Text: H01435                            Text: H01437
Text: H01400 - H01499                   Text: H Index
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House Amendment 1436

Amendment Text

PAG LIN
  1  1    Amend House File 613 as follows:
  1  2    #1.  By striking page 1, line 1, through page 5,
  1  3 line 18, and inserting the following:
  1  4    "Sec.    .  Section 12.32, subsection 1, Code 1997,
  1  5 is amended to read as follows:
  1  6    1.  "Eligible borrower" means any person who is in
  1  7 the business or is entering the business of producing,
  1  8 processing, or marketing horticultural crops or
  1  9 nontraditional crops in this state or any person in
  1 10 this state who is qualified to participate in one of
  1 11 the programs in this division.  "Eligible borrower"
  1 12 does not include a person who has been determined to
  1 13 be delinquent in making child support payments or any
  1 14 other payments due the state.
  1 15    Sec.    .  Section 12.32, subsection 3, Code 1997,
  1 16 is amended to read as follows:
  1 17    3.  "Linked investment" means a certificate of
  1 18 deposit placed pursuant to this division by the
  1 19 treasurer of state with an eligible lending
  1 20 institution, at an interest rate not more than three
  1 21 percent below current market rates rate on the
  1 22 condition that the institution agrees to lend the
  1 23 value of the deposit, according to the investment
  1 24 agreement provided in section 12.35, to an eligible
  1 25 borrower at a rate not to exceed four percent above
  1 26 the rate paid on the certificate of deposit.  The
  1 27 treasurer of state shall determine and make available
  1 28 the current market rate which shall be used each
  1 29 month.
  1 30    Sec.    .  Section 12.33, Code 1997, is amended to
  1 31 read as follows:
  1 32    12.33  LEGISLATIVE FINDINGS AND INTENT – PURPOSE
  1 33 PUBLIC POLICY.
  1 34    1.  The general assembly finds the following:
  1 35    a.  That many horticultural operations throughout
  1 36 the state are experiencing economic stagnation or
  1 37 decline.
  1 38    b.  That high interest rates have caused
  1 39 potentially viable operations to cease or not expand
  1 40 in the area of horticultural or nontraditional crop
  1 41 production, processing, or marketing.
  1 42    2.  The It is the public policy of this state that
  1 43 a linked investments for tomorrow program provided for
  1 44 in this division is intended be established to provide
  1 45 statewide availability of lower cost funds for lending
  1 46 purposes that will inject needed capital into the
  1 47 business of, and stimulate existing or encourage new
  1 48 businesses in, the area of producing, processing, or
  1 49 marketing horticultural or nontraditional crops.
  1 50    3.  It is the public policy of the state through
  2  1 the linked investments for tomorrow program to create
  2  2 an availability of lower cost funds to inject needed
  2  3 capital into the business of producing, processing, or
  2  4 marketing horticultural crops or nontraditional crops.
  2  5    Sec.    .  Section 12.34, subsection 1, Code 1997,
  2  6 is amended to read as follows:
  2  7    1.  The treasurer of state may invest up to the
  2  8 lesser of sixty-five million dollars or ten percent of
  2  9 the balance of the state pooled money fund in
  2 10 certificates of deposit in eligible lending
  2 11 institutions pursuant to this division.
  2 12    Sec.    .  Section 12.40, subsection 3, Code 1997,
  2 13 is amended to read as follows:
  2 14    3.  In order to qualify as an eligible borrower,
  2 15 the rural small business must be located in a city
  2 16 with a population of five thousand or less.  A rural
  2 17 small business located in a city located in a county
  2 18 with a population in excess of three one hundred
  2 19 thousand, if the city is contiguous to another city in
  2 20 the county and that other city is contiguous to the
  2 21 largest city in that county, shall be ineligible to
  2 22 qualify as a borrower.  In order to qualify under this
  2 23 program, all owners of the business or borrowers must
  2 24 not have a combined net worth exceeding five hundred
  2 25 thousand dollars as defined in rules adopted by the
  2 26 treasurer of state pursuant to chapter 17A and the
  2 27 rural small business must meet all of the following
  2 28 criteria:
  2 29    a.  Be a for-profit business under a single
  2 30 management.
  2 31    b.  Have annual sales of two million dollars or
  2 32 less.
  2 33    c.  Not be operated out of the home of any person,
  2 34 unless the person is eligible for a deduction on
  2 35 federal income taxes pursuant to 26 U.S.C. } 280A.
  2 36    d.  Not involve real estate investments, rental of
  2 37 real estate, leasing of real estate, or real estate
  2 38 speculation.
  2 39    e.  Not provide the services of persons practicing
  2 40 medicine and surgery pursuant to chapter 148,
  2 41 dentistry pursuant to chapter 153, chiropractic
  2 42 pursuant to chapter 151, optometry pursuant to chapter
  2 43 154, osteopathic medicine and surgery pursuant to
  2 44 chapter 150A, podiatry pursuant to chapter 149,
  2 45 psychology pursuant to chapter 154B, or law pursuant
  2 46 to section 602.10101 et seq.
  2 47    f.  Liquor, beer, and wine sales must not exceed
  2 48 twenty percent of annual sales.
  2 49    Sec. __.  Section 12.40, subsection 4, Code 1997,
  2 50 is amended to read as follows:
  3  1    4.  In order to qualify as an eligible borrower,
  3  2 the transfer of the rural small business must be by
  3  3 purchase, lease-purchase, or contract of sale.  The
  3  4 purchase must be for a portion of the business which
  3  5 is essential to its continued viability, including
  3  6 real estate where the business is located, fixtures
  3  7 attached to the real estate, equipment, supplies, and
  3  8 machinery relied upon by the business, and inventory
  3  9 for sale by the business.
  3 10    Sec.    .  Section 12.40, subsection 7, Code 1997,
  3 11 is amended to read as follows:
  3 12    7.  The During the lifetime of this loan program,
  3 13 the maximum loan amount of assistance that a an
  3 14 eligible borrower or a business may receive under
  3 15 through this loan program shall be fifty thousand
  3 16 dollars.  An eligible borrower or business under this
  3 17 program shall be limited to one loan from one
  3 18 financial institution.
  3 19    Sec.    .  Section 12.41, subsection 1, Code 1997,
  3 20 is amended to read as follows:
  3 21    1.  In order to qualify as an eligible borrower,
  3 22 the loan application shall must be for the purchase or
  3 23 lease of land, machinery, equipment, or the purchase
  3 24 of other inputs used in the business of producing,
  3 25 processing, or marketing horticultural or
  3 26 nontraditional crops as defined in rules adopted by
  3 27 the treasurer.
  3 28    Sec.    .  Section 12.41, subsection 3, Code 1997,
  3 29 is amended to read as follows:
  3 30    3.  The maximum loan amount of assistance that an
  3 31 eligible borrower or business may receive under during
  3 32 the lifetime of this program is two hundred thousand
  3 33 dollars for a production loan and five hundred
  3 34 thousand dollars for processing or marketing
  3 35 facilities.  An eligible borrower or business under
  3 36 this program shall be limited to one loan from one
  3 37 financial institution.
  3 38    Sec.    .  Section 12.43, Code 1997, is amended to
  3 39 read as follows:
  3 40    12.43  TARGETED FOCUSED SMALL BUSINESS LINKED
  3 41 INVESTMENTS PROGRAM CREATED – DEFINITIONS.
  3 42    The treasurer of state shall adopt rules to
  3 43 implement a targeted focused small business linked
  3 44 investments program to increase the availability of
  3 45 lower cost funds to inject needed capital into small
  3 46 businesses owned and operated by women or minorities,
  3 47 which is the public policy of the state.  The rules
  3 48 shall be in accordance with the following:
  3 49    1.  "Targeted small business" means a business as
  3 50 defined in section 15.102, subsection 5.
  4  1    2.  A linked investment shall only be approved in
  4  2 connection with a loan application for a targeted
  4  3 small business which has been certified pursuant to
  4  4 section 10A.104, subsection 8.
  4  5    1.  As used in this section:
  4  6    a.  "Focused small business" means a new small
  4  7 business which is one hundred percent owned, operated,
  4  8 and actively managed by one or more women, minority
  4  9 persons, or persons with a disability, provided the
  4 10 business meets all the requirements of subsection 5.
  4 11    b.  "Disability" is defined as provided in section
  4 12 15.102, subsection 5.
  4 13    c.  "Major life activity" is defined as provided in
  4 14 section 15.102, subsection 5.
  4 15    d.  "Minority person" is defined as provided in
  4 16 section 15.102, subsection 5.
  4 17    3. 2.  Loan applications for a targeted focused
  4 18 small business shall be for the purchase of land,
  4 19 machinery, equipment, or licenses, or patent,
  4 20 trademark, or copyright fees and expenses.
  4 21    4. 3.  The During the lifetime of this loan
  4 22 program, the maximum size of a targeted small business
  4 23 loan is two amount of assistance that an eligible
  4 24 borrower or business may borrow or receive through
  4 25 this loan program shall be one hundred fifty thousand
  4 26 dollars per borrower.  An eligible borrower or
  4 27 business under this program shall be limited to one
  4 28 loan from one financial institution.
  4 29    5. 4.  A preference shall be given to those persons
  4 30 who are less able than other persons to secure funds
  4 31 for a targeted focused small business without
  4 32 participation in the targeted focused small business
  4 33 linked investment program.
  4 34    5.  In order to qualify under this program, all
  4 35 owners of the business or borrowers must not have a
  4 36 combined net worth exceeding five hundred thousand
  4 37 dollars as defined in rules adopted by the treasurer
  4 38 of state pursuant to chapter 17A and the focused small
  4 39 business must meet all of the following criteria:
  4 40    a.  Be a for-profit business under a single
  4 41 management.
  4 42    b.  Have annual sales of two million dollars or
  4 43 less.
  4 44    c.  Not be operated out of the home of any person,
  4 45 unless the person is eligible for a deduction on
  4 46 federal income taxes pursuant to 26 U.S.C. } 280A.
  4 47    d.  Not involve real estate investments, rental of
  4 48 real estate, leasing of real estate, or real estate
  4 49 speculation.
  4 50    e.  Not provide the services of persons practicing
  5  1 medicine and surgery pursuant to chapter 148,
  5  2 dentistry pursuant to chapter 153, chiropractic
  5  3 pursuant to chapter 151, optometry pursuant to chapter
  5  4 154, osteopathic medicine and surgery pursuant to
  5  5 chapter 150A, podiatry pursuant to chapter 149,
  5  6 psychology pursuant to chapter 154B, or law pursuant
  5  7 to section 602.10101 et seq.
  5  8    f.  Liquor, beer, and wine sales must not exceed
  5  9 twenty percent of annual sales.
  5 10    6.  Loan proceeds shall not be used to refinance
  5 11 existing debt, including credit card debt.  However,
  5 12 proceeds may be used to refinance a short-term bridge
  5 13 loan made in anticipation of the treasurer of state's
  5 14 approval of the linked investment loan package.
  5 15    7.  Eligible lending institutions shall verify the
  5 16 borrower is eligible to participate under the
  5 17 provisions of this section pursuant to rules adopted
  5 18 by the treasurer of state pursuant to chapter 17A.
  5 19    Sec.    .  This Act shall have no effect, pursuant
  5 20 to section 4.13, on loans in effect on the effective
  5 21 date of this Act."
  5 22    #2.  By renumbering as necessary.  
  5 23 
  5 24 
  5 25                               
  5 26 METCALF of Polk
  5 27 HF 613.505 77
  5 28 tm/jw/28
     

Text: H01435                            Text: H01437
Text: H01400 - H01499                   Text: H Index
Bills and Amendments: General Index     Bill History: General Index

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