76R15917 E                          
         By Ogden                                               S.B. No. 705
         Substitute the following for S.B. No. 705:
         By Swinford                                        C.S.S.B. No. 705
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to providing aid, support, and assistance to agriculture;
 1-3     establishing the agricultural technology program.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  (a)  SHORT TITLE.  This Act may be cited as the
 1-6     Farm and Ranch Recovery Act.
 1-7           (b)  FINDINGS.  The legislature finds that:
 1-8                 (1)  agriculture is a vital component of a diversified
 1-9     state economy;
1-10                 (2)  agriculture is more directly and substantially
1-11     affected by adverse weather conditions than other industries;
1-12                 (3)  limited availability of federal crop subsidies and
1-13     adverse weather conditions present a significant risk to the
1-14     economic vitality of agricultural enterprises; and
1-15                 (4)  a comprehensive state agricultural policy that
1-16     addresses changes in federal policy and recurrent adverse weather
1-17     conditions will promote the growth of agriculture in this state and
1-18     will avert a public calamity.
1-19           (c)  PURPOSES.  The purposes of this Act are to:
1-20                 (1)  promote economic development by ensuring a
1-21     diversified economy;
1-22                 (2)  foster the growth of agriculture in this state;
1-23     and
1-24                 (3)  avert the substantial risk of a public calamity
 2-1     that will likely result if agricultural industries do not receive
 2-2     the benefit of state planning and assistance.
 2-3           SECTION 2.  Title 4, Agriculture Code, is amended by adding
 2-4     Chapter 60 to read as follows:
 2-5              CHAPTER 60.  COMMODITY CRISIS COUNCIL AND MANAGER
 2-6           Sec. 60.001.  DEFINITIONS.  In this chapter:
 2-7                 (1)  "Agricultural crisis" means an event or condition,
 2-8     including adverse weather conditions, water shortage, disruption in
 2-9     transportation, low commodity prices, an animal health issue, crop
2-10     disease, or insect infestation, that could disrupt or jeopardize an
2-11     aspect of the agriculture industry.
2-12                 (2)  "Council" means the Commodity Crisis Council.
2-13                 (3)  "Manager" means the commodity crisis manager.
2-14           Sec. 60.002.  MANAGER; DUTIES.  (a)  The commissioner may
2-15     designate a person, who may be an employee of the department, to
2-16     serve as manager.  The manager is charged with mitigating the
2-17     impact of any agricultural crisis on commodities and agricultural
2-18     production.
2-19           (b)  The manager serves as:
2-20                 (1)  presiding officer of the council;
2-21                 (2)  the representative of the department on the
2-22     emergency management council established by Executive Order GWB
2-23     95-1b; and
2-24                 (3)  the representative of the department on the
2-25     drought response and monitoring committee under Section 16.055,
2-26     Water Code.
2-27           (c)  The manager shall:
 3-1                 (1)  manage and coordinate department planning and
 3-2     response to any agricultural crisis, as identified by the
 3-3     commissioner;
 3-4                 (2)  develop a state plan to prepare for recurring
 3-5     drought conditions that affect agricultural commodities, including
 3-6     specific response actions, long-term solutions to minimize the
 3-7     effect of drought conditions, and an assessment of which regions of
 3-8     the state and which agricultural products are vulnerable to a
 3-9     drought; and
3-10                 (3)  manage the emergency hay program under Chapter
3-11     254.
3-12           Sec. 60.003.  COUNCIL COMPOSITION; DUTIES.  (a)  The council
3-13     is composed of the manager, the members appointed under Subsection
3-14     (b), and one representative from each of the following agencies
3-15     appointed by the administrative head of that agency:
3-16                 (1)  the Texas Agricultural Extension Service;
3-17                 (2)  the State Soil and Water Conservation Board; and
3-18                 (3)  the Texas Forest Service.
3-19           (b)  The commissioner shall appoint not more than five
3-20     representatives of agricultural industries to serve on the council.
3-21           (c)  The council shall:
3-22                 (1)  advise the manager in the development of a state
3-23     plan to address recurring drought conditions;
3-24                 (2)  prepare and submit an informational report to the
3-25     governor and the legislature for each agricultural crisis, as
3-26     identified by the commissioner, in this state;
3-27                 (3)  prepare and submit a report to the commissioner to
 4-1     recommend projects for the agri-tech program under Chapter 46;
 4-2                 (4)  develop a program through the Texas Agricultural
 4-3     Extension Service to educate agricultural producers and the public
 4-4     about each agricultural crisis, as identified by the commissioner,
 4-5     in this state; and
 4-6                 (5)  meet as necessary to carry out the provisions of
 4-7     this section.
 4-8           (d)  The commissioner's appointees serve without
 4-9     compensation, but are entitled to reimbursement for actual expenses
4-10     incurred in the performance of official council duties, subject to
4-11     approval of the commissioner.  The other council members are
4-12     entitled to be reimbursed for actual expenses by their
4-13     representative agencies.
4-14           (e)  The commissioner shall provide the council with staff
4-15     necessary to assist the council in carrying out its duties.
4-16           SECTION 3.  Title 3, Agriculture Code, is amended by adding
4-17     Chapter 46 to read as follows:
4-18                CHAPTER 46.  AGRICULTURAL TECHNOLOGY PROGRAM
4-19           Sec. 46.001.  DEFINITIONS.  In this chapter:
4-20                 (1)  "Agricultural crisis" means an event or condition,
4-21     including adverse weather conditions, water shortage, disruption in
4-22     transportation, low commodity prices, an animal health issue, crop
4-23     disease, or insect infestation, that could disrupt or jeopardize an
4-24     aspect of the agriculture industry.
4-25                 (2)  "Agri-tech program" means the agricultural
4-26     technology program established under this chapter.
4-27                 (3)  "Applied research" means research directed at
 5-1     gaining the knowledge or understanding necessary to meet a specific
 5-2     and recognized need, including the discovery of new scientific
 5-3     knowledge that has specific objectives relating to products or
 5-4     processes.
 5-5                 (4)  "Eligible institution" means an institution of
 5-6     higher education, as that term is defined by Section 61.003,
 5-7     Education Code, that is designated as an eligible institution under
 5-8     Section 46.002(e).
 5-9           Sec. 46.002.  ADMINISTRATION; GUIDELINES AND PROCEDURES.  (a)
5-10     The department shall develop, maintain, and administer the
5-11     agri-tech program to provide support for eligible institutions to
5-12     conduct research projects on methods to address agricultural crises
5-13     in this state.
5-14           (b)  In awarding funds to support projects under this
5-15     chapter, the department shall:
5-16                 (1)  give priority to applied research projects that
5-17     the commissioner determines to be necessary to address an immediate
5-18     agricultural crisis; and
5-19                 (2)  consider the recommendations of the Commodity
5-20     Crisis Council for specific projects.
5-21           (c)  The department shall award funds to support projects as
5-22     needed to address agricultural crises in this state.
5-23           (d)  The department shall develop and maintain guidelines and
5-24     procedures to provide awards under this chapter for specific
5-25     projects at eligible institutions on a competitive, peer-review
5-26     basis.
5-27           (e)  The department shall determine whether an institution of
 6-1     higher education qualifies as an eligible institution for the
 6-2     purposes of this chapter.  To be designated as an eligible
 6-3     institution, an institution of higher education must demonstrate an
 6-4     exceptional capability to attract federal, state, and private
 6-5     funding for scientific and technical research and have an
 6-6     exceptionally strong research staff and the necessary equipment and
 6-7     facilities.
 6-8           (f)  In considering projects for selection, the commissioner
 6-9     shall give special consideration to projects that:
6-10                 (1)  leverage funds from other sources; and
6-11                 (2)  propose innovative, collaborative efforts:
6-12                       (A)  across academic disciplines;
6-13                       (B)  involving two or more eligible institutions;
6-14     or
6-15                       (C)  involving eligible institutions, private
6-16     industry, and the federal government.
6-17           (g)  The commissioner may adopt rules necessary to accomplish
6-18     the purposes of this chapter.
6-19           Sec. 46.003.  AGRICULTURAL TECHNOLOGY ACCOUNT.  (a)  The
6-20     agricultural technology account is an account in the general
6-21     revenue fund.
6-22           (b)  The agricultural technology account consists of
6-23     legislative appropriations, gifts and grants received under
6-24     Subsection (c), and other money required by law to be deposited in
6-25     the account.
6-26           (c)  The department may solicit and accept gifts in kind and
6-27     grants of money from the federal government, local governments,
 7-1     private corporations, or other persons to be used for the purposes
 7-2     of this chapter.
 7-3           (d)  Funds in the agricultural technology account may be used
 7-4     only as provided by this chapter.  The account is exempt from the
 7-5     application of Section 403.095, Government Code.
 7-6           (e)  Income from money in the account shall be credited to
 7-7     the account.
 7-8           Sec. 46.004.  USE OF FUNDS IN AGRICULTURAL TECHNOLOGY
 7-9     ACCOUNT.  (a)  From funds appropriated for the agri-tech program,
7-10     the comptroller shall issue warrants to each eligible institution
7-11     in the amount certified by the department to the comptroller.
7-12           (b)  Funds awarded from the agricultural technology account
7-13     may be expended to support the particular research project for
7-14     which the award is made and may not be expended for the general
7-15     support of research and instruction at the institution conducting
7-16     or sponsoring the project or for the construction or remodeling of
7-17     a facility.
7-18           (c)  Funds in the agricultural technology account shall be
7-19     used, when practicable within the purposes of this chapter, to
7-20     match grants provided by the federal government or private industry
7-21     for specific collaborative research projects at eligible
7-22     institutions.
7-23           (d)  Supplies, materials, services, and equipment purchased
7-24     with funds obtained under this section are not subject to General
7-25     Services Commission authority.
7-26           Sec. 46.005.  PROGRESS REPORTS.  An institution receiving
7-27     funds under this chapter shall report on the progress of the funded
 8-1     research to the department not later than September 1 of each year.
 8-2           Sec. 46.006.  MERIT REVIEW.  The commissioner shall appoint a
 8-3     committee consisting of representatives of the agriculture industry
 8-4     and of private enterprise advanced technology research
 8-5     organizations to evaluate the agri-tech program's effectiveness.
 8-6     The committee shall report its findings to the department not later
 8-7     than September 1 of the second year of each biennium.
 8-8           SECTION 4.  Title 3, Agriculture Code, is amended by adding
 8-9     Chapter 47 to read as follows:
8-10             CHAPTER 47.  AGRICULTURE RISK MANAGEMENT EDUCATION
8-11           Sec. 47.001.  LEGISLATIVE FINDINGS; PURPOSE.  (a)  The
8-12     legislature finds that:
8-13                 (1)  the increasingly global marketplace and the
8-14     increasing flexibility in agriculture production decisions expose
8-15     agricultural producers and agribusinesses to increased income risk;
8-16                 (2)  managing these increased risks is critical to the
8-17     future economic competitiveness and success of agriculture in this
8-18     state; and
8-19                 (3)  policymakers, lenders, agribusiness firms, rural
8-20     community leaders, and researchers will benefit from a better
8-21     understanding of how farmers and ranchers adapt to different
8-22     economic, regulatory, and political environments.
8-23           (b)  The purposes of this chapter are to:
8-24                 (1)  increase risk management educational efforts to
8-25     help agricultural producers and agribusinesses to:
8-26                       (A)  understand risk and its consideration in
8-27     decision making;
 9-1                       (B)  understand the economic impacts on farms or
 9-2     ranches of adopting new production or information technologies;
 9-3                       (C)  understand the economic impacts on farms or
 9-4     ranches of changing agricultural, regulatory, monetary, and fiscal
 9-5     policies; and
 9-6                       (D)  measure the relative risk associated with
 9-7     alternative production, marketing, and financial decisions;
 9-8                 (2)  establish a statewide educational program that
 9-9     includes a risk management support system and a comprehensive
9-10     educational curriculum; and
9-11                 (3)  foster the economic competitiveness and success of
9-12     agriculture in this state.
9-13           Sec. 47.002.  CREATION OF PROGRAMS.  (a)  The Texas
9-14     Agricultural Extension Service shall administer a statewide
9-15     financial and risk management assistance support system to help
9-16     farmers and ranchers make long-term strategic planning decisions
9-17     and adjust their operations to new production, marketing, and
9-18     financing situations.  The support system may include computer and
9-19     communications technology to provide agricultural producers and
9-20     agribusinesses with information needed for individual long-term
9-21     strategic farm or ranch planning.
9-22           (b)  The extension service shall develop and implement a
9-23     statewide comprehensive educational curriculum program to provide
9-24     agricultural producers and agribusinesses with additional
9-25     information about risk management and potential tools and options
9-26     to consider in managing risks.  The curriculum may include
9-27     instructional materials, instructors, and other resources in areas
 10-1    of agricultural, regulatory, monetary, and fiscal interest.
 10-2          (c)  The extension service may organize and deliver the
 10-3    programs with the assistance of interested agricultural groups.
 10-4          Sec. 47.003.  ELIGIBILITY FOR EDUCATIONAL MATERIALS AND
 10-5    SERVICES.  As a condition for educational assistance under this
 10-6    chapter, the Texas Agricultural Extension Service shall require
 10-7    that a person pay a subscription fee or other charge in exchange
 10-8    for educational services and materials.
 10-9          SECTION 5.  Title 8, Agriculture Code, is amended by adding
10-10    Chapter 254 to read as follows:
10-11                    CHAPTER 254.  EMERGENCY HAY PROGRAM
10-12          Sec. 254.001.  DEFINITION.  In this chapter, "manager" means
10-13    the commodity crisis manager under Chapter 60.
10-14          Sec. 254.002.  EMERGENCY HAY PROGRAM.  (a)  The department
10-15    shall adopt rules and administer a program to provide assistance
10-16    for the transportation of hay for use by agricultural producers
10-17    whose production abilities are hindered during periods of natural
10-18    disaster or other emergencies due to a lack of forage.
10-19          (b)  The manager shall oversee the program.
10-20          Sec. 254.003.  EMERGENCY HAY ACCOUNT.  (a)  The emergency hay
10-21    account is an account in the general revenue fund.
10-22          (b)  The emergency hay account consists of legislative
10-23    appropriations and other money required by law to be deposited in
10-24    the account.
10-25          (c)  The department may solicit and accept gifts in kind and
10-26    grants of money from the federal government, local governments,
10-27    private corporations, or other persons to be used for the purposes
 11-1    of this chapter.
 11-2          (d)  Money in the account may be used only for the purposes
 11-3    of this chapter.  The account is exempt from the application of
 11-4    Section 403.095, Government Code.
 11-5          (e)  Income from money in the account shall be credited to
 11-6    the account.
 11-7          Sec. 254.004.  DUTIES OF DEPARTMENT.  (a)  To provide
 11-8    assistance under this chapter, the department shall:
 11-9                (1)  establish a reciprocal system of waivers to help
11-10    facilitate the interstate transportation of hay;
11-11                (2)  create a database to identify public and private
11-12    haulers that are willing to donate transportation services;
11-13                (3)  develop and promote a hay and grazing hotline
11-14    designed to:
11-15                      (A)  connect Texas hay buyers with Texas hay
11-16    sellers;
11-17                      (B)  connect Texas hay buyers with out-of-state
11-18    hay sellers;
11-19                      (C)  connect Texas livestock producers that have
11-20    their own transportation with out-of-state hay donors;
11-21                      (D)  connect donated transportation with hay
11-22    donors; and
11-23                      (E)  connect livestock owners with grazing leases
11-24    in and out of Texas; and
11-25                (4)  develop a plan, with periodic updates, to secure
11-26    and manage transportation and local distribution of hay donations.
11-27          (b)  The department shall coordinate its efforts with other
 12-1    emergency relief programs administered by the governor's division
 12-2    of emergency management.
 12-3          (c)  To the extent practicable, the department shall use the
 12-4    resources of the Texas Agricultural Extension Service and of
 12-5    agricultural commodity associations when developing and
 12-6    implementing its plan.
 12-7          Sec. 254.005.  POWERS OF COMMISSIONER.  (a)  The commissioner
 12-8    may authorize the use of available funds from the emergency hay
 12-9    account to facilitate the transportation of hay to producers when
12-10    donated resources have been exhausted.
12-11          (b)  The commissioner may:
12-12                (1)  negotiate contracts with commercial haulers; and
12-13                (2)  certify commercial haulers for use during a
12-14    natural disaster or other emergency.
12-15          Sec. 254.006.  ELIGIBILITY FOR PROGRAM.  The assistance
12-16    provided under this chapter is available only for agricultural
12-17    producers located within a county that is declared a federal
12-18    disaster area.
12-19          Sec. 254.007.  ASSISTANCE FOR DEPARTMENT.  (a)  The Texas
12-20    Agricultural Extension Service shall enter into a memorandum of
12-21    understanding with the department to assist the department in
12-22    administering the program.
12-23          (b)  The assistance provided by the extension service under
12-24    this section may include:
12-25                (1)  an assessment of local conditions within a county
12-26    in which agricultural producers are eligible for assistance under
12-27    Section 254.006;
 13-1                (2)  the selection of hay distribution sites; and
 13-2                (3)  coordination of volunteer efforts.
 13-3          (c)  The extension service shall develop guidelines for
 13-4    county extension agents to implement this section.
 13-5          (d)  For purposes of this section, a county extension agent
 13-6    may establish an advisory committee of local producers or work with
 13-7    an existing committee.
 13-8          Sec. 254.008.  TERMINATION OF PROGRAM ASSISTANCE.  The
 13-9    department shall terminate program assistance in a county if:
13-10                (1)  the county's federal disaster area designation
13-11    expires; or
13-12                (2)  funds in the emergency hay account are depleted.
13-13          SECTION 6.  Subchapter F, Chapter 661, Government Code, is
13-14    amended by adding Section 661.152 to read as follows:
13-15          Sec. 661.152.  LEAVE FOR VOLUNTEER FIREFIGHTERS IN CERTAIN
13-16    DISASTERS.  (a)  This section applies only to a state employee who:
13-17                (1)  is trained as a volunteer firefighter; and
13-18                (2)  volunteers for duty to prevent or fight fires in
13-19    an area designated as a federal disaster area as the result of
13-20    drought conditions.
13-21          (b)  A person to whom this section applies is eligible for a
13-22    leave of absence from work as a state employee without loss of
13-23    compensation or risk of termination for the hours during which the
13-24    employee serves as a volunteer firefighter in a situation described
13-25    by Subsection (a)(2).
13-26          (c)  The state agency that employs a person who requests
13-27    leave under this section shall verify the person's eligibility to
 14-1    take the leave.
 14-2          SECTION 7.  This Act takes effect September 1, 1999.
 14-3          SECTION 8.  The importance of this legislation and the
 14-4    crowded condition of the calendars in both houses create an
 14-5    emergency and an imperative public necessity that the
 14-6    constitutional rule requiring bills to be read on three several
 14-7    days in each house be suspended, and this rule is hereby suspended.