1-1 By: Ogden, Wentworth S.B. No. 706 1-2 (In the Senate - Filed February 25, 1999; March 1, 1999, read 1-3 first time and referred to Committee on Finance; March 25, 1999, 1-4 reported favorably by the following vote: Yeas 11, Nays 0; 1-5 March 25, 1999, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to providing disaster relief to agriculture; providing 1-9 penalties. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Title 8, Agriculture Code, is amended by adding 1-12 Chapter 255 to read as follows: 1-13 CHAPTER 255. DISASTER RELIEF PROGRAM 1-14 Sec. 255.001. DEFINITIONS. For the purposes of this 1-15 chapter, the following terms have the following meanings: 1-16 (1) "Agriculture" means: 1-17 (A) the cultivation of the soil to produce 1-18 crops; 1-19 (B) horticulture, floriculture, or viticulture; 1-20 (C) forestry; or 1-21 (D) the raising or keeping of livestock or 1-22 poultry. 1-23 (2) "Commissioner" means the commissioner of 1-24 agriculture. 1-25 (3) "Department" means the Department of Agriculture. 1-26 Sec. 255.002. FINDINGS. The legislature finds that: 1-27 (1) agriculture is a vital component of a diversified 1-28 state economy; 1-29 (2) agriculture is more directly and substantially 1-30 affected by adverse weather conditions than other industries; and 1-31 (3) limited availability of federal crop subsidies and 1-32 adverse weather conditions present a significant risk to the 1-33 economic vitality of agricultural enterprises. 1-34 Sec. 255.003. PURPOSES. The purposes of this chapter are 1-35 to: 1-36 (1) promote economic development by ensuring a 1-37 diversified economy; 1-38 (2) foster the growth of agriculture in this state; 1-39 (3) encourage agricultural producers to return to 1-40 production following a year of economic losses; and 1-41 (4) avert the substantial risk of a public calamity 1-42 that will likely result if agricultural industries do not receive 1-43 the benefit of state assistance. 1-44 Sec. 255.004. AGRICULTURAL DISASTER RELIEF PROGRAM. The 1-45 department shall adopt rules and administer an agricultural 1-46 disaster relief program to be implemented by order of the governor 1-47 in a county which has been declared a federal disaster area. 1-48 Sec. 255.005. IMPLEMENTATION OF PROGRAM. (a) This chapter 1-49 is implemented only by order of the governor and is subject to 1-50 specific appropriation by the legislature. 1-51 (b) The legislature may appropriate funds to provide 1-52 assistance for one or more of the agricultural sciences as 1-53 described by Section 255.001(1). 1-54 (c) Any unexpended funds appropriated for the purposes of 1-55 this chapter are subject to Section 403.095, Government Code; 1-56 Sec. 255.006. DISASTER RELIEF REIMBURSEMENT. (a) Subject 1-57 to Section 255.005, a person eligible for reimbursement under this 1-58 chapter may apply for reimbursement of a portion of the person's 1-59 feed, seed, seedling, and fertilizer costs incurred in the year 1-60 following a federal disaster declaration on the land described by 1-61 Section 255.007. 1-62 (b) The maximum reimbursement allowed to a person under this 1-63 chapter is the least of: 1-64 (1) 30 percent of the costs described by Subsection 2-1 (a); 2-2 (2) $15,000; or 2-3 (3) two times the amount of property taxes paid on the 2-4 land described by Section 255.007 for the year during which the 2-5 disaster occurred. 2-6 Sec. 255.007. ELIGIBILITY FOR REIMBURSEMENT. A person 2-7 engaged in agriculture as a commercial endeavor who has suffered 2-8 uninsurable economic loss as a result of a disaster and has not 2-9 received federal relief funds to address that loss is eligible to 2-10 receive reimbursement under this chapter on land that: 2-11 (1) the person owned or leased for agricultural 2-12 purposes; 2-13 (2) was appraised in the year in which the disaster 2-14 occurred for property tax purposes under Subchapter C or D, Chapter 2-15 23, Tax Code; and 2-16 (3) is located in a county that has been declared a 2-17 disaster area by the federal government. 2-18 Sec. 255.008. APPLICATION REQUIREMENTS. (a) The department 2-19 shall make application forms for reimbursement available through 2-20 the county offices of the Texas Agricultural Extension Service. 2-21 (b) An applicant must submit with the application: 2-22 (1) receipts for the expenditures eligible for 2-23 reimbursement under Section 255.006(a); 2-24 (2) property tax records for the land on which the 2-25 economic loss occurred or, if the person is a tenant, documentation 2-26 from the landowner indicating that the land was appraised in the 2-27 year in which the disaster occurred as provided by Section 2-28 255.007(2) and the amount of property taxes paid for that year; and 2-29 (3) other information required by the department to 2-30 assist the department in determining the applicant's eligibility 2-31 for reimbursement. 2-32 Sec. 255.009. APPROVAL OF APPLICATION. (a) To the greatest 2-33 extent possible, the department shall institute an application 2-34 period not to exceed 90 days. 2-35 (b) The department has sole authority to approve 2-36 applications under this chapter. 2-37 (c) If the department approves an application, the 2-38 department shall pay the person the appropriate amount of 2-39 reimbursement under Section 255.006. 2-40 (d) If insufficient funds are available to pay in full all 2-41 claims for reimbursement approved in any year, the department shall 2-42 pay the claims on a pro rata basis. 2-43 Sec. 255.010. FRAUD. (a) A person commits the offense of 2-44 fraud if the person intentionally or knowingly makes a false 2-45 statement or supplies false information or directs another person 2-46 to make a false statement or supply false information in an 2-47 application, receipt, or record required under this chapter. 2-48 (b) An offense under this section is a state jail felony. 2-49 Sec. 255.011. ADMINISTRATION. The department shall 2-50 administer this chapter and may adopt rules for that purpose, 2-51 including rules for the verification of eligibility for 2-52 reimbursement and rules for application for reimbursement. The 2-53 department may contract with a state or federal agency to assist 2-54 the department in administering this chapter. 2-55 SECTION 2. This Act takes effect September 1, 1999. 2-56 SECTION 3. The importance of this legislation and the 2-57 crowded condition of the calendars in both houses create an 2-58 emergency and an imperative public necessity that the 2-59 constitutional rule requiring bills to be read on three several 2-60 days in each house be suspended, and this rule is hereby suspended. 2-61 * * * * *