Senate Study Bill 1207 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON NATURAL RESOURCES AND ENVIRONMENT BILL BY CHAIRPERSON DEARDEN) A BILL FOR An Act creating the emerald ash borer revolving loan program 1 and fund and including appropriations. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2409XC (3) 86 av/nh

S.F. _____ PART 10 1 EMERALD ASH BORER REVOLVING LOAN PROGRAM 2 Section 1. NEW SECTION . 16.222 Emerald ash borer revolving 3 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 ash trees from the 12 invasive emerald ash borer in order to prevent or reverse 13 damage to ash trees from the emerald ash borer on public land 14 in political subdivisions and prevent the death of the trees. 15 2. The authority, in cooperation with the department, 16 shall establish and administer an emerald ash borer 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 ash trees located on public 20 land in political subdivisions. 21 3. A political subdivision may apply for assistance 22 under the program. The authority, in cooperation with the 23 department, shall adopt rules to administer the program, 24 including procedures for prioritizing applications from 25 political subdivisions that apply for the loans. 26 4. An emerald ash borer revolving loan fund is created 27 in the state treasury under the control of the authority, in 28 cooperation with the department, and consisting of moneys 29 appropriated by the general assembly and any other moneys 30 available to and obtained or accepted by the authority or the 31 department for placement in the fund. 32 5. Repayment of moneys loaned and recaptures of loans shall 33 be deposited in the fund. 34 6. Moneys in the fund are appropriated to the authority, in 35 -1- LSB 2409XC (3) 86 av/nh 1/ 3

S.F. _____ cooperation with the department, to provide assistance under 1 the emerald ash borer revolving loan program established in 2 this section. 3 7. Not more than three percent of the moneys in the emerald 4 ash borer revolving loan fund in a fiscal year may be used by 5 the authority and the department to establish and administer 6 the emerald ash borer revolving loan program. 7 8. Notwithstanding section 8.33, moneys in the fund 8 that remain unencumbered or unobligated at the close of a 9 fiscal year shall not revert but shall remain available for 10 expenditure for the purposes designated until the close of 11 the succeeding fiscal year. Notwithstanding section 12C.7, 12 interest or earnings on moneys in the fund shall be credited 13 to the fund. 14 Sec. 2. EMERALD ASH BORER REVOLVING LOAN FUND —— 15 APPROPRIATION. There is appropriated from the general fund 16 of the state to the emerald ash borer revolving loan fund 17 established in section 16.222, as enacted in this Act, for the 18 fiscal year beginning July 1, 2015, and ending June 30, 2016, 19 the following amount, or so much thereof as is necessary, to be 20 used for the establishment and administration of the emerald 21 ash borer revolving loan program established pursuant to this 22 Act: 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,000,000 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 This bill creates the emerald ash borer revolving loan 28 program and fund and appropriates moneys to the fund. 29 The bill requires the Iowa finance authority (authority), 30 in cooperation with the department of natural resources 31 (department), to establish and administer an emerald ash borer 32 revolving loan program to provide low-interest or no-interest 33 loans to political subdivisions to be used for the purpose 34 of treatment of standing ash trees located on public land 35 -2- LSB 2409XC (3) 86 av/nh 2/ 3

S.F. _____ in political subdivisions. For purposes of the program, 1 “treatment” means the administration, by environmentally 2 sensitive processes and methods, of products and materials 3 proven by academic research to protect ash trees from the 4 invasive emerald ash borer in order to prevent or reverse 5 damage to ash trees from the emerald ash borer on public land 6 in political subdivisions and prevent the death of the trees. 7 A political subdivision may apply for assistance under the 8 program. The authority, in cooperation with the department, is 9 directed to adopt rules to administer the program, including 10 procedures for prioritizing applications for the loans. 11 The bill also creates an emerald ash borer revolving loan 12 fund in the state treasury under the control of the authority, 13 in cooperation with the department. The fund consists of 14 moneys appropriated by the general assembly as well as any 15 other moneys available to and obtained or accepted by the 16 authority or department for placement in the fund. Repayment 17 of moneys loaned and recaptures of loans are to be deposited 18 in the fund. Not more than 3 percent of the moneys in the 19 fund in a fiscal year may be used by the authority and the 20 department to establish and administer the emerald ash borer 21 revolving loan program. Moneys appropriated to the fund that 22 are unencumbered or unobligated at the close of the fiscal 23 year remain in the fund for the designated purposes until the 24 close of the succeeding fiscal year and interest or earnings on 25 moneys in the fund are credited to the fund. 26 The bill also contains an appropriation of $3 million from 27 the general fund to the emerald ash borer revolving loan fund 28 for FY 2015-2016 to establish and administer the emerald ash 29 borer revolving loan program. 30 -3- LSB 2409XC (3) 86 av/nh 3/ 3