C.S.S.B. 1260
By: Montford (Patterson)
Committee Report (Substituted)


CSSB 1260 is enabling legislation for CSSJR 51.  CSSJR 51 provides
that $200 million of the $500 million authorization for the Farm
and Ranch Finance Program may be used for the same purposes as the
Texas Agricultural Finance Authority which has an authorization cap
of $25 million.


CSSB 1260 allows the Texas Agricultural Fund of the Texas Finance
Authority to receive proceeds of more than $25 million.  While the
cap on TAFA still remains technically in place, for clarification,
the fund needs to be able to receive proceeds of the Farm and Ranch
authorization.  The legislation also allows for the creation of
"other rural economic development programs" as provided by CSSJR
51.  Finally, the bill removes fund administration from the
Veteran's Land Board to TAFA, for the Farm and Ranch loan guarantee
program funds.


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 1.  Amends Section 58.021 of the Agriculture Code to
authorize the Texas Agricultural Finance Authority and Board to
design and implement other rural economic development programs.

Section 2.  Amends Sections 58.031(a), (c), and (e), of the
Agriculture Code to:
     (a)   provide for the establishment of the Texas Agricultural
Fund and the Rural       Microenterprise Fund;

     (c)   to remove the cap on what the fund may receive in
proceeds; and

     (e)   remove the cap to the fund originally established from     the microenterprise           program.

Section 3.  Amends section 59.001(2) of the Agriculture Code to
comply with the TAFA Board administration of the Farm and Ranch
Guarantee Loan bond authorization rather than the Veteran's Land

Section 4.  Amends 59.002(b) of the Agriculture Code to the TAFA
Board administration of the fund.

Sections 5 and 6.  Amend Chapters 58 and 59 to make language
compatible with previous amendments.

Section 7.  Amends Section 59.012 of the Agriculture Code for
language compatibility and to provide for constitutionally
authorized bond proceeds to be administered in the same manner as
Chapter 58.

Sections 8-20.  Amend Chapters 58 and 59 of the Agriculture Code to
make language changes compatible with earlier amendments relating
to investment of funds by the Veteran's Land Board, to delete
investment language regarding the VLB, and to provide for payment
of administrative costs.

Section 21.  Effective date, January 1, 1996, contingent on passage
of SJR 51.

Section 22.  Emergency clause.


CSSB 1260 makes substantial changes to the original in the
following areas:

1.   The substitute provides for the establishment of other rural
economic development programs as a mission for the Farm and Ranch
Guaranteed Loan Program, The Texas Agricultural Finance Authority
and the Texas Agriculture Fund.

2.   The substitute provides for investment of the constitutionally
authorized $200 million dollars of the Farm and Ranch funds rather
than the original total authorization initially established for the
farm and ranch fund.

3.   The substitute amends the appropriate statute and language
compatible with CSSJR 51.


The committee considered SB 1260 in a formal meeting on May 19,

The Chair offered a complete committee substitute for the bill
which was adopted without objection.

The bill was reported favorably as substituted, with the
recommendation that it do pass and be printed, by a record vote of: 
5 Ayes, 0 Nays, 0 PNV, 4 Absent.