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PAG LIN
1 1 Section 1. NEW SECTION. 455A.14 FORESTRY AND RURAL
1 2 DEVELOPMENT – REVOLVING LOAN FUND.
1 3 1. The department shall establish a forestry and rural
1 4 development revolving loan fund composed of any money
1 5 appropriated by the general assembly, and of any other moneys
1 6 available to and obtained or accepted by the department from
1 7 the federal government or private sources for placement in the
1 8 fund.
1 9 2. The assets of the forestry and rural development
1 10 revolving loan fund shall be used to support statewide
1 11 forestry and rural development through forestry projects
1 12 approved by the department.
1 13 a. The department shall award moneys only by providing
1 14 loans to resource conservation and development areas, as
1 15 authorized under the federal Food and Agriculture Act of 1962,
1 16 16 U.S.C. } 3451 et seq., and reauthorized under the federal
1 17 Food, Agriculture, Conservation, and Trade Act of 1990, 16
1 18 U.S.C. } 3459 et seq.
1 19 b. Each loan made under this section shall be for a period
1 20 not to exceed ten years, shall not bear interest, and shall be
1 21 repayable to the forestry and rural development revolving loan
1 22 fund.
1 23 c. Each loan shall be made on a cost-share basis. The
1 24 award of moneys shall not exceed fifty percent of the
1 25 estimated cost of completing the forestry project, or fifty
1 26 percent of the actual cost, whichever is less.
1 27 3. The department shall approve projects in cooperation,
1 28 to the extent practicable, with the United States department
1 29 of agriculture's natural resources conservation service.
1 30 4. The department shall administer the fund and authorize
1 31 payment from the fund to pay for costs and expenses related to
1 32 and necessary for making and protecting loans made under this
1 33 section, and for the recovery of moneys loaned or the
1 34 management of property acquired in connection with such loans.
1 35 The department may contract, sue and be sued, and adopt
2 1 administrative rules pursuant to chapter 17A necessary to
2 2 administer this section. However, the department shall not in
2 3 any manner directly or indirectly pledge the credit of the
2 4 state of Iowa. The department shall adopt rules to provide
2 5 for all of the following:
2 6 a. The outstanding amount that a resource conservation and
2 7 development area may receive in loans made under this section.
2 8 The amount shall not exceed two hundred thousand dollars,
2 9 unless the department determines that extraordinary reasons
2 10 exist to increase the amount.
2 11 b. The terms and conditions for repayment. The department
2 12 shall establish a rate of interest on loans for which payment
2 13 is delinquent. The total amount due plus interest shall
2 14 accelerate immediately upon a delinquency, unless the
2 15 department determines that good reason excuses the
2 16 delinquency.
2 17 5. Section 8.33 shall not apply to moneys in the fund.
2 18 Notwithstanding section 12C.7, interest earned on moneys in
2 19 the fund shall be deposited into the fund. The repayment of
2 20 loans and the payments of interest on loans shall be deposited
2 21 into the fund. Noncash assets or collateral collected by the
2 22 department in repayment of a loan shall be reduced to cash and
2 23 deposited into the fund.
2 24 EXPLANATION
2 25 The 1990 federal farm bill established the rural
2 26 development through forestry (RDTF) program, 7 U.S.C. } 6601-
2 27 6617. The program is administered by the United States
2 28 department of agriculture's forestry service and implemented
2 29 through state forestry agencies. Iowa was designated as a
2 30 pilot program state under the federal RDTF program. The rural
2 31 development through forestry program, as currently
2 32 administered by the department of natural resources, provides
2 33 matching grants to local entities for economic development
2 34 based on forest resources. In the state of Iowa's pilot
2 35 program, local projects have been identified and carried out
3 1 primarily through nine resource conservation and development
3 2 (RC&D) areas. RC&D areas are private, not-for-profit
3 3 corporations that are organized pursuant to Iowa Code chapter
3 4 504A. RC&D areas are locally governed by volunteer directors
3 5 with required representation by the county boards of
3 6 supervisors, the local soil and water conservation districts,
3 7 and local residents interested in the program. The purpose of
3 8 RC&D areas is grass-roots directed development of human,
3 9 economic, and natural resources. RC&D areas were authorized
3 10 under the federal Food and Agriculture Act of 1962, and
3 11 reauthorized under the federal Food, Agriculture,
3 12 Conservation, and Trade Act of 1990.
3 13 This bill establishes a revolving fund within the
3 14 department of natural resources. The fund is referred to as
3 15 the forestry and rural development revolving loan fund.
3 16 Moneys in the fund are dedicated to supporting statewide
3 17 forestry and rural development through forestry projects as
3 18 approved by the department. The department is required to
3 19 award moneys only by providing loans to resource conservation
3 20 and development areas. The loan period is ten years, and
3 21 loans do not bear interest unless delinquent. Each loan must
3 22 be made on a cost-share basis. The department may contract,
3 23 sue and be sued, and adopt administrative rules under Code
3 24 chapter 17A necessary to administer the fund. The department
3 25 must adopt rules establishing a cap for outstanding loans, and
3 26 the terms and conditions for repayment.
3 27 LSB 3057SS 77
3 28 da/jl/8
Text: SF02004 Text: SF02006 Text: SF02000 - SF02099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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