1-1 By: Counts, et al. (Senate Sponsor - Duncan) H.B. No. 3050
1-2 (In the Senate - Received from the House April 21, 1999;
1-3 April 22, 1999, read first time and referred to Committee on
1-4 Natural Resources; May 13, 1999, reported favorably, as amended, by
1-5 the following vote: Yeas 6, Nays 0; May 13, 1999, sent to
1-6 printer.)
1-7 COMMITTEE AMENDMENT NO. 1 By: Bivins
1-8 1. Amend SECTION 10 OF C.S.H.B. 3050 in page 6, line 32 by adding
1-9 the following after "board.":
1-10 "The authority may make, guarantee, participate in, insure,
1-11 co-insure, or reinsure loans to an eligible agricultural business
1-12 from the proceeds of revenue bonds issued in accordance with
1-13 Section 58.033 in an amount approved by the board."
1-14 COMMITTEE AMENDMENT NO. 2 By: Bivins
1-15 1. Amend SECTION 12 of C.S.H.B. 3050 in page 6, line 57 through
1-16 page 6, line 61, by striking the proposed Sec. 58.026, Agriculture
1-17 Code, and replacing it with the following:
1-18 Sec. 58.026 LIMITATION OF LIABILITY FOR CERTAIN RECREATIONAL
1-19 ACTIVITIES. Nothing in this chapter shall affect the applicability
1-20 of Chapter 75, Civil Practice and Remedies Code.
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to the administration of certain loan programs by the
1-24 Texas Agricultural Finance Authority, to limiting certain liability
1-25 for activities in programs funded by the authority, and to the
1-26 promotion of the development of agriculture-related rural
1-27 businesses.
1-28 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-29 SECTION 1. Section 44.001, Agriculture Code, is amended to
1-30 read as follows:
1-31 Sec. 44.001. Definitions. In this chapter:
1-32 (1) ["Small business incubator" means a nonprofit
1-33 development agency that provides concentrated business assistance
1-34 services to new small agricultural enterprises.]
1-35 [(2)] "Eligible lending institution" means a financial
1-36 institution that makes commercial loans, is a depository of state
1-37 funds, and agrees to participate in the linked deposit program and
1-38 to provide collateral equal to the amount of linked deposits placed
1-39 with it.
1-40 (2) [(3)] "Eligible borrower" means a person who is in
1-41 the business or entering the business of:
1-42 (A) processing and marketing agricultural crops
1-43 in this state;
1-44 (B) producing alternative agricultural crops in
1-45 this state;
1-46 (C) producing agricultural crops in this state
1-47 the production of which has declined [markedly] because of natural
1-48 disasters; or
1-49 (D) producing agricultural crops in this state
1-50 using water conservation equipment for agricultural production
1-51 purposes.
1-52 (3) [(4)] "Alternative agricultural crops" means crops
1-53 not customarily grown in this state but that could feasibly be
1-54 produced in this state.
1-55 (4) [(5)] "Linked deposit" means a time deposit
1-56 governed by a written deposit agreement between the state and an
1-57 eligible lending institution that provides:
1-58 (A) that the eligible lending institution pay
1-59 interest on the deposit at a rate that is not less than the greater
1-60 of:
1-61 (i) the current market rate of a United
2-1 States treasury bill or note of comparable maturity minus two
2-2 percent; or
2-3 (ii) 1.5 percent;
2-4 (B) that the state not withdraw any part of the
2-5 deposit before the expiration of a period set by a written advance
2-6 notice of the intention to withdraw; and
2-7 (C) that the eligible lending institution agree
2-8 to lend the value of the deposit to an eligible borrower at a
2-9 maximum rate that is the linked deposit [current market] rate [of a
2-10 United States treasury bill or note of comparable maturity] plus a
2-11 maximum of four percent.
2-12 (5) [(6)] "Microenterprise" means a small business
2-13 located in a rural area in which the owner operates [and the
2-14 owner's family provide the bulk of the management and a significant
2-15 amount of the labor required to operate] the enterprise. Priority
2-16 under this chapter shall be given to microenterprises which
2-17 demonstrate significant potential for expansion that will provide
2-18 jobs in economically depressed rural communities or to currently
2-19 unemployed rural residents.
2-20 (6) [(7)] "Rural area" means an area which is
2-21 predominantly rural in character, being one which the board defines
2-22 and declares to be a rural area.
2-23 (7) [(8)] "Board" means the board of directors of the
2-24 Texas Agricultural Finance Authority in Chapter 58 [of this code].
2-25 SECTION 2. Section 44.002, Agriculture Code, is amended to
2-26 read as follows:
2-27 Sec. 44.002. CREATION OF MICROENTERPRISE PROGRAMS.
2-28 [(a) The board shall create an agricultural diversification
2-29 program to:]
2-30 [(1) support commercial use of agricultural research
2-31 and innovation;]
2-32 [(2) increase the capabilities of community and
2-33 regional organizations to train and assist new or expanding
2-34 agricultural-based businesses;]
2-35 [(3) start small business incubators; and]
2-36 [(4) encourage private commercial loans for enhanced
2-37 production, processing, and marketing of certain agricultural
2-38 crops.]
2-39 [(b)] The board shall create a microenterprise support
2-40 program to provide financial assistance to microenterprises in
2-41 rural areas.
2-42 SECTION 3. Section 44.0045, Agriculture Code, is amended to
2-43 read as follows:
2-44 Sec. 44.0045. Microenterprise Support Program Loans.
2-45 (a) The board shall administer a loan program supporting
2-46 established and proposed microenterprises in rural areas by
2-47 providing loans to expand, modernize, or otherwise improve
2-48 established microenterprises and to begin operation of proposed
2-49 microenterprises.
2-50 (b) An applicant applying on behalf of a [A] proposed
2-51 microenterprise [loan applicant] may receive a loan of up to
2-52 $25,000 [$15,000] to begin operation of the microenterprise.
2-53 (c) An applicant applying on behalf of an established
2-54 microenterprise [loan applicant] may receive a loan of up to
2-55 $50,000 [$30,000] to expand, modernize, or otherwise improve an
2-56 established operation [microenterprise].
2-57 (d) The board [of the microenterprise support program] may
2-58 reserve a portion of the total fund for use in cooperative loan
2-59 programs established with the participation of other public or
2-60 private lenders.
2-61 [(e) Financial assistance in the form of a loan may not be
2-62 used to refinance an existing debt of a proposed or existing
2-63 microenterprise.]
2-64 SECTION 4. Section 44.007, Agriculture Code, is amended to
2-65 read as follows:
2-66 Sec. 44.007. Linked Deposit Program. (a) The board shall
2-67 establish a linked deposit program to encourage commercial lending
2-68 for the enhanced production, processing, and marketing of certain
2-69 agricultural crops and for the financing of water conservation
3-1 projects or equipment for agricultural production purposes.
3-2 (b) The board shall approve or disapprove any and all
3-3 applications under this chapter, provided that the board may
3-4 delegate this authority to the commissioner.
3-5 (c) The board shall promulgate rules for the loan portion of
3-6 the linked deposit program. The rules must include:
3-7 (1) a list of the categories of crops customarily
3-8 grown in Texas, with consideration given to the Texas Agricultural
3-9 Statistics Service information available and relevant to this
3-10 determination;
3-11 (2) a list of crops that are alternative agricultural
3-12 crops, with consideration given to the Texas Agricultural
3-13 Statistics Service information available and relevant to this
3-14 determination;
3-15 (3) identification of criteria for a project eligible
3-16 for [a list of crops the production of which has declined markedly
3-17 because of] natural disaster assistance [disasters]; and
3-18 (4) identification of projects and types of equipment
3-19 considered as water conservation projects or equipment for
3-20 agricultural production purposes.
3-21 (d) [(c)] In order to participate in the linked deposit
3-22 program, an eligible lending institution may solicit loan
3-23 applications from eligible borrowers.
3-24 (e) [(d)] After reviewing an application and determining
3-25 that the applicant is eligible and creditworthy, the eligible
3-26 lending institution shall send the application for a linked deposit
3-27 loan to [the board or] the administrator of the Texas Agricultural
3-28 Finance Authority.
3-29 (f) [(e)] The eligible lending institution shall certify the
3-30 interest rate applicable to the specific eligible borrower and
3-31 attach it to the application sent to [the board or] the
3-32 administrator of the Texas Agricultural Finance Authority.
3-33 (g) [(f)] After reviewing each linked deposit loan
3-34 application, the board or the commissioner shall recommend to the
3-35 comptroller the acceptance or rejection of the application.
3-36 (h) [(g)] After acceptance of the application, the
3-37 comptroller shall place a linked deposit with the applicable
3-38 eligible lending institution for the period the comptroller
3-39 considers appropriate. The comptroller may not place a deposit for
3-40 a period extending beyond the state fiscal biennium in which it is
3-41 placed. Subject to the limitation described by Section 44.010 [of
3-42 this chapter], the comptroller may place time deposits at an
3-43 interest rate described by Section 44.001(4) [44.001(5)(A) of this
3-44 chapter].
3-45 (i) [(h)] Before the placing of a linked deposit, the
3-46 eligible lending institution and the state, represented by the
3-47 comptroller [and the board], shall enter into a written deposit
3-48 agreement containing the conditions on which the linked deposit is
3-49 made.
3-50 (j) [(i)] If a lending institution holding linked deposits
3-51 ceases to be a state depository, the comptroller may withdraw the
3-52 linked deposits.
3-53 (k) [(j)] The board may adopt rules that create a procedure
3-54 for determining priorities for loans granted under this chapter.
3-55 Each rule adopted must state the policy objective of the rule. The
3-56 policy objectives of the rules may include preferences to:
3-57 (1) achieve adequate geographic distribution of loans;
3-58 (2) assist certain industries;
3-59 (3) encourage certain practices including water
3-60 conservation; and
3-61 (4) encourage value-added processing of agricultural
3-62 products.
3-63 (l) [(k)] A lending institution is not ineligible to
3-64 participate in the linked deposit program solely because a member
3-65 of the board is also an officer, director, or employee of the
3-66 lending institution, provided that a board member shall recuse
3-67 himself or herself from any action taken by the board on an
3-68 application involving a lending institution by which the board
3-69 member is employed or for which the board member serves as an
4-1 officer or director.
4-2 SECTION 5. Section 44.010, Agriculture Code, is amended to
4-3 read as follows:
4-4 Sec. 44.010. Limitations in Program. (a) At any one time,
4-5 not more than $25 [$15] million, of which $10 million may only be
4-6 used to finance water conservation projects, may be placed in
4-7 linked deposits under this chapter.
4-8 (b) The maximum amount of a loan under this chapter to
4-9 process and market Texas agricultural crops is $500,000. The
4-10 maximum amount of a loan under this chapter to produce alternative
4-11 agricultural crops in this state is $250,000. The maximum amount
4-12 of a loan under this chapter to finance water conservation projects
4-13 or equipment for agricultural production purposes is $250,000. The
4-14 maximum amount of a loan under this chapter to finance production
4-15 of a crop declared eligible for natural disaster relief, as defined
4-16 by board rule, is $250,000.
4-17 (c) A loan granted pursuant to this chapter may be used for
4-18 any agriculture-related operating expense, including the purchase
4-19 or lease of land or fixed assets acquisition or improvement, as
4-20 identified in the application [must be applied to the purchase or
4-21 lease of land, equipment, seed, fertilizer, direct marketing
4-22 facilities, or processing facilities, or to payment for
4-23 professional services].
4-24 (d) A loan granted pursuant to this chapter[, when used to
4-25 finance eligible water conservation projects or equipment,] may be
4-26 applied to existing debt as described in Section 44.007 [resulting
4-27 from the financing of water conservation projects or equipment for
4-28 agricultural purposes as defined by board rule].
4-29 SECTION 6. Sections 44.012 and 44.013, Agriculture Code, are
4-30 amended to read as follows:
4-31 Sec. 44.012. MONEY FOR [GRANTS AND] LOANS. The board may
4-32 accept gifts and grants of money from the federal government, local
4-33 governments, or private corporations or other persons for use in
4-34 making [grants and] loans under [the agricultural diversification
4-35 program and] the rural microenterprise support program. The
4-36 legislature may appropriate money for [grants and] loans under the
4-37 program [programs].
4-38 Sec. 44.013. Rural Microenterprise Development Fund. The
4-39 rural microenterprise development fund is a fund in the
4-40 comptroller's office [state treasury]. Money appropriated to the
4-41 board [Agricultural Diversification Board] for use in making loans
4-42 under the rural microenterprise support program, other amounts
4-43 received by the state for loans made under the program, and other
4-44 money received by the board for the program and required by the
4-45 board to be deposited in the fund shall be deposited to the credit
4-46 of the fund. The fund shall operate as a revolving fund, the
4-47 contents of which shall be applied and reapplied for the purposes
4-48 of the rural microenterprise support program.
4-49 SECTION 7. Section 58.002, Agriculture Code, is amended by
4-50 amending Subdivision (1) and adding Subdivision (9) to read as
4-51 follows:
4-52 (1) "Agricultural business" means:
4-53 (A) a business that is or proposes to be engaged
4-54 in producing, processing, marketing, or exporting an agricultural
4-55 product;
4-56 (B) an eligible applicant as defined in
4-57 Subchapter E;
4-58 (C) the entity designated to carry out boll
4-59 weevil eradication in accordance with Section 74.1011;
4-60 (D) any agriculture-related business in rural
4-61 areas of Texas including a business that provides recreational
4-62 activities, including hiking, fishing, hunting, or any other
4-63 activity associated with the enjoyment of nature or the outdoors on
4-64 agricultural land; or
4-65 (E) a state agency or an institution of higher
4-66 education that is engaged in producing an agricultural product.
4-67 (9) "Rural area" means an area which is predominately
4-68 rural in character, being one which the board defines and declares
4-69 to be a rural area.
5-1 SECTION 8. Subsection (b), Section 58.016, Agriculture Code,
5-2 is amended to read as follows:
5-3 (b) On or before August 1 of each year, the administrator
5-4 shall file with the board the proposed annual budgets for the young
5-5 farmer loan guarantee program under Subchapter E [Chapter 253], the
5-6 farm and ranch finance program under Chapter 59, and the programs
5-7 administered by the board under this chapter for the succeeding
5-8 fiscal year. If there is no administrator, the commissioner shall
5-9 assume the duties of the administrator in connection with
5-10 preparation of the budget. The budget must set forth the general
5-11 categories of expected expenditures out of revenues and income of
5-12 the funds administered by the authority and the amount on account
5-13 of each. On or before September 1 of each year, the board shall
5-14 consider the proposed annual budget and may approve it or amend it.
5-15 Copies of the annual budget certified by the chairman of the board
5-16 shall be promptly filed with the governor and the legislature. The
5-17 annual budget is not effective until it is filed. If for any
5-18 reason the authority does not adopt an annual budget before
5-19 September 2, no expenditures may be made from the funds until the
5-20 board approves the annual budget. The authority may adopt an
5-21 amended annual budget for the current fiscal year, but the amended
5-22 annual budget may not supersede a prior budget until it is filed
5-23 with the governor and the legislature.
5-24 SECTION 9. Section 58.0172, Agriculture Code, is amended by
5-25 adding Subsection (e) to read as follows:
5-26 (e) A lending institution is not ineligible to participate
5-27 in the programs administered by the board solely because a member
5-28 of the board is also an officer, director, or employee of the
5-29 lending institution, provided that a board member shall recuse
5-30 himself or herself from any action taken by the board on an
5-31 application involving a lending institution by which the board
5-32 member is employed or for which the board member serves as an
5-33 officer or director.
5-34 SECTION 10. Section 58.021, Agriculture Code, is amended to
5-35 read as follows:
5-36 Sec. 58.021. Purposes of Authority. (a) In order to
5-37 promote the expansion, development, and diversification of
5-38 production, processing, marketing, and export of Texas agricultural
5-39 products and to promote the development of agriculture-related
5-40 rural businesses, the authority shall design and implement programs
5-41 to provide financial assistance to eligible agricultural
5-42 businesses, including programs:
5-43 (1) to make or acquire loans to eligible agricultural
5-44 businesses;
5-45 (2) to make or acquire loans to lenders to enable
5-46 those lenders to make loans to eligible agricultural businesses;
5-47 (3) to insure, coinsure, and reinsure, in whole or in
5-48 part, loans to eligible agricultural businesses;
5-49 (4) to guarantee, in whole or in part, loans to
5-50 eligible agricultural businesses; and
5-51 (5) to administer or participate in programs
5-52 established by another person to provide financial assistance to
5-53 eligible agricultural businesses.
5-54 (b) The authority's programs shall be designed and
5-55 implemented to provide financial assistance to enable eligible
5-56 agricultural businesses to finance or refinance costs incurred in
5-57 connection with the development, increase, improvement, or
5-58 expansion of production, processing, marketing, or export of Texas
5-59 agricultural products and for the development of rural
5-60 agriculture-related businesses, including but not limited to the
5-61 costs of:
5-62 (1) acquisition of and improvements to land or
5-63 interests in land;
5-64 (2) acquisition, construction, rehabilitation,
5-65 operation, and maintenance of buildings, improvements, and
5-66 structures;
5-67 (3) site preparations;
5-68 (4) architectural, engineering, legal, and related
5-69 services;
6-1 (5) acquisition, installation, rehabilitation,
6-2 operation, and maintenance of machinery, equipment, furnishings,
6-3 and facilities;
6-4 (6) acquisition, processing, or distribution of
6-5 inventory;
6-6 (7) research and development;
6-7 (8) financing fees and charges;
6-8 (9) interest during acquisition or construction;
6-9 (10) necessary reserve fund;
6-10 (11) acquisition of licenses, permits, and approvals
6-11 from any governmental entity; [and]
6-12 (12) pre-export and export expenses; and
6-13 (13) insect eradication and suppression programs.
6-14 (c) Except as otherwise provided by this subsection, the
6-15 maximum aggregate amount of loans made to or guaranteed, insured,
6-16 coinsured, or reinsured under this subchapter for a single eligible
6-17 agricultural business by the authority from funds provided by the
6-18 authority is $2 million. The authority may make, guarantee,
6-19 insure, coinsure, or reinsure a loan for a single eligible
6-20 agricultural business that results in an aggregate amount exceeding
6-21 $2 million, but not exceeding $5 million, if the action is approved
6-22 by a two-thirds vote of the membership of the board. The authority
6-23 may make, guarantee, participate in, insure, coinsure, or reinsure
6-24 loans to the entity designated to carry out boll weevil eradication
6-25 in accordance with Section 74.1011 in an amount approved by the
6-26 board to enable that entity to execute Subchapter D, Chapter 74.
6-27 The authority may issue an obligation on behalf of, or make,
6-28 guarantee, participate in, insure, coinsure, or reinsure loans to,
6-29 a state agency or an institution of higher education for the
6-30 purpose of the development, improvement, or expansion of an
6-31 agricultural product or an agriculture-related business in an
6-32 amount approved by the board.
6-33 (d) [(e)] Notwithstanding any other provision of this
6-34 section, the authority may also design and implement programs to
6-35 further rural economic development.
6-36 SECTION 11. Subsection (a), Section 58.023, Agriculture
6-37 Code, is amended to read as follows:
6-38 (a) The board shall adopt rules to establish criteria for
6-39 determining which eligible agricultural businesses may participate
6-40 in programs that may be established by the board. The board's
6-41 rules must state that the policy of the authority is to provide
6-42 programs for providing financial assistance to eligible
6-43 agricultural businesses [that otherwise would not be made and] that
6-44 the board considers to present a reasonable risk and have a
6-45 sufficient likelihood of repayment. In establishing criteria for
6-46 participation, the board shall give priority to eligible
6-47 agricultural businesses that include producers of Texas
6-48 agricultural products in the ownership of the businesses. The
6-49 board shall adopt collateral or security requirements to ensure the
6-50 full repayment of that financial assistance and the solvency of any
6-51 program implemented under this chapter. The board shall approve
6-52 any and all extensions of that financial assistance under this
6-53 chapter, provided that the board may delegate this approval
6-54 authority to the administrator or the commissioner.
6-55 SECTION 12. Subchapter C, Chapter 58, Agriculture Code, is
6-56 amended by adding Section 58.026 to read as follows:
6-57 Sec. 58.026. LIMITATION OF LIABILTY FOR CERTAIN RECREATIONAL
6-58 ACTIVITIES. The provisions of Chapter 75, Civil Practice and
6-59 Remedies Code, applies only to those recreational activities which
6-60 are funded under this chapter and enumerated in Section 75.001(3),
6-61 Civil Practice and Remedies Code.
6-62 SECTION 13. Chapter 58, Agriculture Code, is amended by
6-63 adding Subchapter E to read as follows:
6-64 SUBCHAPTER E. YOUNG FARMER LOAN GUARANTEE PROGRAM
6-65 Sec. 58.051. DEFINITIONS. In this subchapter:
6-66 (1) "Commercial lender" means a commercial lending
6-67 institution chartered by the state or federal government, including
6-68 a savings and loan association, a credit union, or a Farm Credit
6-69 System institution.
7-1 (2) "Eligible applicant" means a person applying for a
7-2 loan guarantee under this subchapter who:
7-3 (A) is at least 18 years of age but younger than
7-4 40 years of age; and
7-5 (B) complies with the application procedures
7-6 prescribed by this subchapter.
7-7 (3) "Plan" means the documentation submitted to the
7-8 lender in support of the application.
7-9 Sec. 58.052. YOUNG FARMER LOAN GUARANTEE PROGRAM. (a) The
7-10 board shall administer a loan guarantee program that benefits
7-11 eligible applicants who desire to establish or enhance a farming or
7-12 ranching operation or an agriculture-related business.
7-13 (b) The board, either directly or through authority
7-14 delegated to the commissioner, may grant to an eligible applicant a
7-15 guarantee of a loan made by a commercial lender for the purposes
7-16 prescribed by this subchapter. The guarantee amount may not exceed
7-17 the lesser of $250,000 or 90 percent of the loan amount.
7-18 (c) The aggregate amount guaranteed under this subchapter
7-19 may not exceed twice the amount contained in the young farmer loan
7-20 guarantee account within the Texas agricultural fund.
7-21 (d) A loan guarantee recipient may use proceeds from the
7-22 loan for working capital for operating a farm or ranch, including
7-23 the lease of facilities and the purchase of machinery and
7-24 equipment, or for any agriculture-related business purpose,
7-25 including the purchase of real estate, as identified in the plan.
7-26 A loan guarantee is voidable by the board if the recipient uses
7-27 loan proceeds for any purposes other than those identified in the
7-28 plan. The board shall include this restriction as a condition in
7-29 each loan guarantee instrument executed under this subchapter.
7-30 (e) The board shall adopt an agreement, to be used between a
7-31 commercial lender and an approved eligible applicant, under which
7-32 the program provides a payment from money in the young farmer loan
7-33 guarantee account for the purpose of providing a reduced interest
7-34 rate on a loan guaranteed to a borrower under this subchapter. The
7-35 board shall adopt rules to implement this subsection. The maximum
7-36 rate reduction under this subsection shall not exceed three
7-37 percentage points.
7-38 Sec. 58.053. APPLICATION FOR LOAN GUARANTEE. (a) An
7-39 eligible applicant's documentation shall include the following for
7-40 the board's review:
7-41 (1) the plan, as submitted to the lender, for the
7-42 applicant's proposed farm or ranch operation or agriculture-related
7-43 business to be financed that includes a budget for the proposed
7-44 operation;
7-45 (2) a completed application for a loan from a
7-46 commercial lender on which an eligible applicant has indicated how
7-47 the loan proceeds will be used to implement the applicant's plan;
7-48 and
7-49 (3) the signed statement of a loan officer of the
7-50 commercial lender that a loan guarantee is required for approval of
7-51 the loan application.
7-52 (b) The board may charge a reasonable application fee for
7-53 processing an application filed under this section.
7-54 Sec. 58.054. BOARD CONSIDERATION OF LOAN GUARANTEE
7-55 APPLICATION. After reviewing the material submitted under Section
7-56 58.053, the board shall consider the following factors in deciding
7-57 whether to approve an application for a loan guarantee:
7-58 (1) the anticipated benefits from granting a loan
7-59 guarantee to the applicant, including both potential job creation
7-60 and commercial benefits to the agricultural industry;
7-61 (2) the applicant's qualifications;
7-62 (3) the feasibility of the applicant's plan; and
7-63 (4) other repayment sources available to the
7-64 applicant.
7-65 Sec. 58.055. DEFAULT. If the recipient of a loan guarantee
7-66 defaults on a loan that is guaranteed under this subchapter and the
7-67 authority is required to honor its guarantee, the authority,
7-68 through its representative, may bring suit against the defaulting
7-69 party. Any suit brought by the authority under this section may
8-1 have venue in Travis County.
8-2 Sec. 58.056. MONEY FOR LOAN GUARANTEE PROGRAM. The
8-3 authority may accept gifts and grants of money from the federal
8-4 government, local governments, private corporations, or other
8-5 persons for use in the young farmer loan guarantee program. The
8-6 legislature may appropriate money for the program.
8-7 Sec. 58.057. YOUNG FARMER LOAN GUARANTEE ACCOUNT. (a) The
8-8 young farmer loan guarantee account is an account in the Texas
8-9 agricultural fund. Money in the account may be used only by the
8-10 authority for the purpose of making or administering loan
8-11 guarantees under this subchapter.
8-12 (b) The account consists of funds and transfers made to the
8-13 account, grants and donations made for the purposes of the young
8-14 farmer loan guarantee program, income earned on money in the
8-15 account, and any other money received under this subchapter.
8-16 Notwithstanding Section 404.071, Government Code, income and
8-17 interest earned on money in the account shall be deposited to the
8-18 credit of the account. The account is exempt from the application
8-19 of Section 403.095, Government Code.
8-20 (c) The board may spend not more than $100,000 during each
8-21 fiscal year from income earned on the account and from application
8-22 fees collected by the authority under Section 58.053 to pay the
8-23 costs of administering the program.
8-24 (d) The board shall attempt to administer the fund in a
8-25 manner that makes private donations to the fund an eligible
8-26 itemized deduction for federal income taxation purposes.
8-27 (e) The board has the same authority in administering the
8-28 young farmer loan guarantee program as it has in administering
8-29 other programs established by this chapter.
8-30 SECTION 14. Subsection (b), Section 502.174, Transportation
8-31 Code, is amended to read as follows:
8-32 (b) The county assessor-collector shall send an assessment
8-33 collected under this section to the comptroller, at the time and in
8-34 the manner prescribed by the Texas Agricultural Finance Authority,
8-35 for deposit in the Texas agricultural fund [general revenue fund]
8-36 to the credit of the young farmer loan guarantee account.
8-37 SECTION 15. Sections 44.004, 44.005, 44.006, and 44.011 and
8-38 Chapter 253, Agriculture Code, are repealed.
8-39 SECTION 16. The importance of this legislation and the
8-40 crowded condition of the calendars in both houses create an
8-41 emergency and an imperative public necessity that the
8-42 constitutional rule requiring bills to be read on three several
8-43 days in each house be suspended, and this rule is hereby suspended,
8-44 and that this Act take effect and be in force from and after its
8-45 passage, and it is so enacted.
8-46 * * * * *