By: Montford S.J.R. No. 51
SENATE JOINT RESOLUTION
1-1 proposing a constitutional amendment consolidating general
1-2 obligation bonding authority for certain agricultural funds.
1-3 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 49-i, Article III, Texas Constitution, is
1-5 amended to read as follows:
1-6 Sec. 49-i. (a) The legislature by law may provide for the
1-7 issuance of general obligation bonds of the state for the purpose
1-8 of providing money to establish a Texas agricultural fund in the
1-9 state treasury to be used without further appropriation in the
1-10 manner provided by law, for the purpose of providing money to
1-11 establish a farm and ranch finance program fund in the state
1-12 treasury to be used without further appropriation in the manner
1-13 provided by law, <and> for the purpose of providing money to
1-14 establish a rural microenterprise development fund in the state
1-15 treasury to be used without further appropriation in the manner
1-16 provided by law, and for the purpose of refunding any bonds
1-17 described by Subsection (e) of this section. The Texas
1-18 agricultural fund shall be used only to provide financial
1-19 assistance to develop, increase, improve, or expand the production,
1-20 processing, marketing, or export of crops or products grown or
1-21 produced primarily in this state by agricultural businesses
1-22 domiciled in the state and to pay the costs of administration of
1-23 the fund. The farm and ranch finance program fund shall be used
1-24 only to make loans and provide other financing assistance for the
2-1 purchase of farm and ranch land and to pay the costs of
2-2 administration of the fund. The rural microenterprise development
2-3 fund shall be used only in furtherance of a program established by
2-4 the legislature to foster and stimulate the creation and expansion
2-5 of small businesses in rural areas and to pay the costs of
2-6 administration of the fund. The financial assistance offered by
2-7 all <both> funds established under this subsection may include loan
2-8 guarantees, insurance, coinsurance, loans, and indirect loans or
2-9 purchases or acceptances of assignments of loans or other
2-10 obligations.
2-11 (b) The principal amount of bonds outstanding at one time
2-12 may not exceed $530 <$25> million <for the Texas agricultural fund
2-13 and $5 million for the rural microenterprise development fund>.
2-14 (c) The legislature may establish an interest and sinking
2-15 account and other accounts within the Texas agricultural fund,
2-16 within the farm and ranch finance program fund, and within the
2-17 rural microenterprise development fund. The legislature may
2-18 provide for the investment of bond proceeds and of the separate
2-19 funds <interest and sinking> accounts. The legislature may also
2-20 authorize bond enhancement agreements with respect to principal of
2-21 and interest on the bonds. Income from the investment of money in
2-22 the funds that is not immediately committed to the payment of the
2-23 principal of and interest on the bonds or the provision of
2-24 financial assistance may <shall> be used to enhance agricultural
2-25 resource management research and create new employment and business
2-26 opportunities in the state through the diversification and
2-27 expansion of agricultural or rural small businesses, as provided by
3-1 the legislature.
3-2 (d) Bonds authorized under this section constitute a general
3-3 obligation of the state. While any of the bonds or interest on the
3-4 bonds is outstanding and unpaid, or while any amount is owing
3-5 under any bond enhancement agreements with respect to principal of
3-6 and interest on such bonds, there is appropriated out of the first
3-7 money coming into the treasury in each fiscal year, not otherwise
3-8 appropriated by this constitution, the amount sufficient to pay the
3-9 principal of and interest on the bonds that mature or become due
3-10 during the fiscal year, including the amount sufficient to make
3-11 payments under a bond enhancement agreement with respect to
3-12 principal of and interest on the bonds during such fiscal year,
3-13 less any amounts in the interest and sinking accounts at the close
3-14 of the preceding fiscal year that are pledged to payment of the
3-15 bonds or interest.
3-16 (e) The bonds authorized under Subsection (a) of this
3-17 section may be used to refund bonds issued under Section 49-f of
3-18 this article as that section existed before January 1, 1996.
3-19 Outstanding bonds issued under that section:
3-20 (1) are included in the limitation imposed by
3-21 Subsection (b) of this section;
3-22 (2) remain general obligation bonds of this state;
3-23 (3) are payable under the same terms as provided at
3-24 issuance;
3-25 (4) remain available for the same purposes for which
3-26 they were issued except that the legislature may provide for the
3-27 administration of the fund in which the proceeds of the bonds were
4-1 deposited; and
4-2 (5) are incontestable despite the repeal of that
4-3 section.
4-4 SECTION 2. Section 49-f, Article III, Texas Constitution, is
4-5 repealed.
4-6 SECTION 3. The following temporary provision is added to
4-7 the Texas Constitution:
4-8 TEMPORARY PROVISION. (a) This temporary provision applies
4-9 to the constitutional amendment proposed by the 74th Legislature,
4-10 Regular Session, 1995, that consolidates general obligation bonding
4-11 authority for agricultural funds.
4-12 (b) The amendment to Section 49-i, Article III, of this
4-13 constitution and the repeal of Section 49-f, Article III, of this
4-14 constitution take effect January 1, 1996.
4-15 (c) This provision expires January 2, 1996.
4-16 SECTION 4. This proposed constitutional amendment shall be
4-17 submitted to the voters at an election to be held November 7, 1995.
4-18 The ballot shall be printed to permit voting for or against the
4-19 proposition: "The constitutional amendment to consolidate the
4-20 bonding authority for the farm and ranch finance program fund with
4-21 the bonding authority for the Texas agricultural fund and the
4-22 rural microenterprise development fund and to provide for enhanced
4-23 agricultural resource management research."