1-1 By: Duncan S.B. No. 1430
1-2 (In the Senate - Filed March 12, 1999; March 15, 1999, read
1-3 first time and referred to Committee on Natural Resources;
1-4 April 9, 1999, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 4, Nays 0; April 9, 1999,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1430 By: Armbrister
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the administration of certain loan programs by the
1-11 Texas Agricultural Finance Authority and to the promotion of the
1-12 development of agriculture-related rural businesses.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 SECTION 1. Section 44.001, Agriculture Code, is amended to
1-15 read as follows:
1-16 Sec. 44.001. Definitions. In this chapter:
1-17 (1) ["Small business incubator" means a nonprofit
1-18 development agency that provides concentrated business assistance
1-19 services to new small agricultural enterprises.]
1-20 [(2)] "Eligible lending institution" means a financial
1-21 institution that makes commercial loans, is a depository of state
1-22 funds, and agrees to participate in the linked deposit program and
1-23 to provide collateral equal to the amount of linked deposits placed
1-24 with it.
1-25 (2) [(3)] "Eligible borrower" means a person who is in
1-26 the business or entering the business of:
1-27 (A) processing and marketing agricultural crops
1-28 in this state;
1-29 (B) producing alternative agricultural crops in
1-30 this state;
1-31 (C) producing agricultural crops in this state
1-32 the production of which has declined [markedly] because of natural
1-33 disasters; or
1-34 (D) producing agricultural crops in this state
1-35 using water conservation equipment for agricultural production
1-36 purposes.
1-37 (3) [(4)] "Alternative agricultural crops" means crops
1-38 not customarily grown in this state but that could feasibly be
1-39 produced in this state.
1-40 (4) [(5)] "Linked deposit" means a time deposit
1-41 governed by a written deposit agreement between the state and an
1-42 eligible lending institution that provides:
1-43 (A) that the eligible lending institution pay
1-44 interest on the deposit at a rate that is not less than the greater
1-45 of:
1-46 (i) the current market rate of a United
1-47 States treasury bill or note of comparable maturity minus two
1-48 percent; or
1-49 (ii) 1.5 percent;
1-50 (B) that the state not withdraw any part of the
1-51 deposit before the expiration of a period set by a written advance
1-52 notice of the intention to withdraw; and
1-53 (C) that the eligible lending institution agree
1-54 to lend the value of the deposit to an eligible borrower at a
1-55 maximum rate that is the linked deposit [current market] rate [of a
1-56 United States treasury bill or note of comparable maturity] plus a
1-57 maximum of four percent.
1-58 (5) [(6)] "Microenterprise" means a small business
1-59 located in a rural area in which the owner operates [and the
1-60 owner's family provide the bulk of the management and a significant
1-61 amount of the labor required to operate] the enterprise. Priority
1-62 under this chapter shall be given to microenterprises which
1-63 demonstrate significant potential for expansion that will provide
1-64 jobs in economically depressed rural communities or to currently
2-1 unemployed rural residents.
2-2 (6) [(7)] "Rural area" means an area which is
2-3 predominantly rural in character, being one which the board defines
2-4 and declares to be a rural area.
2-5 (7) [(8)] "Board" means the board of directors of the
2-6 Texas Agricultural Finance Authority in Chapter 58 [of this code].
2-7 SECTION 2. Section 44.002, Agriculture Code, is amended to
2-8 read as follows:
2-9 Sec. 44.002. CREATION OF MICROENTERPRISE PROGRAMS.
2-10 [(a) The board shall create an agricultural diversification
2-11 program to:]
2-12 [(1) support commercial use of agricultural research
2-13 and innovation;]
2-14 [(2) increase the capabilities of community and
2-15 regional organizations to train and assist new or expanding
2-16 agricultural-based businesses;]
2-17 [(3) start small business incubators; and]
2-18 [(4) encourage private commercial loans for enhanced
2-19 production, processing, and marketing of certain agricultural
2-20 crops.]
2-21 [(b)] The board shall create a microenterprise support
2-22 program to provide financial assistance to microenterprises in
2-23 rural areas.
2-24 SECTION 3. Section 44.0045, Agriculture Code, is amended to
2-25 read as follows:
2-26 Sec. 44.0045. Microenterprise Support Program Loans.
2-27 (a) The board shall administer a loan program supporting
2-28 established and proposed microenterprises in rural areas by
2-29 providing loans to expand, modernize, or otherwise improve
2-30 established microenterprises and to begin operation of proposed
2-31 microenterprises.
2-32 (b) An applicant applying on behalf of a [A] proposed
2-33 microenterprise [loan applicant] may receive a loan of up to
2-34 $25,000 [$15,000] to begin operation of the microenterprise.
2-35 (c) An applicant applying on behalf of an established
2-36 microenterprise [loan applicant] may receive a loan of up to
2-37 $50,000 [$30,000] to expand, modernize, or otherwise improve an
2-38 established operation [microenterprise].
2-39 (d) The board [of the microenterprise support program] may
2-40 reserve a portion of the total fund for use in cooperative loan
2-41 programs established with the participation of other public or
2-42 private lenders.
2-43 [(e) Financial assistance in the form of a loan may not be
2-44 used to refinance an existing debt of a proposed or existing
2-45 microenterprise.]
2-46 SECTION 4. Section 44.007, Agriculture Code, is amended to
2-47 read as follows:
2-48 Sec. 44.007. Linked Deposit Program. (a) The board shall
2-49 establish a linked deposit program to encourage commercial lending
2-50 for the enhanced production, processing, and marketing of certain
2-51 agricultural crops and for the financing of water conservation
2-52 projects or equipment for agricultural production purposes.
2-53 (b) The board shall approve or disapprove any and all
2-54 applications under this chapter, provided that the board may
2-55 delegate this authority to the commissioner.
2-56 (c) The board shall promulgate rules for the loan portion of
2-57 the linked deposit program. The rules must include:
2-58 (1) a list of the categories of crops customarily
2-59 grown in Texas, with consideration given to the Texas Agricultural
2-60 Statistics Service information available and relevant to this
2-61 determination;
2-62 (2) a list of crops that are alternative agricultural
2-63 crops, with consideration given to the Texas Agricultural
2-64 Statistics Service information available and relevant to this
2-65 determination;
2-66 (3) identification of criteria for a project eligible
2-67 for [a list of crops the production of which has declined markedly
2-68 because of] natural disaster assistance [disasters]; and
2-69 (4) identification of projects and types of equipment
3-1 considered as water conservation projects or equipment for
3-2 agricultural production purposes.
3-3 (d) [(c)] In order to participate in the linked deposit
3-4 program, an eligible lending institution may solicit loan
3-5 applications from eligible borrowers.
3-6 (e) [(d)] After reviewing an application and determining
3-7 that the applicant is eligible and creditworthy, the eligible
3-8 lending institution shall send the application for a linked deposit
3-9 loan to [the board or] the administrator of the Texas Agricultural
3-10 Finance Authority.
3-11 (f) [(e)] The eligible lending institution shall certify the
3-12 interest rate applicable to the specific eligible borrower and
3-13 attach it to the application sent to [the board or] the
3-14 administrator of the Texas Agricultural Finance Authority.
3-15 (g) [(f)] After reviewing each linked deposit loan
3-16 application, the board or the commissioner shall recommend to the
3-17 comptroller the acceptance or rejection of the application.
3-18 (h) [(g)] After acceptance of the application, the
3-19 comptroller shall place a linked deposit with the applicable
3-20 eligible lending institution for the period the comptroller
3-21 considers appropriate. The comptroller may not place a deposit for
3-22 a period extending beyond the state fiscal biennium in which it is
3-23 placed. Subject to the limitation described by Section 44.010 [of
3-24 this chapter], the comptroller may place time deposits at an
3-25 interest rate described by Section 44.001(4) [44.001(5)(A) of this
3-26 chapter].
3-27 (i) [(h)] Before the placing of a linked deposit, the
3-28 eligible lending institution and the state, represented by the
3-29 comptroller [and the board], shall enter into a written deposit
3-30 agreement containing the conditions on which the linked deposit is
3-31 made.
3-32 (j) [(i)] If a lending institution holding linked deposits
3-33 ceases to be a state depository, the comptroller may withdraw the
3-34 linked deposits.
3-35 (k) [(j)] The board may adopt rules that create a procedure
3-36 for determining priorities for loans granted under this chapter.
3-37 Each rule adopted must state the policy objective of the rule. The
3-38 policy objectives of the rules may include preferences to:
3-39 (1) achieve adequate geographic distribution of loans;
3-40 (2) assist certain industries;
3-41 (3) encourage certain practices including water
3-42 conservation; and
3-43 (4) encourage value-added processing of agricultural
3-44 products.
3-45 (l) [(k)] A lending institution is not ineligible to
3-46 participate in the linked deposit program solely because a member
3-47 of the board is also an officer, director, or employee of the
3-48 lending institution, provided that a board member shall recuse
3-49 himself or herself from any action taken by the board on an
3-50 application involving a lending institution by which the board
3-51 member is employed or for which the board member serves as an
3-52 officer or director.
3-53 SECTION 5. Section 44.010, Agriculture Code, is amended to
3-54 read as follows:
3-55 Sec. 44.010. Limitations in Program. (a) At any one time,
3-56 not more than $25 [$15] million, of which $10 million may only be
3-57 used to finance water conservation projects, may be placed in
3-58 linked deposits under this chapter.
3-59 (b) The maximum amount of a loan under this chapter to
3-60 process and market Texas agricultural crops is $500,000. The
3-61 maximum amount of a loan under this chapter to produce alternative
3-62 agricultural crops in this state is $250,000. The maximum amount
3-63 of a loan under this chapter to finance water conservation projects
3-64 or equipment for agricultural production purposes is $250,000. The
3-65 maximum amount of a loan under this chapter to finance production
3-66 of a crop declared eligible for natural disaster relief, as defined
3-67 by board rule, is $250,000.
3-68 (c) A loan granted pursuant to this chapter may be used for
3-69 any agriculture-related operating expense, including the purchase
4-1 or lease of land or fixed assets acquisition or improvement, as
4-2 identified in the application [must be applied to the purchase or
4-3 lease of land, equipment, seed, fertilizer, direct marketing
4-4 facilities, or processing facilities, or to payment for
4-5 professional services].
4-6 (d) A loan granted pursuant to this chapter[, when used to
4-7 finance eligible water conservation projects or equipment,] may be
4-8 applied to existing debt [resulting from the financing of water
4-9 conservation projects or equipment for agricultural purposes as
4-10 defined by board rule].
4-11 SECTION 6. Sections 44.012 and 44.013, Agriculture Code, are
4-12 amended to read as follows:
4-13 Sec. 44.012. MONEY FOR [GRANTS AND] LOANS. The board may
4-14 accept gifts and grants of money from the federal government, local
4-15 governments, or private corporations or other persons for use in
4-16 making [grants and] loans under [the agricultural diversification
4-17 program and] the rural microenterprise support program. The
4-18 legislature may appropriate money for [grants and] loans under the
4-19 program [programs].
4-20 Sec. 44.013. Rural Microenterprise Development Fund. The
4-21 rural microenterprise development fund is a fund in the
4-22 comptroller's office [state treasury]. Money appropriated to the
4-23 board [Agricultural Diversification Board] for use in making loans
4-24 under the rural microenterprise support program, other amounts
4-25 received by the state for loans made under the program, and other
4-26 money received by the board for the program and required by the
4-27 board to be deposited in the fund shall be deposited to the credit
4-28 of the fund. The fund shall operate as a revolving fund, the
4-29 contents of which shall be applied and reapplied for the purposes
4-30 of the rural microenterprise support program.
4-31 SECTION 7. Section 58.002, Agriculture Code, is amended by
4-32 amending Subdivisions (1) and (7) and adding Subdivision (9) to
4-33 read as follows:
4-34 (1) "Agricultural business" means:
4-35 (A) a business that is or proposes to be engaged
4-36 in producing, processing, marketing, or exporting an agricultural
4-37 product;
4-38 (B) an eligible applicant as defined in
4-39 Subchapter E;
4-40 (C) the entity designated to carry out boll
4-41 weevil eradication in accordance with Section 74.1011;
4-42 (D) any agriculture-related business in rural
4-43 areas of Texas including a business that provides recreational
4-44 activities, including hiking, fishing, hunting, or any other
4-45 activity associated with the enjoyment of nature or the outdoors on
4-46 agricultural land; or
4-47 (E) a state agency or an institution of higher
4-48 education that is engaged in producing an agricultural product.
4-49 (7) "Eligible agricultural business" means an
4-50 agricultural business having a [its principal] place of business in
4-51 this state.
4-52 (9) "Rural area" means an area which is predominately
4-53 rural in character, being one which the board defines and declares
4-54 to be a rural area.
4-55 SECTION 8. Subsection (b), Section 58.016, Agriculture Code,
4-56 is amended to read as follows:
4-57 (b) On or before August 1 of each year, the administrator
4-58 shall file with the board the proposed annual budgets for the young
4-59 farmer loan guarantee program under Subchapter E [Chapter 253], the
4-60 farm and ranch finance program under Chapter 59, and the programs
4-61 administered by the board under this chapter for the succeeding
4-62 fiscal year. If there is no administrator, the commissioner shall
4-63 assume the duties of the administrator in connection with
4-64 preparation of the budget. The budget must set forth the general
4-65 categories of expected expenditures out of revenues and income of
4-66 the funds administered by the authority and the amount on account
4-67 of each. On or before September 1 of each year, the board shall
4-68 consider the proposed annual budget and may approve it or amend it.
4-69 Copies of the annual budget certified by the chairman of the board
5-1 shall be promptly filed with the governor and the legislature. The
5-2 annual budget is not effective until it is filed. If for any
5-3 reason the authority does not adopt an annual budget before
5-4 September 2, no expenditures may be made from the funds until the
5-5 board approves the annual budget. The authority may adopt an
5-6 amended annual budget for the current fiscal year, but the amended
5-7 annual budget may not supersede a prior budget until it is filed
5-8 with the governor and the legislature.
5-9 SECTION 9. Section 58.0172, Agriculture Code, is amended by
5-10 adding Subsection (e) to read as follows:
5-11 (e) A lending institution is not ineligible to participate
5-12 in the programs administered by the board solely because a member
5-13 of the board is also an officer, director, or employee of the
5-14 lending institution, provided that a board member shall recuse
5-15 himself or herself from any action taken by the board on an
5-16 application involving a lending institution by which the board
5-17 member is employed or for which the board member serves as an
5-18 officer or director.
5-19 SECTION 10. Section 58.021, Agriculture Code, is amended to
5-20 read as follows:
5-21 Sec. 58.021. Purposes of Authority. (a) In order to
5-22 promote the expansion, development, and diversification of
5-23 production, processing, marketing, and export of Texas agricultural
5-24 products and to promote the development of agriculture-related
5-25 rural businesses, the authority shall design and implement programs
5-26 to provide financial assistance to eligible agricultural
5-27 businesses, including programs:
5-28 (1) to make or acquire loans to eligible agricultural
5-29 businesses;
5-30 (2) to make or acquire loans to lenders to enable
5-31 those lenders to make loans to eligible agricultural businesses;
5-32 (3) to insure, coinsure, and reinsure, in whole or in
5-33 part, loans to eligible agricultural businesses;
5-34 (4) to guarantee, in whole or in part, loans to
5-35 eligible agricultural businesses; and
5-36 (5) to administer or participate in programs
5-37 established by another person to provide financial assistance to
5-38 eligible agricultural businesses.
5-39 (b) The authority's programs shall be designed and
5-40 implemented to provide financial assistance to enable eligible
5-41 agricultural businesses to finance or refinance costs incurred in
5-42 connection with the development, increase, improvement, or
5-43 expansion of production, processing, marketing, or export of Texas
5-44 agricultural products and for the development of rural
5-45 agriculture-related businesses, including but not limited to the
5-46 costs of:
5-47 (1) acquisition of and improvements to land or
5-48 interests in land;
5-49 (2) acquisition, construction, rehabilitation,
5-50 operation, and maintenance of buildings, improvements, and
5-51 structures;
5-52 (3) site preparations;
5-53 (4) architectural, engineering, legal, and related
5-54 services;
5-55 (5) acquisition, installation, rehabilitation,
5-56 operation, and maintenance of machinery, equipment, furnishings,
5-57 and facilities;
5-58 (6) acquisition, processing, or distribution of
5-59 inventory;
5-60 (7) research and development;
5-61 (8) financing fees and charges;
5-62 (9) interest during acquisition or construction;
5-63 (10) necessary reserve fund;
5-64 (11) acquisition of licenses, permits, and approvals
5-65 from any governmental entity; [and]
5-66 (12) pre-export and export expenses; and
5-67 (13) insect eradication and suppression programs.
5-68 (c) Except as otherwise provided by this subsection, the
5-69 maximum aggregate amount of loans made to or guaranteed, insured,
6-1 coinsured, or reinsured under this subchapter for a single eligible
6-2 agricultural business by the authority from funds provided by the
6-3 authority is $2 million. The authority may make, guarantee,
6-4 insure, coinsure, or reinsure a loan for a single eligible
6-5 agricultural business that results in an aggregate amount exceeding
6-6 $2 million, but not exceeding $5 million, if the action is approved
6-7 by a two-thirds vote of the membership of the board. The authority
6-8 may make, guarantee, participate in, insure, coinsure, or reinsure
6-9 loans to the entity designated to carry out boll weevil eradication
6-10 in accordance with Section 74.1011 in an amount approved by the
6-11 board to enable that entity to execute Subchapter D, Chapter 74.
6-12 The authority may issue an obligation on behalf of, or make,
6-13 guarantee, participate in, insure, coinsure, or reinsure loans to,
6-14 a state agency or an institution of higher education for the
6-15 purpose of the development, improvement, or expansion of an
6-16 agricultural product or an agriculture-related business in an
6-17 amount approved by the board.
6-18 (d) [(e)] Notwithstanding any other provision of this
6-19 section, the authority may also design and implement programs to
6-20 further rural economic development.
6-21 SECTION 11. Subsection (a), Section 58.023, Agriculture
6-22 Code, is amended to read as follows:
6-23 (a) The board shall adopt rules to establish criteria for
6-24 determining which eligible agricultural businesses may participate
6-25 in programs that may be established by the board. The board's
6-26 rules must state that the policy of the authority is to provide
6-27 programs for providing financial assistance to eligible
6-28 agricultural businesses [that otherwise would not be made and] that
6-29 the board considers to present a reasonable risk and have a
6-30 sufficient likelihood of repayment. In establishing criteria for
6-31 participation, the board shall give priority to eligible
6-32 agricultural businesses that include producers of Texas
6-33 agricultural products in the ownership of the businesses. The
6-34 board shall adopt collateral or security requirements to ensure the
6-35 full repayment of that financial assistance and the solvency of any
6-36 program implemented under this chapter. The board shall approve
6-37 any and all extensions of that financial assistance under this
6-38 chapter, provided that the board may delegate this approval
6-39 authority to the administrator or the commissioner.
6-40 SECTION 12. Subchapter C, Chapter 58, Agriculture Code, is
6-41 amended by adding Section 58.026 to read as follows:
6-42 Sec. 58.026. LIMITATION OF LIABILITY FOR CERTAIN
6-43 RECREATIONAL ACTIVITIES. The provisions of Chapter 75, Civil
6-44 Practice and Remedies Code, apply to eligible recreational
6-45 activities which are funded under this chapter.
6-46 SECTION 13. Chapter 58, Agriculture Code, is amended by
6-47 adding Subchapter E to read as follows:
6-48 SUBCHAPTER E. YOUNG FARMER LOAN GUARANTEE PROGRAM
6-49 Sec. 58.051. DEFINITIONS. In this subchapter:
6-50 (1) "Commercial lender" means a commercial lending
6-51 institution chartered by the state or federal government, including
6-52 a savings and loan association, a credit union, or a Farm Credit
6-53 System institution.
6-54 (2) "Eligible applicant" means a person applying for a
6-55 loan guarantee under this subchapter who:
6-56 (A) is at least 18 years of age but younger than
6-57 40 years of age; and
6-58 (B) complies with the application procedures
6-59 prescribed by this subchapter.
6-60 (3) "Plan" means the documentation submitted to the
6-61 lender in support of the application.
6-62 Sec. 58.052. YOUNG FARMER LOAN GUARANTEE PROGRAM. (a) The
6-63 board shall administer a loan guarantee program that benefits
6-64 eligible applicants who desire to establish or enhance a farming or
6-65 ranching operation or an agriculture-related business.
6-66 (b) The board, either directly or through authority
6-67 delegated to the commissioner, may grant to an eligible applicant a
6-68 guarantee of a loan made by a commercial lender for the purposes
6-69 prescribed by this subchapter. The guarantee amount may not exceed
7-1 the lesser of $250,000 or 90 percent of the loan amount.
7-2 (c) The aggregate amount guaranteed under this subchapter
7-3 may not exceed twice the amount contained in the young farmer loan
7-4 guarantee account within the Texas agricultural fund.
7-5 (d) A loan guarantee recipient may use proceeds from the
7-6 loan for working capital for operating a farm or ranch, including
7-7 the lease of facilities and the purchase of machinery and
7-8 equipment, or for any agriculture-related business purpose,
7-9 including the purchase of real estate, as identified in the plan.
7-10 A loan guarantee is voidable by the board if the recipient uses
7-11 loan proceeds for any purposes other than those identified in the
7-12 plan. The board shall include this restriction as a condition in
7-13 each loan guarantee instrument executed under this subchapter.
7-14 (e) The board shall adopt an agreement, to be used between a
7-15 commercial lender and an approved eligible applicant, under which
7-16 the program provides a payment from money in the young farmer loan
7-17 guarantee account for the purpose of providing a reduced interest
7-18 rate on a loan guaranteed to a borrower under this subchapter. The
7-19 board shall adopt rules to implement this subsection. The maximum
7-20 rate reduction under this subsection shall not exceed three
7-21 percentage points.
7-22 Sec. 58.053. APPLICATION FOR LOAN GUARANTEE. (a) An
7-23 eligible applicant's documentation shall include the following for
7-24 the board's review:
7-25 (1) the plan, as submitted to the lender, for the
7-26 applicant's proposed farm or ranch operation or agriculture-related
7-27 business to be financed that includes a budget for the proposed
7-28 operation;
7-29 (2) a completed application for a loan from a
7-30 commercial lender on which an eligible applicant has indicated how
7-31 the loan proceeds will be used to implement the applicant's plan;
7-32 and
7-33 (3) the signed statement of a loan officer of the
7-34 commercial lender that a loan guarantee is required for approval of
7-35 the loan application.
7-36 (c) The board may charge a reasonable application fee for
7-37 processing an application filed under this section.
7-38 Sec. 58.054. BOARD CONSIDERATION OF LOAN GUARANTEE
7-39 APPLICATION. After reviewing the material submitted under Section
7-40 58.053, the board shall consider the following factors in deciding
7-41 whether to approve an application for a loan guarantee:
7-42 (1) the anticipated benefits from granting a loan
7-43 guarantee to the applicant, including both potential job creation
7-44 and commercial benefits to the agricultural industry;
7-45 (2) the applicant's qualifications;
7-46 (3) the feasibility of the applicant's plan; and
7-47 (4) other repayment sources available to the
7-48 applicant.
7-49 Sec. 58.055. DEFAULT. If the recipient of a loan guarantee
7-50 defaults on a loan that is guaranteed under this subchapter and the
7-51 authority is required to honor its guarantee, the authority,
7-52 through its representative, may bring suit against the defaulting
7-53 party. Any suit brought by the authority under this section may
7-54 have venue in Travis County.
7-55 Sec. 58.056. MONEY FOR LOAN GUARANTEE PROGRAM. The
7-56 authority may accept gifts and grants of money from the federal
7-57 government, local governments, private corporations, or other
7-58 persons for use in the young farmer loan guarantee program. The
7-59 legislature may appropriate money for the program.
7-60 Sec. 58.057. YOUNG FARMER LOAN GUARANTEE ACCOUNT. (a) The
7-61 young farmer loan guarantee account is an account in the Texas
7-62 agricultural fund. Money in the account may be used only by the
7-63 authority for the purpose of making or administering loan
7-64 guarantees under this subchapter.
7-65 (b) The account consists of funds and transfers made to the
7-66 account, grants and donations made for the purposes of the young
7-67 farmer loan guarantee program, income earned on money in the
7-68 account, and any other money received under this subchapter.
7-69 Notwithstanding Section 404.071, Government Code, income and
8-1 interest earned on money in the account shall be deposited to the
8-2 credit of the account. The account is exempt from the application
8-3 of Section 403.095, Government Code.
8-4 (c) The board may spend not more than $100,000 during each
8-5 fiscal year from income earned on the account and from application
8-6 fees collected by the authority under Section 58.053 to pay the
8-7 costs of administering the program.
8-8 (d) The board shall attempt to administer the fund in a
8-9 manner that makes private donations to the fund an eligible
8-10 itemized deduction for federal income taxation purposes.
8-11 (e) The board has the same authority in administering the
8-12 young farmer loan guarantee program as it has in administering
8-13 other programs established by this chapter.
8-14 SECTION 14. Subsection (b), Section 502.174, Transportation
8-15 Code, is amended to read as follows:
8-16 (b) The county assessor-collector shall send an assessment
8-17 collected under this section to the comptroller, at the time and in
8-18 the manner prescribed by the Texas Agricultural Finance Authority,
8-19 for deposit in the Texas agricultural fund [general revenue fund]
8-20 to the credit of the young farmer loan guarantee account.
8-21 SECTION 15. Sections 44.004, 44.005, 44.006, and 44.011 and
8-22 Chapter 253, Agriculture Code, are repealed.
8-23 SECTION 16. The importance of this legislation and the
8-24 crowded condition of the calendars in both houses create an
8-25 emergency and an imperative public necessity that the
8-26 constitutional rule requiring bills to be read on three several
8-27 days in each house be suspended, and this rule is hereby suspended,
8-28 and that this Act take effect and be in force from and after its
8-29 passage, and it is so enacted.
8-30 * * * * *