Text: HSB00077 Text: HSB00079 Text: HSB00000 - HSB00099 Text: HSB 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 investment program 1 14 for swine 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 producers as provided in section 12.43A. 1 18 The treasurer of state shall not make the investment unless a 1 19 market emergency exists. If a market emergency exists, the 1 20 treasurer of state shall make the investment immediately. For 1 21 purposes of this paragraph, a market emergency exists when the 1 22 market price paid in this state and southern Minnesota for 1 23 swine per hundredweight on a live basis is less than thirty 1 24 dollars for thirty consecutive days, according to market news 1 25 reports published by the agricultural marketing service of the 1 26 United States department of agriculture. 1 27 2. The treasurer of state shall adopt rules pursuant to 1 28 chapter 17A to administer this division. 1 29 3. Certificates of deposit placed by the treasurer of 1 30 state on or after July 1, 1996, pursuant to this division may 1 31 be renewed at the option of the treasurer of state. The 1 32 initial certificate of deposit for a given borrower shall have 1 33 a maturity of one year and may be renewed for eight additional 1 34 one-year periods. 1 35 Sec. 2. NEW SECTION. 12.43A EMERGENCY ASSISTANCE LINKED 2 1 DEPOSIT PROGRAM FOR SWINE PRODUCERS. 2 2 1. As used in this section, unless the context otherwise 2 3 requires: 2 4 a. "Actively engaged in farming" means the same as defined 2 5 in section 9H.1. 2 6 b. "Farming" means the same as defined in section 9H.1. 2 7 2. The treasurer of state shall adopt rules to implement 2 8 an emergency assistance linked deposit program for swine 2 9 producers. The purpose of the program is to increase the 2 10 availability of lower cost loans to provide emergency 2 11 financial assistance to farmers threatened with financial 2 12 calamity due to the market price of swine. 2 13 3. The loan shall be subject to all of the following: 2 14 a. In order to qualify as an eligible borrower, all of the 2 15 following must apply: 2 16 (1) The applicant must be a resident of this state. 2 17 (2) The applicant for the loan must be actively engaged in 2 18 farming in this state. 2 19 (3) The applicant must not have owned more than two 2 20 hundred head of sows at any time during the last twelve 2 21 months. 2 22 (4) The applicant must not have provided for the care and 2 23 feeding of swine under contract. 2 24 b. The purpose of the loan must be used to support farming 2 25 operations on an emergency basis, and may be used to refinance 2 26 existing debt. 2 27 4. The maximum loan amount that an eligible borrower may 2 28 receive under this program is one hundred thousand dollars. 2 29 Sec. 3. EFFECTIVE DATE. This Act, being deemed of 2 30 immediate importance, takes effect upon enactment. 2 31 EXPLANATION 2 32 This bill amends Code section 12.34, which establishes the 2 33 funding source for linked investment loan programs. Under the 2 34 section, the treasurer of state may invest up to $68 million 2 35 or 10 percent of the balance of the state pooled money fund in 3 1 certificates of deposit in eligible financial institutions for 3 2 purposes of supporting low-interest loans. 3 3 This bill increases the amount that the treasurer of state 3 4 may invest up to $150 million. The amount of the increase 3 5 must be used to support an emergency assistance linked deposit 3 6 program for swine producers. The treasurer of state cannot 3 7 make an investment to support the program unless a market 3 8 emergency exists. If a market emergency exists, the treasurer 3 9 of state shall make the investment immediately. The bill 3 10 provides that a market emergency is based on the market price 3 11 paid in this state and southern Minnesota for swine per 3 12 hundredweight on a live basis. 3 13 The bill requires the treasurer of state to adopt rules to 3 14 implement the program. The purpose of the program is to 3 15 increase the availability of lower cost loans to provide 3 16 emergency financial assistance to swine producers threatened 3 17 with financial calamity due to the market price of swine. The 3 18 bill establishes eligibility requirements for borrowers and 3 19 provides that the loan must be used to support farming 3 20 operations on an emergency basis and may be used to refinance 3 21 existing debt. According to the bill, the maximum loan amount 3 22 that an eligible borrower may receive is $100,000. 3 23 The bill takes effect upon enactment. 3 24 LSB 2059HC 78 3 25 da/sc/14
Text: HSB00077 Text: HSB00079 Text: HSB00000 - HSB00099 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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