73R10501 T
          By Harris of Dallas                                   S.B. No. 1089
          Substitute the following for S.B. No. 1089:
          By Johnson                                        C.S.S.B. No. 1089
                                 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 shall 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 the following
   1-10  purposes:
   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 $237,000 <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
   1-20  Constitution, in an amount not to exceed $600,000;
   1-21              (4)  the Texas-Israel Semi-Arid Fund under Chapter 45
   1-22  of this code, in an amount not to exceed $250,000;
   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 $400,000; and
    2-2              (6)  the program for the benefit of young farmers under
    2-3  Chapter 253 of this code, in an amount not to exceed the income
    2-4  balance from the farm and ranch loan security fund <paying exchange
    2-5  and collection charges in connection with bonds>.
    2-6        <(b)  Except as otherwise provided by this subsection, the
    2-7  comptroller of public accounts shall credit accrued interest
    2-8  received in the sale of bonds and income from investments of the
    2-9  loan security fund and the interest and sinking fund to the
   2-10  interest and sinking fund.  If the accrued interest and income in
   2-11  any year exceeds the cost of paying principal and interest on farm
   2-12  and ranch loan security bonds and any exchange and collection
   2-13  charges, the comptroller shall transfer the amount in excess of
   2-14  those payments to the credit of the farm and ranch security fund
   2-15  for the purpose of financing payment adjustments.>
   2-16        <(c)  After all bonds have been paid, the comptroller shall
   2-17  transfer the balance of the interest and sinking fund to the credit
   2-18  of the farm and ranch loan security fund.>
   2-19        SECTION 2.  Section 252.083, Agriculture Code, is amended to
   2-20  read as follows:
   2-21        Sec. 252.083.  Investment of Funds.  <(a)>  The commissioner
   2-22  may invest the farm and ranch loan security fund as authorized by
   2-23  Chapter 401, Acts of the 60th Legislature, Regular Session, 1967
   2-24  (Article 6252-5a, Vernon's Texas Civil Statutes).  In accordance
   2-25  with that procedure, the commissioner may invest and direct the
   2-26  investment of the farm and ranch loan security fund in any general
   2-27  or special obligations of this state or any of its political
    3-1  subdivisions, authorities, agencies, or political corporations or
    3-2  in the general or special obligations of any other state or its
    3-3  subdivisions, agencies, or authorities.
    3-4        <(b)  The commissioner may invest the interest and sinking
    3-5  fund only in direct obligations of the United States, certificates
    3-6  of deposit in Texas banks, or in obligations the principal and
    3-7  interest of which are guaranteed by the United States.>
    3-8        SECTION 3.  The importance of this legislation and the
    3-9  crowded condition of the calendars in both houses create an
   3-10  emergency and an imperative public necessity that the
   3-11  constitutional rule requiring bills to be read on three several
   3-12  days in each house be suspended, and this rule is hereby suspended,
   3-13  and that this Act take effect and be in force from and after its
   3-14  passage, and it is so enacted.