1-1  By:  Harris of Dallas                                 S.B. No. 1089
    1-2        (In the Senate - Filed March 12, 1993; March 15, 1993, read
    1-3  first time and referred to Committee on Finance; April 22, 1993,
    1-4  reported adversely, with favorable Committee Substitute by the
    1-5  following vote:  Yeas 12, Nays 0; April 22, 1993, sent to printer.)
    1-6                            COMMITTEE VOTE
    1-7                          Yea     Nay      PNV      Absent 
    1-8        Montford           x                               
    1-9        Turner             x                               
   1-10        Armbrister         x                               
   1-11        Barrientos         x                               
   1-12        Bivins             x                               
   1-13        Ellis              x                               
   1-14        Haley                                          x   
   1-15        Moncrief           x                               
   1-16        Parker             x                               
   1-17        Ratliff            x                               
   1-18        Sims               x                               
   1-19        Truan              x                               
   1-20        Zaffirini          x                               
   1-21  COMMITTEE SUBSTITUTE FOR S.B. No. 1089                  By:  Bivins
   1-22                         A BILL TO BE ENTITLED
   1-23                                AN ACT
   1-24  relating to the farm and ranch loan security fund.
   1-25        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-26        SECTION 1.  Section 252.082, Agriculture Code, is amended to
   1-27  read as follows:
   1-28        Sec. 252.082.  USE OF FUND INCOME <INTEREST AND SINKING
   1-29  FUND>.  <(a)>  The commissioner shall use the income from the
   1-30  <interest and sinking fund for> farm and ranch loan security fund
   1-31  <bonds is created to be used exclusively> for the following
   1-32  purposes:
   1-33              (1)  the grant programs under Sections 44.004, 44.005,
   1-34  and 44.006 of this code, in an amount not to exceed $350,000
   1-35  <paying the principal of farm and ranch loan security bonds as they
   1-36  mature>;
   1-37              (2)  the produce recovery fund under Chapter 103 of
   1-38  this code, in an amount not to exceed $200,000 <paying interest on
   1-39  the bonds as it comes due>; <and>
   1-40              (3)  the farm and ranch finance program fund,
   1-41  established by Article III, Section 49-f, of the Texas
   1-42  Constitution, in an amount not to exceed $700,000;
   1-43              (4)  the Texas-Israel Semi-Arid Fund under Chapter 45
   1-44  of this code, in an amount not to exceed $150,000; and
   1-45              (5)  a program administered by the department to reduce
   1-46  the use of pesticides in the production of agricultural crops, in
   1-47  an amount not to exceed the income balance from the farm and ranch
   1-48  loan security fund, less any required reserves <paying exchange and
   1-49  collection charges in connection with bonds>.
   1-50        <(b)  Except as otherwise provided by this subsection, the
   1-51  comptroller of public accounts shall credit accrued interest
   1-52  received in the sale of bonds and income from investments of the
   1-53  loan security fund and the interest and sinking fund to the
   1-54  interest and sinking fund.  If the accrued interest and income in
   1-55  any year exceeds the cost of paying principal and interest on farm
   1-56  and ranch loan security bonds and any exchange and collection
   1-57  charges, the comptroller shall transfer the amount in excess of
   1-58  those payments to the credit of the farm and ranch security fund
   1-59  for the purpose of financing payment adjustments.>
   1-60        <(c)  After all bonds have been paid, the comptroller shall
   1-61  transfer the balance of the interest and sinking fund to the credit
   1-62  of the farm and ranch loan security fund.>
   1-63        SECTION 2.  Section 252.083, Agriculture Code, is amended to
   1-64  read as follows:
   1-65        Sec. 252.083.  Investment of Funds.  <(a)>  The commissioner
   1-66  may invest the farm and ranch loan security fund as authorized by
   1-67  Chapter 401, Acts of the 60th Legislature, Regular Session, 1967
   1-68  (Article 6252-5a, Vernon's Texas Civil Statutes).  In accordance
    2-1  with that procedure, the commissioner may invest and direct the
    2-2  investment of the farm and ranch loan security fund in any general
    2-3  or special obligations of this state or any of its political
    2-4  subdivisions, authorities, agencies, or political corporations or
    2-5  in the general or special obligations of any other state or its
    2-6  subdivisions, agencies, or authorities.
    2-7        <(b)  The commissioner may invest the interest and sinking
    2-8  fund only in direct obligations of the United States, certificates
    2-9  of deposit in Texas banks, or in obligations the principal and
   2-10  interest of which are guaranteed by the United States.>
   2-11        SECTION 3.  The importance of this legislation and the
   2-12  crowded condition of the calendars in both houses create an
   2-13  emergency and an imperative public necessity that the
   2-14  constitutional rule requiring bills to be read on three several
   2-15  days in each house be suspended, and this rule is hereby suspended,
   2-16  and that this Act take effect and be in force from and after its
   2-17  passage, and it is so enacted.
   2-18                               * * * * *
   2-19                                                         Austin,
   2-20  Texas
   2-21                                                         April 22, 1993
   2-22  Hon. Bob Bullock
   2-23  President of the Senate
   2-24  Sir:
   2-25  We, your Committee on Finance to which was referred S.B. No. 1089,
   2-26  have had the same under consideration, and I am instructed to
   2-27  report it back to the Senate with the recommendation that it do not
   2-28  pass, but that the Committee Substitute adopted in lieu thereof do
   2-29  pass and be printed.
   2-30                                                         Montford,
   2-31  Chairman
   2-32                               * * * * *
   2-33                               WITNESSES
   2-34                                                  FOR   AGAINST  ON
   2-35  ___________________________________________________________________
   2-36  Name:  Margaret Spearman                                       x
   2-37  Representing:  Tx Dept of Agriculture
   2-38  City:  Austin
   2-39  -------------------------------------------------------------------
   2-40  Name:  Barry McBee                                             x
   2-41  Representing:  Tx Dept of Agriculture
   2-42  City:  Austin
   2-43  -------------------------------------------------------------------
   2-44  Name:  Robert Kennedy                                          x
   2-45  Representing:  Tx Dept of Agriculture
   2-46  City:  Austin
   2-47  -------------------------------------------------------------------
   2-48  Name:  David A. Lutrell                                        x
   2-49  Representing:  Tx Dept of Agriculture
   2-50  City:  Austin
   2-51  -------------------------------------------------------------------