89R24933 CMO-F

By: Wilson H.B. No. 5339

Substitute the following for H.B. No. 5339:

By: Shofner C.S.H.B. No. 5339

A BILL TO BE ENTITLED

AN ACT

relating to the establishment by the Texas Higher Education Coordinating Board of a grant program to support the study of regenerative agriculture at public institutions of higher education.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 61, Education Code, is amended by adding Subchapter LL to read as follows:

SUBCHAPTER LL. HIGHER EDUCATION REGENERATIVE AGRICULTURE GRANT

PROGRAM

Sec. 61.9851. DEFINITIONS. In this subchapter:

(1) "Nonprofit organization" means an organization exempt from federal income taxation under Section 501(a), Internal Revenue Code of 1986, as an organization described by Section 501(c)(3) of that code.

(2) "Program" means the Higher Education Regenerative Agriculture Grant Program established under this subchapter.

(3) "Regenerative agriculture" means a holistic system of agricultural practices and techniques that enhance overall soil health, increase soil organic matter, improve water infiltration and retention, increase resilience to droughts and flooding, enrich biological diversity, and proliferate beneficial soil microbes through a combination of practices based on the following principles:

(A) ensuring the presence of living roots in the soil throughout the year to nourish the ecosystem;

(B) minimal disturbance to limit disruption to the soil structure and its living organisms, while actively protecting and promoting soil microbial diversity;

(C) the encouragement of biological diversity through varied crop rotations, cover crops, and intercropping strategies;

(D) soil armor to maintain soil coverage with living plants, crop residues, or mulch to prevent exposure of bare soil, reduce risks of wind and water erosion, and protect soil biology from harmful temperature extremes;

(E) animal integration, including incorporating livestock and poultry to recycle nutrients and stimulate soil biological activity without overwhelming the soil ecosystem; and

(F) context-based practices to tailor the regenerative agricultural practices to the characteristics of a particular piece of land, climate conditions, and any cropping or livestock systems present on that land.

Sec. 61.9852. PROGRAM ESTABLISHMENT AND ADMINISTRATION. (a) The board shall establish and administer the Higher Education Regenerative Agriculture Grant Program under which the board may award grants to eligible institutions of higher education to:

(1) conduct research to assess the benefits and risks of pesticide use, including the impact of pesticide use on the environment and on public health;

(2) study successful regenerative agriculture operations and identify practices and methods to support persons in this state seeking to implement regenerative agriculture on their land;

(3) develop innovative, evidence-based methods to support agricultural producers in bioremediation and other scientifically supported techniques that promote beneficial soil bacteria and microorganisms and increase crop yields; and

(4) provide students, agricultural producers, and rural communities with regenerative agriculture-focused education and technical assistance programs founded upon transparent and objective research protocols.

(b) In administering the program, the board shall:

(1) collaborate with the State Soil and Water Conservation Board to:

(A) align research funded under the program with existing soil and water conservation programs;

(B) ensure projects funded under the program complement statewide efforts to improve soil health and reduce pesticide usage; and

(C) facilitate partnerships between institutions of higher education that are awarded grants under the program and local soil and water conservation districts;

(2) identify opportunities to align the program with federal initiatives or grants to maximize program funding and impact;

(3) ensure that research funded under the program:

(A) is conducted independently using the proper scientific method;

(B) is not compromised by external factors or parties; and

(C) complies with any requirements imposed by state or federal law;

(4) establish a framework for monitoring and evaluating the outcomes of research and other activities funded under the program;

(5) ensure that findings, research, data, and recommendations resulting from research funded under the program are made publicly accessible;

(6) provide technical assistance to institutions of higher education that apply for a grant under the program;

(7) conduct periodic reviews and site visits to ensure proper use of grant funds and compliance with grant agreements;

(8) oversee the creation and maintenance of a statewide online resource hub to share educational materials, research findings, and best practices developed through the program;

(9) require program grant recipients to submit to the board annual progress reports that include:

(A) research and education achievements related to agricultural sustainability;

(B) measurable outcomes, such as the adoption of regenerative agriculture farming practices or reductions in pesticide use by producers; and

(C) financial documentation detailing the use of grant funds; and

(10) ensure that institutions of higher education that misuse grant funds or fail to meet program requirements are subject to the following consequences:

(A) suspension or termination of grant funding;

(B) disqualification from future grant cycles; and

(C) repayment of misused grant funds.

Sec. 61.9853. GRANT ELIGIBILITY; PRIORITY OF AWARD. (a) To be eligible to receive a grant under the program for a state fiscal year, an institution of higher education:

(1) must:

(A) apply to the board in the manner prescribed by board rule; and

(B) satisfy any other criteria prescribed by board rule in accordance with this subchapter; and

(2) may not derive more than 25 percent of the institution's agricultural program funding from any entity that manufactures, markets, or sells farming inputs, including pesticides, fertilizers, or patented seeds.

(b) In awarding grants under the program, the board shall give priority to the following institutions of higher education, with first priority given to those institutions that are not land grant universities:

(1) institutions that conduct community-centered outreach and applied research such as the Texas State University Small Producers Initiative;

(2) institutions that demonstrate active, collaborative partnerships with agricultural producers and organizations to implement regenerative agriculture farming practices; and

(3) institutions that maintain academic independence through full funding-source disclosure.

Sec. 61.9854. GRANT ALLOCATION. (a) The board may not award more than 30 percent of the total amount of grant funds allocated under this program for a state fiscal year to an institution of higher education.

(b) In its application review and funding allocation process for the program for a state fiscal year, the board shall ensure a reasonable distribution of funds across institutions of higher education statewide.

Sec. 61.9855. GRANT USE. Grant money awarded under the program may be used only for the following purposes:

(1) multiyear research projects focused on transitioning agricultural producers to regenerative agriculture farming systems through evidence-based techniques, peer-reviewed studies, and event coordination;

(2) research on healthy soil practices, including identifying practical and beneficial techniques for achieving and maintaining soil health, such as bioremediation and other innovative methods to increase crop yields and enhance beneficial soil microbiology;

(3) institution of higher education-led education and training programs to support agricultural producers in this state in implementing regenerative agriculture methods on their land, with priority given to programs that provide resources for small and mid-sized farms;

(4) support for student-led projects, internships, and research initiatives focused on regenerative agriculture;

(5) development and distribution of digital and physical educational resources for rural agricultural communities and farming regions;

(6) collaborative research initiatives between institutions of higher education, nonprofit organizations, and agricultural organizations to pilot and test regenerative agriculture farming solutions;

(7) comprehensive research on categories of pesticides, including balanced assessments of their sustainability, risks, and long-term impact on ecosystems and public health, with particular attention to the impact on vulnerable populations such as farmers and children in rural communities; and

(8) any additional purposes approved by board rule following a thorough and systematic review.

Sec. 61.9856. FUNDING. In addition to any money appropriated for the program, the commission may solicit and accept gifts, grants, and donations from any public or private source for the program.

Sec. 61.9857. RULES. The board shall adopt rules as necessary for the administration of the program, including rules prescribing program guidelines, application forms, and report templates for institutions of higher education under the program.

Sec. 61.9858. ANNUAL REPORT. The board, in collaboration with the State Soil and Water Conservation Board, annually shall prepare and submit to the legislature a report summarizing:

(1) the outcomes, benefits, and challenges of the program, including any unintended consequences;

(2) the progress made under the program in reducing pesticide use and improving soil health in this state; and

(3) legislative recommendations to further advance regenerative agriculture research, education, and outreach in this state, including data and independent evaluations to support those recommendations.

SECTION 2. Subchapter LL, Chapter 61, Education Code, as added by this Act, applies beginning with the 2026-2027 academic year.

SECTION 3. Not later than January 1, 2026, the Texas Higher Education Coordinating Board shall develop and make available on the coordinating board's Internet website an application form for the Higher Education Regenerative Agriculture Grant Program established under Subchapter LL, Chapter 61, Education Code, as added by this Act, as well as report templates and guidelines for public institutions of higher education under the grant program.

SECTION 4. 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.