-2 amount of the labor required to operate] the enterprise. Priority
3-3 under this chapter shall be given to microenterprises which
3-4 demonstrate significant potential for expansion that will provide
3-5 jobs in economically depressed rural communities or to currently
3-6 unemployed rural residents.
3-7 (6) [(7)] "Rural area" means an area which is
3-8 predominantly rural in character, being one which the board defines
3-9 and declares to be a rural area.
3-10 (7) [(8)] "Board" means the board of directors of the
3-11 Texas Agricultural Finance Authority in Chapter 58 [of this code].
3-12 SECTION 2. Section 44.002, Agriculture Code, is amended to
3-13 read as follows:
3-14 Sec. 44.002. CREATION OF MICROENTERPRISE PROGRAMS.
3-15 [(a) The board shall create an agricultural diversification
3-16 program to:]
3-17 [(1) support commercial use of agricultural research
3-18 and innovation;]
3-19 [(2) increase the capabilities of community and
3-20 regional organizations to train and assist new or expanding
3-21 agricultural-based businesses;]
3-22 [(3) start small business incubators; and]
3-23 [(4) encourage private commercial loans for enhanced
3-24 production, processing, and marketing of certain agricultural
3-25 crops.]
3-26 [(b)] The board shall create a microenterprise support
3-27 program to provide financial assistance to microenterprises in
4-1 rural areas.
4-2 SECTION 3. Section 44.0045, Agriculture Code, is amended to
4-3 read as follows:
4-4 Sec. 44.0045. Microenterprise Support Program Loans.
4-5 (a) The board shall administer a loan program supporting
4-6 established and proposed microenterprises in rural areas by
4-7 providing loans to expand, modernize, or otherwise improve
4-8 established microenterprises and to begin operation of proposed
4-9 microenterprises.
4-10 (b) An applicant applying on behalf of a [A] proposed
4-11 microenterprise [loan applicant] may receive a loan of up to
4-12 $25,000 [$15,000] to begin operation of the microenterprise.
4-13 (c) An applicant applying on behalf of an established
4-14 microenterprise [loan applicant] may receive a loan of up to
4-15 $50,000 [$30,000] to expand, modernize, or otherwise improve an
4-16 established operation [microenterprise].
4-17 (d) The board [of the microenterprise support program] may
4-18 reserve a portion of the total fund for use in cooperative loan
4-19 programs established with the participation of other public or
4-20 private lenders.
4-21 [(e) Financial assistance in the form of a loan may not be
4-22 used to refinance an existing debt of a proposed or existing
4-23 microenterprise.]
4-24 SECTION 4. Section 44.007, Agriculture Code, is amended to
4-25 read as follows:
4-26 Sec. 44.007. Linked Deposit Program. (a) The board shall
4-27 establish a linked deposit program to encourage commercial lending
5-1 for the enhanced production, processing, and marketing of certain
5-2 agricultural crops and for the financing of water conservation
5-3 projects or equipment for agricultural production purposes.
5-4 (b) The board shall approve or disapprove any and all
5-5 applications under this chapter, provided that the board may
5-6 delegate this authority to the commissioner.
5-7 (c) The board shall promulgate rules for the loan portion of
5-8 the linked deposit program. The rules must include:
5-9 (1) a list of the categories of crops customarily
5-10 grown in Texas, with consideration given to the Texas Agricultural
5-11 Statistics Service information available and relevant to this
5-12 determination;
5-13 (2) a list of crops that are alternative agricultural
5-14 crops, with consideration given to the Texas Agricultural
5-15 Statistics Service information available and relevant to this
5-16 determination;
5-17 (3) identification of criteria for a project eligible
5-18 for [a list of crops the production of which has declined markedly
5-19 because of] natural disaster assistance [disasters]; and
5-20 (4) identification of projects and types of equipment
5-21 considered as water conservation projects or equipment for
5-22 agricultural production purposes.
5-23 (d) [(c)] In order to participate in the linked deposit
5-24 program, an eligible lending institution may solicit loan
5-25 applications from eligible borrowers.
5-26 (e) [(d)] After reviewing an application and determining
5-27 that the applicant is eligible and creditworthy, the eligible
6-1 lending institution shall send the application for a linked deposit
6-2 loan to [the board or] the administrator of the Texas Agricultural
6-3 Finance Authority.
6-4 (f) [(e)] The eligible lending institution shall certify the
6-5 interest rate applicable to the specific eligible borrower and
6-6 attach it to the application sent to [the board or] the
6-7 administrator of the Texas Agricultural Finance Authority.
6-8 (g) [(f)] After reviewing each linked deposit loan
6-9 application, the board or the commissioner shall recommend to the
6-10 comptroller the acceptance or rejection of the application.
6-11 (h) [(g)] After acceptance of the application, the
6-12 comptroller shall place a linked deposit with the applicable
6-13 eligible lending institution for the period the comptroller
6-14 considers appropriate. The comptroller may not place a deposit for
6-15 a period extending beyond the state fiscal biennium in which it is
6-16 placed. Subject to the limitation described by Section 44.010 [of
6-17 this chapter], the comptroller may place time deposits at an
6-18 interest rate described by Section 44.001(4) [44.001(5)(A) of this
6-19 chapter].
6-20 (i) [(h)] Before the placing of a linked deposit, the
6-21 eligible lending institution and the state, represented by the
6-22 comptroller [and the board], shall enter into a written deposit
6-23 agreement containing the conditions on which the linked deposit is
6-24 made.
6-25 (j) [(i)] If a lending institution holding linked deposits
6-26 ceases to be a state depository, the comptroller may withdraw the
6-27 linked deposits.
7-1 (k) [(j)] The board may adopt rules that create a procedure
7-2 for determining priorities for loans granted under this chapter.
7-3 Each rule adopted must state the policy objective of the rule. The
7-4 policy objectives of the rules may include preferences to:
7-5 (1) achieve adequate geographic distribution of loans;
7-6 (2) assist certain industries;
7-7 (3) encourage certain practices including water
7-8 conservation; and
7-9 (4) encourage value-added processing of agricultural
7-10 products.
7-11 (l) [(k)] A lending institution is not ineligible to
7-12 participate in the linked deposit program solely because a member
7-13 of the board is also an officer, director, or employee of the
7-14 lending institution, provided that a board member shall recuse
7-15 himself or herself from any action taken by the board on an
7-16 application involving a lending institution by which the board
7-17 member is employed or for which the board member serves as an
7-18 officer or director.
7-19 SECTION 5. Section 44.010, Agriculture Code, is amended to
7-20 read as follows:
7-21 Sec. 44.010. Limitations in Program. (a) At any one time,
7-22 not more than $25 [$15] million, of which $10 million may only be
7-23 used to finance water conservation projects, may be placed in
7-24 linked deposits under this chapter.
7-25 (b) The maximum amount of a loan under this chapter to
7-26 process and market Texas agricultural crops is $500,000. The
7-27 maximum amount of a loan under this chapter to produce alternative
8-1 agricultural crops in this state is $250,000. The maximum amount
8-2 of a loan under this chapter to finance water conservation projects
8-3 or equipment for agricultural production purposes is $250,000. The
8-4 maximum amount of a loan under this chapter to finance production
8-5 of a crop declared eligible for natural disaster relief, as defined
8-6 by board rule, is $250,000.
8-7 (c) A loan granted pursuant to this chapter may be used for
8-8 any agriculture-related operating expense, including the purchase
8-9 or lease of land or fixed assets acquisition or improvement, as
8-10 identified in the application [must be applied to the purchase or
8-11 lease of land, equipment, seed, fertilizer, direct marketing
8-12 facilities, or processing facilities, or to payment for
8-13 professional services].
8-14 (d) A loan granted pursuant to this chapter[, when used to
8-15 finance eligible water conservation projects or equipment,] may be
8-16 applied to existing debt [resulting from the financing of water
8-17 conservation projects or equipment for agricultural purposes as
8-18 defined by board rule].
8-19 SECTION 6. Sections 44.012 and 44.013, Agriculture Code, are
8-20 amended to read as follows:
8-21 Sec. 44.012. MONEY FOR [GRANTS AND] LOANS. The board may
8-22 accept gifts and grants of money from the federal government, local
8-23 governments, or private corporations or other persons for use in
8-24 making [grants and] loans under [the agricultural diversification
8-25 program and] the rural microenterprise support program. The
8-26 legislature may appropriate money for [grants and] loans under the
8-27 program [programs].
9-1 Sec. 44.013. Rural Microenterprise Development Fund. The
9-2 rural microenterprise development fund is a fund in the
9-3 comptroller's office [state treasury]. Money appropriated to the
9-4 board [Agricultural Diversification Board] for use in making loans
9-5 under the rural microenterprise support program, other amounts
9-6 received by the state for loans made under the program, and other
9-7 money received by the board for the program and required by the
9-8 board to be deposited in the fund shall be deposited to the credit
9-9 of the fund. The fund shall operate as a revolving fund, the
9-10 contents of which shall be applied and reapplied for the purposes
9-11 of the rural microenterprise support program.
9-12 SECTION 7. Section 58.002, Agriculture Code, is amended by
9-13 amending Subdivisions (1) and (7) and adding Subdivision (9) to
9-14 read as follows:
9-15 (1) "Agricultural business" means:
9-16 (A) a business that is or proposes to be engaged
9-17 in producing, processing, marketing, or exporting an agricultural
9-18 product;
9-19 (B) an eligible applicant as defined in
9-20 Subchapter E;
9-21 (C) the entity designated to carry out boll
9-22 weevil eradication in accordance with Section 74.1011;
9-23 (D) any agriculture-related business in rural
9-24 areas of Texas including a business that provides recreational
9-25 activities, including hiking, fishing, hunting, or any other
9-26 activity associated with the enjoyment of nature or the outdoors on
9-27 agricultural land; or
10-1 (E) a state agency or an institution of higher
10-2 education that is engaged in producing an agricultural product.
10-3 (7) "Eligible agricultural business" means an
10-4 agricultural business having a [its principal] place of business in
10-5 this state.
10-6 (9) "Rural area" means an area which is predominately
10-7 rural in character, being one which the board defines and declares
10-8 to be a rural area.
10-9 SECTION 8. Subsection (b), Section 58.016, Agriculture Code,
10-10 is amended to read as follows:
10-11 (b) On or before August 1 of each year, the administrator
10-12 shall file with the board the proposed annual budgets for the young
10-13 farmer loan guarantee program under Subchapter E [Chapter 253], the
10-14 farm and ranch finance program under Chapter 59, and the programs
10-15 administered by the board under this chapter for the succeeding
10-16 fiscal year. If there is no administrator, the commissioner shall
10-17 assume the duties of the administrator in connection with
10-18 preparation of the budget. The budget must set forth the general
10-19 categories of expected expenditures out of revenues and income of
10-20 the funds administered by the authority and the amount on account
10-21 of each. On or before September 1 of each year, the board shall
10-22 consider the proposed annual budget and may approve it or amend it.
10-23 Copies of the annual budget certified by the chairman of the board
10-24 shall be promptly filed with the governor and the legislature. The
10-25 annual budget is not effective until it is filed. If for any
10-26 reason the authority does not adopt an annual budget before
10-27 September 2, no expenditures may be made from the funds until the
11-1 board approves the annual budget. The authority may adopt an
11-2 amended annual budget for the current fiscal year, but the amended
11-3 annual budget may not supersede a prior budget until it is filed
11-4 with the governor and the legislature.
11-5 SECTION 9. Section 58.0172, Agriculture Code, is amended by
11-6 adding Subsection (e) to read as follows:
11-7 (e) A lending institution is not ineligible to participate
11-8 in the programs administered by the board solely because a member
11-9 of the board is also an officer, director, or employee of the
11-10 lending institution, provided that a board member shall recuse
11-11 himself or herself from any action taken by the board on an
11-12 application involving a lending institution by which the board
11-13 member is employed or for which the board member serves as an
11-14 officer or director.
11-15 SECTION 10. Section 58.021, Agriculture Code, is amended to
11-16 read as follows:
11-17 Sec. 58.021. Purposes of Authority. (a) In order to
11-18 promote the expansion, development, and diversification of
11-19 production, processing, marketing, and export of Texas agricultural
11-20 products and to promote the development of agriculture-related
11-21 rural businesses, the authority shall design and implement programs
11-22 to provide financial assistance to eligible agricultural
11-23 businesses, including programs:
11-24 (1) to make or acquire loans to eligible agricultural
11-25 businesses;
11-26 (2) to make or acquire loans to lenders to enable
11-27 those lenders to make loans to eligible agricultural businesses;
12-1 (3) to insure, coinsure, and reinsure, in whole or in
12-2 part, loans to eligible agricultural businesses;
12-3 (4) to guarantee, in whole or in part, loans to
12-4 eligible agricultural businesses; and
12-5 (5) to administer or participate in programs
12-6 established by another person to provide financial assistance to
12-7 eligible agricultural businesses.
12-8 (b) The authority's programs shall be designed and
12-9 implemented to provide financial assistance to enable eligible
12-10 agricultural businesses to finance or refinance costs incurred in
12-11 connection with the development, increase, improvement, or
12-12 expansion of production, processing, marketing, or export of Texas
12-13 agricultural products and for the development of rural
12-14 agriculture-related businesses, including but not limited to the
12-15 costs of:
12-16 (1) acquisition of and improvements to land or
12-17 interests in land;
12-18 (2) acquisition, construction, rehabilitation,
12-19 operation, and maintenance of buildings, improvements, and
12-20 structures;
12-21 (3) site preparations;
12-22 (4) architectural, engineering, legal, and related
12-23 services;
12-24 (5) acquisition, installation, rehabilitation,
12-25 operation, and maintenance of machinery, equipment, furnishings,
12-26 and facilities;
12-27 (6) acquisition, processing, or distribution of
13-1 inventory;
13-2 (7) research and development;
13-3 (8) financing fees and charges;
13-4 (9) interest during acquisition or construction;
13-5 (10) necessary reserve fund;
13-6 (11) acquisition of licenses, permits, and approvals
13-7 from any governmental entity; [and]
13-8 (12) pre-export and export expenses; and
13-9 (13) insect eradication and suppression programs.
13-10 (c) Except as otherwise provided by this subsection, the
13-11 maximum aggregate amount of loans made to or guaranteed, insured,
13-12 coinsured, or reinsured under this subchapter for a single eligible
13-13 agricultural business by the authority from funds provided by the
13-14 authority is $2 million. The authority may make, guarantee,
13-15 insure, coinsure, or reinsure a loan for a single eligible
13-16 agricultural business that results in an aggregate amount exceeding
13-17 $2 million, but not exceeding $5 million, if the action is approved
13-18 by a two-thirds vote of the membership of the board. The authority
13-19 may make, guarantee, participate in, insure, coinsure, or reinsure
13-20 loans to the entity designated to carry out boll weevil eradication
13-21 in accordance with Section 74.1011 in an amount approved by the
13-22 board to enable that entity to execute Subchapter D, Chapter 74.
13-23 The authority may issue an obligation on behalf of, or make,
13-24 guarantee, participate in, insure, coinsure, or reinsure loans to,
13-25 a state agency or an institution of higher education for the
13-26 purpose of the development, improvement, or expansion of an
13-27 agricultural product or an agriculture-related business in an
14-1 amount approved by the board.
14-2 (d) [(e)] Notwithstanding any other provision of this
14-3 section, the authority may also design and implement programs to
14-4 further rural economic development.
14-5 SECTION 11. Subsection (a), Section 58.023, Agriculture
14-6 Code, is amended to read as follows:
14-7 (a) The board shall adopt rules to establish criteria for
14-8 determining which eligible agricultural businesses may participate
14-9 in programs that may be established by the board. The board's
14-10 rules must state that the policy of the authority is to provide
14-11 programs for providing financial assistance to eligible
14-12 agricultural businesses [that otherwise would not be made and] that
14-13 the board considers to present a reasonable risk and have a
14-14 sufficient likelihood of repayment. In establishing criteria for
14-15 participation, the board shall give priority to eligible
14-16 agricultural businesses that include producers of Texas
14-17 agricultural products in the ownership of the businesses. The
14-18 board shall adopt collateral or security requirements to ensure the
14-19 full repayment of that financial assistance and the solvency of any
14-20 program implemented under this chapter. The board shall approve
14-21 any and all extensions of that financial assistance under this
14-22 chapter, provided that the board may delegate this approval
14-23 authority to the administrator or the commissioner.
14-24 SECTION 12. Subchapter C, Chapter 58, Agriculture Code, is
14-25 amended by adding Section 58.026 to read as follows:
14-26 Sec. 58.026. LIMITATION OF LIABILITY FOR CERTAIN
14-27 RECREATIONAL ACTIVITIES. The provisions of Chapter 75, Civil
15-1 Practice and Remedies Code, apply to eligible recreational
15-2 activities which are funded under this chapter.
15-3 SECTION 13. Chapter 58, Agriculture Code, is amended by
15-4 adding Subchapter E to read as follows:
15-5 SUBCHAPTER E. YOUNG FARMER LOAN GUARANTEE PROGRAM
15-6 Sec. 58.051. DEFINITIONS. In this subchapter:
15-7 (1) "Commercial lender" means a commercial lending
15-8 institution chartered by the state or federal government, including
15-9 a savings and loan association, a credit union, or a Farm Credit
15-10 System institution.
15-11 (2) "Eligible applicant" means a person applying for a
15-12 loan guarantee under this subchapter who:
15-13 (A) is at least 18 years of age but younger than
15-14 40 years of age; and
15-15 (B) complies with the application procedures
15-16 prescribed by this subchapter.
15-17 (3) "Plan" means the documentation submitted to the
15-18 lender in support of the application.
15-19 Sec. 58.052. YOUNG FARMER LOAN GUARANTEE PROGRAM. (a) The
15-20 board shall administer a loan guarantee program that benefits
15-21 eligible applicants who desire to establish or enhance a farming or
15-22 ranching operation or an agriculture-related business.
15-23 (b) The board, either directly or through authority
15-24 delegated to the commissioner, may grant to an eligible applicant a
15-25 guarantee of a loan made by a commercial lender for the purposes
15-26 prescribed by this subchapter. The guarantee amount may not exceed
15-27 the lesser of $250,000 or 90 percent of the loan amount.
16-1 (c) The aggregate amount guaranteed under this subchapter
16-2 may not exceed twice the amount contained in the young farmer loan
16-3 guarantee account within the Texas agricultural fund.
16-4 (d) A loan guarantee recipient may use proceeds from the
16-5 loan for working capital for operating a farm or ranch, including
16-6 the lease of facilities and the purchase of machinery and
16-7 equipment, or for any agriculture-related business purpose,
16-8 including the purchase of real estate, as identified in the plan.
16-9 A loan guarantee is voidable by the board if the recipient uses
16-10 loan proceeds for any purposes other than those identified in the
16-11 plan. The board shall include this restriction as a condition in
16-12 each loan guarantee instrument executed under this subchapter.
16-13 (e) The board shall adopt an agreement, to be used between a
16-14 commercial lender and an approved eligible applicant, under which
16-15 the program provides a payment from money in the young farmer loan
16-16 guarantee account for the purpose of providing a reduced interest
16-17 rate on a loan guaranteed to a borrower under this subchapter. The
16-18 board shall adopt rules to implement this subsection. The maximum
16-19 rate reduction under this subsection shall not exceed three
16-20 percentage points.
16-21 Sec. 58.053. APPLICATION FOR LOAN GUARANTEE. (a) An
16-22 eligible applicant's documentation shall include the following for
16-23 the board's review:
16-24 (1) the plan, as submitted to the lender, for the
16-25 applicant's proposed farm or ranch operation or agriculture-related
16-26 business to be financed that includes a budget for the proposed
16-27 operation;
17-1 (2) a completed application for a loan from a
17-2 commercial lender on which an eligible applicant has indicated how
17-3 the loan proceeds will be used to implement the applicant's plan;
17-4 and
17-5 (3) the signed statement of a loan officer of the
17-6 commercial lender that a loan guarantee is required for approval of
17-7 the loan application.
17-8 (c) The board may charge a reasonable application fee for
17-9 processing an application filed under this section.
17-10 Sec. 58.054. BOARD CONSIDERATION OF LOAN GUARANTEE
17-11 APPLICATION. After reviewing the material submitted under Section
17-12 58.053, the board shall consider the following factors in deciding
17-13 whether to approve an application for a loan guarantee:
17-14 (1) the anticipated benefits from granting a loan
17-15 guarantee to the applicant, including both potential job creation
17-16 and commercial benefits to the agricultural industry;
17-17 (2) the applicant's qualifications;
17-18 (3) the feasibility of the applicant's plan; and
17-19 (4) other repayment sources available to the
17-20 applicant.
17-21 Sec. 58.055. DEFAULT. If the recipient of a loan guarantee
17-22 defaults on a loan that is guaranteed under this subchapter and the
17-23 authority is required to honor its guarantee, the authority,
17-24 through its representative, may bring suit against the defaulting
17-25 party. Any suit brought by the authority under this section may
17-26 have venue in Travis County.
17-27 Sec. 58.056. MONEY FOR LOAN GUARANTEE PROGRAM. The
18-1 authority may accept gifts and grants of money from the federal
18-2 government, local governments, private corporations, or other
18-3 persons for use in the young farmer loan guarantee program. The
18-4 legislature may appropriate money for the program.
18-5 Sec. 58.057. YOUNG FARMER LOAN GUARANTEE ACCOUNT. (a) The
18-6 young farmer loan guarantee account is an account in the Texas
18-7 agricultural fund. Money in the account may be used only by the
18-8 authority for the purpose of making or administering loan
18-9 guarantees under this subchapter.
18-10 (b) The account consists of funds and transfers made to the
18-11 account, grants and donations made for the purposes of the young
18-12 farmer loan guarantee program, income earned on money in the
18-13 account, and any other money received under this subchapter.
18-14 Notwithstanding Section 404.071, Government Code, income and
18-15 interest earned on money in the account shall be deposited to the
18-16 credit of the account. The account is exempt from the application
18-17 of Section 403.095, Government Code.
18-18 (c) The board may spend not more than $100,000 during each
18-19 fiscal year from income earned on the account and from application
18-20 fees collected by the authority under Section 58.053 to pay the
18-21 costs of administering the program.
18-22 (d) The board shall attempt to administer the fund in a
18-23 manner that makes private donations to the fund an eligible
18-24 itemized deduction for federal income taxation purposes.
18-25 (e) The board has the same authority in administering the
18-26 young farmer loan guarantee program as it has in administering
18-27 other programs established by this chapter.
19-1 SECTION 14. Subsection (b), Section 502.174, Transportation
19-2 Code, is amended to read as follows:
19-3 (b) The county assessor-collector shall send an assessment
19-4 collected under this section to the comptroller, at the time and in
19-5 the manner prescribed by the Texas Agricultural Finance Authority,
19-6 for deposit in the Texas agricultural fund [general revenue fund]
19-7 to the credit of the young farmer loan guarantee account.
19-8 SECTION 15. Sections 44.004, 44.005, 44.006, and 44.011 and
19-9 Chapter 253, Agriculture Code, are repealed.
19-10 SECTION 16. The importance of this legislation and the
19-11 crowded condition of the calendars in both houses create an
19-12 emergency and an imperative public necessity that the
19-13 constitutional rule requiring bills to be read on three several
19-14 days in each house be suspended, and this rule is hereby suspended,
19-15 and that this Act take effect and be in force from and after its
19-16 passage, and it is so enacted.