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.