BILL ANALYSIS H.J.R. 92 By: Patterson 04-21-95 Committee Report (Amended) BACKGROUND In 1993 legislation was passed that set up the administration of the Farm and Ranch Finance Program in the Texas Department of Agriculture (TDA). The purpose of the program is to provide affordable financing to eligible farmers and ranchers in order to purchase land for a base of operation. The program is funded by $500 million of general obligation bonds. TDA administrators do not expect the demand for loans to reach $500 million. The TDA administers the Texas Agricultural Finance Authority that was created in 1987. The Authority has $25 million in general obligation bonds and $500 million in revenue bonds, the proceeds of which are deposited in the Texas Agricultural Fund. The Authority has issued the general obligation bonds and is in the process of issuing the revenue bonds. The Authority has been successful in providing financial assistance for the expansion, development and diversification of production, processing, marketing and export of Texas agricultural products. The demand for assistance from the Authority continues to be high. PURPOSE H.J.R. 92 expands the use of bond proceeds of the farm and ranch finance program to include diversifying the production, processing, marketing and export of Texas agricultural products and other rural economic development programs. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Section 49-f, Article III, Texas Constitution, is amended by adding Subsection (g). (g) Authorizes the use of the proceeds of $200 million of the Farm and Ranch Land bonds to be deposited in the Texas Agricultural Fund to provide financial assistance to develop, increase, improve, or expand the production, processing, marketing, or export of crops or products grown or produced primarily in this state by Texas agricultural businesses. SECTION 2. Sets forth that this proposed constitutional amendment shall be submitted to the voters on November 7, 1995. Sets forth the wording of the proposition. EXPLANATION OF AMENDMENTS The amendment rewords the proposition to include rural economic development as an authorized use of the farm and ranch finance program. SUMMARY OF COMMITTEE ACTION H.J.R. 92 was considered by the committee in a public hearing on Tuesday, April 4, 1995. The committee considered one amendment to the bill. The amendment was adopted without objection. The bill was reported favorably as amended, with the recommendation that it do pass and be printed, by a record vote of 7 ayes, 0 nays, 0 pnv, and 2 absent.