By:  Johnson, Jerry                                   H.B. No. 1688
       73R3862 CAS-F
                                 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 and
   1-12  44.006 of this code <paying the principal of farm and ranch loan
   1-13  security bonds as they mature>;
   1-14              (2)  the grant program under Section 44.005 of this
   1-15  code <paying interest on the bonds as it comes due>; <and>
   1-16              (3)  the produce recovery fund under Chapter 103 of
   1-17  this code;
   1-18              (4)  a program administered by the department to reduce
   1-19  the use of pesticides in the production of agricultural crops; and
   1-20              (5)  the Texas-Israel Semi-Arid Fund under Chapter 45
   1-21  of this code <paying exchange and collection charges in connection
   1-22  with bonds>.
   1-23        <(b)  Except as otherwise provided by this subsection, the
   1-24  comptroller of public accounts shall credit accrued interest
    2-1  received in the sale of bonds and income from investments of the
    2-2  loan security fund and the interest and sinking fund to the
    2-3  interest and sinking fund.  If the accrued interest and income in
    2-4  any year exceeds the cost of paying principal and interest on farm
    2-5  and ranch loan security bonds and any exchange and collection
    2-6  charges, the comptroller shall transfer the amount in excess of
    2-7  those payments to the credit of the farm and ranch security fund
    2-8  for the purpose of financing payment adjustments.>
    2-9        <(c)  After all bonds have been paid, the comptroller shall
   2-10  transfer the balance of the interest and sinking fund to the credit
   2-11  of the farm and ranch loan security fund.>
   2-12        SECTION 2.  Section 252.083, Agriculture Code, is amended to
   2-13  read as follows:
   2-14        Sec. 252.083.  Investment of Funds.  <(a)>  The commissioner
   2-15  may invest the farm and ranch loan security fund as authorized by
   2-16  Chapter 401, Acts of the 60th Legislature, Regular Session, 1967
   2-17  (Article 6252-5a, Vernon's Texas Civil Statutes).  In accordance
   2-18  with that procedure, the commissioner may invest and direct the
   2-19  investment of the farm and ranch loan security fund in any general
   2-20  or special obligations of this state or any of its political
   2-21  subdivisions, authorities, agencies, or political corporations or
   2-22  in the general or special obligations of any other state or its
   2-23  subdivisions, agencies, or authorities.
   2-24        <(b)  The commissioner may invest the interest and sinking
   2-25  fund only in direct obligations of the United States, certificates
   2-26  of deposit in Texas banks, or in obligations the principal and
   2-27  interest of which are guaranteed by the United States.>
    3-1        SECTION 3.  The importance of this legislation and the
    3-2  crowded condition of the calendars in both houses create an
    3-3  emergency and an imperative public necessity that the
    3-4  constitutional rule requiring bills to be read on three several
    3-5  days in each house be suspended, and this rule is hereby suspended,
    3-6  and that this Act take effect and be in force from and after its
    3-7  passage, and it is so enacted.