Bill

HB 2350

84(R) - 2015
House Agriculture & Livestock
House Agriculture & Livestock
Agriculture & Livestock

Vote Recommendation

No
  • Negative
  • Neutral
  • Neutral
  • Negative
  • Neutral

Author(s)

Charles Anderson

Bill Caption

Relating to the amount that may be used to guarantee loans under the Texas Agricultural Finance Authority's agricultural loan guarantee program.

Fiscal Notes

The fiscal implications of the bill cannot be determined at this time.

The bill would amend the Agriculture Code, regarding the agricultural loan guarantee program. The bill would allow the Texas Agricultural Finance Authority (TAFA) to use up to three times the amount contained in the Texas Agricultural Fund to guarantee loans under the agricultural loan guarantee program. Under current law, TAFA may only use up to three-fourths of the amount contained in the fund to guarantee loans.
 
The Texas Department of Agriculture does not anticipate any fiscal implication to the state. The Comptroller of Public Accounts indicates that any fiscal implication would depend on guaranteed loan recipients going into default in amounts larger than are guaranteed under current law, and therefore any fiscal implication cannot be determined.

Bill Analysis

(The second chamber sponsor is Senator Kohlkorst.)

HB 2350, if passed, would modify the Agriculture Code (Section 58.052) by increasing the amount that may be used to guarantee loans under the agricultural loan guarantee program which is managed by the Texas Agricultural Authority. Currently loans may not exceed three-fourths the amount contained in the fund. HB 2350, if passed, would increase this amount to three times the amount contained in the fund.

Vote Recommendation Notes

The state should not be in the business of making agricultural loans. HB 2350 increases the chances that taxpayer money will be lost in the agricultural loan guarantee program of the Texas Agricultural Authority. We recognize that this bill does not create the loan program but the steps taken in HB 2350 would clearly move the program in the wrong direction. The market-distorting affects of the loan program would likely be increased should this bill be enacted.

While helping farmers may be a laudable goal we disagree with the mechanisms employed by, and the principle behind HB 2350. Due to the interference in the effective operation of the market, and due to the increase in government intervention, we oppose HB 2350.


EDIT: There are no differences between the house committee and senate committee versions.