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PAG LIN
1 1 Section 1. Section 15E.208, subsection 3, paragraph b,
1 2 Code 2003, is amended to read as follows:
1 3 b. The loan shall be repayable upon terms and conditions
1 4 negotiated by the parties. The repayment period shall begin
1 5 six years following the date when the loan is awarded and end
1 6 twenty-five years after the date that the repayment period
1 7 begins. At least four percent of the amount due shall be paid
1 8 each year to the department. The corporation shall not be
1 9 subject to a prepayment penalty. The department shall deposit
1 10 moneys from the repaid loan to the agricultural processors
1 11 financing fund as established pursuant to section 175.18A
1 12 according to requirements established by the agricultural
1 13 development authority.
1 14 Sec. 2. Section 175.2, Code 2003, is amended by adding the
1 15 following new subsection:
1 16 NEW SUBSECTION. 2A. "Agricultural processor" means a
1 17 person actively engaged in turning an agricultural commodity
1 18 into a product by physical, chemical, or genetic modification.
1 19 An "agricultural processor" includes a person actively engaged
1 20 in any of the following:
1 21 a. The production of biorenewable fuels, including
1 22 ethanol-blended or soydiesel fuel.
1 23 b. The manufacturing or preparation for sale of beef,
1 24 pork, or poultry products, including the slaughtering of
1 25 cattle, swine, or fowl or the manufacturing or preparation of
1 26 carcasses or goods originating from the carcasses.
1 27 c. The production of a life science product as defined in
1 28 section 10C.1.
1 29 Sec. 3. Section 15E.208, subsection 8, is amended by
1 30 striking the subsection.
1 31 Sec. 4. NEW SECTION. 175.18A AGRICULTURAL PROCESSORS
1 32 FINANCING FUND – BONDING – APPROPRIATIONS.
1 33 1. An agricultural processors financing fund is created
1 34 and established as a separate and distinct fund in the state
1 35 treasury.
2 1 2. The authority may issue bonds as provided in this
2 2 chapter which are necessary in the opinion of the authority to
2 3 provide sufficient moneys to the agricultural processors
2 4 financing fund, to provide for expenditures provided in
2 5 section 175.17, and to provide for other expenditures which
2 6 are necessary or convenient to carry out a bond issue for the
2 7 fund and for the administration of the fund.
2 8 3. The moneys in the fund are appropriated to the
2 9 authority for purposes of administering the agricultural
2 10 processors financing program as provided in section 175.37.
2 11 Moneys in the fund shall not be subject to an appropriation
2 12 for any other purpose by the general assembly, but shall be
2 13 used only for the purposes of supporting the program. The
2 14 authority shall act as custodian of the fund and disburse
2 15 moneys contained in the fund as directed by the authority.
2 16 4. The authority may create and establish one or more bond
2 17 reserve funds pursuant to section 175.18, to secure one or
2 18 more issues of bonds issued for the purposes described in this
2 19 section.
2 20 5. Revenue for the agricultural processors financing fund
2 21 shall include, but is not limited to, the following:
2 22 a. Moneys deposited into the fund by the department of
2 23 economic development from the repayment of an Iowa
2 24 agricultural industry finance loan as provided in section
2 25 15E.208.
2 26 b. Moneys repaid to the fund by persons who receive
2 27 financing under the agricultural processors financing program
2 28 provided in section 175.37.
2 29 c. The proceeds of bonds and notes issued to capitalize
2 30 and pay the costs of the fund and investment earnings on the
2 31 proceeds.
2 32 d. Interest attributable to investment of money in the
2 33 fund or an account of the fund.
2 34 e. Moneys in the form of a devise, gift, bequest,
2 35 donation, federal or other grant, reimbursement, repayment,
3 1 judgment, transfer, payment, or appropriation from any source
3 2 intended to be used for the purposes of the fund.
3 3 6. Moneys deposited into the fund are not subject to
3 4 section 8.33. Notwithstanding section 12C.7, subsection 2,
3 5 interest or earnings on moneys in the fund shall be credited
3 6 to the fund.
3 7 Sec. 5. NEW SECTION. 175.37 AGRICULTURAL PROCESSORS
3 8 FINANCING PROGRAM.
3 9 An agricultural processors financing program is
3 10 established. The program shall be administered by the
3 11 authority. The authority shall administer the program to
3 12 finance the acquisition of land and improvements and
3 13 depreciable property by agricultural processors.
3 14 1. An agricultural processor who is eligible for
3 15 assistance under this program is limited to a business
3 16 association as defined in section 9H.1 which meets all of the
3 17 following:
3 18 a. The principal business operations of the business
3 19 association are located in this state.
3 20 b. The business association has been in operation for ten
3 21 years or less.
3 22 c. The business association has a net worth of less than
3 23 one hundred million dollars.
3 24 2. The authority may provide financing by providing for
3 25 secured or unsecured direct loans; loan guarantees; interest
3 26 buy-downs; and secondary market purchases of loans or
3 27 mortgages, loans to mortgage lenders, lending institutions, or
3 28 other lenders, as designated by rule of the authority.
3 29 EXPLANATION
3 30 PROVISIONS OF THE BILL. This bill amends Code chapter 175,
3 31 the "Iowa Agricultural Development Act". The Code chapter is
3 32 administered by the agricultural development authority, which
3 33 is empowered to issue bonds in order to support programs to
3 34 assist agricultural producers, including the beginning farmers
3 35 program.
4 1 The bill provides that the agricultural development
4 2 authority may also assist agricultural processors by financing
4 3 the acquisition of land and improvements and depreciable
4 4 property by agricultural processors. Under the bill, a
4 5 processor is a person actively engaged in turning an
4 6 agricultural commodity into a product by physical, chemical,
4 7 or genetic modification. The bill establishes an agricultural
4 8 processors financing fund as a separate and distinct fund in
4 9 the state treasury. According to the bill the authority may
4 10 issue bonds which are to provide sufficient moneys to the fund
4 11 to support the program.
4 12 The fund is largely supported from moneys required to be
4 13 repaid to the department of economic development by an Iowa
4 14 agricultural industry finance corporation that receives an
4 15 agricultural industry finance loan.
4 16 BACKGROUND – IOWA AGRICULTURAL INDUSTRY FINANCE
4 17 CORPORATIONS. Under Division XIX of Code chapter 15E, an Iowa
4 18 agricultural industry finance corporation is a private
4 19 business which is recognized by the state to provide financing
4 20 to eligible persons who are engaging in specific agricultural
4 21 industrial ventures (an agricultural products processor or an
4 22 agricultural biotechnology enterprise). There is one such
4 23 corporation currently organized that has received an Iowa
4 24 agricultural industry finance loan from the department of
4 25 economic development. The general assembly has appropriated
4 26 moneys to the department, subject to repayment, for purposes
4 27 of awarding such a loan to an eligible corporation in order to
4 28 finance these ventures (see 1998 Acts, chapter 1207). Under
4 29 current law, the repayment moneys are required to be deposited
4 30 in the road use tax fund.
4 31 LSB 1302XS 80
4 32 da/sh/8
Text: SF00321 Text: SF00323 Text: SF00300 - SF00399 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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