Text: HF00532 Text: HF00534 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 12.34, Code 1999, is amended to read as 1 2 follows: 1 3 12.34 LINKED INVESTMENTS – LIMITATIONS – RULES – 1 4 MATURITY AND RENEWAL OF CERTIFICATES. 1 5 1. The treasurer of state may invest up to the lesser of 1 6sixty-eightone hundred fifty million dollars or ten percent 1 7 of the balance of the state pooled money fund in certificates 1 8 of deposit in eligible lending institutionspursuant toas 1 9 provided in this division. The moneys invested pursuant to 1 10 this section shall be used as follows: 1 11 a. The treasurer of state may invest the first sixty-eight 1 12 million dollars to support programs provided in this division 1 13 other than the emergency assistance linked deposit program for 1 14 swine or cattle producers provided in section 12.43A. 1 15 b. The treasurer of state shall invest the remaining 1 16 amount to support the emergency assistance linked deposit 1 17 program for swine or cattle producers as provided in section 1 18 12.43A. The treasurer of state shall not make the investment 1 19 unless a market emergency exists. If a market emergency 1 20 exists, the treasurer of state shall make the investment 1 21 immediately. For purposes of this paragraph, a market 1 22 emergency exists as follows: 1 23 (1) For swine, a market emergency exists when the market 1 24 price paid in this state and southern Minnesota for swine per 1 25 hundredweight on a live basis is less than thirty dollars for 1 26 thirty consecutive days, according to market news reports 1 27 published by the agricultural marketing service of the United 1 28 States department of agriculture. 1 29 (2) For cattle, a market emergency exists when the market 1 30 price paid in the midwest and high plains states for cattle 1 31 per hundredweight on a live basis is less than fifty-six 1 32 dollars for thirty consecutive days, according to market news 1 33 reports published by the agricultural marketing service of the 1 34 United States department of agriculture. 1 35 2. The treasurer of state shall adopt rules pursuant to 2 1 chapter 17A to administer this division. The treasurer of 2 2 state shall consult with the department of agriculture and 2 3 land stewardship in adopting rules for the administration of 2 4 the emergency assistance linked deposit program for swine or 2 5 cattle producers. 2 6 3. Certificates of deposit placed by the treasurer of 2 7 state on or after July 1, 1996, pursuant to this division may 2 8 be renewed at the option of the treasurer of state. The 2 9 initial certificate of deposit for a given borrower shall have 2 10 a maturity of one year and may be renewed for eight additional 2 11 one-year periods. 2 12 Sec. 2. NEW SECTION. 12.43A EMERGENCY ASSISTANCE LINKED 2 13 DEPOSIT PROGRAM FOR SWINE OR CATTLE PRODUCERS. 2 14 1. As used in this section, unless the context otherwise 2 15 requires: 2 16 a. "Actively engaged in farming" means the same as defined 2 17 in section 10.1. 2 18 b. "Farming" means the same as defined in section 9H.1. 2 19 2. The treasurer of state shall adopt rules to implement 2 20 an emergency assistance linked deposit program for swine or 2 21 cattle producers. The purpose of the program is to increase 2 22 the availability of lower cost loans to provide emergency 2 23 financial assistance to farmers threatened with financial 2 24 calamity due to the market price of swine or cattle. 2 25 3. The loan shall be subject to all of the following: 2 26 a. In order to qualify as an eligible borrower, all of the 2 27 following must apply: 2 28 (1) The applicant must be a resident of this state. 2 29 (2) The applicant for the loan must be actively engaged in 2 30 farming in this state. 2 31 (3) If the market emergency exists because of the market 2 32 price paid for swine, the applicant must not have marketed 2 33 more than five thousand swine during the last twelve months. 2 34 If the market emergency exists because of the market price 2 35 paid for cattle, the applicant must not have marketed more 3 1 than one thousand cattle during the last twelve months. 3 2 (4) If the market emergency exists because of the market 3 3 price paid for swine, the applicant must not have provided for 3 4 the care and feeding of swine under contract. If the market 3 5 emergency exists because of the market price paid for cattle, 3 6 the applicant must not have provided for the care and feeding 3 7 of cattle under contract. 3 8 (5) The applicant must not have received a loan under this 3 9 program during the previous twelve months. 3 10 b. The purpose of the loan must be used to support farming 3 11 operations on an emergency basis, and may be used to refinance 3 12 existing debt. 3 13 4. The maximum loan amount that an eligible borrower may 3 14 receive under this program is one hundred thousand dollars. 3 15 Sec. 3. EFFECTIVE DATE. This Act, being deemed of 3 16 immediate importance, takes effect upon enactment. 3 17 EXPLANATION 3 18 This bill amends Code section 12.34, which establishes the 3 19 funding source for linked investment loan programs. Under the 3 20 current Code section, the treasurer of state may invest up to 3 21 $68 million or 10 percent of the balance of the state pooled 3 22 money fund in certificates of deposit in eligible financial 3 23 institutions for purposes of supporting low-interest loans. 3 24 This bill increases the amount that the treasurer of state 3 25 may invest up to $150 million. The amount of the increase 3 26 must be used to support an emergency assistance linked deposit 3 27 program for swine or cattle producers. The treasurer of state 3 28 cannot make an investment to support the program unless a 3 29 market emergency exists. If a market emergency exists, the 3 30 treasurer of state shall make the investment immediately. The 3 31 bill provides that a market emergency for swine is based on 3 32 the market price paid in this state and southern Minnesota per 3 33 hundredweight on a live basis. The bill provides that a 3 34 market emergency for cattle is based on the market price paid 3 35 in midwest and high plains states per hundredweight and on a 4 1 live basis. 4 2 The bill requires the treasurer of state to adopt rules to 4 3 implement the program. The purpose of the program is to 4 4 increase the availability of lower cost loans to provide 4 5 emergency financial assistance to swine or cattle producers 4 6 threatened with financial calamity due to the market price of 4 7 swine or cattle. The bill establishes eligibility 4 8 requirements for borrowers and provides that the loan must be 4 9 used to support farming operations on an emergency basis and 4 10 may be used to refinance existing debt. According to the 4 11 bill, the maximum loan amount that an eligible borrower may 4 12 receive is $100,000. 4 13 The bill takes effect upon enactment. 4 14 LSB 2059HV 78 4 15 da/sc/14
Text: HF00532 Text: HF00534 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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