Senate File 2277
SENATE FILE
BY COMMITTEE ON NATURAL
RESOURCES AND ENVIRONMENT
(SUCCESSOR TO SSB 3136)
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to the creation of a rural resource development
2 assistance program and fund.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 6563SV 80
5 av/pj/5
PAG LIN
1 1 Section 1. NEW SECTION. 455A.22 RURAL RESOURCE
1 2 DEVELOPMENT ASSISTANCE PROGRAM.
1 3 1. The department, in consultation with the department of
1 4 economic development, shall establish a rural resource
1 5 development assistance program in the department to provide
1 6 financial assistance for rural economic development projects
1 7 that are based on the development of natural resources in the
1 8 state. Such projects must positively impact the quality of
1 9 life in rural Iowa. Projects that qualify for such financial
1 10 assistance shall include, but are not limited to, development
1 11 of alternative energy, recreational amenities, value=added
1 12 agriculture and alternative agriculture, rural small
1 13 businesses, tourism and marketing involving natural resources,
1 14 and enhancement and use of forest resources.
1 15 2. A rural resource development assistance fund is created
1 16 within the state treasury under the control of the department.
1 17 a. The fund shall include any moneys appropriated to the
1 18 fund by the general assembly, payments of interest earned,
1 19 recaptures of awards, repayments of moneys loaned or expended
1 20 by the rural resource development assistance program, and any
1 21 other moneys designated by the department for placement in the
1 22 fund.
1 23 b. The fund shall be used for the following:
1 24 (1) To provide reimbursement to the department for
1 25 activities related to rural resource development assistance
1 26 projects under this section.
1 27 (2) To provide financial assistance for qualifying
1 28 projects.
1 29 (3) To provide funding for any other purpose consistent
1 30 with this section and deemed appropriate by the department, in
1 31 consultation with the department of economic development.
1 32 c. Section 8.33 shall not apply to the rural resource
1 33 development assistance fund. Notwithstanding section 12C.7,
1 34 interest earned on moneys in the fund shall be credited to the
1 35 fund.
2 1 3. The department shall do all of the following:
2 2 a. Consult with and coordinate with the department of
2 3 economic development, and any other appropriate state agency
2 4 responsible for the development of natural resources or other
2 5 economic development in this state to ensure that activities
2 6 conducted pursuant to this section are consistent with the
2 7 policies and plans of other state agencies and are coordinated
2 8 with other natural resource and economic development projects.
2 9 b. Provide financial assistance in the form of a loan,
2 10 forgivable loan, loan guarantee, cost=share, indemnification
2 11 of costs, or any combination of financial assistance deemed by
2 12 the department to be most efficient in facilitating rural
2 13 resource development assistance projects.
2 14 c. Enter into contracts including the power to sue and be
2 15 sued. However, the department shall not in any manner
2 16 directly or indirectly pledge the credit of the state of Iowa.
2 17 d. Authorize payment of costs, commissions, attorney fees,
2 18 consultant fees, and other reasonable expenses from the fund.
2 19 Expenses may include costs related to carrying out the duties
2 20 necessary for insuring or guaranteeing loans, cosharing or
2 21 indemnifying costs under the rural resource development
2 22 assistance program, and for the recovery of loans insured or
2 23 guaranteed, costs coshared or indemnified, or the management
2 24 of property acquired in connection with such loans or costs.
2 25 e. Adopt administrative rules pursuant to chapter 17A
2 26 necessary to administer this section.
2 27 4. The department, in consultation with the department of
2 28 economic development, shall accept and review proposals for
2 29 projects and shall determine what projects qualify for and
2 30 what qualifying projects shall receive financial assistance
2 31 from the rural resource development assistance program. A
2 32 proposal that is submitted shall include a description of the
2 33 applicant, details of the project request, total budget for
2 34 the project, and completion date. A proposal shall also
2 35 include a study outlining the feasibility of the project.
3 1 5. The department, in consultation with the department of
3 2 economic development, shall establish priorities for ranking
3 3 proposals submitted for approval by the department. All
3 4 proposals received shall be ranked on a competitive basis,
3 5 including but not limited to demonstrated need, community
3 6 involvement, cost=effectiveness, feasibility, and other issues
3 7 pertinent to positively impacting the quality of life in rural
3 8 Iowa through the development of natural resources.
3 9 6. a. The department and the recipient of financial
3 10 assistance from the program shall negotiate a project
3 11 agreement describing the work to be accomplished, specifying
3 12 the amount of the financial assistance awarded by the program,
3 13 and designating the project completion date, as soon as
3 14 possible after a proposal has been approved. The maximum time
3 15 period allowed for project completion shall be stated in the
3 16 announcement of the approval of a project proposal and shall
3 17 be extended only by approval of the department.
3 18 b. Project agreements may be amended to increase or
3 19 decrease project scope or to increase or decrease project
3 20 costs and program assistance. Any increase in program
3 21 assistance shall be subject to availability of funds.
3 22 Amendments to project agreements to increase the scope or
3 23 amount of program assistance shall be approved by the
3 24 department before work is commenced or additional costs are
3 25 incurred.
3 26 EXPLANATION
3 27 This bill directs the department of natural resources, in
3 28 consultation with the department of economic development, to
3 29 establish a rural resource development assistance program in
3 30 the department of natural resources to provide financial
3 31 assistance for rural economic development projects that are
3 32 based on the development of natural resources in the state.
3 33 The bill provides that the projects assisted must positively
3 34 impact the quality of life in rural Iowa. Projects that
3 35 qualify for such financial assistance shall include, but are
4 1 not limited to, development of alternative energy,
4 2 recreational amenities, value=added agriculture and
4 3 alternative agriculture, rural small businesses, tourism and
4 4 marketing involving natural resources, and enhancement and use
4 5 of forest resources.
4 6 The bill provides that a rural resource development
4 7 assistance fund is created within the state treasury under the
4 8 control of the department of natural resources that includes
4 9 any moneys appropriated to the fund by the general assembly as
4 10 well as payments of interest earned, recaptures of awards,
4 11 repayments of moneys loaned or expended by the rural resource
4 12 development assistance program, and any other moneys
4 13 designated by the department for placement in the fund. The
4 14 bill provides that the funds shall be used for activities and
4 15 projects related to the rural resource development assistance
4 16 program.
4 17 The bill also provides that the department shall consult
4 18 with and coordinate activities with the department of economic
4 19 development and other state agencies involved with natural
4 20 resources and economic development projects, provide financial
4 21 assistance in a form deemed by the department to be most
4 22 efficient in facilitating projects, enter into contracts,
4 23 authorize payment of costs, commissions, attorney and
4 24 consultant fees, and other reasonable expenses from the fund,
4 25 and adopt administrative rules necessary to carry out the
4 26 provisions of the bill. However, the department is prohibited
4 27 from directly or indirectly pledging the credit of the state
4 28 in carrying out the program.
4 29 The bill also provides that the department, in consultation
4 30 with the department of economic development, shall accept and
4 31 review proposals for projects and shall determine what
4 32 projects qualify for and what qualifying projects shall
4 33 receive financial assistance from the program. The bill
4 34 provides that proposals submitted shall include a description
4 35 of the applicant, details of the project, total budget of the
5 1 project, completion date, and a study outlining the
5 2 feasibility of the project.
5 3 The bill provides that the department, in consultation with
5 4 the department of economic development, shall establish
5 5 priorities for ranking proposals submitted, for approval by
5 6 the department, by ranking proposed projects on a competitive
5 7 basis, including but not limited to demonstrated need,
5 8 community involvement, cost=effectiveness, feasibility, and
5 9 other issues pertinent to positively impacting the quality of
5 10 life in rural Iowa through the development of natural
5 11 resources.
5 12 The bill also provides that the department and the
5 13 recipient of financial assistance from the program shall
5 14 negotiate a project agreement describing the work to be
5 15 accomplished, specifying the amount of assistance awarded by
5 16 the program, and designating the project completion date, as
5 17 soon as possible after a proposal has been approved. The
5 18 maximum time period allowed for project completion must be
5 19 stated in the announcement of the approval of a proposal and
5 20 can only be extended by approval of the department of natural
5 21 resources. The bill provides that project agreements may be
5 22 amended upon approval by the department.
5 23 LSB 6563SV 80
5 24 av/pj/5