H.B. No. 2994

	AN ACT
	relating to the creation, operation, and funding of the urban farm
	microenterprise support program.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Title 3, Agriculture Code, is amended by adding
	Chapter 44A to read as follows:
	CHAPTER 44A. URBAN FARM MICROENTERPRISE SUPPORT PROGRAM
	Sec. 44A.001.  DEFINITIONS. In this chapter:
	(1)  "Board" means the board of directors of the Texas
	Agricultural Finance Authority.
	(2)  "Microenterprise" means a small business in which
	the owner operates the enterprise.
	(3)  "Urban area" means an area inside the boundaries
	of a municipality with a population of 500,000 or more.
	Sec. 44A.002.  CREATION OF URBAN FARM MICROENTERPRISE
	SUPPORT PROGRAM. (a)  The board shall create an urban farm
	microenterprise support program to provide financial assistance to
	microenterprises in urban areas that are primarily engaged in:
	(1)  research into processes and technology related to
	agricultural production in an urban setting;
	(2)  the production or development of tools or
	processes for agriculture in a manner suited for an urban setting;
	or
	(3)  agricultural activities in a manner suited for an
	urban setting.
	(b)  No state money may be used for purposes of the program.
	Sec. 44A.003.  URBAN FARM MICROENTERPRISE SUPPORT PROGRAM
	LOANS. (a) On the receipt of gifts and grants of money under
	Section 44A.004, the board shall establish and implement a loan
	program supporting established and proposed urban farm
	microenterprises in urban areas by providing loans to expand,
	modernize, or otherwise improve the established microenterprises
	and to begin operation of proposed microenterprises.
	(b)  An applicant applying on behalf of a proposed
	microenterprise may receive a loan of up to $25,000 to begin
	operation of the microenterprise.
	(c)  An applicant applying on behalf of an established
	microenterprise may receive a loan of up to $50,000 to expand,
	modernize, or otherwise improve an established microenterprise.
	(d)  The board may reserve a portion of the total fund for use
	in cooperative loan programs established with the participation of
	other public or private lenders.
	(e)  The board by rule may provide for the administration by
	a private or public entity of the loans awarded under the loan
	program.
	Sec. 44A.004.  MONEY FOR LOANS. The board may accept gifts
	and grants of money from the federal government, local governments,
	or private corporations or other persons for use in making loans
	under the urban farm microenterprise support program.
	Sec. 44A.005.  URBAN FARM MICROENTERPRISE DEVELOPMENT FUND.
	The urban farm microenterprise development fund is a fund in the
	comptroller's office.  The following shall be deposited to the
	credit of the fund:
	(1)  amounts received by the state for loans made under
	the urban farm microenterprise support program;
	(2)  money received in repayment of loans made under
	the program; and
	(3)  other money received by the board for the program
	and required by the board to be deposited in the fund.
	SECTION 2.  This Act takes effect September 1, 2011.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 2994 was passed by the House on May
	11, 2011, by the following vote:  Yeas 126, Nays 23, 1 present, not
	voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 2994 was passed by the Senate on May
	25, 2011, by the following vote:  Yeas 27, Nays 3
	.
	______________________________
	Secretary of the Senate
	APPROVED:  _____________________
	Date
	_____________________
	Governor