Text: HF00557 Text: HF00559 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 12.32, Code 1999, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 4. "Qualified linked investment" means a 1 4 linked investment in which a certificate of deposit is placed 1 5 by the treasurer of state with an eligible lending institution 1 6 under the value-added agricultural linked investment program 1 7 established under section 12.42. 1 8 Sec. 2. Section 12.34, Code 1999, is amended to read as 1 9 follows: 1 10 12.34 LINKED INVESTMENTS – LIMITATIONS – RULES – 1 11 MATURITY AND RENEWAL OF CERTIFICATES. 1 12 1. The treasurer of state may invest up to the lesser of 1 13sixty-eightone hundred eight million dollars or ten percent 1 14 of the balance of the state pooled money fund in certificates 1 15 of deposit in eligible lending institutions pursuant to this 1 16 division. The treasurer of state shall allocate forty million 1 17 dollars of the amount authorized for investment under this 1 18 subsection for purposes of supporting the value-added 1 19 agricultural linked investment program established in section 1 20 12.42. The treasurer of state shall provide for the security 1 21 of the deposits made to eligible lending institutions as 1 22 provided in chapter 12C. 1 23 2. The treasurer of state shall adopt rules pursuant to 1 24 chapter 17A to administer this division. 1 25 3. The following shall apply to a certificate of deposit, 1 26 which is placed with an eligible lending institution by the 1 27 treasurer of state pursuant to this division: 1 28 a.CertificatesA certificate of deposit, which is not 1 29 part of a qualified linked investment, placed by the treasurer 1 30 of state with an eligible lending institution on or after July 1 31 1, 1996,pursuant to this divisionmay be renewed at the 1 32 option of the treasurer. The initial certificate of deposit 1 33 for a given borrower shall have a maturity of one year and may 1 34 be renewed for eight additional one-year periods. 1 35 b. A certificate of deposit which is part of a qualified 2 1 linked investment placed by the treasurer of state with an 2 2 eligible lending institution shall have a maturity of up to 2 3 eighteen months. The certificate of deposit may be renewed at 2 4 the option of the treasurer on an annual basis for a total 2 5 term not to exceed nine years. 2 6 Sec. 3. NEW SECTION. 12.42 VALUE-ADDED AGRICULTURAL 2 7 LINKED INVESTMENT PROGRAM. 2 8 1. The treasurer of state shall establish and administer, 2 9 and adopt rules as necessary to establish and administer, a 2 10 value-added agricultural linked investment program. The 2 11 purpose of the program is to provide capital in the form of 2 12 low-interest loans in order to do any of the following: 2 13 a. Stimulate existing businesses or encourage the 2 14 establishment of new businesses that add value through the 2 15 processing of agricultural commodities. 2 16 b. Encourage the production of agricultural commodities, 2 17 if a shortage in production exists. 2 18 2. A borrower shall be eligible to participate in the 2 19 value-added agricultural linked investment program, to the 2 20 extent that the borrower meets eligibility requirements 2 21 established by the treasurer of state. 2 22 3. A borrower shall not receive a loan of more than five 2 23 hundred thousand dollars under this program. 2 24 Sec. 4. NEW SECTION. 15.204 VALUE-ADDED AGRICULTURAL 2 25 LINKED INVESTMENT PROGRAM. 2 26 The agricultural products advisory council established in 2 27 section 15.203, in cooperation with the department of economic 2 28 development, shall recommend to the treasurer of state 2 29 eligibility requirements for borrowers to participate in the 2 30 value-added agricultural linked investment program established 2 31 in section 12.42. The treasurer of state shall establish the 2 32 eligibility requirements by rule adopted pursuant to chapter 2 33 17A. 2 34 EXPLANATION 2 35 This bill amends the "Linked Investments for Tomorrow Act", 3 1 by providing for qualified linked investments in which the 3 2 treasurer of state places a certificate of deposit with an 3 3 eligible lending institution at a certain interest rate on the 3 4 condition that the institution agrees to lend the value of the 3 5 deposit to an eligible borrower at a special rate. The moneys 3 6 must be used to support a value-added agricultural linked 3 7 investment program administered by the treasurer of state. 3 8 The purpose of the program is to provide capital in the 3 9 form of low-interest loans in order to stimulate existing or 3 10 to encourage new businesses that add value through the 3 11 processing of agricultural commodities and to encourage the 3 12 production of agricultural commodities, if there is a shortage 3 13 in production. 3 14 The agricultural products advisory council, in cooperation 3 15 with the department of economic development, is required to 3 16 recommend program eligibility requirements to the treasurer of 3 17 state. 3 18 The bill increases the amount of moneys that the treasurer 3 19 of state may invest in the linked investment program from $68 3 20 million to $108 million. The treasurer of state is prohibited 3 21 from depositing more than 10 percent of the balance of the 3 22 state pooled money fund in certificates of deposit in eligible 3 23 lending institutions pursuant to this division of Code chapter 3 24 12. 3 25 The bill provides that the treasurer of state must allocate 3 26 $40 million for purposes of supporting the value-added 3 27 agricultural linked investment program. A borrower is not 3 28 eligible to receive more than $500,000 in program assistance. 3 29 The bill provides that an initial certificate of deposit which 3 30 is part of a qualified linked investment placed with an 3 31 eligible lending institution has a maturity of up to 18 3 32 months. It may be renewed at the option of the treasurer of 3 33 state each year for nine years. 3 34 LSB 1577HH 78 3 35 da/sc/14.2
Text: HF00557 Text: HF00559 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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