1-1 By: Montford S.J.R. No. 51
1-2 (In the Senate - Filed March 10, 1995; March 15, 1995, read
1-3 first time and referred to Committee on Finance; April 20, 1995,
1-4 reported favorably by the following vote: Yeas 11, Nays 0;
1-5 April 20, 1995, sent to printer.)
1-6 SENATE JOINT RESOLUTION
1-7 proposing a constitutional amendment consolidating general
1-8 obligation bonding authority for certain agricultural funds.
1-9 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10 SECTION 1. Section 49-i, Article III, Texas Constitution, is
1-11 amended to read as follows:
1-12 Sec. 49-i. (a) The legislature by law may provide for the
1-13 issuance of general obligation bonds of the state for the purpose
1-14 of providing money to establish a Texas agricultural fund in the
1-15 state treasury to be used without further appropriation in the
1-16 manner provided by law, for the purpose of providing money to
1-17 establish a farm and ranch finance program fund in the state
1-18 treasury to be used without further appropriation in the manner
1-19 provided by law, <and> for the purpose of providing money to
1-20 establish a rural microenterprise development fund in the state
1-21 treasury to be used without further appropriation in the manner
1-22 provided by law, and for the purpose of refunding any bonds
1-23 described by Subsection (e) of this section. The Texas
1-24 agricultural fund shall be used only to provide financial
1-25 assistance to develop, increase, improve, or expand the production,
1-26 processing, marketing, or export of crops or products grown or
1-27 produced primarily in this state by agricultural businesses
1-28 domiciled in the state and to pay the costs of administration of
1-29 the fund. The farm and ranch finance program fund shall be used
1-30 only to make loans and provide other financing assistance for the
1-31 purchase of farm and ranch land and to pay the costs of
1-32 administration of the fund. The rural microenterprise development
1-33 fund shall be used only in furtherance of a program established by
1-34 the legislature to foster and stimulate the creation and expansion
1-35 of small businesses in rural areas and to pay the costs of
1-36 administration of the fund. The financial assistance offered by
1-37 all <both> funds established under this subsection may include loan
1-38 guarantees, insurance, coinsurance, loans, and indirect loans or
1-39 purchases or acceptances of assignments of loans or other
1-40 obligations.
1-41 (b) The principal amount of bonds outstanding at one time
1-42 may not exceed $530 <$25> million <for the Texas agricultural fund
1-43 and $5 million for the rural microenterprise development fund>.
1-44 (c) The legislature may establish an interest and sinking
1-45 account and other accounts within the Texas agricultural fund,
1-46 within the farm and ranch finance program fund, and within the
1-47 rural microenterprise development fund. The legislature may
1-48 provide for the investment of bond proceeds and of the separate
1-49 funds <interest and sinking> accounts. The legislature may also
1-50 authorize bond enhancement agreements with respect to principal of
1-51 and interest on the bonds. Income from the investment of money in
1-52 the funds that is not immediately committed to the payment of the
1-53 principal of and interest on the bonds or the provision of
1-54 financial assistance may <shall> be used to enhance agricultural
1-55 resource management research and create new employment and business
1-56 opportunities in the state through the diversification and
1-57 expansion of agricultural or rural small businesses, as provided by
1-58 the legislature.
1-59 (d) Bonds authorized under this section constitute a general
1-60 obligation of the state. While any of the bonds or interest on the
1-61 bonds is outstanding and unpaid, or while any amount is owing
1-62 under any bond enhancement agreements with respect to principal of
1-63 and interest on such bonds, there is appropriated out of the first
1-64 money coming into the treasury in each fiscal year, not otherwise
1-65 appropriated by this constitution, the amount sufficient to pay the
1-66 principal of and interest on the bonds that mature or become due
1-67 during the fiscal year, including the amount sufficient to make
1-68 payments under a bond enhancement agreement with respect to
2-1 principal of and interest on the bonds during such fiscal year,
2-2 less any amounts in the interest and sinking accounts at the close
2-3 of the preceding fiscal year that are pledged to payment of the
2-4 bonds or interest.
2-5 (e) The bonds authorized under Subsection (a) of this
2-6 section may be used to refund bonds issued under Section 49-f of
2-7 this article as that section existed before January 1, 1996.
2-8 Outstanding bonds issued under that section:
2-9 (1) are included in the limitation imposed by
2-10 Subsection (b) of this section;
2-11 (2) remain general obligation bonds of this state;
2-12 (3) are payable under the same terms as provided at
2-13 issuance;
2-14 (4) remain available for the same purposes for which
2-15 they were issued except that the legislature may provide for the
2-16 administration of the fund in which the proceeds of the bonds were
2-17 deposited; and
2-18 (5) are incontestable despite the repeal of that
2-19 section.
2-20 SECTION 2. Section 49-f, Article III, Texas Constitution, is
2-21 repealed.
2-22 SECTION 3. The following temporary provision is added to
2-23 the Texas Constitution:
2-24 TEMPORARY PROVISION. (a) This temporary provision applies
2-25 to the constitutional amendment proposed by the 74th Legislature,
2-26 Regular Session, 1995, that consolidates general obligation bonding
2-27 authority for agricultural funds.
2-28 (b) The amendment to Section 49-i, Article III, of this
2-29 constitution and the repeal of Section 49-f, Article III, of this
2-30 constitution take effect January 1, 1996.
2-31 (c) This provision expires January 2, 1996.
2-32 SECTION 4. This proposed constitutional amendment shall be
2-33 submitted to the voters at an election to be held November 7, 1995.
2-34 The ballot shall be printed to permit voting for or against the
2-35 proposition: "The constitutional amendment to consolidate the
2-36 bonding authority for the farm and ranch finance program fund with
2-37 the bonding authority for the Texas agricultural fund and the
2-38 rural microenterprise development fund and to provide for enhanced
2-39 agricultural resource management research."
2-40 * * * * *