S.F. 393 PART 10 1 INVASIVE FOREST PESTS REVOLVING LOAN PROGRAM 2 Section 1. NEW SECTION . 16.222 Invasive forest pests 3 revolving loan program —— fund. 4 1. For purposes of this section, unless the context 5 otherwise requires: 6 a. “Department” means the department of natural resources. 7 b. “Political subdivision” means a city, county, township, 8 or school district. 9 c. “Treatment” means the administration, by environmentally 10 sensitive processes and methods, of products and materials 11 proven by academic research to protect trees from invasive 12 forest pests in order to prevent or reverse damage to trees 13 from invasive forest pests on public land in political 14 subdivisions and prevent the death of the trees. 15 2. The authority, in cooperation with the department, shall 16 establish and administer an invasive forest pests revolving 17 loan program. Assistance under the program shall consist of 18 low-interest or no-interest loans and shall be used for the 19 purpose of treatment of standing trees, development of invasive 20 forest pests forestry management plans, and assistance in 21 efforts to manage invasive forest pests for trees located on 22 public land in political subdivisions. 23 3. A political subdivision may apply for assistance 24 under the program. The authority, in cooperation with the 25 department, shall adopt rules to administer the program, 26 including procedures for prioritizing applications from 27 political subdivisions that apply for the loans. 28 4. An invasive forest pests revolving loan fund is created 29 in the state treasury under the control of the authority, in 30 cooperation with the department, and consisting of moneys 31 appropriated by the general assembly and any other moneys 32 available to and obtained or accepted by the authority or the 33 department for placement in the fund. 34 5. Repayment of moneys loaned and recaptures of loans shall 35 -1- LSB 2409SV (2) 86 av/nh 1/ 3

S.F. 393 be deposited in the fund. 1 6. Moneys in the fund are appropriated to the authority, in 2 cooperation with the department, to provide assistance under 3 the invasive forest pests revolving loan program established in 4 this section. 5 7. Not more than three percent of the moneys in the invasive 6 forest pests revolving loan fund in a fiscal year may be used 7 by the authority and the department to establish and administer 8 the invasive forest pests revolving loan program. 9 8. Notwithstanding section 8.33, moneys in the fund 10 that remain unencumbered or unobligated at the close of a 11 fiscal year shall not revert but shall remain available for 12 expenditure for the purposes designated until the close of 13 the succeeding fiscal year. Notwithstanding section 12C.7, 14 interest or earnings on moneys in the fund shall be credited 15 to the fund. 16 Sec. 2. INVASIVE FOREST PESTS REVOLVING LOAN FUND —— 17 APPROPRIATION. There is appropriated from the general fund 18 of the state to the invasive forest pests revolving loan fund 19 established in section 16.222, as enacted in this Act, for the 20 fiscal year beginning July 1, 2015, and ending June 30, 2016, 21 the following amount, or so much thereof as is necessary, to be 22 used for the establishment and administration of the invasive 23 forest pests revolving loan program established pursuant to 24 this Act: 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,000,000 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 This bill creates the invasive forest pests revolving loan 30 program and fund and appropriates moneys to the fund. 31 The bill requires the Iowa finance authority (authority), 32 in cooperation with the department of natural resources 33 (department), to establish and administer an invasive forest 34 pests revolving loan program to provide low-interest or 35 -2- LSB 2409SV (2) 86 av/nh 2/ 3

S.F. 393 no-interest loans to political subdivisions to be used for the 1 purpose of treatment of standing trees, developing invasive 2 forest pests forestry management plans, and assistance in 3 efforts to manage invasive forest pests for trees located 4 on public land in political subdivisions. For purposes 5 of the program, “treatment” means the administration, by 6 environmentally sensitive processes and methods, of products 7 and materials proven by academic research to protect trees from 8 invasive forest pests in order to prevent or reverse damage to 9 trees from invasive forest pests on public land in political 10 subdivisions and prevent the death of the trees. 11 A political subdivision may apply for assistance under the 12 program. The authority, in cooperation with the department, is 13 directed to adopt rules to administer the program, including 14 procedures for prioritizing applications for the loans. 15 The bill also creates an invasive forest pests revolving 16 loan fund in the state treasury under the control of the 17 authority, in cooperation with the department. The fund 18 consists of moneys appropriated by the general assembly as 19 well as any other moneys available to and obtained or accepted 20 by the authority or department for placement in the fund. 21 Repayment of moneys loaned and recaptures of loans are to be 22 deposited in the fund. Not more than 3 percent of the moneys 23 in the fund in a fiscal year may be used by the authority and 24 the department to establish and administer the invasive forest 25 pests revolving loan program. Moneys appropriated to the fund 26 that are unencumbered or unobligated at the close of the fiscal 27 year remain in the fund for the designated purposes until the 28 close of the succeeding fiscal year and interest or earnings on 29 moneys in the fund are credited to the fund. 30 The bill also contains an appropriation of $3 million from 31 the general fund to the invasive forest pests revolving loan 32 fund for FY 2015-2016 to establish and administer the invasive 33 forest pests revolving loan program. 34 -3- LSB 2409SV (2) 86 av/nh 3/ 3