1-1 By: Patterson (Senate Sponsor - Carriker) H.B. No. 1684 1-2 (In the Senate - Received from the House May 5, 1993; 1-3 May 6, 1993, read first time and referred to Committee on Natural 1-4 Resources; May 11, 1993, reported favorably by the following vote: 1-5 Yeas 8, Nays 0; May 11, 1993, sent to printer.) 1-6 COMMITTEE VOTE 1-7 Yea Nay PNV Absent 1-8 Sims x 1-9 Truan x 1-10 Armbrister x 1-11 Barrientos x 1-12 Bivins x 1-13 Brown x 1-14 Carriker x 1-15 Lucio x 1-16 Montford x 1-17 Ratliff x 1-18 Shelley x 1-19 A BILL TO BE ENTITLED 1-20 AN ACT 1-21 relating to the farm and ranch finance program; granting the 1-22 authority to issue bonds; providing penalties. 1-23 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-24 SECTION 1. Title 4, Agriculture Code, is amended by adding 1-25 Chapter 59 to read as follows: 1-26 CHAPTER 59. FARM AND RANCH FINANCE PROGRAM 1-27 SUBCHAPTER A. GENERAL PROVISIONS 1-28 Sec. 59.001. DEFINITIONS. In this chapter: 1-29 (1) "Authority" means the Texas Agricultural Finance 1-30 Authority created by Chapter 58 of this code. 1-31 (2) "Board" means the Veterans Land Board. 1-32 (3) "Bond" means a general obligation bond, 1-33 certificate, note, or other obligation issued or incurred by the 1-34 authority under this chapter as provided by Article III, Section 1-35 49-f, of the Texas Constitution. 1-36 (4) "Commissioner" means the commissioner of 1-37 agriculture. 1-38 (5) "Fund" means the farm and ranch finance program 1-39 fund. 1-40 (6) "Program" means the farm and ranch finance 1-41 program. 1-42 Sec. 59.002. DUTIES. (a) The authority shall administer 1-43 the program. 1-44 (b) The board shall administer the fund. At the request of 1-45 the authority, the board shall make available to the authority 1-46 money from the fund to pay debt service on the program's bonds and 1-47 to provide financial assistance to borrowers to purchase farm or 1-48 ranch land as provided by this chapter. 1-49 Sec. 59.003. LIMITED IMMUNITY FROM SUIT OR LIABILITY. The 1-50 authority or a member of the board may be sued and held personally 1-51 liable for damages that result from an official act or omission 1-52 only if the act or omission is corrupt or malicious. 1-53 (Sections 59.004-59.010 reserved for expansion 1-54 SUBCHAPTER B. BONDS 1-55 Sec. 59.011. BONDS. (a) The authority may provide by order 1-56 or resolution for the issuance and sale of negotiable bonds 1-57 authorized by Article III, Section 49-f, of the Texas Constitution. 1-58 The proceeds from the sale of the bonds constitute the fund. 1-59 (b) Subchapter D, Chapter 58, Agriculture Code, as it 1-60 relates to the issuance, sale, and refunding of bonds, applies to 1-61 the authority's issuance, sale, and refunding of bonds under this 1-62 chapter to finance the fund. 1-63 Sec. 59.012. DISPOSITION OF BOND PROCEEDS. (a) Except as 1-64 provided by Subsections (b) and (c) of this section, proceeds from 1-65 the sale of the bonds, other than refunding bonds, shall be 1-66 deposited in the state treasury to the credit of the fund. 1-67 (b) The board may provide for transferring to the interest 1-68 and sinking account from the proceeds of the sale of bonds or from 2-1 the available money in the fund directly an amount that, together 2-2 with the accrued interest received, is sufficient to pay interest 2-3 becoming due during the fiscal year in which the bonds are sold and 2-4 to establish appropriate reserves. 2-5 (c) At the timely request of the authority, the board shall 2-6 provide for transferring from the proceeds of the sale of bonds or 2-7 from available money in the fund directly an amount certified by 2-8 the authority as reasonable and necessary to cover the costs of 2-9 administering the program. That amount shall be deposited in the 2-10 state treasury to the credit of a special fund to be known as the 2-11 farm and ranch administrative expense fund. 2-12 Sec. 59.013. PAYMENT OF PRINCIPAL AND INTEREST. The 2-13 authority shall arrange for payment of the principal of bonds as 2-14 they mature and the interest on the bonds as it becomes payable. 2-15 Sec. 59.014. APPROVAL BY ATTORNEY GENERAL. Before the bonds 2-16 are delivered to the purchasers, the attorney general shall examine 2-17 the record relating to the bonds. If the record demonstrates that 2-18 the bonds have been issued in accordance with the Texas 2-19 Constitution and this chapter, the attorney general shall approve 2-20 the bonds. 2-21 Sec. 59.015. USE OF FUND TO PAY COSTS OF ISSUANCE AND DEBT 2-22 SERVICE. (a) The authority may use money in the fund attributable 2-23 to the issuance and sale of bonds to pay: 2-24 (1) legal fees and fees for financial advice the 2-25 authority finds necessary for the sale of bonds; 2-26 (2) the expense of publishing notice of sale of an 2-27 installment of bonds; 2-28 (3) the expense of printing the bonds; 2-29 (4) the expense of issuing the bonds, including the 2-30 actual costs of travel, lodging, and meals of officers, members, or 2-31 employees of the board, directors or employees of the authority, 2-32 the comptroller, the state treasurer, or the attorney general that 2-33 the authority finds necessary to implement the issuance, rating, or 2-34 delivery of the bonds; 2-35 (5) the cost of manually signing the bonds; 2-36 (6) remuneration to any agent employed by the 2-37 authority to pay the principal of and interest on the bonds; 2-38 (7) any amount required to be paid to maintain the 2-39 federal tax exemption of interest on the bonds; or 2-40 (8) any other cost, fee, or expense relating to the 2-41 issuance of the bonds. 2-42 (b) If, during the existence of the fund or during the 2-43 period any bonds are payable from the fund, the authority 2-44 determines that there will not be sufficient money in the fund 2-45 during the following fiscal year to pay the principal of or 2-46 interest on the bonds that is to come due during the following 2-47 fiscal year, the comptroller shall transfer to the fund from the 2-48 first money coming into the state treasury not otherwise 2-49 appropriated by the constitution an amount sufficient to pay the 2-50 obligations. 2-51 (c) The money transferred to the fund under Subsection (b) 2-52 of this section shall be used to pay the obligations only if at the 2-53 time the principal or interest becomes due there is not sufficient 2-54 money in the fund to pay the amount due. 2-55 Sec. 59.016. INVESTMENTS. (a) The authority shall give 2-56 timely instruction to the board of the dates on which principal on 2-57 bonds matures and interest becomes payable. The board shall 2-58 administer the fund accordingly. 2-59 (b) Except as provided by Subsection (c) of this section, 2-60 money in the fund that is not immediately committed to paying 2-61 principal of and interest on the bonds or to paying expenses as 2-62 provided by Section 59.015 of this code may be invested by the 2-63 board in: 2-64 (1) a direct security repurchase agreement or reverse 2-65 security repurchase agreement made with a state or national bank 2-66 domiciled in this state or with a primary dealer approved by the 2-67 federal reserve system; 2-68 (2) a direct obligation of or obligation the principal 2-69 and interest of which are guaranteed by the United States 2-70 government; 3-1 (3) a direct obligation of or obligation guaranteed by 3-2 the Federal Home Loan Banks, the Federal National Mortgage 3-3 Association, the Federal Farm Credit System, the Student Loan 3-4 Marketing Association, the Federal Home Loan Mortgage Corporation, 3-5 or a successor to one of those organizations; 3-6 (4) a bankers' acceptance that: 3-7 (A) is eligible for purchase by a member of the 3-8 federal reserve system; 3-9 (B) matures in 270 days or less; and 3-10 (C) is issued by a bank that has received the 3-11 highest short-term credit rating by a nationally recognized 3-12 investment rating firm; 3-13 (5) commercial paper that: 3-14 (A) matures in 270 days or less; and 3-15 (B) has received the highest short-term credit 3-16 rating by a nationally recognized investment rating firm; 3-17 (6) a contract that is written by the board in which 3-18 the board grants the purchaser the right to purchase securities in 3-19 the board's marketable securities portfolio at a specified price 3-20 over a specified period and for which the board is paid a fee and 3-21 that specifically prohibits naked-option or uncovered option 3-22 trading; 3-23 (7) an obligation of a state or of an agency, county, 3-24 city, or other political subdivision of a state or a mutual fund 3-25 composed of those obligations; 3-26 (8) an investment instrument, obligation, or other 3-27 evidence of indebtedness the payment of which is directly or 3-28 indirectly guaranteed by the full faith and credit of the United 3-29 States government; 3-30 (9) an investment, account, depository receipt, or 3-31 deposit that is fully: 3-32 (A) insured by the Federal Deposit Insurance 3-33 Corporation or a successor to that organization; or 3-34 (B) secured by a security described by 3-35 Subdivision (2), (3), or (8) of this subsection; 3-36 (10) a collateralized mortgage obligation fully 3-37 secured by securities or mortgages issued or guaranteed by the 3-38 Government National Mortgage Association (GNMA) or any entity 3-39 identified by Subdivision (3) of this subsection; 3-40 (11) a security or evidence of indebtedness issued by 3-41 the Farm Credit System Financial Assistance Corporation, the 3-42 Private Export Funding Corporation, or the Export-Import Bank; and 3-43 (12) any other investment authorized for investment of 3-44 state funds by the state treasurer under Section 404.024, 3-45 Government Code. 3-46 (c) The board may not invest in or purchase obligations of a 3-47 private corporation or other private business entity doing business 3-48 in the Republic of South Africa unless the corporation or other 3-49 entity: 3-50 (1) has: 3-51 (A) adopted the Statement of Principles for 3-52 South Africa as they existed in 1987, as described in the Report on 3-53 the Signatory Companies to the Statement of Principles for South 3-54 Africa published by Arthur D. Little, Inc., Cambridge, 3-55 Massachusetts, and has obtained a performance rating in Category 1 3-56 or 2 of the Statement of Principles for South Africa rating system 3-57 as determined by Arthur D. Little, Inc.; or 3-58 (B) agreed to the Code of Conduct that is 3-59 enforced by the United States Department of State under Section 3-60 208, Comprehensive Anti-Apartheid Act of 1986 (Pub. L. No. 99-440) 3-61 and has received a rating of "Making Satisfactory Progress"; and 3-62 (2) does not supply strategic products or services for 3-63 use by the government, military, or police of the Republic of South 3-64 Africa. 3-65 (d) In this section: 3-66 (1) "Direct security repurchase agreement" means an 3-67 agreement under which the board buys, holds for a specified time, 3-68 and then sells back any of the following securities, obligations, 3-69 or participation certificates: 3-70 (A) a United States government security; 4-1 (B) a direct obligation of or an obligation the 4-2 principal and interest of which are guaranteed by the United States 4-3 government; 4-4 (C) a direct obligation of or an obligation 4-5 guaranteed by the Federal Home Loan Banks, the Federal National 4-6 Mortgage Association, the Federal Farm Credit System, the Student 4-7 Loan Marketing Association, the Federal Home Loan Mortgage 4-8 Corporation, or a successor to one of those organizations; or 4-9 (D) any other investment instrument, obligation, 4-10 or other evidence of indebtedness the payment of which is directly 4-11 or indirectly guaranteed by the full faith and credit of the United 4-12 States government. 4-13 (2) "Doing business in the Republic of South Africa" 4-14 means conducting or performing manufacturing, assembly, or 4-15 warehousing operations in the Republic of South Africa or, in the 4-16 case of a bank or other financial institution, lending money to the 4-17 government of the Republic of South Africa or any of its agencies 4-18 or instrumentalities. 4-19 (3) "Market value" means the fair and reasonable 4-20 prevailing price at which a security is being sold on the open 4-21 market at the time of the appraisement of the security by the 4-22 board. 4-23 (4) "Reverse security repurchase agreement" means an 4-24 agreement under which the board sells and after a specified time 4-25 buys back any of the securities, obligations, or participation 4-26 certificates listed by Subdivision (1) of this subsection. 4-27 (5) "Strategic products or services" means articles 4-28 designated as arms, ammunition, or implements of war as provided by 4-29 22 C.F.R. Part 121 or data processing equipment or computers sold 4-30 for military or police use or for use in connection with 4-31 restriction on travel in the Republic of South Africa by residents 4-32 of that country. 4-33 (Sections 59.017-59.020 reserved for expansion 4-34 SUBCHAPTER C. ADMINISTRATION 4-35 Sec. 59.021. FUND. (a) The farm and ranch finance program 4-36 fund is a fund in the state treasury. 4-37 (b) At the direction of the authority, money received from 4-38 the state or federal government or from any other person, in 4-39 addition to proceeds from bonds issued under this chapter, may be 4-40 deposited to the credit of the fund. 4-41 (c) The authority may provide for establishing and 4-42 maintaining separate accounts in the fund, including program 4-43 accounts, an interest and sinking account, a reserve account, and 4-44 any other accounts provided for by resolution of the authority. 4-45 (d) Money received as repayment of financial assistance 4-46 shall be deposited first in the interest and sinking account as 4-47 provided by resolution of the authority authorizing its bonds until 4-48 that account is fully funded as provided by resolution of the 4-49 authority. 4-50 (e) The fund and each account in the fund shall be kept and 4-51 maintained at the direction of the authority and held in trust by 4-52 the state treasurer for and on behalf of the authority and the 4-53 owners of the bonds issued under this chapter. 4-54 (f) The fund may be used only as provided by this chapter. 4-55 (g) Pending its use, money in the fund shall be invested as 4-56 provided by the resolution authorizing issuance of the bonds. 4-57 (h) The authority may receive, and shall deposit in the 4-58 fund, appropriations, grants, donations, earned federal funds, and 4-59 the proceeds of any investment pools operated by the state 4-60 treasurer. 4-61 Sec. 59.022. RULES. (a) The authority shall adopt rules 4-62 governing application for financial assistance under this chapter. 4-63 The authority may adopt rules it considers necessary to administer 4-64 the program or considers in the best interest of the program. The 4-65 authority may adopt rules concerning the sale of land acquired by 4-66 the authority under this chapter by default, foreclosure, 4-67 forfeiture, or any other means. The authority shall adopt 4-68 collateral or security requirements to ensure the full repayment of 4-69 financial assistance granted under this chapter. The authority may 4-70 approve any extension of financial assistance under this chapter or 5-1 may delegate that approval authority to the commissioner. 5-2 (b) The board may adopt rules it considers necessary to 5-3 administer the fund or considers in the best interest of the fund, 5-4 including rules on the investment of the fund. 5-5 (c) The authority may set and collect fees the authority 5-6 considers reasonable and necessary to cover the expenses of 5-7 administering the program or considers in the best interest of the 5-8 program. Those fees shall be deposited in the state treasury to 5-9 the credit of the farm and ranch administrative expense fund. An 5-10 applicant for financial assistance participating in the program 5-11 shall pay the costs of applying for, participating in, and 5-12 administering and servicing the program, in amounts the authority 5-13 considers reasonable and necessary. Any cost not paid by an 5-14 applicant shall be paid from the fund. 5-15 Sec. 59.023. POWERS OF AUTHORITY. In addition to the powers 5-16 granted to the authority under Section 58.022 of this code, the 5-17 authority has the power necessary to accomplish the purposes and 5-18 carry out the programs provided by this chapter, including the 5-19 power: 5-20 (1) to adopt and enforce bylaws, rules, and procedures 5-21 necessary to carry out this chapter; 5-22 (2) to establish, charge, and collect a fee, charge, 5-23 or penalty in connection with a program, service, or activity 5-24 provided by the authority under this chapter; 5-25 (3) to issue bonds, provide for and secure the payment 5-26 of the bonds, and provide for the rights of the owners of the 5-27 bonds, in the manner and to the extent permitted by this chapter; 5-28 (4) to purchase, hold, cancel, or resell or otherwise 5-29 dispose of its bonds, subject to any restrictions and any 5-30 resolution authorizing the issuance of its bonds; 5-31 (5) to own, rent, lease, or otherwise acquire, accept, 5-32 or hold any interest in real, personal, or mixed property, by 5-33 purchase, exchange, gift, assignment, transfer, foreclosure, 5-34 mortgage, sale, lease, or otherwise; 5-35 (6) to hold, manage, operate, or improve real, 5-36 personal, or mixed property; 5-37 (7) to sell, lease, encumber, mortgage, exchange, 5-38 donate, convey, or otherwise dispose of any of its property or any 5-39 interest in its property, deed of trust, or mortgage lien owned by 5-40 it, under its control or custody, or in its possession and to 5-41 release or relinquish any right, title, claim, lien, interest, 5-42 easement, or demand, including any equity or right of redemption in 5-43 property foreclosed by it, by public or private sale, with or 5-44 without public bidding; 5-45 (8) to lease or rent any improvement, land, or 5-46 facility from any person; 5-47 (9) to make a secured or unsecured loan to provide 5-48 financial assistance as provided by this chapter, including the 5-49 refunding of an outstanding obligation, mortgage, or advance used 5-50 for those purposes, and to charge and collect interest on those 5-51 loans for loan payments and on terms and conditions the authority 5-52 considers advisable that are not in conflict with this chapter; 5-53 (10) to purchase or acquire, sell, discount, assign, 5-54 negotiate, or otherwise dispose of notes or other evidence of 5-55 indebtedness of eligible applicants as the board determines or 5-56 portions or portfolios of or participations in those evidences of 5-57 indebtedness; and 5-58 (11) to sell and guarantee securities, whether taxable 5-59 or tax exempt under federal law, in primary and secondary markets. 5-60 Sec. 59.024. ELIGIBILITY. To be eligible to borrow money 5-61 from the fund, a person, at the time of application, must: 5-62 (1) be a member of a household that has derived at 5-63 least 25 percent of its gross income from a farm or ranch for the 5-64 preceding three years; and 5-65 (2) have a net worth of less than $250,000. 5-66 Sec. 59.025. DOWN PAYMENT. (a) A loan under this chapter 5-67 may not exceed $150,000, less the down payment required under this 5-68 subsection. If the purchase price of land purchased with financial 5-69 assistance under this chapter is $150,000 or less, the minimum down 5-70 payment is equal to five percent of the purchase price. If the 6-1 purchase price exceeds $150,000, the minimum down payment is an 6-2 amount equal to the sum of five percent of the purchase price plus 6-3 the amount equal to the difference between the purchase price and 6-4 $150,000. 6-5 (b) The authority shall provide by rule for the period 6-6 during which and the manner in which the down payment provided for 6-7 under Subsection (a) of this section shall be paid to the 6-8 authority. 6-9 (c) If the sale is not consummated, the authority shall 6-10 refund the down payment to the borrower. 6-11 Sec. 59.026. TRANSFER OF BORROWER'S INTEREST. (a) The 6-12 contract for a loan under this chapter must provide that transfer 6-13 of ownership of the land without the authority's express written 6-14 permission before the entire principal and interest due have been 6-15 paid constitutes default under the contract. 6-16 (b) If the borrower dies or becomes financially 6-17 incapacitated or if the borrower's interest in land is 6-18 involuntarily transferred by court order or other proceedings, 6-19 including bankruptcy, sheriff or trustee sale, or divorce, the land 6-20 may be conveyed by the borrower or the borrower's heirs, 6-21 administrators, executors, or successors in interest by complying 6-22 with the rules adopted by the authority and obtaining the 6-23 authority's written permission. 6-24 Sec. 59.027. CHANGES IN USE. (a) Before a borrower may use 6-25 land acquired with financial assistance under this chapter for a 6-26 primary purpose other than farming or ranching, the borrower must 6-27 submit to the authority an application for approval of the change 6-28 of use. 6-29 (b) As soon as practicable after an application for a change 6-30 of use is received, the authority shall approve or deny the 6-31 application and shall notify the borrower of the authority's 6-32 decision. 6-33 (c) The loan contract must provide that using land acquired 6-34 under this chapter for a purpose other than farming or ranching 6-35 without the approval of the authority constitutes default under the 6-36 contract. 6-37 Sec. 59.028. APPRAISAL. (a) Before the authority may loan 6-38 money for the purchase of land under this chapter, the authority 6-39 must have an appraisal of the property made to determine its value. 6-40 (b) An appraiser representing the authority must be 6-41 qualified to give competent appraisals of land. The authority may 6-42 contract with the board to use appraisers employed by the board. 6-43 Sec. 59.029. PAYMENTS TO AUTHORITY UNDER CERTAIN LEASES. 6-44 If, during a period a person is indebted to the authority for land 6-45 purchased with financial assistance under this chapter, the person 6-46 executes or there exists a lease or contract of sale of oil, gas, 6-47 or other minerals, chemicals, hard metals, timber, sand, gravel, or 6-48 other material that covers the land purchased from the authority 6-49 that would result in the depletion of the corpus of the land, not 6-50 less than one-half of all bonus money, delay rentals, or royalties 6-51 received as consideration for or payment under the oil, gas, or 6-52 mineral lease and not less than one-half of all money received 6-53 under a lease or contract of sale of other minerals, chemicals, 6-54 hard metals, timber, sand, gravel, or other material shall be paid 6-55 to the authority by the lessee under the lease or the buyer under 6-56 the contract of sale. The authority shall apply those payments to 6-57 the satisfaction of the indebtedness. 6-58 Sec. 59.030. TERM OF LEASES. (a) A purchaser may not lease 6-59 land purchased with financial assistance under this chapter for a 6-60 term longer than 10 years, except: 6-61 (1) a lease for oil, gas, or other minerals may be for 6-62 a term of not longer than 10 years, and as long thereafter as oil, 6-63 gas, or other minerals are produced from the land in commercial 6-64 quantities; and 6-65 (2) a lease for coal and lignite may be for a term of 6-66 not longer than 40 years, and as long thereafter as coal and 6-67 lignite are produced from the land in commercial quantities. 6-68 (b) A lease or a separate instrument to take effect in the 6-69 future may not contain a provision for option or renewal of the 6-70 lease or re-lease of the property for any term that would result in 7-1 a fixed term of the lease that exceeds the maximum fixed term 7-2 authorized under Subsection (a) of this section. A lease or 7-3 instrument that contains an option renewal or re-lease agreement in 7-4 violation of this section is void. 7-5 Sec. 59.031. DEATH OF A BORROWER. (a) If a borrower 7-6 receiving financial assistance under this chapter dies while 7-7 indebted to the state under a contract, the borrower's rights under 7-8 this chapter and the contract devolve on the borrower's heirs, 7-9 devisees, or personal representatives under the laws of this state, 7-10 subject to all rights, claims, and charges of the authority. 7-11 (b) Default by an heir, devisee, or personal representative 7-12 with respect to a right, claim, or charge of the authority has the 7-13 same effect as default by the borrower before the borrower's death. 7-14 Sec. 59.032. UNENCUMBERED TITLE. The authority may 7-15 establish a procedure by which a borrower acquiring land with a 7-16 loan under this chapter may obtain title to a portion of the tract 7-17 clear of encumbrances. 7-18 (Sections 59.033-59.045 reserved for expansion 7-19 SUBCHAPTER D. OFFENSES; PENALTIES 7-20 Sec. 59.046. FALSE OR FICTITIOUS WRITTEN STATEMENT. (a) A 7-21 person commits an offense if the person knowingly or intentionally 7-22 makes, publishes, passes, files, or uses any false, fictitious, or 7-23 forged paper, document, contract, affidavit, application, 7-24 assignment, or other written instrument relating to the procurement 7-25 of financial assistance under this chapter or to the purchase, 7-26 sale, or resale of land under this chapter or in connection with 7-27 any transaction under this chapter. 7-28 (b) An offense under this section is a felony of the third 7-29 degree. 7-30 Sec. 59.047. FRAUD. (a) A person commits an offense if the 7-31 person defrauds a person of rights or benefits under this chapter 7-32 or uses this chapter to defraud the state by an act of fraud, 7-33 duress, deceit, coercion, or misrepresentation. 7-34 (b) An offense under this section is a felony of the third 7-35 degree. 7-36 SECTION 2. Chapter 163, Natural Resources Code, is repealed. 7-37 SECTION 3. Subchapter D, Chapter 59, Agriculture Code, as 7-38 added by this Act, applies only to an offense committed on or after 7-39 the effective date of this Act. For purposes of this section, an 7-40 offense is committed before the effective date of this Act if any 7-41 element of the offense occurs before the effective date. 7-42 SECTION 4. On the effective date of this Act, the powers, 7-43 duties, and obligations of the Veterans Land Board relating to the 7-44 Farm and Ranch Finance Program, other than administration of the 7-45 farm and ranch finance program fund, are transferred to the Texas 7-46 Agricultural Finance Authority, and the Veterans Land Board shall 7-47 transfer all property and records relating to the program in its 7-48 custody to the Texas Agricultural Finance Authority. 7-49 SECTION 5. This Act takes effect September 1, 1993. 7-50 SECTION 6. The importance of this legislation and the 7-51 crowded condition of the calendars in both houses create an 7-52 emergency and an imperative public necessity that the 7-53 constitutional rule requiring bills to be read on three several 7-54 days in each house be suspended, and this rule is hereby suspended. 7-55 * * * * * 7-56 Austin, 7-57 Texas 7-58 May 11, 1993 7-59 Hon. Bob Bullock 7-60 President of the Senate 7-61 Sir: 7-62 We, your Committee on Natural Resources to which was referred H.B. 7-63 No. 1684, have had the same under consideration, and I am 7-64 instructed to report it back to the Senate with the recommendation 7-65 that it do pass and be printed. 7-66 Sims, 7-67 Chairman 7-68 * * * * * 7-69 WITNESSES 7-70 FOR AGAINST ON 8-1 ___________________________________________________________________ 8-2 Name: Patrick Cox x 8-3 Representing: TX Farmers Union 8-4 City: Austin 8-5 ------------------------------------------------------------------- 8-6 FOR AGAINST ON 8-7 ___________________________________________________________________ 8-8 Name: Marvin Gregory x 8-9 Representing: E. TX Dairy Marketers Coop 8-10 City: Sulphur Springs 8-11 ------------------------------------------------------------------- 8-12 Name: Ed Shannon x 8-13 Representing: T.F.U. 8-14 City: Hico 8-15 ------------------------------------------------------------------- 8-16 Name: Lewis Vail x 8-17 Representing: Hopkins Co. Farmers Union 8-18 City: Piekton 8-19 ------------------------------------------------------------------- 8-20 Name: Joe Rankin x 8-21 Representing: TX Farmers Union 8-22 City: Ralls 8-23 ------------------------------------------------------------------- 8-24 Name: Robert Kennedy x 8-25 Representing: TX Dept of Agriculture 8-26 City: Austin 8-27 ------------------------------------------------------------------- 8-28 Name: Guy Finstad x 8-29 Representing: Agriculture Teachers 8-30 City: Austin 8-31 -------------------------------------------------------------------