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 * * * * *