Texas 2025 - 89th Regular

Texas Senate Bill SB2985 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R19779 TYPED
2	2	By: Sparks S.B. No. 2985
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the Texas Agricultural Finance Authority and to a study
10	10	and report on plant diseases and pest outbreaks.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 58.012, Agriculture Code, is amended by
13	13	amending Subsections (a) and (b) to read as follows:
14	14	(a) The authority is governed by a board of directors
15	15	composed of the commissioner of agriculture[, the director of the
16	16	Institute for International Agribusiness Studies at Prairie View
17	17	A&M University,] and six [nine] members appointed by the
18	18	commissioner. Members of the board must be appointed in the numbers
19	19	specified and from the following categories:
20	20	(1) one person who is an elected or appointed official
21	21	of a municipality or county;
22	22	(2) two [four] persons who are knowledgeable about
23	23	agricultural lending practices;
24	24	(3) one person who is a representative of agricultural
25	25	businesses;
26	26	(4) one person who is a representative of agriculture
27	27	related entities, including rural chambers of commerce,
28	28	foundations, trade associations, institutions of higher education,
29	29	or other entities involved in agricultural matters; and
30	30	(5) one person [two persons] who represents
31	31	[represent] young farmers and the interests of young farmers.
32	32	(b) The appointed members of the board serve staggered terms
33	33	of two years, with the terms of three [four] members expiring on
34	34	January 1 of each even-numbered year and the terms of three [five]
35	35	members expiring on January 1 of each odd-numbered year.
36	36	SECTION 2. Section 58.016(d), Agriculture Code, is amended
37	37	to read as follows:
38	38	(d) On or before January 1 of each year, the authority shall
39	39	prepare a report of its activities, including revenues and
40	40	expenditures relating to each program administered by the board,
41	41	for the preceding fiscal year. The report must set forth a complete
42	42	operating and financial statement. The report must be submitted to
43	43	the Legislative Budget Board.
44	44	SECTION 3. Section 58.021, Agriculture Code, is amended by
45	45	amending Subsections (a) through (c) to read as follows:
46	46	(a) In order to promote the expansion, development, and
47	47	diversification of production, processing, marketing, and export
48	48	of Texas agricultural products and to promote the development of
49	49	rural businesses, the authority shall design and implement programs
50	50	to provide financial assistance to eligible agricultural
51	51	businesses, including programs:
52	52	(1) to make or acquire loans to eligible agricultural
53	53	businesses;
54	54	(2) to make or acquire loans to lenders to enable those
55	55	lenders to make loans to eligible agricultural businesses;
56	56	(3) to insure, coinsure, and reinsure, in whole or in
57	57	part, loans to eligible agricultural businesses;
58	58	(4) to guarantee, in whole or in part, loans to
59	59	eligible agricultural businesses; [and]
60	60	(5) to administer or participate in programs
61	61	established by another person to provide financial assistance to
62	62	eligible agricultural businesses; and
63	63	(6) to administer or participate in programs with
64	64	other state entities that study issues impacting agricultural
65	65	producers, such as plant diseases and pest outbreaks.
66	66	(b) The authority's programs shall be designed and
67	67	implemented to provide financial assistance to enable eligible
68	68	agricultural businesses or state agencies to finance or refinance
69	69	costs incurred in connection with the development, increase,
70	70	improvement, or expansion of production, processing, marketing, or
71	71	export of Texas agricultural products and for the development of
72	72	rural agriculture-related businesses, including but not limited to
73	73	the costs of:
74	74	(1) acquisition of and improvements to land or
75	75	interests in land;
76	76	(2) acquisition, construction, rehabilitation,
77	77	operation, and maintenance of buildings, improvements, and
78	78	structures;
79	79	(3) site preparations;
80	80	(4) architectural, engineering, legal, and related
81	81	services;
82	82	(5) acquisition, installation, rehabilitation,
83	83	operation, and maintenance of machinery, equipment, furnishings,
84	84	and facilities;
85	85	(6) acquisition, processing, or distribution of
86	86	inventory;
87	87	(7) research and development;
88	88	(8) financing fees and charges;
89	89	(9) interest during acquisition or construction;
90	90	(10) necessary reserve fund;
91	91	(11) acquisition of licenses, permits, and approvals
92	92	from any governmental entity;
93	93	(12) pre-export and export expenses; and
94	94	(13) insect eradication and suppression programs.
95	95	(c) [Except as otherwise provided by this subsection, the
96	96	maximum aggregate amount of loans made to or guaranteed, insured,
97	97	coinsured, or reinsured under this subchapter for a single eligible
98	98	agricultural business by the authority from funds provided by the
99	99	authority is $2 million. The authority may make, guarantee,
100	100	insure, coinsure, or reinsure a loan for a single eligible
101	101	agricultural business that results in an aggregate amount exceeding
102	102	$2 million, but not exceeding $5 million, if the action is approved
103	103	by a two-thirds vote of the board members present.] The authority
104	104	may make, guarantee, participate in, insure, coinsure, or reinsure
105	105	loans to the entity designated to carry out boll weevil eradication
106	106	in accordance with Section 74.1011 in an amount approved by the
107	107	board to enable that entity to execute Subchapter D, Chapter 74.
108	108	The authority may issue an obligation on behalf of, or make,
109	109	guarantee, participate in, insure, coinsure, or reinsure loans to,
110	110	a state agency or an institution of higher education for the purpose
111	111	of the development, improvement, or expansion of an agricultural
112	112	product or an agriculture-related business in an amount approved by
113	113	the board. The authority may make, guarantee, participate in,
114	114	insure, coinsure, or reinsure loans to an eligible agricultural
115	115	business from the proceeds of revenue bonds issued in accordance
116	116	with Section 58.033 in an amount approved by the board.
117	117	SECTION 4. The heading to Subchapter F, Chapter 58,
118	118	Agriculture Code, is amended to read as follows:
119	119	SUBCHAPTER F. [YOUNG] FARMER INTEREST RATE REDUCTION PROGRAM
120	120	SECTION 5. Section 58.071, Agriculture Code, is amended to
121	121	read as follows:
122	122	Sec. 58.071. DEFINITIONS. In this subchapter:
123	123	(1) "Eligible lending institution" means a financial
124	124	institution that makes commercial loans, is either a depository of
125	125	state funds or an institution of the Farm Credit System
126	126	[headquartered in this state,] and agrees to participate in the
127	127	[young] farmer interest rate reduction program and to provide
128	128	collateral equal to the amount of linked deposits placed with it.
129	129	(2) "Linked deposit" means a time deposit governed by
130	130	a written deposit agreement between the state and an eligible
131	131	lending institution that provides:
132	132	(A) that the eligible lending institution pay
133	133	interest on the deposit at a rate that is not less than the greater
134	134	of:
135	135	(i) the current market rate of a United
136	136	States treasury bill or note of comparable maturity minus three
137	137	percent; or
138	138	(ii) 0.5 percent;
139	139	(B) that the state not withdraw any part of the
140	140	deposit before the expiration of a period set by a written advance
141	141	notice of the intention to withdraw; and
142	142	(C) that the eligible lending institution agree
143	143	to lend the value of the deposit to an eligible borrower at a
144	144	maximum rate that is the linked deposit rate plus a maximum of one
145	145	[four] percent.
146	146	SECTION 6. The heading to Section 58.072, Agriculture Code,
147	147	is amended to read as follows:
148	148	Sec. 58.072. [YOUNG] FARMER INTEREST RATE REDUCTION
149	149	PROGRAM.
150	150	SECTION 7. Section 58.072, Agriculture Code, is amended by
151	151	amending Subsections (a), (b), (d), (e), (k), (m), and (n) to read
152	152	as follows:
153	153	(a) The board shall establish a [young] farmer interest rate
154	154	reduction program to promote the creation and expansion of
155	155	agricultural businesses by [young] people in this state.
156	156	(b) The board shall accept applications on a biennial basis
157	157	[To be eligible to participate in the young farmer interest rate
158	158	reduction program, an applicant must be at least 18 years of age but
159	159	younger than 46 years of age].
160	160	(d) The board shall adopt rules for the loan portion of the
161	161	[young] farmer interest rate reduction program.
162	162	(e) In order to participate in the [young] farmer interest
163	163	rate reduction program, an eligible lending institution may solicit
164	164	loan applications from eligible applicants.
165	165	(k) If a lending institution holding linked deposits ceases
166	166	to be either a state depository or a Farm Credit System institution
167	167	[headquartered in this state,] the comptroller may withdraw the
168	168	linked deposits.
169	169	(m) A lending institution is not ineligible to participate
170	170	in the [young] farmer interest rate reduction program solely
171	171	because a member of the board is also an officer, director, or
172	172	employee of the lending institution, provided that a board member
173	173	shall recuse himself or herself from any action taken by the board
174	174	on an application involving a lending institution by which the
175	175	board member is employed or for which the board member serves as an
176	176	officer or director.
177	177	(n) Linked deposits under the [young] farmer interest rate
178	178	reduction program shall be funded from the Texas agricultural fund.
179	179	SECTION 8. Section 58.075(a), Agriculture Code, is amended
180	180	to read as follows:
181	181	(a) The maximum amount of a loan under this subchapter is $1
182	182	million [$500,000].
183	183	SECTION 9. The heading to Subchapter G, Chapter 58,
184	184	Agriculture Code, is amended to read as follows:
185	185	SUBCHAPTER G. AGRICULTURE [YOUNG FARMER] GRANT PROGRAM
186	186	SECTION 10. Section 58.091(a), Agriculture Code, is amended
187	187	to read as follows:
188	188	(a) The authority shall administer an agriculture [a young
189	189	farmer] grant program. A grant must be for the purpose of
190	190	maintaining agricultural businesses, supply chain resiliency, or
191	191	fostering the creation and expansion of agricultural businesses by
192	192	people in this state.
193	193	SECTION 11. Section 58.092, Agriculture Code, is amended to
194	194	read as follows:
195	195	Sec. 58.092. ELIGIBILITY. To be eligible to receive a grant
196	196	under this subchapter, a person must:
197	197	(1) be an agricultural business or producer [who is at
198	198	least 18 years of age but younger than 46 years of age]; and
199	199	(2) provide matching funds in the amount of not less
200	200	than ten percent [one dollar for each dollar] of the grant money
201	201	received.
202	202	SECTION 12. Section 58.093, Agriculture Code, is amended to
203	203	read as follows:
204	204	Sec. 58.093. AMOUNT OF GRANTS. A grant under the
205	205	agriculture [young farmer] grant program may not be less than
206	206	$5,000 or more than $500,000 [$20,000].
207	207	SECTION 13. Section 58.095, Agriculture Code, is amended to
208	208	read as follows:
209	209	Sec. 58.095. FUNDING. The source of funds for the
210	210	agriculture [young farmer] grant program is the Texas agricultural
211	211	fund.
212	212	SECTION 14. Chapter 58, Agriculture Code, is amended by
213	213	adding Subchapter H to read as follows:
214	214	SUBCHAPTER H. MISCELLANEOUS PROVISIONS
215	215	Sec. 58.100. DEFINITIONS. In this subchapter:
216	216	(1) "Agency" means the Texas Department of
217	217	Agriculture.
218	218	(2) "Commission" means the Texas Animal Health
219	219	Commission.
220	220	(3) "Extension" means the Texas A&M AgriLife Extension
221	221	Service.
222	222	Sec. 58.101. REPORT ON DISEASES AND PESTS. (a) The agency
223	223	shall partner with the extension or the commission, as appropriate,
224	224	to annually conduct a study of each existing or emerging, plant
225	225	disease and pest outbreaks in this state.
226	226	(b) In conducting the study under Subsection (a), the
227	227	extension or the commission shall determine for each outbreak of a
228	228	plant disease or pest:
229	229	(1) the duration of the outbreak;
230	230	(2) how the outbreak was resolved, if applicable; and
231	231	(3) any other information the extension service
232	232	determines is relevant.
233	233	(c) Not later than January 1 of each year, the extension
234	234	shall prepare and publish on the extension's Internet website a
235	235	report of the previous year's study conducted under this section.
236	236	(d) Not later than January 1, 2028, the extension shall
237	237	prepare and publish on the extension's Internet website a report
238	238	summarizing each annual report published under Subsection (c) and
239	239	providing policy recommendations to address outbreaks of plant
240	240	diseases and pests. The extension shall provide the report to the
241	241	Legislative Budget Board.
242	242	(e) This section expires January 31, 2028.
243	243	SECTION 15. This Act takes effect immediately if it
244	244	receives a vote of two-thirds of all the members elected to each
245	245	house, as provided by Section 39, Article III, Texas Constitution.
246	246	If this Act does not receive the vote necessary for immediate
247	247	effect, this Act takes effect September 1, 2025.