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