TX
Texas House Bill HB43

Texas 2025 - 89th Regular

Texas House Bill HB43 Compare Versions

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1-89R21924 SCF-F
2- By: Kitzman, Guillen, Lopez of Cameron, H.B. No. 43
3- Bonnen, González of El Paso, et al.
4- Substitute the following for H.B. No. 43:
5- By: Lopez of Cameron C.S.H.B. No. 43
1+89R19779 TYPED
2+ By: Kitzman H.B. No. 43
63
74
85
96
107 A BILL TO BE ENTITLED
118 AN ACT
12- relating to the Texas Agricultural Finance Authority and certain
13- programs administered by the authority.
9+ relating to the Texas Agricultural Finance Authority and to a study
10+ and report on plant diseases and pest outbreaks.
1411 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15- SECTION 1. Section 58.002(1), Agriculture Code, is amended
12+ SECTION 1. Section 58.012, Agriculture Code, is amended by
13+ amending Subsections (a) and (b) to read as follows:
14+ (a) The authority is governed by a board of directors
15+ composed of the commissioner of agriculture[, the director of the
16+ Institute for International Agribusiness Studies at Prairie View
17+ A&M University,] and six [nine] members appointed by the
18+ commissioner. Members of the board must be appointed in the numbers
19+ specified and from the following categories:
20+ (1) one person who is an elected or appointed official
21+ of a municipality or county;
22+ (2) two [four] persons who are knowledgeable about
23+ agricultural lending practices;
24+ (3) one person who is a representative of agricultural
25+ businesses;
26+ (4) one person who is a representative of agriculture
27+ related entities, including rural chambers of commerce,
28+ foundations, trade associations, institutions of higher education,
29+ or other entities involved in agricultural matters; and
30+ (5) one person [two persons] who represents
31+ [represent] young farmers and the interests of young farmers.
32+ (b) The appointed members of the board serve staggered terms
33+ of two years, with the terms of three [four] members expiring on
34+ January 1 of each even-numbered year and the terms of three [five]
35+ members expiring on January 1 of each odd-numbered year.
36+ SECTION 2. Section 58.016(d), Agriculture Code, is amended
1637 to read as follows:
17- (1) "Agricultural business" means:
18- (A) a business that is or proposes to be engaged
19- in producing, processing, marketing, or exporting an agricultural
20- product;
21- (B) an eligible applicant as defined in
22- Subchapter E;
23- (C) the entity designated to carry out boll
24- weevil eradication in accordance with Section 74.1011;
25- (D) any agriculture-related business in rural
26- areas of Texas [including a business that provides recreational
27- activities, including hiking, fishing, hunting, or any other
28- activity associated with the enjoyment of nature or the outdoors on
29- agricultural land];
30- (E) a state agency or an institution of higher
31- education that is engaged in producing an agricultural product; or
32- (F) a nonprofit organization whose primary
33- purpose is to maintain the agricultural use of land [a business that
34- holds a permit under Subchapter L, Chapter 43, Parks and Wildlife
35- Code; or
36- [(G) any other business in a rural area of this
37- state].
38- SECTION 2. Sections 58.012(a), (b), (c), and (g),
39- Agriculture Code, are amended to read as follows:
40- (a) The authority is governed by a board of directors
41- composed of the following nine members:
42- (1) the commissioner of agriculture;
43- (2) two members appointed by the commissioner who are
44- knowledgeable about agricultural lending practices; and
45- (3) six[, the director of the Institute for
46- International Agribusiness Studies at Prairie View A&M University,
47- and nine] members appointed by the governor [commissioner.
48- Members of the board must be appointed in the numbers specified and]
49- from the following categories:
50- (A) two persons who are representatives [(1) one
51- person who is an elected or appointed official of a municipality or
52- county;
53- [(2) four persons who are knowledgeable about
54- agricultural lending practices;
55- [(3) one person who is a representative of
56- agricultural businesses;
57- [(4) one person who is a representative] of
58- agriculture related entities, including rural chambers of
59- commerce, foundations, trade associations, institutions of higher
60- education, or other entities involved in agricultural matters;
61- [and]
62- (B) [(5)] two persons who represent young
63- farmers or ranchers and the interests of young farmers or ranchers;
64- and
65- (C) two persons who each operate a family farm or
66- ranch in this state.
67- (b) The appointed members of the board serve staggered terms
68- of two years, with the terms of four members expiring on January 1
69- of each even-numbered year and the terms of four [five] members
70- expiring on January 1 of each odd-numbered year.
71- (c) Any vacancy occurring in an appointed position on the
72- board shall be filled [by the commissioner] for the unexpired term
73- in the same manner as provided for the appointment of the position.
74- (g) Notwithstanding Subsection (f), age may be considered
75- by the commissioner in making appointments under Subsection
76- (a)(3)(B) [(a)(5)].
77- SECTION 3. Sections 58.016(b) and (d), Agriculture Code,
78- are amended to read as follows:
79- (b) On or before August 1 of each year, the administrator
80- shall file with the board the proposed annual budgets for the
81- agricultural [young farmer] loan guarantee program under
82- Subchapter E, the farm and ranch finance program under Chapter 59,
83- and the programs administered by the board under this chapter for
84- the succeeding fiscal year. If there is no administrator, the
85- commissioner shall assume the duties of the administrator in
86- connection with preparation of the budget. The budget must set
87- forth the general categories of expected expenditures out of
88- revenues and income of the funds administered by the authority and
89- the amount on account of each. On or before September 1 of each
90- year, the board shall consider the proposed annual budget and may
91- approve it or amend it. If for any reason the authority does not
92- adopt an annual budget before September 2, no expenditures may be
93- made from the funds until the board approves the annual budget. The
94- authority may adopt an amended annual budget for the current fiscal
95- year.
9638 (d) On or before January 1 of each year, the authority shall
97- prepare and submit to the Legislative Budget Board a report of its
98- activities for the preceding fiscal year. The report must set forth
99- a complete operating and financial statement, including the
100- revenues and expenditures of the authority for each program
101- administered by the board.
102- SECTION 4. Section 58.021, Agriculture Code, is amended by
103- amending Subsections (c) and (d) and adding Subsection (e) to read
104- as follows:
39+ prepare a report of its activities, including revenues and
40+ expenditures relating to each program administered by the board,
41+ for the preceding fiscal year. The report must set forth a complete
42+ operating and financial statement. The report must be submitted to
43+ the Legislative Budget Board.
44+ SECTION 3. Section 58.021, Agriculture Code, is amended by
45+ amending Subsections (a) through (c) to read as follows:
46+ (a) In order to promote the expansion, development, and
47+ diversification of production, processing, marketing, and export
48+ of Texas agricultural products and to promote the development of
49+ rural businesses, the authority shall design and implement programs
50+ to provide financial assistance to eligible agricultural
51+ businesses, including programs:
52+ (1) to make or acquire loans to eligible agricultural
53+ businesses;
54+ (2) to make or acquire loans to lenders to enable those
55+ lenders to make loans to eligible agricultural businesses;
56+ (3) to insure, coinsure, and reinsure, in whole or in
57+ part, loans to eligible agricultural businesses;
58+ (4) to guarantee, in whole or in part, loans to
59+ eligible agricultural businesses; [and]
60+ (5) to administer or participate in programs
61+ established by another person to provide financial assistance to
62+ eligible agricultural businesses; and
63+ (6) to administer or participate in programs with
64+ other state entities that study issues impacting agricultural
65+ producers, such as plant diseases and pest outbreaks.
66+ (b) The authority's programs shall be designed and
67+ implemented to provide financial assistance to enable eligible
68+ agricultural businesses or state agencies to finance or refinance
69+ costs incurred in connection with the development, increase,
70+ improvement, or expansion of production, processing, marketing, or
71+ export of Texas agricultural products and for the development of
72+ rural agriculture-related businesses, including but not limited to
73+ the costs of:
74+ (1) acquisition of and improvements to land or
75+ interests in land;
76+ (2) acquisition, construction, rehabilitation,
77+ operation, and maintenance of buildings, improvements, and
78+ structures;
79+ (3) site preparations;
80+ (4) architectural, engineering, legal, and related
81+ services;
82+ (5) acquisition, installation, rehabilitation,
83+ operation, and maintenance of machinery, equipment, furnishings,
84+ and facilities;
85+ (6) acquisition, processing, or distribution of
86+ inventory;
87+ (7) research and development;
88+ (8) financing fees and charges;
89+ (9) interest during acquisition or construction;
90+ (10) necessary reserve fund;
91+ (11) acquisition of licenses, permits, and approvals
92+ from any governmental entity;
93+ (12) pre-export and export expenses; and
94+ (13) insect eradication and suppression programs.
10595 (c) [Except as otherwise provided by this subsection, the
10696 maximum aggregate amount of loans made to or guaranteed, insured,
10797 coinsured, or reinsured under this subchapter for a single eligible
10898 agricultural business by the authority from funds provided by the
10999 authority is $2 million. The authority may make, guarantee,
110100 insure, coinsure, or reinsure a loan for a single eligible
111101 agricultural business that results in an aggregate amount exceeding
112102 $2 million, but not exceeding $5 million, if the action is approved
113103 by a two-thirds vote of the board members present.] The authority
114104 may make, guarantee, participate in, insure, coinsure, or reinsure
115105 loans to the entity designated to carry out boll weevil eradication
116106 in accordance with Section 74.1011 in an amount approved by the
117107 board to enable that entity to execute Subchapter D, Chapter 74.
118108 The authority may issue an obligation on behalf of, or make,
119109 guarantee, participate in, insure, coinsure, or reinsure loans to,
120110 a state agency or an institution of higher education for the purpose
121111 of the development, improvement, or expansion of an agricultural
122112 product or an agriculture-related business in an amount approved by
123113 the board. The authority may make, guarantee, participate in,
124114 insure, coinsure, or reinsure loans to an eligible agricultural
125115 business from the proceeds of revenue bonds issued in accordance
126116 with Section 58.033 in an amount approved by the board.
127- (d) Notwithstanding any other provision of this section,
128- the authority may also design and implement programs to:
129- (1) further agriculture-related rural economic
130- development; and
131- (2) reduce the amount of interest paid on loans
132- approved by the authority.
133- (e) The authority may provide financial assistance to the
134- Texas Animal Health Commission, Texas A&M AgriLife Extension
135- Service, or Texas A&M AgriLife Research to design and implement
136- programs to control agriculture-related diseases, pests, or
137- predators under Subchapter H.
138- SECTION 5. The heading to Subchapter F, Chapter 58,
117+ SECTION 4. The heading to Subchapter F, Chapter 58,
139118 Agriculture Code, is amended to read as follows:
140119 SUBCHAPTER F. [YOUNG] FARMER INTEREST RATE REDUCTION PROGRAM
141- SECTION 6. Sections 58.071(1) and (2), Agriculture Code,
142- are amended to read as follows:
120+ SECTION 5. Section 58.071, Agriculture Code, is amended to
121+ read as follows:
122+ Sec. 58.071. DEFINITIONS. In this subchapter:
143123 (1) "Eligible lending institution" means a financial
144124 institution that makes commercial loans, is either a depository of
145125 state funds or an institution of the Farm Credit System
146- [headquartered in this state], and agrees to participate in the
126+ [headquartered in this state,] and agrees to participate in the
147127 [young] farmer interest rate reduction program and to provide
148128 collateral equal to the amount of linked deposits placed with it.
149129 (2) "Linked deposit" means a time deposit governed by
150130 a written deposit agreement between the state and an eligible
151131 lending institution that provides:
152132 (A) that the eligible lending institution pay
153133 interest on the deposit at a rate that is not less than the greater
154134 of:
155135 (i) the current market rate of a United
156136 States treasury bill or note of comparable maturity minus three
157137 percent; or
158138 (ii) 0.5 percent;
159139 (B) that the state not withdraw any part of the
160140 deposit before the expiration of a period set by a written advance
161141 notice of the intention to withdraw; and
162142 (C) that the eligible lending institution agree
163143 to lend the value of the deposit to an eligible borrower at a
164144 maximum rate that is the linked deposit rate plus a maximum of one
165145 [four] percent.
166- SECTION 7. The heading to Section 58.072, Agriculture Code,
146+ SECTION 6. The heading to Section 58.072, Agriculture Code,
167147 is amended to read as follows:
168148 Sec. 58.072. [YOUNG] FARMER INTEREST RATE REDUCTION
169149 PROGRAM.
170- SECTION 8. Sections 58.072(a), (b), (d), (e), (k), (m), and
171- (n), Agriculture Code, are amended to read as follows:
150+ SECTION 7. Section 58.072, Agriculture Code, is amended by
151+ amending Subsections (a), (b), (d), (e), (k), (m), and (n) to read
152+ as follows:
172153 (a) The board shall establish a [young] farmer interest rate
173154 reduction program to promote the creation and expansion of
174155 agricultural businesses by [young] people in this state.
175- (b) The board may disperse a loan under the [To be eligible
176- to participate in the young] farmer interest rate reduction program
177- quarterly, annually, or biennially, or on another disbursement
178- schedule, as determined by the board after considering the needs of
179- the recipient[, an applicant must be at least 18 years of age but
156+ (b) The board shall accept applications on a biennial basis
157+ [To be eligible to participate in the young farmer interest rate
158+ reduction program, an applicant must be at least 18 years of age but
180159 younger than 46 years of age].
181160 (d) The board shall adopt rules for the loan portion of the
182161 [young] farmer interest rate reduction program.
183162 (e) In order to participate in the [young] farmer interest
184163 rate reduction program, an eligible lending institution may solicit
185164 loan applications from eligible applicants.
186165 (k) If a lending institution holding linked deposits ceases
187166 to be either a state depository or a Farm Credit System institution
188- [headquartered in this state], the comptroller may withdraw the
167+ [headquartered in this state,] the comptroller may withdraw the
189168 linked deposits.
190169 (m) A lending institution is not ineligible to participate
191170 in the [young] farmer interest rate reduction program solely
192171 because a member of the board is also an officer, director, or
193172 employee of the lending institution, provided that a board member
194173 shall recuse himself or herself from any action taken by the board
195174 on an application involving a lending institution by which the
196175 board member is employed or for which the board member serves as an
197176 officer or director.
198177 (n) Linked deposits under the [young] farmer interest rate
199178 reduction program shall be funded from the Texas agricultural fund.
200- SECTION 9. Section 58.075(a), Agriculture Code, is amended
179+ SECTION 8. Section 58.075(a), Agriculture Code, is amended
201180 to read as follows:
202181 (a) The maximum amount of a loan under this subchapter is $1
203182 million [$500,000].
204- SECTION 10. The heading to Subchapter G, Chapter 58,
183+ SECTION 9. The heading to Subchapter G, Chapter 58,
205184 Agriculture Code, is amended to read as follows:
206185 SUBCHAPTER G. AGRICULTURE [YOUNG FARMER] GRANT PROGRAM
207- SECTION 11. Section 58.091(a), Agriculture Code, is amended
186+ SECTION 10. Section 58.091(a), Agriculture Code, is amended
208187 to read as follows:
209188 (a) The authority shall administer an agriculture [a young
210189 farmer] grant program. A grant must be for the purpose of
211- maintaining agricultural businesses, maintaining agricultural uses
212- of land, or fostering supply chain resiliency or the creation and
213- expansion of agricultural businesses by [young] people in this
214- state.
215- SECTION 12. Section 58.092, Agriculture Code, is amended to
190+ maintaining agricultural businesses, supply chain resiliency, or
191+ fostering the creation and expansion of agricultural businesses by
192+ people in this state.
193+ SECTION 11. Section 58.092, Agriculture Code, is amended to
216194 read as follows:
217195 Sec. 58.092. ELIGIBILITY. To be eligible to receive a grant
218- under this subchapter, an applicant [a person] must:
219- (1) be an agricultural producer or business [who is at
196+ under this subchapter, a person must:
197+ (1) be an agricultural business or producer [who is at
220198 least 18 years of age but younger than 46 years of age]; and
221- (2) provide matching funds in an [the] amount [of] not
222- less than 10 percent [one dollar for each dollar] of the grant money
199+ (2) provide matching funds in the amount of not less
200+ than ten percent [one dollar for each dollar] of the grant money
223201 received.
224- SECTION 13. Section 58.093, Agriculture Code, is amended to
202+ SECTION 12. Section 58.093, Agriculture Code, is amended to
225203 read as follows:
226204 Sec. 58.093. AMOUNT OF GRANTS. A grant under the
227205 agriculture [young farmer] grant program may not be less than
228206 $5,000 or more than $500,000 [$20,000].
229- SECTION 14. Section 58.095, Agriculture Code, is amended to
207+ SECTION 13. Section 58.095, Agriculture Code, is amended to
230208 read as follows:
231209 Sec. 58.095. FUNDING. The source of funds for the
232210 agriculture [young farmer] grant program is the Texas agricultural
233211 fund.
234- SECTION 15. Chapter 58, Agriculture Code, is amended by
212+ SECTION 14. Chapter 58, Agriculture Code, is amended by
235213 adding Subchapter H to read as follows:
236- SUBCHAPTER H. PEST AND DISEASE CONTROL AND DEPREDATION PROGRAM
237- Sec. 58.101. PEST AND DISEASE CONTROL AND DEPREDATION
238- PROGRAM. (a) The authority shall provide financial assistance to
239- the Texas Animal Health Commission, Texas A&M AgriLife Extension
240- Service, or Texas A&M AgriLife Research to implement programs to
241- control agriculture-related pests, diseases, or predators.
242- (b) A program implemented under this section must be
243- designed to mitigate agricultural losses by an agricultural
244- business through the control of agriculture-related pests,
245- diseases, or predators.
246- Sec. 58.102. APPLICATIONS. The Texas Animal Health
247- Commission, Texas A&M AgriLife Extension Service, or Texas A&M
248- AgriLife Research shall submit an application to receive financial
249- assistance under this subchapter on a form approved by the board or
250- the board's designee.
251- Sec. 58.103. FUNDING. The source of funds for the financial
252- assistance program under this subchapter is the Texas agricultural
253- fund.
254- Sec. 58.104. RULES. The board shall adopt rules to
255- implement this subchapter, including rules governing the operation
256- of the program.
257- SECTION 16. The changes in law made by this Act in the
258- qualifications of members of the board of directors of the Texas
259- Agricultural Finance Authority do not affect the entitlement of a
260- member serving on the board immediately before the effective date
261- of this Act to continue to carry out the board's functions for the
262- remainder of the member's term. The changes in law apply only to a
263- member appointed on or after the effective date of this Act. This
264- Act does not prohibit a person who is a member of the board on the
265- effective date of this Act from being reappointed to the board if
266- the person has the qualifications required for a member under
267- Section 58.012, Agriculture Code, as amended by this Act.
268- SECTION 17. As soon as is practicable after the effective
269- date of this Act, the commissioner of agriculture shall adopt rules
270- to implement Chapter 58, Agriculture Code, as amended by this Act,
271- including rules to implement the pest and disease control and
272- depredation program established under Subchapter H, Chapter 58,
273- Agriculture Code, as added by this Act.
274- SECTION 18. This Act takes effect immediately if it
214+ SUBCHAPTER H. MISCELLANEOUS PROVISIONS
215+ Sec. 58.100. DEFINITIONS. In this subchapter:
216+ (1) "Agency" means the Texas Department of
217+ Agriculture.
218+ (2) "Commission" means the Texas Animal Health
219+ Commission.
220+ (3) "Extension" means the Texas A&M AgriLife Extension
221+ Service.
222+ Sec. 58.101. REPORT ON DISEASES AND PESTS. (a) The agency
223+ shall partner with the extension or the commission, as appropriate,
224+ to annually conduct a study of each existing or emerging, plant
225+ disease and pest outbreaks in this state.
226+ (b) In conducting the study under Subsection (a), the
227+ extension or the commission shall determine for each outbreak of a
228+ plant disease or pest:
229+ (1) the duration of the outbreak;
230+ (2) how the outbreak was resolved, if applicable; and
231+ (3) any other information the extension service
232+ determines is relevant.
233+ (c) Not later than January 1 of each year, the extension
234+ shall prepare and publish on the extension's Internet website a
235+ report of the previous year's study conducted under this section.
236+ (d) Not later than January 1, 2028, the extension shall
237+ prepare and publish on the extension's Internet website a report
238+ summarizing each annual report published under Subsection (c) and
239+ providing policy recommendations to address outbreaks of plant
240+ diseases and pests. The extension shall provide the report to the
241+ Legislative Budget Board.
242+ (e) This section expires January 31, 2028.
243+ SECTION 15. This Act takes effect immediately if it
275244 receives a vote of two-thirds of all the members elected to each
276245 house, as provided by Section 39, Article III, Texas Constitution.
277246 If this Act does not receive the vote necessary for immediate
278247 effect, this Act takes effect September 1, 2025.