SB2985 - Relating to the Texas Agricultural Finance Authority and to a study and report on plant diseases and pest outbreaks.

  89R19779 TYPED     By: Sparks S.B. No. 2985       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:   SUBCHAP [Text truncated for display. 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