By Counts H.B. No. 3050
76R7129 BDH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the development of agricultural enterprises and
1-3 programs.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 44.001(3), (5), and (6), Agriculture
1-6 Code, are amended to read as follows:
1-7 (3) "Eligible borrower" means a person who is in the
1-8 business or entering the business of:
1-9 (A) processing and marketing agricultural crops
1-10 in this state;
1-11 (B) producing alternative agricultural crops in
1-12 this state;
1-13 (C) producing agricultural crops in this state
1-14 the production of which has declined [markedly] because of natural
1-15 disasters; or
1-16 (D) producing agricultural crops in this state
1-17 using water conservation equipment for agricultural production
1-18 purposes.
1-19 (5) "Linked deposit" means a time deposit governed by
1-20 a written deposit agreement between the state and an eligible
1-21 lending institution that provides:
1-22 (A) that the eligible lending institution pay
1-23 interest on the deposit at a rate that is not less than the greater
1-24 of:
2-1 (i) the current market rate of a United
2-2 States treasury bill or note of comparable maturity minus two
2-3 percent; or
2-4 (ii) 1.5 percent;
2-5 (B) that the state not withdraw any part of the
2-6 deposit before the expiration of a period set by a written advance
2-7 notice of the intention to withdraw; and
2-8 (C) that the eligible lending institution agree
2-9 to lend the value of the deposit to an eligible borrower at a
2-10 maximum rate that is the [current market] rate paid on the linked
2-11 deposit [of a United States treasury bill or note of comparable
2-12 maturity] plus not more than four percent.
2-13 (6) "Microenterprise" means a small business located
2-14 in a rural area in which the owner operates [and the owner's family
2-15 provide the bulk of the management and a significant amount of the
2-16 labor required to operate] the enterprise. Priority under this
2-17 chapter shall be given to microenterprises which demonstrate
2-18 significant potential for expansion that will provide jobs in
2-19 economically depressed rural communities or to currently unemployed
2-20 rural residents.
2-21 SECTION 2. Section 44.002, Agriculture Code, is amended to
2-22 read as follows:
2-23 Sec. 44.002. CREATION OF MICROENTERPRISE PROGRAM [PROGRAMS].
2-24 [(a) The board shall create an agricultural diversification
2-25 program to:]
2-26 [(1) support commercial use of agricultural research
2-27 and innovation;]
3-1 [(2) increase the capabilities of community and
3-2 regional organizations to train and assist new or expanding
3-3 agricultural-based businesses;]
3-4 [(3) start small business incubators; and]
3-5 [(4) encourage private commercial loans for enhanced
3-6 production, processing, and marketing of certain agricultural
3-7 crops.]
3-8 [(b)] The board shall create a microenterprise support
3-9 program to provide financial assistance to microenterprises in
3-10 rural areas.
3-11 SECTION 3. Sections 44.0045(b), (c), and (d), Agriculture
3-12 Code, are amended to read as follows:
3-13 (b) An applicant for a loan on behalf of a [A] proposed
3-14 microenterprise [loan applicant] may receive a loan of up to
3-15 $25,000 [$15,000] to begin operation of the microenterprise.
3-16 (c) An applicant for a loan on behalf of an [An] established
3-17 microenterprise [loan applicant] may receive a loan of up to
3-18 $50,000 [$30,000] to expand, modernize, or otherwise improve an
3-19 established activity or operation of the microenterprise.
3-20 (d) The board [of the microenterprise support program] may
3-21 reserve a portion of the rural enterprises microdevelopment account
3-22 [total fund] for use in cooperative loan programs established with
3-23 the participation of other public or private lenders.
3-24 SECTION 4. Sections 44.007(b), (d), (e), (f), (h), and (k),
3-25 Agriculture Code, are amended to read as follows:
3-26 (b) The board shall promulgate rules for the loan portion of
3-27 the linked deposit program. The rules must include:
4-1 (1) a list, compiled with consideration of relevant
4-2 information available from the Texas Agricultural Statistics
4-3 Service, of the categories of crops customarily grown in Texas;
4-4 (2) a list, compiled with consideration of relevant
4-5 information available from the Texas Agricultural Statistics
4-6 Service, of crops that are alternative agricultural crops;
4-7 (3) eligibility criteria for [a list of crops the
4-8 production of which has declined markedly because of] natural
4-9 disaster assistance under this chapter [disasters]; and
4-10 (4) identification of projects and types of equipment
4-11 considered as water conservation projects or equipment for
4-12 agricultural production purposes.
4-13 (d) After reviewing an application and determining that the
4-14 applicant is eligible and creditworthy, the eligible lending
4-15 institution shall send the application for a linked deposit loan to
4-16 [the board or] the administrator of the Texas Agricultural Finance
4-17 Authority.
4-18 (e) The eligible lending institution shall certify the
4-19 interest rate applicable to the specific eligible borrower and
4-20 attach it to the application sent to [the board or] the
4-21 administrator of the Texas Agricultural Finance Authority.
4-22 (f) After reviewing each linked deposit loan application,
4-23 the board or the commissioner, if the board delegates the authority
4-24 to the commissioner, shall recommend to the comptroller the
4-25 acceptance or rejection of the application.
4-26 (h) Before the placing of a linked deposit, the eligible
4-27 lending institution and the state, represented by the comptroller
5-1 [and the board], shall enter into a written deposit agreement
5-2 containing the conditions on which the linked deposit is made.
5-3 (k) A lending institution is not ineligible to participate
5-4 in the linked deposit program solely because a member of the board
5-5 is also an officer, director, or employee of the lending
5-6 institution. A member of the board who is an officer, director, or
5-7 employee of a lending institution that is a participant in a
5-8 program administered by the board must abstain from any action
5-9 taken by the board regarding the lending institution.
5-10 SECTION 5. Sections 44.010(a), (b), and (c), Agriculture
5-11 Code, are amended to read as follows:
5-12 (a) At any one time, not more than $25 [$15] million, of
5-13 which $10 million may only be used to finance water conservation
5-14 projects, may be placed in linked deposits under this chapter.
5-15 (b) The maximum amount of a loan under this chapter to
5-16 process and market Texas agricultural crops is $500,000. The
5-17 maximum amount of a loan under this chapter to produce alternative
5-18 agricultural crops in this state is $250,000. The maximum amount
5-19 of a loan under this chapter to finance production of a crop on
5-20 land eligible for national disaster relief, as determined by the
5-21 board, is $250,000. The maximum amount of a loan under this
5-22 chapter to finance water conservation projects or equipment for
5-23 agricultural production purposes is $250,000.
5-24 (c) A loan granted pursuant to this chapter must be applied
5-25 to existing debt or used for any agriculture-related operating
5-26 expenses, including the purchase or lease of land, the acquisition
5-27 of fixed assets, or the making of improvements, as identified in
6-1 the loan application [equipment, seed, fertilizer, direct marketing
6-2 facilities, or processing facilities, or to payment for
6-3 professional services].
6-4 SECTION 6. Section 44.012, Agriculture Code, is amended to
6-5 read as follows:
6-6 Sec. 44.012. MONEY FOR [GRANTS AND] LOANS. The board may
6-7 accept gifts and grants of money from the federal government, local
6-8 governments, or private corporations or other persons for use in
6-9 making [grants and] loans under the [agricultural diversification
6-10 program and the] rural microenterprise support program. The
6-11 legislature may appropriate money for [grants and] loans under the
6-12 program [programs].
6-13 SECTION 7. Section 44.013, Agriculture Code, is amended to
6-14 read as follows:
6-15 Sec. 44.013. RURAL MICROENTERPRISE DEVELOPMENT ACCOUNT
6-16 [FUND]. The rural microenterprise development account [fund] is an
6-17 account [a fund] in the general revenue fund [state treasury].
6-18 Money appropriated to the board [Agricultural Diversification
6-19 Board] for use in making loans under the rural microenterprise
6-20 support program, other amounts received by the state for loans made
6-21 under the program, and other money received by the board for the
6-22 program and required by the board to be deposited in the account
6-23 [fund] shall be deposited to the credit of the account [fund]. The
6-24 account [fund] shall operate as a revolving account [fund], the
6-25 contents of which shall be applied and reapplied for the purposes
6-26 of the rural microenterprise support program.
6-27 SECTION 8. Section 58.002(1), Agriculture Code, is amended
7-1 to read as follows:
7-2 (1) "Agricultural business" means:
7-3 (A) a business that is or proposes to be engaged
7-4 in producing, processing, marketing, or exporting an agricultural
7-5 product;
7-6 (B) an eligible applicant for a loan under
7-7 Subchapter E;
7-8 (C) an entity designated to carry out boll
7-9 weevil eradication in accordance with Subchapter D, Chapter 74; or
7-10 (D) a business in a rural area of the state, as
7-11 defined and declared a rural area by the board, that provides
7-12 outdoor recreational activities on agricultural land, including
7-13 hiking, fishing, and hunting.
7-14 SECTION 9. Section 58.016(b), Agriculture Code, is amended
7-15 to read as follows:
7-16 (b) On or before August 1 of each year, the administrator
7-17 shall file with the board the proposed annual budgets for the young
7-18 farmer loan guarantee program under Subchapter E [Chapter 253], the
7-19 farm and ranch finance program under Chapter 59, and the programs
7-20 administered by the board under this chapter for the succeeding
7-21 fiscal year. If there is no administrator, the commissioner shall
7-22 assume the duties of the administrator in connection with
7-23 preparation of the budget. The budget must set forth the general
7-24 categories of expected expenditures out of revenues and income of
7-25 the funds administered by the authority and the amount on account
7-26 of each. On or before September 1 of each year, the board shall
7-27 consider the proposed annual budget and may approve it or amend it.
8-1 Copies of the annual budget certified by the chairman of the board
8-2 shall be promptly filed with the governor and the legislature. The
8-3 annual budget is not effective until it is filed. If for any
8-4 reason the authority does not adopt an annual budget before
8-5 September 2, no expenditures may be made from the funds until the
8-6 board approves the annual budget. The authority may adopt an
8-7 amended annual budget for the current fiscal year, but the amended
8-8 annual budget may not supersede a prior budget until it is filed
8-9 with the governor and the legislature.
8-10 SECTION 10. Section 58.0172, Agriculture Code, is amended by
8-11 adding Subsection (e) to read as follows:
8-12 (e) A lending institution is not ineligible to participate
8-13 in the programs administered by the board solely because a member
8-14 of the board is also an officer, director, or employee of the
8-15 lending institution. A member of the board who is an officer,
8-16 director, or employee of a lending institution that is a
8-17 participant in a program administered by the board must abstain
8-18 from any action taken by the board regarding the lending
8-19 institution.
8-20 SECTION 11. Sections 58.021(a), (b), and (c), Agriculture
8-21 Code, are amended to read as follows:
8-22 (a) In order to promote the development of rural
8-23 agricultural businesses and the expansion, development, and
8-24 diversification of production, processing, marketing, and export
8-25 of Texas agricultural products, the authority shall design and
8-26 implement programs to provide financial assistance to eligible
8-27 agricultural businesses, including programs:
9-1 (1) to make or acquire loans to eligible agricultural
9-2 businesses;
9-3 (2) to make or acquire loans to lenders to enable
9-4 those lenders to make loans to eligible agricultural businesses;
9-5 (3) to insure, coinsure, and reinsure, in whole or in
9-6 part, loans to eligible agricultural businesses;
9-7 (4) to guarantee, in whole or in part, loans to
9-8 eligible agricultural businesses; and
9-9 (5) to administer or participate in programs
9-10 established by another person to provide financial assistance to
9-11 eligible agricultural businesses.
9-12 (b) The authority's programs shall be designed and
9-13 implemented to provide financial assistance to develop rural
9-14 agricultural businesses and to enable eligible agricultural
9-15 businesses to finance or refinance costs incurred in connection
9-16 with the expansion, development, increase, or improvement of
9-17 production, processing, marketing, or export of Texas agricultural
9-18 products, including but not limited to the costs of:
9-19 (1) acquisition of and improvements to land or
9-20 interests in land;
9-21 (2) acquisition, construction, rehabilitation,
9-22 operation, and maintenance of buildings, improvements, and
9-23 structures;
9-24 (3) site preparations;
9-25 (4) architectural, engineering, legal, and related
9-26 services;
9-27 (5) acquisition, installation, rehabilitation,
10-1 operation, and maintenance of machinery, equipment, furnishings,
10-2 and facilities;
10-3 (6) acquisition, processing, or distribution of
10-4 inventory;
10-5 (7) research and development;
10-6 (8) financing fees and charges;
10-7 (9) interest during acquisition or construction;
10-8 (10) necessary reserve fund;
10-9 (11) acquisition of licenses, permits, and approvals
10-10 from any governmental entity; [and]
10-11 (12) pre-export and export expenses; and
10-12 (13) insect eradication and suppression programs.
10-13 (c) Except as provided by this subsection, the maximum
10-14 aggregate amount of loans made to or guaranteed, insured,
10-15 coinsured, or reinsured under this subchapter for a single eligible
10-16 agricultural business by the authority from funds provided by the
10-17 authority is $2 million. The authority may make, guarantee,
10-18 insure, coinsure, or reinsure a loan for a single eligible
10-19 agricultural business that results in an aggregate amount exceeding
10-20 $2 million, but not exceeding $5 million, if the action is approved
10-21 by a two-thirds vote of the membership of the board. The authority
10-22 may make, guarantee, insure, coinsure, or reinsure a loan in an
10-23 amount exceeding $2 million to an entity designated under Section
10-24 74.1011 to carry out boll weevil eradication consistent with
10-25 Subchapter D, Chapter 74.
10-26 SECTION 12. Section 58.023(a), Agriculture Code, is amended
10-27 to read as follows:
11-1 (a) The board shall adopt rules to establish criteria for
11-2 determining which eligible agricultural businesses may participate
11-3 in programs that may be established by the board. The board's
11-4 rules must state that the policy of the authority is to provide
11-5 programs for providing financial assistance to eligible
11-6 agricultural businesses [that otherwise would not be made and] that
11-7 the board considers to present a reasonable risk and have a
11-8 sufficient likelihood of repayment. In establishing criteria for
11-9 participation, the board shall give priority to eligible
11-10 agricultural businesses that include producers of Texas
11-11 agricultural products in the ownership of the businesses. The
11-12 board shall adopt collateral or security requirements to ensure the
11-13 full repayment of that financial assistance and the solvency of any
11-14 program implemented under this chapter. The board shall approve
11-15 any and all extensions of that financial assistance under this
11-16 chapter, provided that the board may delegate this approval
11-17 authority to the administrator or the commissioner.
11-18 SECTION 13. Chapter 253, Agriculture Code, is transferred to
11-19 Chapter 58, Agriculture Code, redesignated as Subchapter E, and
11-20 renumbered and amended to read as follows:
11-21 SUBCHAPTER E [CHAPTER 253]. YOUNG FARMER LOAN GUARANTEE PROGRAM
11-22 Sec. 58.051 [253.001]. DEFINITIONS. In this subchapter
11-23 [chapter]:
11-24 (1) ["Board" means the board of directors of the Texas
11-25 Agricultural Finance Authority.]
11-26 [(2)] "Commercial lender" means a commercial lending
11-27 institution chartered by the state or federal government, including
12-1 a savings and loan association, a credit union, and a Farm Credit
12-2 System institution.
12-3 (2) [(3)] "Eligible applicant" means a person applying
12-4 for a loan guarantee under this subchapter [chapter] who:
12-5 (A) is at least 18 years of age but younger than
12-6 40 years of age;
12-7 (B) has a net worth, as defined by the board, of
12-8 less than $400,000 [four years of practical farm or ranch
12-9 experience, with not more than two years of participation in a 4-H
12-10 or an agricultural science and technology program counting as
12-11 practical farm or ranch experience]; and
12-12 (C) complies with the application procedures
12-13 prescribed by this subchapter [chapter].
12-14 (3) [(4)] "Plan" means documentation submitted to a
12-15 lender in support of an application under this subchapter [a cash
12-16 flow, production, or management plan].
12-17 Sec. 58.052 [253.002]. YOUNG FARMER LOAN GUARANTEE PROGRAM.
12-18 (a) The board shall administer a loan guarantee program that
12-19 benefits eligible applicants who desire to establish their first
12-20 farming or ranching operation or agriculture-related service
12-21 business.
12-22 (b) The board, directly or through the authority granted to
12-23 the commissioner, may grant to an eligible applicant a guarantee of
12-24 a loan made by a commercial lender for the purposes prescribed by
12-25 this subchapter [chapter]. The guarantee amount may not exceed the
12-26 lesser of $250,000 [$100,000] or 90 percent of the total loan
12-27 amount.
13-1 (c) The aggregate amount guaranteed under this subchapter
13-2 [chapter] may not exceed twice the amount of current appropriations
13-3 from the young farmer loan guarantee account.
13-4 (d) A loan guarantee recipient may use proceeds from the
13-5 loan only for working capital for operating a farm or ranch,
13-6 including the lease of facilities, or agriculture-related service
13-7 business. A loan guarantee recipient may not use loan proceeds to
13-8 purchase land. A loan guarantee is voidable by the board if the
13-9 recipient uses loan proceeds for a purpose other than a purpose
13-10 identified in the plan [working capital for operating a farm or
13-11 ranch]. The board shall include this restriction as a condition in
13-12 each loan guarantee instrument executed under this subchapter
13-13 [chapter].
13-14 (e) The board shall adopt [may enter] an agreement to be
13-15 used by [with] a commercial lender and a borrower under which the
13-16 board provides a payment from money in the young farmer loan
13-17 guarantee account for the purpose of providing a reduced interest
13-18 rate on a loan guaranteed to a borrower under this subchapter
13-19 [chapter]. The board shall adopt rules to implement this
13-20 subsection. The maximum rate reduction under this subsection shall
13-21 not exceed three percentage points.
13-22 Sec. 58.053 [253.003]. APPLICATION FOR LOAN GUARANTEE. (a)
13-23 An eligible applicant must present to the board for the board's
13-24 review:
13-25 (1) the [a] plan the applicant has submitted to the
13-26 commercial lender for the applicant's proposed farm or ranch
13-27 operation or agriculture-related service business, including a
14-1 proposed budget [that has been reviewed and approved by an
14-2 individual who:]
14-3 [(A) teaches agricultural science and technology
14-4 in the applicant's school district; or]
14-5 [(B) is a county extension agent-agriculture
14-6 program leader of the Texas Agricultural Extension Service in the
14-7 area where the farm or ranch is located];
14-8 (2) a completed application for a loan from a
14-9 commercial lender on which the eligible applicant has indicated how
14-10 [that] the loan proceeds will be used to implement the applicant's
14-11 plan; and
14-12 (3) the signed statement of a loan officer of the
14-13 commercial lender that a loan guarantee is required for approval of
14-14 the loan application.
14-15 (b) [A district agricultural economist employed by the Texas
14-16 Agricultural Extension Service shall assist with review and
14-17 approval of a plan under Subsection (a)(1) of this section if
14-18 requested to do so by the individual responsible for the review and
14-19 approval.]
14-20 [(c)] The board may charge a reasonable application fee for
14-21 processing an application filed under this section.
14-22 Sec. 58.054 [253.004]. BOARD CONSIDERATION OF LOAN GUARANTEE
14-23 APPLICATION. After reviewing the materials submitted under Section
14-24 58.053 [253.003] of this chapter, the board shall consider the
14-25 following factors in deciding whether to approve an application for
14-26 a loan guarantee:
14-27 (1) the anticipated benefits from granting a loan
15-1 guarantee to the applicant, including both potential job creation
15-2 and commercial benefits to the agricultural industry;
15-3 (2) the applicant's qualifications;
15-4 (3) the feasibility of the applicant's plan; and
15-5 (4) the [other funding] sources available to the
15-6 applicant for repayment of the loan.
15-7 Sec. 58.055 [253.005]. DEFAULT. If the recipient of a loan
15-8 guarantee defaults on a loan that is guaranteed under this
15-9 subchapter [chapter], and the authority [department] is required to
15-10 honor its guarantee, the authority [department], through its
15-11 representative, may bring suit against the defaulting party. The
15-12 suit must [may] be brought in [the county in which the defaulting
15-13 party resides, in which the commercial lender is located, or in]
15-14 Travis County.
15-15 Sec. 58.056 [253.006]. MONEY FOR LOAN GUARANTEE PROGRAM.
15-16 The authority [commissioner] may solicit and accept gifts and
15-17 grants of money from the federal government, local governments,
15-18 private corporations, or other persons for use in the young farmer
15-19 loan guarantee program. The legislature may appropriate money for
15-20 the program.
15-21 Sec. 58.057 [253.007]. YOUNG FARMER LOAN GUARANTEE ACCOUNT.
15-22 (a) The young farmer loan guarantee account is an account in the
15-23 Texas Agricultural Fund [general revenue fund]. Money in the
15-24 account may be appropriated only to the authority [department] for
15-25 the purpose of making or administering loan guarantees under this
15-26 subchapter [chapter].
15-27 (b) The account consists of appropriations and transfers
16-1 made to the account, grants and donations made for the purposes of
16-2 the young farmer loan guarantee program, income earned on money in
16-3 the account, and any other money received under this subchapter
16-4 [chapter]. Notwithstanding Section 404.071, Government Code,
16-5 income and interest earned on money in the account shall be
16-6 deposited to the credit of the account. The account is exempt from
16-7 the application of Section [Sections 403.094(h) and (i) and]
16-8 403.095, Government Code.
16-9 (c) The board may spend not more than $100,000 during each
16-10 fiscal year from income earned on the account and from application
16-11 fees collected [by the department] under Section 58.053 [253.003 of
16-12 this code] to pay the costs of administering the program.
16-13 (d) The board shall attempt to administer the account [fund]
16-14 in a manner that makes private donations to the account [fund] an
16-15 eligible itemized deduction for federal income taxation.
16-16 (e) The board has the same authority in administering the
16-17 young farmer loan guarantee program as it has in administering
16-18 other programs established [by the board] under this chapter
16-19 [Chapter 58 of this code].
16-20 SECTION 14. Section 502.174(b), Transportation Code, is
16-21 amended to read as follows:
16-22 (b) The county assessor-collector shall send an assessment
16-23 collected under this section to the comptroller, at the time and in
16-24 the manner prescribed by the Texas Agricultural Finance Authority,
16-25 for deposit in the Texas Agricultural Fund [general revenue fund]
16-26 to the credit of the young farmer loan guarantee account.
16-27 SECTION 15. Section 481.0067, Government Code, is
17-1 transferred to Chapter 12, Agriculture Code, and redesignated as
17-2 Section 12.038, Agriculture Code, to read as follows:
17-3 Sec. 12.038 [481.0067]. OFFICE OF RURAL AFFAIRS. (a) The
17-4 department shall establish and maintain an Office of Rural Affairs.
17-5 The office shall be headed by a rural affairs director. To be
17-6 eligible to serve as the rural affairs director, a person must have
17-7 demonstrated a strong commitment to and involvement in economic
17-8 development activities in rural areas.
17-9 (b) The Office of Rural Affairs shall:
17-10 (1) develop a rural resource guide and provide the
17-11 information to rural areas through print and electronic media and
17-12 through use of the Texas Business and Community Economic
17-13 Development Clearinghouse;
17-14 (2) provide information to state agencies on the
17-15 effects of proposed policies or actions that affect rural areas;
17-16 (3) cosponsor meetings, to the extent practical, in
17-17 cooperation with public and private educational institutions to
17-18 disseminate information beneficial to rural areas;
17-19 (4) identify potential opportunities for businesses in
17-20 rural areas and assist these businesses to maximize those
17-21 opportunities;
17-22 (5) conduct an analysis of the available federal,
17-23 state, and local government and rural economic development business
17-24 outreach and data services in rural areas of this state by
17-25 examining the availability of:
17-26 (A) computerized economic development databases
17-27 that provide data for existing and prospective businesses and
18-1 communities in rural areas of this state; and
18-2 (B) business information outreach service
18-3 offices or centers that provide comprehensive technical assistance,
18-4 research, consulting services, training, and other services to
18-5 businesses in rural areas; and
18-6 (6) perform any other functions necessary to carry out
18-7 the purposes of this section.
18-8 (c) In administering this section, the department may:
18-9 (1) employ and set the compensation of personnel to
18-10 carry out the Office of Rural Affairs' functions under this
18-11 section; and
18-12 (2) consult with:
18-13 (A) experts and authorities in the fields of
18-14 rural development, economic development, and community development;
18-15 (B) individuals with regulatory, legal,
18-16 economic, or financial expertise, including members of the academic
18-17 community; and
18-18 (C) individuals who represent the public
18-19 interest.
18-20 (d) Each state agency must, on request, furnish the Office
18-21 of Rural Affairs with reports and other information necessary to
18-22 enable the Office of Rural Affairs to carry out the purposes of
18-23 this section.
18-24 (e) The Office of Rural Affairs may accept gifts, grants,
18-25 and donations from sources other than the state for the purpose of
18-26 performing specific projects, studies, or procedures or to provide
18-27 assistance to rural areas.
19-1 (f) Not later than September 1 of each even-numbered year,
19-2 the department shall submit to the governor and the legislature a
19-3 report containing specific information regarding each of the
19-4 functions performed by the Office of Rural Affairs, including
19-5 recommendations regarding issues that affect the rural areas of the
19-6 state.
19-7 SECTION 16. Sections 44.001(1), 44.004, 44.0045(e), 44.005,
19-8 44.006, 44.010(d), and 44.011, Agriculture Code, are repealed.
19-9 SECTION 17. (a) This Act takes effect September 1, 1999.
19-10 (b) As soon as practicable after the effective date of this
19-11 Act, but not later than January 1, 2000:
19-12 (1) all powers, duties, rights, and obligations of the
19-13 Texas Department of Economic Development relating to the Office of
19-14 Rural Affairs are transferred to the commissioner of agriculture
19-15 and the Department of Agriculture, as specified by this Act;
19-16 (2) except as provided by Subsection (c) of this
19-17 section, all assets, liabilities, personnel, equipment, data,
19-18 documents, facilities, and other items relating to the Office of
19-19 Rural Affairs are transferred from the Texas Department of Economic
19-20 Development to the Department of Agriculture; and
19-21 (3) any appropriation to the Texas Department of
19-22 Economic Development relating to the Office of Rural Affairs is
19-23 transferred to the Department of Agriculture.
19-24 (c) The governing board of the Texas Department of Economic
19-25 Development may decide whether to transfer to the Department of
19-26 Agriculture:
19-27 (1) personnel who perform both duties that relate to
20-1 the Office of Rural Affairs and duties that do not relate to the
20-2 Office of Rural Affairs; and
20-3 (2) assets used by both the Office of Rural Affairs
20-4 and divisions of the Texas Department of Economic Development other
20-5 than the Office of Rural Affairs.
20-6 (d) The officers and employees of the Texas Department of
20-7 Economic Development and the Department of Agriculture shall
20-8 cooperate fully with the transfer.
20-9 (e) The transfer of functions under Subsection (b) of this
20-10 section shall occur on the date specified in an interagency
20-11 contract among the governing board of the Texas Department of
20-12 Economic Development, the director of the Office of Rural Affairs,
20-13 and the Department of Agriculture.
20-14 (f) Notwithstanding the change made by this Act, the
20-15 governing board of the Texas Department of Economic Development
20-16 retains all powers and duties relating to the Office of Rural
20-17 Affairs until the effective date of the transfer under Subsection
20-18 (b) of this section.
20-19 (g) A change in law made by this Act does not affect the
20-20 validity of any action taken by the governing board of the Texas
20-21 Department of Economic Development relating to the Office of Rural
20-22 Affairs before the effective date of the change in law.
20-23 SECTION 18. The importance of this legislation and the
20-24 crowded condition of the calendars in both houses create an
20-25 emergency and an imperative public necessity that the
20-26 constitutional rule requiring bills to be read on three several
20-27 days in each house be suspended, and this rule is hereby suspended.