89R19779 TYPED
 
  By: Kitzman H.B. No. 43
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the Texas Agricultural Finance Authority and to a study
  and report on plant diseases and pest outbreaks.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 58.012, Agriculture Code, is amended by
  amending Subsections (a) and (b) to read as follows:
         (a)  The authority is governed by a board of directors
  composed of the commissioner of agriculture[, the director of the
  Institute for International Agribusiness Studies at Prairie View
  A&M University,] and six [nine] members appointed by the
  commissioner.  Members of the board must be appointed in the numbers
  specified and from the following categories:
               (1)  one person who is an elected or appointed official
  of a municipality or county;
               (2)  two [four] persons who are knowledgeable about
  agricultural lending practices;
               (3)  one person who is a representative of agricultural
  businesses;
               (4)  one person who is a representative of agriculture
  related entities, including rural chambers of commerce,
  foundations, trade associations, institutions of higher education,
  or other entities involved in agricultural matters; and
               (5)  one person [two persons] who represents
  [represent] young farmers and the interests of young farmers.
         (b)  The appointed members of the board serve staggered terms
  of two years, with the terms of three [four] members expiring on
  January 1 of each even-numbered year and the terms of three [five]
  members expiring on January 1 of each odd-numbered year.
         SECTION 2.  Section 58.016(d), Agriculture Code, is amended
  to read as follows:
         (d)  On or before January 1 of each year, the authority shall
  prepare a report of its activities, including revenues and
  expenditures relating to each program administered by the board,
  for the preceding fiscal year.  The report must set forth a complete
  operating and financial statement. The report must be submitted to
  the Legislative Budget Board.
         SECTION 3.  Section 58.021, Agriculture Code, is amended by
  amending Subsections (a) through (c) to read as follows:
         (a)  In order to promote the expansion, development, and
  diversification of production, processing, marketing, and export
  of Texas agricultural products and to promote the development of
  rural businesses, the authority shall design and implement programs
  to provide financial assistance to eligible agricultural
  businesses, including programs:
               (1)  to make or acquire loans to eligible agricultural
  businesses;
               (2)  to make or acquire loans to lenders to enable those
  lenders to make loans to eligible agricultural businesses;
               (3)  to insure, coinsure, and reinsure, in whole or in
  part, loans to eligible agricultural businesses;
               (4)  to guarantee, in whole or in part, loans to
  eligible agricultural businesses; [and]
               (5)  to administer or participate in programs
  established by another person to provide financial assistance to
  eligible agricultural businesses; and
               (6)  to administer or participate in programs with
  other state entities that study issues impacting agricultural
  producers, such as plant diseases and pest outbreaks.
         (b)  The authority's programs shall be designed and
  implemented to provide financial assistance to enable eligible
  agricultural businesses or state agencies to finance or refinance
  costs incurred in connection with the development, increase,
  improvement, or expansion of production, processing, marketing, or
  export of Texas agricultural products and for the development of
  rural agriculture-related businesses, including but not limited to
  the costs of:
               (1)  acquisition of and improvements to land or
  interests in land;
               (2)  acquisition, construction, rehabilitation,
  operation, and maintenance of buildings, improvements, and
  structures;
               (3)  site preparations;
               (4)  architectural, engineering, legal, and related
  services;
               (5)  acquisition, installation, rehabilitation,
  operation, and maintenance of machinery, equipment, furnishings,
  and facilities;
               (6)  acquisition, processing, or distribution of
  inventory;
               (7)  research and development;
               (8)  financing fees and charges;
               (9)  interest during acquisition or construction;
               (10)  necessary reserve fund;
               (11)  acquisition of licenses, permits, and approvals
  from any governmental entity;
               (12)  pre-export and export expenses; and
               (13)  insect eradication and suppression programs.
         (c)  [Except as otherwise provided by this subsection, the
  maximum aggregate amount of loans made to or guaranteed, insured,
  coinsured, or reinsured under this subchapter for a single eligible
  agricultural business by the authority from funds provided by the
  authority is $2 million. The authority may make, guarantee,
  insure, coinsure, or reinsure a loan for a single eligible
  agricultural business that results in an aggregate amount exceeding
  $2 million, but not exceeding $5 million, if the action is approved
  by a two-thirds vote of the board members present.] The authority
  may make, guarantee, participate in, insure, coinsure, or reinsure
  loans to the entity designated to carry out boll weevil eradication
  in accordance with Section 74.1011 in an amount approved by the
  board to enable that entity to execute Subchapter D, Chapter 74.
  The authority may issue an obligation on behalf of, or make,
  guarantee, participate in, insure, coinsure, or reinsure loans to,
  a state agency or an institution of higher education for the purpose
  of the development, improvement, or expansion of an agricultural
  product or an agriculture-related business in an amount approved by
  the board. The authority may make, guarantee, participate in,
  insure, coinsure, or reinsure loans to an eligible agricultural
  business from the proceeds of revenue bonds issued in accordance
  with Section 58.033 in an amount approved by the board.
         SECTION 4.  The heading to Subchapter F, Chapter 58,
  Agriculture Code, is amended to read as follows:
  SUBCHAPTER F. [YOUNG] FARMER INTEREST RATE REDUCTION PROGRAM
         SECTION 5.  Section 58.071, Agriculture Code, is amended to
  read as follows:
         Sec. 58.071.  DEFINITIONS. In this subchapter:
               (1)  "Eligible lending institution" means a financial
  institution that makes commercial loans, is either a depository of
  state funds or an institution of the Farm Credit System
  [headquartered in this state,] and agrees to participate in the
  [young] farmer interest rate reduction program and to provide
  collateral equal to the amount of linked deposits placed with it.
               (2)  "Linked deposit" means a time deposit governed by
  a written deposit agreement between the state and an eligible
  lending institution that provides:
                     (A)  that the eligible lending institution pay
  interest on the deposit at a rate that is not less than the greater
  of:
                           (i)  the current market rate of a United
  States treasury bill or note of comparable maturity minus three
  percent; or
                           (ii)  0.5 percent;
                     (B)  that the state not withdraw any part of the
  deposit before the expiration of a period set by a written advance
  notice of the intention to withdraw; and
                     (C)  that the eligible lending institution agree
  to lend the value of the deposit to an eligible borrower at a
  maximum rate that is the linked deposit rate plus a maximum of one
  [four] percent.
         SECTION 6.  The heading to Section 58.072, Agriculture Code,
  is amended to read as follows:
         Sec. 58.072.  [YOUNG] FARMER INTEREST RATE REDUCTION
  PROGRAM.
         SECTION 7.  Section 58.072, Agriculture Code, is amended by
  amending Subsections (a), (b), (d), (e), (k), (m), and (n) to read
  as follows:
         (a)  The board shall establish a [young] farmer interest rate
  reduction program to promote the creation and expansion of
  agricultural businesses by [young] people in this state.
         (b)  The board shall accept applications on a biennial basis
  [To be eligible to participate in the young farmer interest rate
  reduction program, an applicant must be at least 18 years of age but
  younger than 46 years of age].
         (d)  The board shall adopt rules for the loan portion of the
  [young] farmer interest rate reduction program.
         (e)  In order to participate in the [young] farmer interest
  rate reduction program, an eligible lending institution may solicit
  loan applications from eligible applicants.
         (k)  If a lending institution holding linked deposits ceases
  to be either a state depository or a Farm Credit System institution
  [headquartered in this state,] the comptroller may withdraw the
  linked deposits.
         (m)  A lending institution is not ineligible to participate
  in the [young] farmer interest rate reduction program solely
  because a member of the board is also an officer, director, or
  employee of the lending institution, provided that a board member
  shall recuse himself or herself from any action taken by the board
  on an application involving a lending institution by which the
  board member is employed or for which the board member serves as an
  officer or director.
         (n)  Linked deposits under the [young] farmer interest rate
  reduction program shall be funded from the Texas agricultural fund.
         SECTION 8.  Section 58.075(a), Agriculture Code, is amended
  to read as follows:
         (a)  The maximum amount of a loan under this subchapter is $1
  million [$500,000].
         SECTION 9.  The heading to Subchapter G, Chapter 58,
  Agriculture Code, is amended to read as follows:
  SUBCHAPTER G. AGRICULTURE [YOUNG FARMER] GRANT PROGRAM
         SECTION 10.  Section 58.091(a), Agriculture Code, is amended
  to read as follows:
         (a)  The authority shall administer an agriculture [a young
  farmer] grant program.  A grant must be for the purpose of
  maintaining agricultural businesses, supply chain resiliency, or 
  fostering the creation and expansion of agricultural businesses by
  people in this state.
         SECTION 11.  Section 58.092, Agriculture Code, is amended to
  read as follows:
         Sec. 58.092.  ELIGIBILITY. To be eligible to receive a grant
  under this subchapter, a person must:
               (1)  be an agricultural business or producer [who is at
  least 18 years of age but younger than 46 years of age]; and
               (2)  provide matching funds in the amount of not less
  than ten percent [one dollar for each dollar] of the grant money
  received.
         SECTION 12.  Section 58.093, Agriculture Code, is amended to
  read as follows:
         Sec. 58.093.  AMOUNT OF GRANTS. A grant under the
  agriculture [young farmer] grant program may not be less than
  $5,000 or more than $500,000 [$20,000].
         SECTION 13.  Section 58.095, Agriculture Code, is amended to
  read as follows:
         Sec. 58.095.  FUNDING. The source of funds for the
  agriculture [young farmer] grant program is the Texas agricultural
  fund.
         SECTION 14.  Chapter 58, Agriculture Code, is amended by
  adding Subchapter H to read as follows:
  SUBCHAPTER H. MISCELLANEOUS PROVISIONS
         Sec. 58.100.  DEFINITIONS. In this subchapter:
               (1)  "Agency" means the Texas Department of
  Agriculture.
               (2)  "Commission" means the Texas Animal Health
  Commission.
               (3)  "Extension" means the Texas A&M AgriLife Extension
  Service.
         Sec. 58.101.  REPORT ON DISEASES AND PESTS. (a) The agency
  shall partner with the extension or the commission, as appropriate,
  to annually conduct a study of each existing or emerging, plant
  disease and pest outbreaks in this state.
         (b)  In conducting the study under Subsection (a), the
  extension or the commission shall determine for each outbreak of a
  plant disease or pest:
               (1)  the duration of the outbreak;
               (2)  how the outbreak was resolved, if applicable; and
               (3)  any other information the extension service
  determines is relevant.
         (c)  Not later than January 1 of each year, the extension
  shall prepare and publish on the extension's Internet website a
  report of the previous year's study conducted under this section.
         (d)  Not later than January 1, 2028, the extension shall
  prepare and publish on the extension's Internet website a report
  summarizing each annual report published under Subsection (c) and
  providing policy recommendations to address outbreaks of plant
  diseases and pests. The extension shall provide the report to the
  Legislative Budget Board.
         (e)  This section expires January 31, 2028.
         SECTION 15.  This Act takes effect immediately if it
  receives a vote of two-thirds of all the members elected to each
  house, as provided by Section 39, Article III, Texas Constitution.
  If this Act does not receive the vote necessary for immediate
  effect, this Act takes effect September 1, 2025.