1-1     By:  Ogden                                             S.B. No. 705
 1-2           (In the Senate - Filed February 25, 1999; March 1, 1999, read
 1-3     first time and referred to Committee on Natural Resources;
 1-4     April 15, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 5, Nays 0; April 15, 1999,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 705               By:  Armbrister
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to providing aid, support, and assistance to agriculture;
1-11     establishing the agricultural technology program.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  (a)  SHORT TITLE.  This Act may be cited as the
1-14     Farm and Ranch Recovery Act.
1-15           (b)  FINDINGS.  The legislature finds that:
1-16                 (1)  agriculture is a vital component of a diversified
1-17     state economy;
1-18                 (2)  agriculture is more directly and substantially
1-19     affected by adverse weather conditions than other industries;
1-20                 (3)  limited availability of federal crop subsidies and
1-21     adverse weather conditions present a significant risk to the
1-22     economic vitality of agricultural enterprises; and
1-23                 (4)  a comprehensive state agricultural policy that
1-24     addresses changes in federal policy and recurrent adverse weather
1-25     conditions will promote the growth of agriculture in this state and
1-26     will avert a public calamity.
1-27           (c)  PURPOSES.  The purposes of this Act are to:
1-28                 (1)  promote economic development by ensuring a
1-29     diversified economy;
1-30                 (2)  foster the growth of agriculture in this state;
1-31     and
1-32                 (3)  avert the substantial risk of a public calamity
1-33     that will likely result if agricultural industries do not receive
1-34     the benefit of state planning and assistance.
1-35           SECTION 2.  Title 3, Agriculture Code, is amended by adding
1-36     Chapter 48 to read as follows:
1-37       CHAPTER 48.  INTERIM COMMITTEE ON STATEWIDE AGRICULTURAL POLICY
1-38           Sec. 48.001.  ORGANIZATION.  (a)  The Interim Committee on
1-39     Statewide Agricultural Policy is established to study statewide
1-40     agricultural policy.
1-41           (b)  The committee consists of 10 members, of whom:
1-42                 (1)  five shall be appointed by the speaker of the
1-43     house of representatives from the members of the house of
1-44     representatives; and
1-45                 (2)  five shall be appointed by the lieutenant governor
1-46     from the members of the senate.
1-47           (c)  The lieutenant governor and the speaker of the house of
1-48     representatives each shall appoint a presiding officer from among
1-49     the members appointed to the committee.
1-50           (d)  The committee shall convene at the call of the two
1-51     presiding officers.
1-52           Sec. 48.002.  POWERS AND DUTIES.  The committee shall
1-53     investigate and study:
1-54                 (1)  regulatory reform affecting agriculture;
1-55                 (2)  market expansion alternatives for agricultural
1-56     products of this state;
1-57                 (3)  risk management alternatives for agricultural
1-58     production;
1-59                 (4)  initiatives to make crop insurance more effective
1-60     and affordable; and
1-61                 (5)  the creation of a comprehensive state agricultural
1-62     policy.
1-63           Sec. 48.003.  REPORT.  The committee shall develop a report,
1-64     including a cost-benefit analysis of regulatory reform affecting
 2-1     agriculture, that analyzes the issues described in Section 48.002
 2-2     and that includes recommended rule or statutory changes to
 2-3     implement the statewide agricultural policy options.  Not later
 2-4     than November 1, 2000, the committee shall make a final report to
 2-5     the lieutenant governor, the speaker of the house of
 2-6     representatives, and the 77th Legislature.
 2-7           Sec. 48.004.  ADMINISTRATION.  (a)  The committee has the
 2-8     authority necessary to perform its duties and in connection with
 2-9     those duties may call and hold hearings.
2-10           (b)  The committee may request the assistance of state
2-11     agencies, departments, or offices to carry out its duties.
2-12           (c)  The Senate Committee on Natural Resources and the House
2-13     Committee on Agriculture and Livestock shall provide staff to the
2-14     committee.
2-15           Sec. 48.005.  EXPENSES.  The committee shall submit a
2-16     proposed budget to the appropriate committee on administration in
2-17     each house of the legislature.  The administration committees shall
2-18     jointly approve the committee budget in an amount appropriate for
2-19     the committee to accomplish its duties under this chapter.
2-20           Sec. 48.006.  EXPIRATION.  This chapter expires and the
2-21     committee is abolished on the date the legislature convenes in
2-22     regular session in 2001.
2-23           SECTION 3.  Title 4, Agriculture Code, is amended by adding
2-24     Chapter 60 to read as follows:
2-25              CHAPTER 60.  COMMODITY CRISIS COUNCIL AND MANAGER
2-26           Sec. 60.001.  DEFINITIONS.  In this chapter:
2-27                 (1)  "Agricultural crisis" means an event or condition,
2-28     including adverse weather conditions, water shortages, disruptions
2-29     in transportation, low commodity prices, animal health issues, crop
2-30     disease, or insect infestations, that could disrupt or jeopardize
2-31     an aspect of the agricultural industry.
2-32                 (2)  "Council" means the Commodity Crisis Council.
2-33                 (3)  "Manager" means the Commodity Crisis Manager.
2-34           Sec. 60.002.  MANAGER; DUTIES.  (a)  The commissioner shall
2-35     designate an employee of the department to serve as manager who is
2-36     charged with mitigating the impact of any agricultural crisis on
2-37     commodities and agricultural production.
2-38           (b)  The manager serves as:
2-39                 (1)  presiding officer of the council;
2-40                 (2)  the representative of the department on the
2-41     emergency management council established by Executive Order GWB
2-42     95-1b; and
2-43                 (3)  the representative of the department on the
2-44     drought response and monitoring committee under Section 16.055,
2-45     Water Code.
2-46           (c)  The manager shall:
2-47                 (1)  manage and coordinate department planning and
2-48     response to any agricultural crisis, as identified by the
2-49     commissioner;
2-50                 (2)  develop a plan to prepare the state for recurring
2-51     drought conditions in regard to agricultural commodities, including
2-52     specific response actions, long-term solutions to minimize the
2-53     effect of such conditions, and an assessment of which regions of
2-54     the state and which agricultural products are vulnerable to a
2-55     drought; and
2-56                 (3)  manage the emergency hay program established by
2-57     Chapter 254.
2-58           Sec. 60.003.  COUNCIL COMPOSITION; DUTIES.  (a)  The council
2-59     is composed of the manager, the members appointed under Subsection
2-60     (b), and one representative from each of the following agencies
2-61     appointed by the administrative head of that agency:
2-62                 (1)  the Texas Agricultural Extension Service;
2-63                 (2)  the State Soil and Water Conservation Board; and
2-64                 (3)  the Texas Forest Service.
2-65           (b)  The commissioner shall appoint not more than five
2-66     representatives of agricultural industries to serve on the council.
2-67           (c)  The council shall:
2-68                 (1)  advise the manager in the development of a state
2-69     plan to address recurring drought conditions;
 3-1                 (2)  prepare and submit an informational report to the
 3-2     governor and the legislature for each agricultural crisis, as
 3-3     identified by the commissioner, in this state;
 3-4                 (3)  prepare and submit a report to the commissioner to
 3-5     recommend projects for the agri-tech program, as defined by Chapter
 3-6     46;
 3-7                 (4)  initiate a program through the Texas Agricultural
 3-8     Extension Service to educate agricultural producers and the public
 3-9     about each agricultural crisis, as identified by the commissioner,
3-10     in this state; and
3-11                 (5)  meet as necessary to carry out the provisions of
3-12     this section.
3-13           (d)  The commissioner's appointees serve without
3-14     compensation, but are entitled to reimbursement for actual expenses
3-15     incurred in the performance of official council duties, subject to
3-16     approval of the commissioner.  Other council members shall be
3-17     reimbursed for actual expenses by their representative agencies.
3-18           (e)  The commissioner shall provide the council with staff
3-19     necessary to assist the council in carrying out its duties under
3-20     this chapter.
3-21           SECTION 4.  Title 3, Agriculture Code, is amended by adding
3-22     Chapter 46 to read as follows:
3-23                CHAPTER 46.  AGRICULTURAL TECHNOLOGY PROGRAM
3-24           Sec. 46.001.  DEFINITIONS.  In this chapter:
3-25                 (1)  "Agricultural crisis" means an event or condition,
3-26     including adverse weather conditions, water shortages, disruptions
3-27     in transportation, low commodity prices, animal health issues, crop
3-28     disease, or insect infestations, that could disrupt or jeopardize
3-29     an aspect of the agricultural industry.
3-30                 (2)  "Agri-tech program" means the agricultural
3-31     technology program established under this chapter.
3-32                 (3)  "Applied research" means research directed at
3-33     gaining the knowledge or understanding necessary to meet a specific
3-34     and recognized need, including the discovery of new scientific
3-35     knowledge that has specific objectives relating to products or
3-36     processes.
3-37                 (4)  "Eligible institution" means an institution of
3-38     higher education as that term is defined by Section 61.003,
3-39     Education Code, designated under Section 46.002(e).
3-40           Sec. 46.002.  ADMINISTRATION; GUIDELINES AND PROCEDURES.
3-41     (a)  The department shall develop, maintain, and administer the
3-42     agri-tech program to provide support at eligible institutions to
3-43     conduct research projects on methods to address agricultural crises
3-44     in this state.
3-45           (b)  In awarding funds to support projects under this
3-46     chapter, the department shall:
3-47                 (1)  give priority to applied research projects that
3-48     the commissioner determines to be necessary to address an immediate
3-49     agricultural crisis; and
3-50                 (2)  consider the recommendations of the Commodity
3-51     Crisis Council for specific projects.
3-52           (c)  The department shall award funds to support projects as
3-53     needed to address agricultural crises in this state.
3-54           (d)  The department shall develop and maintain guidelines and
3-55     procedures to provide awards under this chapter for specific
3-56     projects at eligible institutions on a competitive, peer-review
3-57     basis.
3-58           (e)  The department shall determine whether an institution of
3-59     higher education qualifies as an eligible institution for the
3-60     purposes of this chapter.  To be designated as an eligible
3-61     institution, an institution of higher education must demonstrate an
3-62     exceptional capability to attract federal, state, and private
3-63     funding for scientific and technical research and have an
3-64     exceptionally strong research staff and the necessary equipment and
3-65     facilities.
3-66           (f)  In considering projects for selection, the commissioner
3-67     shall give special consideration to projects that:
3-68                 (1)  leverage funds from other sources; and
3-69                 (2)  propose innovative, collaborative efforts:
 4-1                       (A)  across academic disciplines;
 4-2                       (B)  involving two or more eligible institutions;
 4-3     or
 4-4                       (C)  involving eligible institutions, private
 4-5     industry, and the federal government.
 4-6           (g)  The commissioner may adopt rules necessary to accomplish
 4-7     the purposes of this chapter.
 4-8           Sec. 46.003.  AGRICULTURAL TECHNOLOGY ACCOUNT.  (a)  The
 4-9     agricultural technology account is an account in the general
4-10     revenue fund.
4-11           (b)  The agricultural technology account consists of
4-12     legislative appropriations, gifts and grants received under
4-13     Subsection (c), and other money required by law to be deposited in
4-14     the account.
4-15           (c)  The department may solicit and accept gifts in kind and
4-16     grants of money from the federal government, local governments,
4-17     private corporations, or other persons to be used for the purposes
4-18     of this chapter.
4-19           (d)  Funds in the agricultural technology account may be used
4-20     only as provided by this chapter.  The account is exempt from the
4-21     application of Section 403.095, Government Code.
4-22           (e)  Income from money in the account shall be credited to
4-23     the account.
4-24           Sec. 46.004.  USE OF FUNDS IN AGRICULTURAL TECHNOLOGY
4-25     ACCOUNT.  (a)  From funds appropriated for the agri-tech program,
4-26     the comptroller shall issue warrants to each eligible institution
4-27     in the amount certified by the department to the comptroller.
4-28           (b)  Funds awarded from the agricultural technology account
4-29     may be expended to support the particular research project for
4-30     which the award is made and may not be expended for the support of
4-31     general research and instruction at the institution conducting or
4-32     sponsoring the project or for the construction or remodeling of a
4-33     facility.
4-34           (c)  Funds in the agricultural technology account shall be
4-35     used, when practicable within the purposes of this chapter, to
4-36     match grants provided by the federal government or private industry
4-37     for specific collaborative research projects at eligible
4-38     institutions.
4-39           (d)  Supplies, materials, services, and equipment purchased
4-40     with funds obtained under this section are not subject to General
4-41     Services Commission authority.
4-42           Sec. 46.005.  PROGRESS REPORTS.  An institution receiving
4-43     funds under this chapter shall report on the progress of the funded
4-44     research to the department not later than September 1 of each year.
4-45           Sec. 46.006.  MERIT REVIEW.  The commissioner shall appoint a
4-46     committee consisting of representatives of the agricultural
4-47     industry and of private enterprise advanced technology research
4-48     organizations to evaluate the agri-tech program's effectiveness.
4-49     The committee shall report its findings to the department not later
4-50     than September 1 of the second year of each biennium.
4-51           SECTION 5.  Title 3, Agriculture Code, is amended by adding
4-52     Chapter 47 to read as follows:
4-53             CHAPTER 47.  AGRICULTURE RISK MANAGEMENT EDUCATION
4-54           Sec. 47.001.  LEGISLATIVE FINDINGS; PURPOSE.  (a)  The
4-55     legislature finds that:
4-56                 (1)  the increasingly global marketplace and the
4-57     increasing flexibility in agriculture production decisions expose
4-58     agricultural producers and agribusinesses to increased income risk;
4-59                 (2)  managing these increased risks is critical to the
4-60     future economic competitiveness and success of agriculture in this
4-61     state; and
4-62                 (3)  policymakers, lenders, agribusiness firms, rural
4-63     community leaders, and researchers will benefit from a better
4-64     understanding of how farmers and ranchers adapt to different
4-65     economic, regulatory, and political environments.
4-66           (b)  The purposes of this chapter are to:
4-67                 (1)  increase risk management educational efforts to
4-68     help agricultural producers and agribusinesses to:
4-69                       (A)  understand risk and its consideration in
 5-1     decision-making;
 5-2                       (B)  understand the economic impacts on farms or
 5-3     ranches of adopting new production or information technologies;
 5-4                       (C)  understand the economic impacts on farms or
 5-5     ranches of changing agricultural, regulatory, monetary, and fiscal
 5-6     policies; and
 5-7                       (D)  measure the relative risk associated with
 5-8     alternative production, marketing, and financial decisions;
 5-9                 (2)  establish a statewide educational program that
5-10     includes a risk management support system and a comprehensive
5-11     educational curriculum; and
5-12                 (3)  foster the economic competitiveness and success of
5-13     agriculture in this state.
5-14           Sec. 47.002.  CREATION OF PROGRAMS.  (a)  The Texas
5-15     Agricultural Extension Service shall administer a statewide
5-16     financial and risk management assistance support system to help
5-17     farmers and ranchers make long-term strategic planning decisions
5-18     and adjust their operations to new production, marketing, and
5-19     financing situations.  The support system may include computer and
5-20     communications technology to provide agricultural producers and
5-21     agribusinesses with information needed for individual long-term
5-22     strategic farm or ranch planning.
5-23           (b)  The Texas Agricultural Extension Service shall develop
5-24     and implement a statewide comprehensive educational curriculum
5-25     program to provide agricultural producers and agribusinesses with
5-26     additional information about risk management and potential tools
5-27     and options to consider in managing risks.  The curriculum may
5-28     include instructional materials, instructors, and other resources
5-29     in areas of agricultural, regulatory, monetary, and fiscal
5-30     interest.
5-31           (c)  The Texas Agricultural Extension Service may organize
5-32     and deliver the programs with the assistance of interested
5-33     agricultural groups.
5-34           Sec. 47.003.  ELIGIBILITY FOR EDUCATIONAL MATERIALS AND
5-35     SERVICES.  As a condition for educational assistance under this
5-36     chapter, the Texas Agricultural Extension Service shall require
5-37     that a person pay a subscription fee or other charge in exchange
5-38     for educational services and materials.
5-39           SECTION 6.  Title 8, Agriculture Code, is amended by adding
5-40     Chapter 254 to read as follows:
5-41                     CHAPTER 254.  EMERGENCY HAY PROGRAM
5-42           Sec. 254.001.  DEFINITIONS.  In this chapter, "manager" means
5-43     the Commodity Crisis Manager, as defined by Chapter 60.
5-44           Sec. 254.002.  EMERGENCY HAY PROGRAM.  (a)  The department
5-45     shall adopt rules and administer a program to provide assistance
5-46     for the transportation of hay for use by agricultural producers
5-47     whose production abilities are hindered during periods of natural
5-48     disaster or other emergencies due to a lack of forage.
5-49           (b)  The manager shall oversee the program.
5-50           Sec. 254.003.  EMERGENCY HAY ACCOUNT.  (a)  The emergency hay
5-51     account is an account in the general revenue fund.
5-52           (b)  The emergency hay account consists of legislative
5-53     appropriations and other money required by law to be deposited in
5-54     the account.
5-55           (c)  The department may solicit and accept gifts in kind and
5-56     grants of money from the federal government, local governments,
5-57     private corporations, or other persons to be used for the purposes
5-58     of this chapter.
5-59           (d)  Money in the account may be used only for the purposes
5-60     of this chapter.  The account is exempt from the application of
5-61     Section 403.095, Government Code.
5-62           (e)  Income from money in the account shall be credited to
5-63     the account.
5-64           Sec. 254.004.  DUTIES OF DEPARTMENT.  (a)  To provide
5-65     assistance under this chapter, the department shall:
5-66                 (1)  establish a reciprocal system of waivers to help
5-67     facilitate the interstate transportation of hay;
5-68                 (2)  create a database of pre-identified public and
5-69     private haulers willing to provide donated transportation;
 6-1                 (3)  institute and promote a hay and grazing hotline
 6-2     to:
 6-3                       (A)  connect Texas hay buyers with Texas sellers;
 6-4                       (B)  connect Texas hay buyers and out-of-state
 6-5     sellers;
 6-6                       (C)  connect Texas livestock producers with their
 6-7     own transportation with out-of-state donations;
 6-8                       (D)  connect donated transportation with hay
 6-9     donors; and
6-10                       (E)  connect livestock owners with grazing leases
6-11     in and out of Texas; and
6-12                 (4)  formalize a plan, with periodic updates, to secure
6-13     and manage actual transportation and local distribution of hay
6-14     donations.
6-15           (b)  The department shall coordinate its efforts with other
6-16     emergency relief programs administered by the governor's division
6-17     of emergency management.
6-18           (c)  To the greatest extent possible, the department shall
6-19     maximize the resources of the Texas Agricultural Extension Service
6-20     and agricultural commodity associations when designing and
6-21     implementing its plan.
6-22           Sec. 254.005.  POWERS OF COMMISSIONER.  (a)  The commissioner
6-23     may authorize the use of available funds from the emergency hay
6-24     account to facilitate the transportation of hay to producers when
6-25     donated resources have been exhausted.
6-26           (b)  Under this section, the commissioner may:
6-27                 (1)  negotiate contracts with commercial haulers; and
6-28                 (2)  pre-certify commercial haulers for use during a
6-29     natural disaster or other emergency.
6-30           Sec. 254.006.  ELIGIBILITY FOR PROGRAM.  The assistance
6-31     provided under this chapter is available only for agricultural
6-32     producers within a county that is declared a federal disaster area.
6-33           Sec. 254.007.  ASSISTANCE FOR DEPARTMENT.  (a)  The Texas
6-34     Agricultural Extension Service shall enter into a memorandum of
6-35     understanding with the department to assist the department with the
6-36     program.
6-37           (b)  Assistance by the Texas Agricultural Extension Service
6-38     may include:
6-39                 (1)  an assessment of local conditions within an
6-40     eligible county, as described by Section 254.006;
6-41                 (2)  the selection of hay distribution sites; and
6-42                 (3)  the coordination of volunteer efforts.
6-43           (c)  The Texas Agricultural Extension Service shall develop
6-44     guidelines for county extension agents to implement this section.
6-45           (d)  Under this section, county extension agents may
6-46     establish an advisory committee of local producers or work with an
6-47     existing committee.
6-48           Sec. 254.008.  TERMINATION OF PROGRAM ASSISTANCE.  (a)  The
6-49     commissioner shall determine on a monthly basis if there is a
6-50     continuing need for assistance to each county under the program.
6-51           (b)  If the commissioner determines that assistance is no
6-52     longer necessary or that available state resources have been
6-53     expended, the commissioner shall suspend assistance for that county
6-54     under the program.
6-55           SECTION 7.  Subchapter F, Chapter 661, Government Code, is
6-56     amended by adding Section 661.152 to read as follows:
6-57           Sec. 661.152.  LEAVE FOR VOLUNTEER FIREFIGHTERS IN CERTAIN
6-58     DISASTERS.  (a)  This section applies only to a state employee who:
6-59                 (1)  is trained as a volunteer firefighter; and
6-60                 (2)  volunteers for duty to prevent or fight fires in
6-61     an area designated as a federal disaster area as the result of
6-62     drought conditions.
6-63           (b)  A person to whom this section applies is eligible for a
6-64     leave of absence from work as a state employee without loss of
6-65     compensation or risk of termination for the hours during which the
6-66     employee serves as a volunteer firefighter in a situation described
6-67     by Subsection (a)(2).
6-68           (c)  The state agency that employs a person who requests
6-69     leave under this section shall verify the person's eligibility to
 7-1     take the leave.
 7-2           SECTION 8.  This Act takes effect September 1, 1999.
 7-3           SECTION 9.  The importance of this legislation and the
 7-4     crowded condition of the calendars in both houses create an
 7-5     emergency and an imperative public necessity that the
 7-6     constitutional rule requiring bills to be read on three several
 7-7     days in each house be suspended, and this rule is hereby suspended.
 7-8                                  * * * * *