Florida Senate - 2019                        COMMITTEE AMENDMENT
       Bill No. SB 1804
       
       
       
       
       
       
                                Ì353280ÆÎ353280                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  03/20/2019           .                                
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       The Committee on Agriculture (Albritton) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Section 570.82, Florida Statutes, is
    6  transferred, renumbered as section 252.65, Florida Statutes, and
    7  amended, to read:
    8         252.65 570.82 Agricultural Economic Development and
    9  Disaster Loans Program disaster loans and grants and aid.—
   10         (1) USE OF LOAN FUNDS AND LOAN TERMS.—
   11         (a) The division shall use funds appropriated for the
   12  program to make loans Loan funds to agricultural producers who
   13  have experienced losses from a natural disaster or a
   14  catastrophic weather socioeconomic condition or event. Such
   15  loans may be used to:
   16         1. Restore or replace essential physical property or remove
   17  debris on farmland or from essential physical property.
   18         2. Pay all or part of production costs associated with the
   19  disaster year, including direct input costs.
   20         3. Pay the deductible to repair or replace insured farm or
   21  irrigation equipment essential family living expenses.
   22         4. Restructure farm debts.
   23         (b) To be eligible, agricultural producers must have a
   24  parcel or parcels of land in production not exceeding 300 acres.
   25         (c)A loan must be zero-interest and in an amount of not
   26  Funds may be issued as direct loans, or as loan guarantees for
   27  up to 90 percent of the total loan, in amounts not less than
   28  $30,000 nor more than $500,000 $300,000. The borrower shall pay
   29  closing costs, which may not be more than 1 percent of the loan.
   30  The closing costs may be paid directly by the borrower or may be
   31  financed as part of the loan Applicants must provide at least 10
   32  percent equity.
   33         (c)The following loan limits apply per federal employer
   34  identification number:
   35         1.For timber, up to $500 per acre.
   36         2.For cotton, up to $275 per acre.
   37         3.For peanuts, up to $125 per acre.
   38         (d)The term of the loan is 10 years. If a subsequent
   39  natural disaster or catastrophic weather event affects the same
   40  property for which a borrower has an outstanding loan made under
   41  this section and that loan is still within its original term,
   42  the division must work with the borrower to evaluate the
   43  necessity of extending the term of the loan. The evaluation must
   44  include, but need not be limited to, a review of the borrower’s
   45  financial condition, the availability of other financial
   46  resources or programs, and consistency with the administration
   47  of the program under subsection (8). If the division determines
   48  it necessary to extend the term of the loan, the extension may
   49  be for up to an additional 5 years but must be for at least 1
   50  year.
   51         (e)(d)As used in For purposes of this subsection, the
   52  term:
   53         1.“Direct input costs” means costs incurred for:
   54         a.Seed;
   55         b.A boll weevil eradication program under part I of
   56  chapter 593;
   57         c.Fertilizer, lime, or other soil amendment;
   58         d.Chicken litter;
   59         e.Chemicals;
   60         f.Custom application;
   61         g.Hand weeding;
   62         h.Crop scouting;
   63         i.Fuel and lube;
   64         j.Repairs and maintenance;
   65         k.Irrigation;
   66         l.Labor;
   67         m.Insurance;
   68         n.Land rent;
   69         o.Interest on operating capital;
   70         p.Drying and cleaning; or
   71         q.Marketing and fees.
   72         3.1. “Losses” means loss or damage to crops;, agricultural
   73  products;, agricultural facilities;, farm, ranch, or dairy
   74  infrastructure;, or irrigation equipment farmworker housing.
   75         2. “Essential physical property” means fences;, equipment;,
   76  structural production facilities such as shade houses and
   77  greenhouses;, other agricultural facilities;, farm, ranch, or
   78  dairy infrastructure;, or irrigation equipment farmworker
   79  housing.
   80         (2) ELIGIBLE AGRICULTURAL PRODUCERS CROPS.—Agricultural
   81  producers of the following crops are eligible for the emergency
   82  loan program Crops eligible for the emergency loan program
   83  include:
   84         (a) Crops grown for human consumption.
   85         (b) Crops planted and grown for livestock consumption,
   86  including, but not limited to, grain, seed, and forage crops.
   87         (c) Crops grown for fiber, except for trees.
   88         (d) Specialty crops, such as seafood and aquaculture,
   89  including, but not limited to, the products of shellfish or
   90  oyster cultivation and harvesting, ornamental fish farming, and
   91  commercial fishing; floricultural or ornamental nursery crops;
   92  Christmas trees; turf for sod; industrial crops; and seed crops
   93  used to produce eligible crops. As used in this paragraph, the
   94  term “commercial fishing” means the activity of catching fish or
   95  other seafood for commercial profit. As used in this paragraph,
   96  the term “industrial crops” means crops that provide materials
   97  for industrial processes and products, such as soybeans, cotton
   98  lint and cottonseed, flax, or tobacco.
   99         (3) FARMING INFORMATION.—A borrower must keep complete and
  100  acceptable farm records and present them as proof of production
  101  levels. A borrower must operate in accordance with a farm plan
  102  that he or she develops and that is approved by the
  103  commissioner. A borrower may be required to participate in a
  104  financial management training program and obtain crop insurance
  105  as a risk management tool.
  106         (4) LOAN APPLICATION.—In order to qualify for a loan under
  107  this section, an applicant must:
  108         (a) Submit an application to the division department within
  109  1 year 90 days after the date the natural disaster or
  110  catastrophic weather socioeconomic condition or event occurs or
  111  the crop damage becomes apparent.
  112         (b)Be An applicant must be a citizen of the United States
  113  and a bona fide resident of this the state, and must also
  114  demonstrate the need for economic assistance, and demonstrate
  115  that he or she has the ability to repay the loan. Only one loan
  116  may be issued per federal employer identification number.
  117         (c)Provide sufficient evidence to the division that he or
  118  she used crop insurance as a risk management tool, if available,
  119  at the time of the natural disaster or catastrophic weather
  120  event.
  121         (d)Be approved by the division.
  122         (5) LOAN SECURITY REQUIREMENTS.—All loans must be secured.
  123  A first lien is required on all property or product acquired,
  124  produced, or refinanced with loan funds. The specific type of
  125  collateral required may vary depending upon the loan purpose,
  126  repayment ability, and the particular circumstances of the
  127  applicant. Farm assets may be used as collateral.
  128         (6) LOAN REPAYMENT.—A borrower shall repay the loan
  129  Repayment of loans for crops, livestock, and non-real-estate
  130  losses shall normally be made within 10 7 years or, except a
  131  borrower who received an extension of a loan as provided in
  132  paragraph (1)(d) shall repay the loan by the expiration of the
  133  extension in special circumstances, within 20 years. Loans for
  134  physical losses to real estate and buildings shall not exceed 30
  135  years. A loan may not be extended or repaid beyond 15 years.
  136  Borrowers are expected to return to conventional credit sources
  137  when they are financially able. Loans are a temporary source of
  138  credit, and borrowers must be reviewed periodically to determine
  139  whether they can return to conventional credit.
  140         (7)LOAN DEFAULT.—In the event of a default by a borrower,
  141  the division may bring suit to enforce its interest, in addition
  142  to any other remedy provided by law.
  143         (8)ADMINISTRATION.—The division shall administer the
  144  program in a manner consistent with federal disaster relief,
  145  prioritizing the maximization of federal aid. All loan
  146  repayments must be returned to the fund from which the
  147  appropriation for the program was made.
  148         (7) GRANTS AND AID.—The department shall establish a grant
  149  program to provide aid to agribusinesses to assist in market
  150  development.
  151         Section 2. Subsection (2) of section 201.25, Florida
  152  Statutes, is amended to read:
  153         201.25 Tax exemptions for certain loans.—There shall be
  154  exempt from all taxes imposed by this chapter:
  155         (2) Any loan made by the Agricultural Economic Development
  156  and Disaster Loans Program pursuant to s. 252.65 s. 570.82.
  157         Section 3. This act shall take effect upon becoming a law.
  158  
  159  ================= T I T L E  A M E N D M E N T ================
  160  And the title is amended as follows:
  161         Delete everything before the enacting clause
  162  and insert:
  163                        A bill to be entitled                      
  164         An act relating to emergency loans for agricultural
  165         producers; transferring, renumbering, and amending s.
  166         570.82, F.S.; renaming the Agricultural Economic
  167         Development Program for disaster loans as the
  168         Agricultural Economic Development and Disaster Loans
  169         Program; transferring administration of the program
  170         from the Department of Agriculture and Consumer
  171         Services to the Division of Emergency Management
  172         within the Executive Office of the Governor; revising
  173         authorized uses of loan funds; revising eligibility
  174         requirements for loans; increasing the total loan
  175         limit and deleting the minimum limit; revising loan
  176         requirements; requiring borrowers to pay closing
  177         costs; specifying a limit on such costs and providing
  178         that such costs may be paid directly or be financed;
  179         specifying loan limits for certain crops; requiring
  180         the division to work with borrowers in evaluating the
  181         need to extend loan terms under certain circumstances;
  182         specifying the minimum and maximum allowable extension
  183         term; redefining the terms “losses” and “essential
  184         physical property” and defining the term “direct input
  185         costs”; revising eligible crops; defining the terms
  186         “commercial fishing” and “industrial crops”; deleting
  187         requirements for farm plans and participation in
  188         certain training programs; revising loan application
  189         requirements; providing that farm assets may be used
  190         as collateral; revising requirements for loan
  191         repayment; authorizing remedies for the division
  192         relating to loan defaults; specifying requirements for
  193         the division in administering the program; deleting a
  194         provision requiring the department to establish a
  195         certain grant program; amending s. 201.25, F.S.;
  196         conforming a provision to changes made by the act;
  197         providing an effective date.