House File 550 - Introduced HOUSE FILE 550 BY COMMITTEE ON AGRICULTURE (SUCCESSOR TO HSB 188) A BILL FOR An Act relating to the environmental impact of livestock 1 operations by providing for financial assistance, and making 2 an appropriation. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2510HV (1) 84 da/nh

H.F. 550 Section 1. NEW SECTION . 175.34A Livestock environmental 1 assistance revolving fund. 2 1. A livestock environmental assistance revolving fund 3 is created in the state treasury under the control of the 4 agricultural development authority. The fund is composed 5 of moneys appropriated by the general assembly, and moneys 6 available to and obtained or accepted by the authority from 7 the United States or private sources for placement in the 8 fund. It shall include moneys attributable to interest earned 9 on a certificate of deposit issued by an eligible lending 10 institution participating in the livestock environmental 11 assistance program as provided in section 175.34B and 12 the moneys attributable to the principal invested in the 13 certificate of deposit upon its maturity, renewal, or early 14 withdrawal. 15 2. Moneys in the fund are subject to an annual audit by the 16 auditor of state. 17 3. The fund shall be used exclusively to support the 18 livestock environmental assistance program as provided in 19 section 175.34B, and to defray expenses by the authority in 20 administering the program. 21 4. The authority may adopt rules pursuant to chapter 17A to 22 administer this section. 23 5. Section 8.33 shall not apply to moneys in the fund. 24 Notwithstanding section 12C.7, moneys earned as income, 25 including as interest, from the fund shall remain in the fund 26 until expended as provided in this section. 27 Sec. 2. NEW SECTION . 175.34B Livestock environmental 28 assistance program. 29 1. As used in this section, unless the context otherwise 30 requires: 31 a. “Eligible lending institution” means a financial 32 institution that is empowered to make commercial loans and is 33 eligible pursuant to chapter 12C to be a depository of state 34 funds. 35 -1- LSB 2510HV (1) 84 da/nh 1/ 3

H.F. 550 b. “Livestock” means the same as in section 169C.1. 1 2. The authority shall establish a livestock environmental 2 assistance program. The authority may enter into agreements 3 with eligible lending institutions that provide loans 4 to livestock producers for the purposes of constructing 5 structures, or installing practices, equipment, or systems 6 which prevent or control the impact of a livestock operation 7 on the environment. 8 3. As part of the agreement, the authority may deposit an 9 amount equaling all or part of the principal loan amount with 10 the eligible lending institution in return for a certificate 11 of deposit issued by the eligible lending institution. The 12 authority may provide for the terms and conditions of the 13 agreement offered to eligible lending institutions, including 14 but not limited to the interest rate borne by the certificate 15 of deposit at a rate which is lower than the existing 16 market rate, compliance with the terms and conditions of the 17 agreement, penalties for breach of the agreement, and the 18 renewal of a certificate of deposit. 19 4. Nothing in this section authorizes the authority to be a 20 lender, guarantor, secured party, or servicer of a loan. 21 5. The authority shall not in any manner directly or 22 indirectly pledge the credit of the state. 23 6. The authority shall adopt all rules necessary to 24 administer this section. 25 Sec. 3. APPROPRIATION. There is appropriated from the 26 general fund of the state to the livestock environmental 27 assistance revolving fund created in section 175.34A for the 28 fiscal year beginning July 1, 2011, and ending June 30, 2012, 29 the following amount, or so much thereof as is necessary, to be 30 used for the purposes designated: 31 For purposes of supporting the livestock environmental 32 assistance program as provided in section 175.34B: 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,000,000 34 EXPLANATION 35 -2- LSB 2510HV (1) 84 da/nh 2/ 3

H.F. 550 This bill establishes a livestock environmental assistance 1 revolving fund and program administered by the agricultural 2 development authority. The purpose of the fund and the program 3 is to allow the authority to enter into agreements with private 4 lenders who extend commercial loans to livestock producers 5 for the purposes of constructing structures, or installing 6 practices, equipment, or systems which prevent or control the 7 impact of a livestock operation on the environment. As part 8 of the agreement, the authority deposits moneys equaling the 9 principal amount of the loan with the lending institution in 10 return for a certificate of deposit earning interest at a rate 11 lower than the market rate. The moneys from the certificate of 12 deposit are to be placed in the fund on maturity. 13 The bill appropriates $15 million to the fund from the 14 general fund of the state. Moneys in the fund do not revert to 15 the general fund of the state and interest earned on the fund 16 remains in the fund. 17 -3- LSB 2510HV (1) 84 da/nh 3/ 3