House File 2447 - Introduced



                                       HOUSE FILE       
                                       BY  STRUYK


    Passed House, Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act providing for the financing of projects associated with
  2    the marketing of fresh fruits and vegetables.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 5739HH 82
  5 da/rj/14

PAG LIN



  1  1    Section 1.  NEW SECTION.  12.42  FRESH FRUITS AND
  1  2 VEGETABLES TO IOWANS LINKED INVESTMENT LOAN PROGRAM.
  1  3    A fresh fruits and vegetables to Iowans linked investment
  1  4 loan program is created.  The treasurer of state shall adopt
  1  5 rules to administer the program.
  1  6    1.  The purpose of the program is to increase the
  1  7 availability of lower=cost loans throughout this state in a
  1  8 manner that stimulates the expansion of markets for all of the
  1  9 following:
  1 10    a.  Raw fresh fruits and vegetables produced in this state.
  1 11    b.  Fresh fruits and vegetables produced in this state that
  1 12 have been minimally processed in this state.
  1 13    2.  A loan made pursuant to this section shall be made to
  1 14 persons who market fresh fruits and vegetables to consumers
  1 15 who reside in the same community as where the fresh fruits or
  1 16 vegetables are produced.  The loans may be used to finance
  1 17 projects associated with farmers markets, the WIC farmers'
  1 18 market nutrition program, or the senior farmers' market
  1 19 nutrition program referred to in chapter 175B, and the
  1 20 farm=to=school program established in chapter 190A.
  1 21    3.  A loan made pursuant to this section must be used for
  1 22 the acquisition of capital assets associated with storing,
  1 23 preserving, packaging, transporting, or marketing fresh fruits
  1 24 and vegetables.
  1 25    4.  An eligible borrower must be a cooperative association
  1 26 as defined in section 490.140 which is organized in this state
  1 27 pursuant to chapter 499, 501, or 501A.
  1 28    5.  The proceeds of a loan made pursuant to this section
  1 29 shall not be used to refinance existing debt, including credit
  1 30 card debt.  However, loan proceeds may be used to refinance a
  1 31 short=term bridge loan made in anticipation of the treasurer's
  1 32 approval of the linked investment loan package.
  1 33    6.  The maximum amount of a loan that an eligible borrower
  1 34 may receive pursuant to this section is five hundred thousand
  1 35 dollars.
  2  1                           EXPLANATION
  2  2    This bill adds a provision in part of Code chapter 12
  2  3 establishing programs under the "Linked Investments for
  2  4 Tomorrow Act" in which the treasurer of state invests state
  2  5 funds in certificates of deposit in eligible lending
  2  6 institutions that lend moneys to eligible borrowers interested
  2  7 in capitalizing certain projects described by statute.  The
  2  8 bill establishes a fresh fruits and vegetables to Iowans
  2  9 linked investment loan program.  The purpose of the program is
  2 10 to increase the availability of lower=cost loans throughout
  2 11 this state in a manner that stimulates the expansion of
  2 12 markets for raw fresh fruits and vegetables produced in this
  2 13 state and fresh fruits and vegetables produced in this state
  2 14 that have been minimally processed in this state.  An eligible
  2 15 borrower must be organized on a cooperative basis.  The
  2 16 maximum amount of a loan is $500,000.
  2 17 LSB 5739HH 82
  2 18 da/rj/14