By Johnson H.B. No. 1688
Substitute the following for H.B. No. 1688:
By Cuellar of Hidalgo C.S.H.B. No. 1688
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the farm and ranch loan security fund.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 252.082, Agriculture Code, is amended to
1-5 read as follows:
1-6 Sec. 252.082. Use of Fund Income <Interest and Sinking
1-7 Fund>. <(a)> The commissioner may use the income from the
1-8 <interest and sinking fund for> farm and ranch loan security fund
1-9 <bonds is created to be used exclusively> for purposes that benefit
1-10 agriculture, including support of:
1-11 (1) the grant programs under Sections 44.004, 44.005,
1-12 and 44.006 of this code, in an amount not to exceed $350,000
1-13 <paying the principal of farm and ranch loan security bonds as they
1-14 mature>;
1-15 (2) the produce recovery fund under Chapter 103 of
1-16 this code, in an amount not to exceed $200,000 <paying interest on
1-17 the bonds as it comes due>; <and>
1-18 (3) the Farm and Ranch Finance Program Fund,
1-19 established by Article III, Section 49-f of the Texas Constitution,
1-20 in amount not to exceed $700,000;
1-21 (4) the Texas-Israel Semi-Arid Fund under Chapter 45
1-22 of this code, in an amount not to exceed $150,000; and
1-23 (5) a program administered by the department to reduce
1-24 the use of pesticides in the production of agricultural crops, in
2-1 an amount not to exceed the income balance from the farm and ranch
2-2 loan security fund, less any required reserves <paying exchange and
2-3 collection charges in connection with bonds>.
2-4 <(b) Except as otherwise provided by this subsection, the
2-5 comptroller of public accounts shall credit accrued interest
2-6 received in the sale of bonds and income from investments of the
2-7 loan security fund and the interest and sinking fund to the
2-8 interest and sinking fund. If the accrued interest and income in
2-9 any year exceeds the cost of paying principal and interest on farm
2-10 and ranch loan security bonds and any exchange and collection
2-11 charges, the comptroller shall transfer the amount in excess of
2-12 those payments to the credit of the farm and ranch security fund
2-13 for the purpose of financing payment adjustments.>
2-14 <(c) After all bonds have been paid, the comptroller shall
2-15 transfer the balance of the interest and sinking fund to the credit
2-16 of the farm and ranch loan security fund.>
2-17 SECTION 2. Section 252.083, Agriculture Code, is amended to
2-18 read as follows:
2-19 Sec. 252.083. Investment of Funds. <(a)> The commissioner
2-20 may invest the farm and ranch loan security fund as authorized by
2-21 Chapter 401, Acts of the 60th Legislature, Regular Session, 1967
2-22 (Article 6252-5a, Vernon's Texas Civil Statutes). In accordance
2-23 with that procedure, the commissioner may invest and direct the
2-24 investment of the farm and ranch loan security fund in any general
2-25 or special obligations of this state or any of its political
2-26 subdivisions, authorities, agencies, or political corporations or
2-27 in the general or special obligations of any other state or its
3-1 subdivisions, agencies, or authorities.
3-2 <(b) The commissioner may invest the interest and sinking
3-3 fund only in direct obligations of the United States, certificates
3-4 of deposit in Texas banks, or in obligations the principal and
3-5 interest of which are guaranteed by the United States.>
3-6 SECTION 3. The importance of this legislation and the
3-7 crowded condition of the calendars in both houses create an
3-8 emergency and an imperative public necessity that the
3-9 constitutional rule requiring bills to be read on three several
3-10 days in each house be suspended, and this rule is hereby suspended,
3-11 and that this Act take effect and be in force from and after its
3-12 passage, and it is so enacted.