By: Ogden S.B. No. 705 A BILL TO BE ENTITLED AN ACT 1-1 relating to providing aid, support, and assistance to agriculture; 1-2 establishing the agricultural technology program. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. (a) SHORT TITLE. This Act may be cited as the 1-5 Farm and Ranch Recovery Act. 1-6 (b) FINDINGS. The legislature finds that: 1-7 (1) agriculture is a vital component of a diversified 1-8 state economy; 1-9 (2) agriculture is more directly and substantially 1-10 affected by adverse weather conditions than other industries; 1-11 (3) limited availability of federal crop subsidies and 1-12 adverse weather conditions present a significant risk to the 1-13 economic vitality of agricultural enterprises; and 1-14 (4) a comprehensive state agricultural policy that 1-15 addresses changes in federal policy and recurrent adverse weather 1-16 conditions will promote the growth of agriculture in this state and 1-17 will avert a public calamity. 1-18 (c) PURPOSES. The purposes of this Act are to: 1-19 (1) promote economic development by ensuring a 1-20 diversified economy; 1-21 (2) foster the growth of agriculture in this state; 1-22 and 1-23 (3) avert the substantial risk of a public calamity 1-24 that will likely result if agricultural industries do not receive 2-1 the benefit of state planning and assistance. 2-2 SECTION 2. Title 3, Agriculture Code, is amended by adding 2-3 Chapter 48 to read as follows: 2-4 CHAPTER 48. INTERIM COMMITTEE ON STATEWIDE AGRICULTURAL POLICY 2-5 Sec. 48.001. ORGANIZATION. (a) The Interim Committee on 2-6 Statewide Agricultural Policy is established to study statewide 2-7 agricultural policy. 2-8 (b) The committee consists of 10 members, of whom: 2-9 (1) five shall be appointed by the speaker of the 2-10 house of representatives from the members of the house of 2-11 representatives; and 2-12 (2) five shall be appointed by the lieutenant governor 2-13 from the members of the senate. 2-14 (c) The lieutenant governor and the speaker of the house of 2-15 representatives each shall appoint a presiding officer from among 2-16 the members appointed to the committee. 2-17 (d) The committee shall convene at the call of the two 2-18 presiding officers. 2-19 Sec. 48.002. POWERS AND DUTIES. The committee shall 2-20 investigate and study: 2-21 (1) regulatory reform affecting agriculture; 2-22 (2) market expansion alternatives for agricultural 2-23 products of this state; 2-24 (3) risk management alternatives for agricultural 2-25 production; 2-26 (4) initiatives to make crop insurance more effective 3-1 and affordable; and 3-2 (5) the creation of a comprehensive state agricultural 3-3 policy. 3-4 Sec. 48.003. REPORT. The committee shall develop a report, 3-5 including a cost-benefit analysis of regulatory reform affecting 3-6 agriculture, that analyzes the issues described in Section 48.002 3-7 and that includes recommended rule or statutory changes to 3-8 implement the statewide agricultural policy options. Not later 3-9 than November 1, 2000, the committee shall make a final report to 3-10 the lieutenant governor, the speaker of the house of 3-11 representatives, and the 77th Legislature. 3-12 Sec. 48.004. ADMINISTRATION. (a) The committee has the 3-13 authority necessary to perform its duties and in connection with 3-14 those duties may call and hold hearings. 3-15 (b) The committee may request the assistance of state 3-16 agencies, departments, or offices to carry out its duties. 3-17 (c) The Senate Committee on Natural Resources and the House 3-18 Committee on Agriculture and Livestock shall provide staff to the 3-19 committee. 3-20 Sec. 48.005. EXPENSES. The committee shall submit a 3-21 proposed budget to the appropriate committee on administration in 3-22 each house of the legislature. The administration committees shall 3-23 jointly approve the committee budget in an amount appropriate for 3-24 the committee to accomplish its duties under this chapter. 3-25 Sec. 48.006. EXPIRATION. This chapter expires and the 3-26 committee is abolished on the date the legislature convenes in 4-1 regular session in 2001. 4-2 SECTION 3. Title 4, Agriculture Code, is amended by adding 4-3 Chapter 60 to read as follows: 4-4 CHAPTER 60. COMMODITY CRISIS COUNCIL AND MANAGER 4-5 Sec. 60.001. DEFINITIONS. In this chapter: 4-6 (1) "Agricultural crisis" means an event or condition, 4-7 including adverse weather conditions, water shortages, disruptions 4-8 in transportation, low commodity prices, animal health issues, crop 4-9 disease, or insect infestations, that could disrupt or jeopardize 4-10 an aspect of the agricultural industry. 4-11 (2) "Council" means the Commodity Crisis Council. 4-12 (3) "Manager" means the Commodity Crisis Manager. 4-13 Sec. 60.002. MANAGER; DUTIES. (a) The commissioner shall 4-14 designate an employee of the department to serve as manager who is 4-15 charged with mitigating the impact of any agricultural crisis on 4-16 commodities and agricultural production. 4-17 (b) The manager serves as: 4-18 (1) presiding officer of the council; 4-19 (2) the representative of the department on the 4-20 emergency management council established by Executive Order GWB 4-21 95-1b; and 4-22 (3) the representative of the department on the 4-23 drought response and monitoring committee under Section 16.055, 4-24 Water Code. 4-25 (c) The manager shall: 4-26 (1) manage and coordinate department planning and 5-1 response to any agricultural crisis, as identified by the 5-2 commissioner; 5-3 (2) develop a plan to prepare the state for recurring 5-4 drought conditions in regard to agricultural commodities, including 5-5 specific response actions, long-term solutions to minimize the 5-6 effect of such conditions, and an assessment of which regions of 5-7 the state and which agricultural products are vulnerable to a 5-8 drought; and 5-9 (3) manage the emergency hay program established by 5-10 Chapter 254. 5-11 Sec. 60.003. COUNCIL COMPOSITION; DUTIES. (a) The council 5-12 is composed of the manager, the members appointed under Subsection 5-13 (b), and one representative from each of the following agencies 5-14 appointed by the administrative head of that agency: 5-15 (1) the Texas Agricultural Extension Service; 5-16 (2) the State Soil and Water Conservation Board; and 5-17 (3) the Texas Forest Service. 5-18 (b) The commissioner shall appoint not more than five 5-19 representatives of agricultural industries to serve on the council. 5-20 (c) The council shall: 5-21 (1) advise the manager in the development of a state 5-22 plan to address recurring drought conditions; 5-23 (2) prepare and submit an informational report to the 5-24 governor and the legislature for each agricultural crisis, as 5-25 identified by the commissioner, in this state; 5-26 (3) prepare and submit a report to the commissioner to 6-1 recommend projects for the agri-tech program, as defined by Chapter 6-2 46; 6-3 (4) initiate a program through the Texas Agricultural 6-4 Extension Service to educate agricultural producers and the public 6-5 about each agricultural crisis, as identified by the commissioner, 6-6 in this state; and 6-7 (5) meet as necessary to carry out the provisions of 6-8 this section. 6-9 (d) The commissioner's appointees serve without 6-10 compensation, but are entitled to reimbursement for actual expenses 6-11 incurred in the performance of official council duties, subject to 6-12 approval of the commissioner. Other council members shall be 6-13 reimbursed for actual expenses by their representative agencies. 6-14 (e) The commissioner shall provide the council with staff 6-15 necessary to assist the council in carrying out its duties under 6-16 this chapter. 6-17 SECTION 4. Title 3, Agriculture Code, is amended by adding 6-18 Chapter 46 to read as follows: 6-19 CHAPTER 46. AGRICULTURAL TECHNOLOGY PROGRAM 6-20 Sec. 46.001. DEFINITIONS. In this chapter: 6-21 (1) "Agricultural crisis" means an event or condition, 6-22 including adverse weather conditions, water shortages, disruptions 6-23 in transportation, low commodity prices, animal health issues, crop 6-24 disease, or insect infestations, that could disrupt or jeopardize 6-25 an aspect of the agricultural industry. 6-26 (2) "Agri-tech program" means the agricultural 7-1 technology program established under this chapter. 7-2 (3) "Applied research" means research directed at 7-3 gaining the knowledge or understanding necessary to meet a specific 7-4 and recognized need, including the discovery of new scientific 7-5 knowledge that has specific objectives relating to products or 7-6 processes. 7-7 (4) "Eligible institution" means an institution of 7-8 higher education as that term is defined by Section 61.003, 7-9 Education Code, designated under Section 46.002(e). 7-10 Sec. 46.002. ADMINISTRATION; GUIDELINES AND PROCEDURES. 7-11 (a) The department shall develop, maintain, and administer the 7-12 agri-tech program to provide support at eligible institutions to 7-13 conduct research projects on methods to address agricultural crises 7-14 in this state. 7-15 (b) In awarding funds to support projects under this 7-16 chapter, the department shall: 7-17 (1) give priority to applied research projects that 7-18 the commissioner determines to be necessary to address an immediate 7-19 agricultural crisis; and 7-20 (2) consider the recommendations of the Commodity 7-21 Crisis Council for specific projects. 7-22 (c) The department shall award funds to support projects as 7-23 needed to address agricultural crises in this state. 7-24 (d) The department shall develop and maintain guidelines and 7-25 procedures to provide awards under this chapter for specific 7-26 projects at eligible institutions on a competitive, peer-review 8-1 basis. 8-2 (e) The department shall determine whether an institution of 8-3 higher education qualifies as an eligible institution for the 8-4 purposes of this chapter. To be designated as an eligible 8-5 institution, an institution of higher education must demonstrate an 8-6 exceptional capability to attract federal, state, and private 8-7 funding for scientific and technical research and have an 8-8 exceptionally strong research staff and the necessary equipment and 8-9 facilities. 8-10 (f) In considering projects for selection, the commissioner 8-11 shall give special consideration to projects that: 8-12 (1) leverage funds from other sources; and 8-13 (2) propose innovative, collaborative efforts: 8-14 (A) across academic disciplines; 8-15 (B) involving two or more eligible institutions; 8-16 or 8-17 (C) involving eligible institutions, private 8-18 industry, and the federal government. 8-19 (g) The commissioner may adopt rules necessary to accomplish 8-20 the purposes of this chapter. 8-21 Sec. 46.003. AGRICULTURAL TECHNOLOGY ACCOUNT. (a) The 8-22 agricultural technology account is an account in the general 8-23 revenue fund. 8-24 (b) The agricultural technology account consists of 8-25 legislative appropriations, gifts and grants received under 8-26 Subsection (c), and other money required by law to be deposited in 9-1 the account. 9-2 (c) The department may solicit and accept gifts in kind and 9-3 grants of money from the federal government, local governments, 9-4 private corporations, or other persons to be used for the purposes 9-5 of this chapter. 9-6 (d) Funds in the agricultural technology account may be used 9-7 only as provided by this chapter. The account is exempt from the 9-8 application of Section 403.095, Government Code. 9-9 (e) Income from money in the account shall be credited to 9-10 the account. 9-11 Sec. 46.004. USE OF FUNDS IN AGRICULTURAL TECHNOLOGY 9-12 ACCOUNT. (a) From funds appropriated for the agri-tech program, 9-13 the comptroller shall issue warrants to each eligible institution 9-14 in the amount certified by the department to the comptroller. 9-15 (b) Funds awarded from the agricultural technology account 9-16 may be expended to support the particular research project for 9-17 which the award is made and may not be expended for the support of 9-18 general research and instruction at the institution conducting or 9-19 sponsoring the project or for the construction or remodeling of a 9-20 facility. 9-21 (c) Funds in the agricultural technology account shall be 9-22 used, when practicable within the purposes of this chapter, to 9-23 match grants provided by the federal government or private industry 9-24 for specific collaborative research projects at eligible 9-25 institutions. 9-26 (d) Supplies, materials, services, and equipment purchased 10-1 with funds obtained under this section are not subject to General 10-2 Services Commission authority. 10-3 Sec. 46.005. PROGRESS REPORTS. An institution receiving 10-4 funds under this chapter shall report on the progress of the funded 10-5 research to the department not later than September 1 of each year. 10-6 Sec. 46.006. MERIT REVIEW. The commissioner shall appoint a 10-7 committee consisting of representatives of the agricultural 10-8 industry and of private enterprise advanced technology research 10-9 organizations to evaluate the agri-tech program's effectiveness. 10-10 The committee shall report its findings to the department not later 10-11 than September 1 of the second year of each biennium. 10-12 SECTION 5. Title 3, Agriculture Code, is amended by adding 10-13 Chapter 47 to read as follows: 10-14 CHAPTER 47. AGRICULTURE RISK MANAGEMENT EDUCATION 10-15 Sec. 47.001. LEGISLATIVE FINDINGS; PURPOSE. (a) The 10-16 legislature finds that: 10-17 (1) the increasingly global marketplace and the 10-18 increasing flexibility in agriculture production decisions expose 10-19 agricultural producers and agribusinesses to increased income risk; 10-20 (2) managing these increased risks is critical to the 10-21 future economic competitiveness and success of agriculture in this 10-22 state; and 10-23 (3) policymakers, lenders, agribusiness firms, rural 10-24 community leaders, and researchers will benefit from a better 10-25 understanding of how farmers and ranchers adapt to different 10-26 economic, regulatory, and political environments. 11-1 (b) The purposes of this chapter are to: 11-2 (1) increase risk management educational efforts to 11-3 help agricultural producers and agribusinesses to: 11-4 (A) understand risk and its consideration in 11-5 decision-making; 11-6 (B) understand the economic impacts on farms or 11-7 ranches of adopting new production or information technologies; 11-8 (C) understand the economic impacts on farms or 11-9 ranches of changing agricultural, regulatory, monetary, and fiscal 11-10 policies; and 11-11 (D) measure the relative risk associated with 11-12 alternative production, marketing, and financial decisions; 11-13 (2) establish a statewide educational program that 11-14 includes a risk management support system and a comprehensive 11-15 educational curriculum; and 11-16 (3) foster the economic competitiveness and success of 11-17 agriculture in this state. 11-18 Sec. 47.002. CREATION OF PROGRAMS. (a) The Texas 11-19 Agricultural Extension Service shall administer a statewide 11-20 financial and risk management assistance support system to help 11-21 farmers and ranchers make long-term strategic planning decisions 11-22 and adjust their operations to new production, marketing, and 11-23 financing situations. The support system may include computer and 11-24 communications technology to provide agricultural producers and 11-25 agribusinesses with information needed for individual long-term 11-26 strategic farm or ranch planning. 12-1 (b) The Texas Agricultural Extension Service shall develop 12-2 and implement a statewide comprehensive educational curriculum 12-3 program to provide agricultural producers and agribusinesses with 12-4 additional information about risk management and potential tools 12-5 and options to consider in managing risks. The curriculum may 12-6 include instructional materials, instructors, and other resources 12-7 in areas of agricultural, regulatory, monetary, and fiscal 12-8 interest. 12-9 (c) The Texas Agricultural Extension Service may organize 12-10 and deliver the programs with the assistance of interested 12-11 agricultural groups. 12-12 Sec. 47.003. ELIGIBILITY FOR EDUCATIONAL MATERIALS AND 12-13 SERVICES. As a condition for educational assistance under this 12-14 chapter, the Texas Agricultural Extension Service shall require 12-15 that a person pay a subscription fee or other charge in exchange 12-16 for educational services and materials. 12-17 SECTION 6. Title 8, Agriculture Code, is amended by adding 12-18 Chapter 254 to read as follows: 12-19 CHAPTER 254. EMERGENCY HAY PROGRAM 12-20 Sec. 254.001. DEFINITIONS. In this chapter, "manager" means 12-21 the Commodity Crisis Manager, as defined by Chapter 60. 12-22 Sec. 254.002. EMERGENCY HAY PROGRAM. (a) The department 12-23 shall adopt rules and administer a program to provide assistance 12-24 for the transportation of hay for use by agricultural producers 12-25 whose production abilities are hindered during periods of natural 12-26 disaster or other emergencies due to a lack of forage. 13-1 (b) The manager shall oversee the program. 13-2 Sec. 254.003. EMERGENCY HAY ACCOUNT. (a) The emergency hay 13-3 account is an account in the general revenue fund. 13-4 (b) The emergency hay account consists of legislative 13-5 appropriations and other money required by law to be deposited in 13-6 the account. 13-7 (c) The department may solicit and accept gifts in kind and 13-8 grants of money from the federal government, local governments, 13-9 private corporations, or other persons to be used for the purposes 13-10 of this chapter. 13-11 (d) Money in the account may be used only for the purposes 13-12 of this chapter. The account is exempt from the application of 13-13 Section 403.095, Government Code. 13-14 (e) Income from money in the account shall be credited to 13-15 the account. 13-16 Sec. 254.004. DUTIES OF DEPARTMENT. (a) To provide 13-17 assistance under this chapter, the department shall: 13-18 (1) establish a reciprocal system of waivers to help 13-19 facilitate the interstate transportation of hay; 13-20 (2) create a database of pre-identified public and 13-21 private haulers willing to provide donated transportation; 13-22 (3) institute and promote a hay and grazing hotline 13-23 to: 13-24 (A) connect Texas hay buyers with Texas sellers; 13-25 (B) connect Texas hay buyers and out-of-state 13-26 sellers; 14-1 (C) connect Texas livestock producers with their 14-2 own transportation with out-of-state donations; 14-3 (D) connect donated transportation with hay 14-4 donors; and 14-5 (E) connect livestock owners with grazing leases 14-6 in and out of Texas; and 14-7 (4) formalize a plan, with periodic updates, to secure 14-8 and manage actual transportation and local distribution of hay 14-9 donations. 14-10 (b) The department shall coordinate its efforts with other 14-11 emergency relief programs administered by the governor's division 14-12 of emergency management. 14-13 (c) To the greatest extent possible, the department shall 14-14 maximize the resources of the Texas Agricultural Extension Service 14-15 and agricultural commodity associations when designing and 14-16 implementing its plan. 14-17 Sec. 254.005. POWERS OF COMMISSIONER. (a) The commissioner 14-18 may authorize the use of available funds from the emergency hay 14-19 account to facilitate the transportation of hay to producers when 14-20 donated resources have been exhausted. 14-21 (b) Under this section, the commissioner may: 14-22 (1) negotiate contracts with commercial haulers; and 14-23 (2) pre-certify commercial haulers for use during a 14-24 natural disaster or other emergency. 14-25 Sec. 254.006. ELIGIBILITY FOR PROGRAM. The assistance 14-26 provided under this chapter is available only for agricultural 15-1 producers within a county that is declared a federal disaster area. 15-2 Sec. 254.007. ASSISTANCE FOR DEPARTMENT. (a) The Texas 15-3 Agricultural Extension Service shall enter into a memorandum of 15-4 understanding with the department to assist the department with the 15-5 program. 15-6 (b) Assistance by the Texas Agricultural Extension Service 15-7 may include: 15-8 (1) an assessment of local conditions within an 15-9 eligible county, as described by Section 254.006; 15-10 (2) the selection of hay distribution sites; and 15-11 (3) the coordination of volunteer efforts. 15-12 (c) The Texas Agricultural Extension Service shall develop 15-13 guidelines for county extension agents to implement this section. 15-14 (d) Under this section, county extension agents may 15-15 establish an advisory committee of local producers or work with an 15-16 existing committee. 15-17 Sec. 254.008. TERMINATION OF PROGRAM ASSISTANCE. (a) The 15-18 commissioner shall determine on a monthly basis if there is a 15-19 continuing need for assistance to each county under the program. 15-20 (b) If the commissioner determines that assistance is no 15-21 longer necessary or that available state resources have been 15-22 expended, the commissioner shall suspend assistance for that county 15-23 under the program. 15-24 SECTION 7. Subchapter F, Chapter 661, Government Code, is 15-25 amended by adding Section 661.152 to read as follows: 15-26 Sec. 661.152. LEAVE FOR VOLUNTEER FIREFIGHTERS IN CERTAIN 16-1 DISASTERS. (a) This section applies only to a state employee who: 16-2 (1) is trained as a volunteer firefighter; and 16-3 (2) volunteers for duty to prevent or fight fires in 16-4 an area designated as a federal disaster area as the result of 16-5 drought conditions. 16-6 (b) A person to whom this section applies is eligible for a 16-7 leave of absence from work as a state employee without loss of 16-8 compensation or risk of termination for the hours during which the 16-9 employee serves as a volunteer firefighter in a situation described 16-10 by Subsection (a)(2). 16-11 (c) The state agency that employs a person who requests 16-12 leave under this section shall verify the person's eligibility to 16-13 take the leave. 16-14 SECTION 8. This Act takes effect September 1, 1999. 16-15 SECTION 9. The importance of this legislation and the 16-16 crowded condition of the calendars in both houses create an 16-17 emergency and an imperative public necessity that the 16-18 constitutional rule requiring bills to be read on three several 16-19 days in each house be suspended, and this rule is hereby suspended.