Text: HF00505 Text: HF00507 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 12C.6A, subsection 1, Code 1999, is 1 2 amended to read as follows: 1 3 1. Public funds of the state shall not be deposited in a 1 4 financial institution which does not demonstrate a commitment 1 5 toservecommunity reinvestment by providing for the needs of 1 6 the local community in which it is chartered to do business, 1 7 including by providing for the needs ofneighborhoods, rural1 8 all of the following: 1 9 a. Neighborhoods. 1 10 b. Rural areas, and small businesses in communities served1 11by the financial institution. 1 12 c. Small businesses, including targeted small businesses 1 13 as defined in section 15.102. 1 14 d. Minority persons engaged in farming operations. For 1 15 purposes of this paragraph, "minority person" means the same 1 16 as defined in section 15.102. 1 17 PARAGRAPH DIVIDED. These needs include credit services as 1 18 well as deposit services. 1 19 Sec. 2. Section 16A.3, subsection 1, Code 1999, is amended 1 20 to read as follows: 1 21 1. a. The Iowa economic protective and investment 1 22 authority is established and constituted a public 1 23 instrumentality and agency of the state exercising public and 1 24 essential governmental functions. The authority is 1 25 established to undertake programs which provide assistance for 1 26 farming and for small businesses,andincluding targeted small 1 27 businesses and farmers who are minority persons as defined in 1 28 section 15.102. The authority may administer other programs 1 29 that the authority deems necessary to carry out the purpose 1 30 identified in section 16A.1. 1 31 b. The powers of the authority are vested in and exercised 1 32 by a board of five members appointed by a committee composed 1 33 of the majority and minority floor leaders of the senate, the 1 34 speaker of the house of representatives, and the minority 1 35 floor leader of the house of representatives. No more than 2 1 three members appointed pursuant to this subsection shall 2 2 belong to the same political party. As far as possible the 2 3 board shall include within the membership persons who 2 4 represent lending institutions experienced in agricultural or 2 5 small business lending, agricultural suppliers, farmers, 2 6 operators of small businesses, average citizens, and other 2 7 persons specially interested in the availability of funds for 2 8 farm operating loans. 2 9 Sec. 3. Section 16A.19, unnumbered paragraph 1, Code 1999, 2 10 is amended to read as follows: 2 11 The superintendent of banking shall certify that a state 2 12 bank or national banking association which participates in the 2 13 operating assistance program is meeting its obligations to 2 14 meet the credit needs of its community as provided in the 2 15 federal Community Reinvestment Act of 1977, 12 U.S.C. } 2 16 2901–2905 and section 12C.6A. 2 17 EXPLANATION 2 18 This bill amends provisions requiring financial 2 19 institutions to provide for community reinvestment in order to 2 20 qualify to participate in certain state programs. 2 21 Specifically, the bill amends Code section 12C.6A that 2 22 prohibits public funds of the state from being deposited in a 2 23 financial institution which does not demonstrate a commitment 2 24 to serve the needs of the local community in which it is 2 25 chartered to do business. The bill also amends Code section 2 26 16A.3 that establishes the Iowa economic protective and 2 27 investment authority. The authority is established to 2 28 undertake programs which provide assistance for farming and 2 29 for small businesses. The authority is required to establish 2 30 and develop an operating assistance program to facilitate the 2 31 availability of affordable operating capital to farmers and 2 32 small businesses. In both of these cases, participating 2 33 financial institutions must comply with community reinvestment 2 34 policies. This bill provides that one way in which a 2 35 financial institution may demonstrate a commitment to 3 1 community investment is to provide for the needs of targeted 3 2 small businesses and minority farmers engaged in farming 3 3 operations. 3 4 LSB 2848HH 78 3 5 da/jw/5
Text: HF00505 Text: HF00507 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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