Text: HF00778 Text: HF00780 Text: HF00700 - HF00799 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 1 2 HOUSE FILE 779 1 3 1 4 AN ACT 1 5 PROVIDING FOR ECONOMIC DEVELOPMENT PROGRAMS, INCLUDING 1 6 LINKED INVESTMENT LOAN PROGRAMS, AND PROVIDING AN 1 7 EFFECTIVE DATE. 1 8 1 9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 10 1 11 Section 1. Section 12.32, Code 1999, is amended by adding 1 12 the following new subsection: 1 13 NEW SUBSECTION. 4. "Qualified linked investment" means a 1 14 linked investment in which a certificate of deposit is placed 1 15 by the treasurer of state with an eligible lending institution 1 16 under the traditional livestock producers linked investment 1 17 program established under section 12.43A. 1 18 Sec. 2. Section 12.34, Code 1999, is amended to read as 1 19 follows: 1 20 12.34 LINKED INVESTMENTS – LIMITATIONS – RULES – 1 21 MATURITY AND RENEWAL OF CERTIFICATES. 1 22 1. The treasurer of state may invest up to the lesser of 1 23sixty-eightone hundred eight million dollars or ten percent 1 24 of the balance of the state pooled money fund in certificates 1 25 of deposit in eligible lending institutionspursuant toas 1 26 provided in this division. The moneys invested pursuant to 1 27 this section shall be used as follows: 1 28 a. The treasurer of state may invest up to sixty-eight 1 29 million dollars to support programs provided in this division 1 30 other than the traditional livestock producers linked 1 31 investment loan program as provided in section 12.43A and the 1 32 value-added agricultural linked investment loan program as 1 33 provided in section 12.43B. 1 34 b. The treasurer of state shall invest the remaining 1 35 amount as follows: 2 1 (1) At least twenty million dollars shall be invested in 2 2 order to support the traditional livestock producers linked 2 3 investment loan program as provided in section 12.43A. 2 4 (2) At least twenty million dollars shall be invested in 2 5 order to support the value-added agricultural linked 2 6 investment loan program as provided in section 12.43B. 2 7 2. a. The treasurer of state shall adopt rules pursuant 2 8 to chapter 17A to administer this division. 2 9 b. The treasurer of state in cooperation with the board of 2 10 directors of the agricultural development authority as 2 11 established in section 175.3 shall adopt rules for the 2 12 administration of the traditional livestock producers linked 2 13 investment loan program as provided in section 12.43A. The 2 14 treasurer of state in cooperation with the agricultural 2 15 products advisory council established in section 15.203 shall 2 16 adopt rules for the administration of the value-added 2 17 agricultural linked investment loan program as provided in 2 18 section 15.204. 2 19 3.CertificatesA certificate of deposit, which is placed 2 20 by the treasurer of state with an eligible lending institution 2 21 on or after July 1, 1996,pursuant to this divisionmay be 2 22 renewed at the option of the treasurer. The following shall 2 23 apply to the certificate of deposit: 2 24 a.TheFor a linked investment other than a qualified 2 25 linked investment, the initial certificate of deposit for a 2 26 given borrower shall have a maturity of one year.andThe 2 27 certificate of deposit may be renewedfor eight additional2 28one-year periodson an annual basis for a total term not to 2 29 exceed five years. 2 30 b. For a qualified linked investment, the initial 2 31 certificate of deposit for a given borrower shall have a 2 32 maturity of one year. The certificate of deposit may be 2 33 renewed on an annual basis for a total term not to exceed 2 34 three years. 2 35 Sec. 3. Section 12.41, Code 1999, is amended by adding the 3 1 following new subsection: 3 2 NEW SUBSECTION. 1A. The gross income earned by the 3 3 borrower's business of producing, processing, or marketing 3 4 horticultural or nontraditional crops is not more than three 3 5 hundred thousand dollars for the borrower's last tax year. 3 6 Sec. 4. NEW SECTION. 12.43A TRADITIONAL LIVESTOCK 3 7 PRODUCER'S LINKED INVESTMENT LOAN PROGRAM. 3 8 1. As used in this section, unless the context otherwise 3 9 requires: 3 10 a. "Farm operation" means the same as defined in section 3 11 352.2. 3 12 b. "Livestock" means cattle or swine. 3 13 c. "Livestock operation" means an animal feeding operation 3 14 as defined in section 455B.161 in which livestock is provided 3 15 care and feeding, or any other area which is used for raising 3 16 crops or other vegetation and upon which livestock is fed or 3 17 allowed to graze. 3 18 d. "Traditional livestock producer" means a person who is 3 19 the owner and operator of livestock subject to care and 3 20 feeding at a livestock operation in which the person holds a 3 21 legal interest. The person may own the livestock or own the 3 22 livestock jointly with another person. As the owner operator, 3 23 the person must make daily management decisions and perform 3 24 physical work which significantly contributes to the care and 3 25 feeding of the livestock. 3 26 2. The treasurer of state shall adopt rules as provided in 3 27 section 12.34 to implement a traditional livestock producers 3 28 linked investment loan program. The purpose of the program is 3 29 to increase the availability of lower cost loans to 3 30 traditional livestock producers. 3 31 3. In order to qualify for a loan in accordance with an 3 32 investment agreement under this division, all of the following 3 33 requirements must be satisfied: 3 34 a. In order to be an eligible borrower, all of the 3 35 following must apply: 4 1 (1) The borrower must be a traditional livestock producer. 4 2 (2) The borrower must be a resident of this state who is 4 3 at least eighteen years of age. 4 4 (3) The borrower must not be any of the following: 4 5 (a) A party to a pending legal or administrative action, 4 6 including a contested case proceeding under chapter 17A, 4 7 relating to an alleged violation involving an animal feeding 4 8 operation as regulated by the department of natural resources, 4 9 regardless of whether the pending action is brought by the 4 10 department or the attorney general. 4 11 (b) Classified as a habitual violator for a violation of 4 12 state law involving an animal feeding operation as regulated 4 13 by the department of natural resources. 4 14 b. The livestock operation must be located in this state. 4 15 c. The gross income earned by the borrower's farm 4 16 operation must be more than fifty thousand dollars but not 4 17 more than three hundred thousand dollars for the borrower's 4 18 last tax year. 4 19 d. At least fifty percent of the gross income earned by 4 20 the borrower's farm operation during the last tax year must 4 21 derive from livestock owned and sold by the borrower. 4 22 4. An investment agreement shall not be for a loan of more 4 23 than one hundred thousand dollars. 4 24 5. A borrower is not eligible to receive a loan as part of 4 25 a linked investment loan package under this program, if the 4 26 borrower has received three loans pursuant to a linked 4 27 investment loan package under this program approved by the 4 28 treasurer of state within the last ten years. For purposes of 4 29 this subsection, a loan provided as part of a renewed 4 30 certificate of deposit shall be deemed to be a new loan. 4 31 Sec. 5. NEW SECTION. 12.43B VALUE-ADDED AGRICULTURAL 4 32 LINKED INVESTMENT LOAN PROGRAM. 4 33 1. The treasurer of state shall establish and administer, 4 34 and adopt rules as necessary to establish and administer, a 4 35 value-added agricultural linked investment loan program. The 5 1 purpose of the program is to provide capital in the form of 5 2 low-interest loans in order to do any of the following: 5 3 a. Stimulate existing businesses or encourage the 5 4 establishment of new businesses that add value through the 5 5 processing of agricultural commodities. 5 6 b. Encourage the production of agricultural commodities, 5 7 if a shortage in production exists. 5 8 2. A borrower shall be eligible to participate in the 5 9 value-added agricultural linked investment loan program, to 5 10 the extent that the borrower meets eligibility requirements 5 11 established by the treasurer of state as provided in section 5 12 12.34. 5 13 3. A borrower shall not receive a loan of more than two 5 14 hundred fifty thousand dollars under this program. 5 15 Sec. 6. NEW SECTION. 15.204 VALUE-ADDED AGRICULTURAL 5 16 LINKED INVESTMENT LOAN PROGRAM. 5 17 The agricultural products advisory council established in 5 18 section 15.203, in cooperation with the department of economic 5 19 development and the department of agriculture and land 5 20 stewardship, shall recommend to the treasurer of state 5 21 eligibility requirements for borrowers to participate in the 5 22 value-added agricultural linked investment loan program 5 23 established in section 12.43B. The treasurer of state shall 5 24 establish the eligibility requirements by rule adopted 5 25 pursuant to section 12.34. 5 26 Sec. 7. CURRENT INVESTMENT AGREEMENTS. The treasurer of 5 27 state shall not renew a certificate of deposit in an eligible 5 28 lending institution, if the total term for the certificate of 5 29 deposit exceeds the requirements of section 12.34, subsection 5 30 3, as amended by this Act. However, nothing in this Act shall 5 31 affect the terms or conditions of an investment agreement 5 32 executed by the treasurer of state with an eligible lending 5 33 institution that is in effect on the effective date of this 5 34 Act. 5 35 Sec. 8. AGENCY REVIEW OF LINKED INVESTMENT FOR TOMORROW 6 1 ACT PROGRAMS. 6 2 1. The department of economic development and the 6 3 department of agriculture and land stewardship shall include a 6 4 review of the linked investments for tomorrow Act. 6 5 a. The department of economic development shall conduct a 6 6 review of the rural small business transfer linked investment 6 7 loan program as provided in section 12.40, the focused small 6 8 business linked investments program as provided in section 6 9 12.43, and the value-added agricultural linked investment loan 6 10 program as provided in section 12.43B. 6 11 b. The department of agriculture and land stewardship 6 12 shall conduct a review of the horticultural and nontraditional 6 13 crops linked investment loan program as provided in section 6 14 12.41, and the traditional livestock producers linked 6 15 investment loan program as provided in section 12.43A. 6 16 2. In conducting the reviews, each department shall 6 17 investigate the economic conditions that could justify the 6 18 program under review and the need for the continuation or 6 19 modification of the program. The departments shall jointly 6 20 review the allocation of moneys to the programs. 6 21 3. The departments shall submit a combined report to the 6 22 department of management which shall forward the report to the 6 23 treasurer of state and to the general assembly on or before 6 24 February 1, 2000. The report shall include findings and any 6 25 recommendations. The report shall include a recommendation 6 26 regarding the allocation of moneys to the programs. 6 27 Sec. 9. EFFECTIVE DATE. This Act, being deemed of 6 28 immediate importance, takes effect upon enactment. 6 29 6 30 6 31 6 32 BRENT SIEGRIST 6 33 Speaker of the House 6 34 6 35 7 1 7 2 MARY E. KRAMER 7 3 President of the Senate 7 4 7 5 I hereby certify that this bill originated in the House and 7 6 is known as House File 779, Seventy-eighth General Assembly. 7 7 7 8 7 9 7 10 ELIZABETH ISAACSON 7 11 Chief Clerk of the House 7 12 Approved , 1999 7 13 7 14 7 15 7 16 THOMAS J. VILSACK 7 17 Governor
Text: HF00778 Text: HF00780 Text: HF00700 - HF00799 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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