House Bill 4051
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
By Representative Ziebarth
1 A bill to be entitled
2 An act relating to agriculture; creating ss.
3 570.251-570.2815, F.S.; creating the "Florida
4 Agricultural Development Act"; providing
5 legislative findings; providing definitions;
6 establishing the Florida Agricultural
7 Development Authority; providing powers and
8 duties; providing for membership of a board;
9 providing for terms of board members; providing
10 for organization of the board; providing
11 general powers of the authority; providing for
12 an executive director and specifying duties;
13 requiring an annual report; providing for the
14 use of surplus moneys by the authority;
15 providing for combination of state and federal
16 programs to facilitate the purposes of the
17 authority; establishing a beginning farmer loan
18 program; providing purposes of the loan
19 program; authorizing the authority to
20 participate in federal programs; requiring the
21 authority to provide for loan criteria by rule;
22 authorizing the authority to provide loan
23 requirements; authorizing the authority to make
24 loans to beginning farmers for agricultural
25 land and improvements and depreciable
26 agricultural property; authorizing the
27 authority to make loans to mortgage lenders and
28 other lenders; authorizing the authority to
29 purchase mortgage loans and secured loans from
30 mortgage lenders; providing powers of the
31 authority relating to loans; providing for the
1
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 issuance of bonds and notes by the authority;
2 authorizing the authority to establish bond
3 reserve funds; providing remedies of
4 bondholders and holders of notes; providing for
5 the pledging of bonds by the state; providing
6 that bonds and notes shall be considered legal
7 investments; providing requirements with
8 respect to funds of the authority; authorizing
9 examination of accounts by the Auditor General;
10 requiring a report; providing limitation of
11 liability for members of the authority;
12 requiring the assistance of state officers,
13 agencies, and departments; providing for
14 construction of the act; requiring disclosure
15 of specified conflicts of interest; prohibiting
16 certain participation in the event of a
17 conflict of interest; specifying conflicts of
18 interest with respect to the executive director
19 of the authority; providing exemption from
20 competitive bid laws; providing for receipt of
21 specified trust assets by the authority;
22 authorizing the authority to enter into
23 specified agreements; providing for liability;
24 providing for additional beginning farmer and
25 loan assistance programs; authorizing
26 additional beginning farmer loan program;
27 requiring the authority to establish and
28 develop an agricultural loan assistance
29 program; providing program criteria; requiring
30 the authority to create and develop alternative
31 agriculture assistance programs; providing for
2
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 the adoption of rules with respect to
2 enforcement of provisions relative to such
3 programs; authorizing the authority to bring
4 action for enforcement; providing for the
5 transfer of specified funds to the authority;
6 providing an effective date.
7
8 Be It Enacted by the Legislature of the State of Florida:
9
10 Section 1. Sections 570.251, 570.252, 570.253,
11 570.254, 570.255, 570.256, 570.257, 570.258, 570.259, 570.260,
12 570.261, 570.262, 570.263, 570.264, 570.265, 570.266, 570.267,
13 570.268, 570.269, 570.270, 570.271, 570.272, 570.273, 570.274,
14 570.275, 570.276, 570.277, 570.278, 570.279, 570.280 and
15 570.2815, Florida Statutes, are created to read:
16 570.251 Short title.--Sections 570.251-570.2815 may be
17 cited as the "Florida Agricultural Development Act."
18 570.252 Legislative findings.--
19 (1) The Legislature has found and determined and does
20 hereby declare that the ability of citizens of the state to
21 pursue agricultural enterprises or enterprises related to
22 agribusiness has been detrimentally affected by causes and
23 events beyond the control of the state or its citizens,
24 including treaty-supported foreign competition, termination of
25 long-established federal subsidy programs, and a shortage of
26 funds from private market sources at rates of interest
27 available under revenue bond programs available to
28 nonagricultural industry in general. These conditions have
29 detrimentally affected the rural agriculture industry in this
30 state and have made the sale and purchase of agricultural land
31 by and among family farmers a virtual impossibility in many
3
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 parts of this state. The ordinary operation of private
2 enterprise has not corrected this situation. Such a state of
3 affairs has worked to the detriment of the economy and social
4 welfare of the state, and threatens to destroy the basic
5 fabric of rural agriculture, such as the family farm and rural
6 communities which depend on agribusiness. Florida farm policy
7 should enhance opportunities for people to generate farm
8 incomes comparable to other economic sectors. The United
9 States Congress has recognized the need to provide assistance
10 to the rural segment of the national economy and has
11 instituted programs to assist family farmers and agribusiness
12 by means of tax policy, as well as loans, grants, technology
13 transfers, and credit enhancements to qualified state
14 agencies. The Legislature should also encourage, by all
15 suitable means, intellectual, scientific, and agricultural
16 improvement in the rural parts of this state. The public good
17 is served by a policy of facilitating access to capital by
18 beginning farmers, existing farmers, and agribusinesses unable
19 to obtain capital elsewhere. It is therefore determined and
20 declared that there exist conditions in the state which
21 require the creation of a body politic with corporate power to
22 issue notes, bonds, and other evidences of indebtedness in
23 order to make or acquire loans for the acquisition or
24 development of agricultural lands, improvements, and
25 facilities. All of the purposes stated in this section are
26 public purposes and uses for which public moneys may be
27 borrowed, expended, advanced, loaned, or granted.
28 (2) The Legislature recognizes that many of the
29 programs approved by Congress in the Federal Agricultural
30 Improvement and Reform Act of 1996 that can supplement and
31 enhance the authority's mission as established herein are in
4
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 the process of being implemented; therefore, the authority
2 shall have broad powers to implement rules to carry out the
3 purposes set forth in this act to maximize the benefits to the
4 citizens of this state from all federal, state, local, or
5 private programs now available, or hereafter available as they
6 shall occur.
7 570.253 Definitions.--As used in this act, unless the
8 context otherwise requires:
9 (1) "Agricultural improvements" means any
10 improvements, buildings, structures, or fixtures suitable for
11 use in farming, producing, or processing agricultural products
12 which are located on agricultural land in this state.
13 "Agricultural improvements" includes any single-family
14 dwelling located on agricultural land which is or will be
15 occupied by a beginning farmer, and structures attached to or
16 incidental to the use of the dwelling.
17 (2) "Agricultural land" means land in this state
18 suitable for use in farming, producing, or processing
19 agricultural products, specifically including lands so
20 designated by the Land Acquisition and Management Advisory
21 Council established pursuant to s. 259.035.
22 (3) "Agricultural producer" means a person that
23 engages in the business of producing and marketing
24 agricultural produce in this state, and shall include the word
25 "farmer."
26 (4) "Agricultural processor" means a person that
27 engages in the business of processing agricultural products
28 within this state, including, but not limited to, agricultural
29 commodities, agricultural byproducts, biomass energy and
30 organic compost processing, and any and all products made or
31 derived from agricultural or biomass stock as further defined
5
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 by the authority under rules promulgated pursuant to chapter
2 120.
3 (5) "Authority" means the Florida Agricultural
4 Development Authority established in s. 570.254.
5 (6) "Bankhead-Jones Farm Tenant Act" means the act
6 cited as 50 Stat. 522(1937), formerly codified as 7 U.S.C. s.
7 1000 et seq., repealed by Pub. L. No. 87-128 (1961).
8 (7) "Beginning farmer" means an individual,
9 partnership, corporation, limited liability company, limited
10 agricultural association as defined in s. 604.11, or trust
11 that engages in farming in this state and includes:
12 (a) First-time farmers and family farmers as described
13 in Internal Revenue Code section 147(c)(2), as from time to
14 time amended;
15 (b) Existing farmers who have, or who intend to,
16 transition out of existing agricultural activities into new or
17 alternative agricultural crops under rules promulgated by the
18 authority; and
19 (c) Such other farmers as are from time to time
20 designated by rules established by the authority.
21 (8) "Bonds" means bonds issued by the authority
22 pursuant to this act.
23 (9) "Conservation farm equipment" means the
24 specialized planters, cultivators, and tillage equipment used
25 for reduced tillage or no-till planting of crops, including
26 anaerobic fermentation facilities, biomass processes, and
27 solid waste and water conservation equipment.
28 (10) "Depreciable agricultural property" means
29 personal property suitable for use in farming for which an
30 income tax deduction for depreciation is allowable in
31 computing federal income tax under the Internal Revenue Code.
6
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 (11) "FAIR Farm Act" means the Federal Agriculture
2 Improvement and Reform Act of 1996, 110 Stat. 889, et seq., as
3 from time to time amended.
4 (12) "Farming" means the cultivation of land in this
5 state for the production of any and all agricultural crops,
6 including biomass and fiber crops, citrus crops, the raising
7 of poultry and ratites, the production of eggs, the production
8 of milk, the production of fruits, nuts, vegetables, flowers,
9 ferns, or other horticultural crops, grazing and forage
10 production, the production of swine, livestock, farm-raised
11 deer, aquaculture, hydroponics, organics, silviculture, the
12 production of forest products, or other such activities
13 designated by the authority by rules subject to chapter 120.
14 (13) "Internal Revenue Code" means the Internal
15 Revenue Code of 1986, as from time to time amended.
16 (14) "Lending institution" means a bank, credit union,
17 trust company, mortgage company, national banking association,
18 savings and loan association, insurance company, any state or
19 federal governmental agency or instrumentality, including,
20 without limitation, the federal land bank or the consolidated
21 farm service agency or any of its local associations, or any
22 other financial institution or entity authorized to make farm
23 loans in this state.
24 (15) "Mortgage" means a mortgage, mortgage deed, deed
25 of trust, or other instrument creating a first lien, subject
26 only to title exceptions and encumbrances acceptable to the
27 authority, including any other mortgage liens of equal
28 standing with or subordinate to the mortgage loan retained by
29 a seller or conveyed to a mortgage lender, on a fee interest
30 in agricultural land and agricultural improvements.
31
7
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 (16) "Mortgage lender" means a bank, trust company,
2 mortgage company, national banking association, savings and
3 loan association, insurance company, any state or federal
4 governmental agency or instrumentality, including, without
5 limitation, the federal land bank or any of its local
6 associations, or any other financial institution or public or
7 private entity authorized to make mortgage loans or secured
8 loans in this state.
9 (17) "Mortgage loan" means a financial obligation
10 secured by a mortgage.
11 (18) "Note" means a bond anticipation note or other
12 obligation or evidence of indebtedness issued by the authority
13 pursuant to this act.
14 (19) "Soil and water conservation practices" have the
15 meaning described in chapter 582, and shall include solid
16 waste and waste water disposal systems, anaerobic fermentation
17 systems, and other facilities designed to process agricultural
18 soil, water, and matter in an environmentally responsible
19 manner.
20 (20) "Secured loan" means a financial obligation
21 secured by a chattel mortgage, security agreement, or other
22 instrument creating a lien on an interest in depreciable
23 agricultural property.
24 (21) "State agency" means any board, commission,
25 department, public officer, or other agency or authority of
26 the State of Florida.
27
28 The authority may establish by rule further definitions
29 applicable to this act and may clarify definitions in this
30 section, as necessary to assure eligibility for funds,
31 insurance, or guarantees available under federal, state, or
8
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 local laws, to assure compliance with federal tax law and
2 regulations under the Internal Revenue Code and applicable
3 state statutes, and to carry out the public purposes of this
4 act.
5 570.254 Establishment of authority; powers and duties;
6 board; earnings.--
7 (1) There is hereby created a body politic and
8 corporate to be known as the Florida Agricultural Development
9 Authority. The authority is constituted a public
10 instrumentality and agency of the state exercising public and
11 essential governmental functions. The authority is established
12 for the purpose of undertaking:
13 (a) Programs within the state which assist farmers,
14 beginning farmers and agribusiness in purchasing, leasing, or
15 otherwise acquiring agricultural land, improvements,
16 technology, and depreciable agricultural property for the
17 purpose of farming.
18 (b) Programs which provide financing to farmers for
19 soil and water conservation practices.
20 (c) Programs that promote diversification of the farm
21 economy in this state through the growth and development of
22 new crops or livestock not customarily grown or produced in
23 this state or that emphasize a vertical integration of
24 agricultural products produced or raised in this state into a
25 finished agricultural product or byproduct for consumption or
26 use.
27 (d) Programs to assist in financing operating expenses
28 and cash-flow requirements of farming.
29
30 The authority shall also develop programs to assist qualified
31 producers, processors, and manufacturers of agriculture
9
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 products and support organizations within the state with
2 financing research and development and other capital
3 requirements or operating expenses.
4 (2) The powers of the authority are vested in and
5 exercised by a board of nine members, including the
6 commissioner or the commissioner's designee, who shall be an
7 ex officio nonvoting member, except in the case of a tie vote.
8 There shall be five standing members of the board who shall be
9 designated, one each, by the following:
10 (a) The Florida Farm Bureau Federation.
11 (b) The Institute of Food and Agricultural Sciences of
12 the University of Florida.
13 (c) The Florida Agricultural and Mechanical
14 University.
15 (d) The Florida Agricultural Resources and
16 Mobilization Foundation, Inc. (FARM Foundation).
17 (e) The Technological Research and Development
18 Authority of the National Aeronautics and Space
19 Administration.
20
21 Additionally, three at-large members shall be appointed by the
22 Governor who shall include persons who represent financial
23 institutions with experience in agricultural lending, farmers,
24 beginning farmers, and other persons specially interested in
25 agriculture and family farm development.
26 (3) The standing members of the board shall be
27 appointed for terms of 4 years and the members appointed by
28 the Governor shall serve terms of 3 years. A person appointed
29 to fill a vacancy shall serve only for the unexpired portion
30 of the term. A member of the board is eligible for
31 reappointment. An appointed member may be removed from office
10
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 by the Governor for misfeasance, malfeasance, or willful
2 neglect of duty or other just cause, after notice and hearing,
3 unless the notice and hearing is expressly waived in writing.
4 An appointed member of the authority may also serve as a
5 member of any other authority or association.
6 (4) The members shall elect a chair and a vice chair
7 annually, and other officers as they determine; however, the
8 executive director of the authority shall serve as secretary
9 to the board. Meetings of the board shall be held at the call
10 of the chair or whenever two members so request and may be
11 held telephonically as provided in the bylaws of the
12 authority.
13 (5) Five voting members of the board constitute a
14 quorum and the affirmative vote of a majority of the voting
15 members is necessary for any substantive action taken by the
16 board. The majority shall not include any member who has a
17 conflict of interest. A statement by a member that he or she
18 has a conflict of interest is conclusive for this purpose. A
19 vacancy in the membership does not impair the right of a
20 quorum to exercise all rights and perform all duties of the
21 board.
22 (6) The members of the board shall receive per diem
23 and travel expenses as provided in s. 112.061 while in
24 performance of their duties.
25 (7) The members of the board shall give bond as
26 required by law for public officers.
27 (8) The net earnings of the authority, beyond that
28 necessary for retirement of its notes, bonds, or other
29 obligations or to implement authorized public purposes and
30 programs, shall not inure to the benefit of any person other
31 than the state. Upon termination of the existence of the
11
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 authority, title to all property owned by the authority,
2 including any net earnings, shall vest in the state.
3 570.255 General powers.--The authority has all of the
4 general powers necessary to carry out its purposes and duties,
5 and to exercise its specific powers, including, but not
6 limited to, the power to:
7 (1) Issue negotiable bonds and notes as provided in
8 this act in order to finance its programs.
9 (2) Sue and be sued in its own name.
10 (3) Have and alter a corporate seal.
11 (4) Make and alter bylaws for its management and
12 programs consistent with the provisions of this act.
13 (5) Make and execute agreements, contracts, and other
14 instruments with any public or private entity, including, but
15 not limited to, any federal governmental agency or
16 instrumentality. The authority may make and execute contracts
17 with any firm of independent certified public accountants to
18 prepare an annual report on behalf of the authority. The
19 authority may make and execute contracts with mortgage
20 lenders, insurance companies, or others for the servicing of
21 mortgage and secured loans. All political subdivisions,
22 including federal, state, and local agencies may enter into
23 contracts and otherwise cooperate with the authority.
24 (6) Lease, purchase, accept a gift or donation of, or
25 otherwise acquire, use, own, hold, improve, or otherwise deal
26 in or with, real or personal property, and sell, convey,
27 mortgage, pledge, lease, exchange, or otherwise dispose of,
28 any assets, loans and equity interests acquired in the
29 financing of projects funded by the authority, and any other
30 property or interest in property, as the board considers
31 necessary in the transaction of the business of the authority,
12
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 except that this paragraph shall not provide authority for
2 carrying out a program of real estate investment.
3 (7) Procure insurance against any loss in connection
4 with its operations and property interests, including pool
5 insurance on any group of mortgage or secured loans.
6 (8) Fix and collect fees and charges for its services.
7 (9) Subject to an agreement with bondholders or
8 noteholders, invest or deposit moneys of the authority in a
9 manner determined by the authority, notwithstanding the
10 provisions of chapters 215 and 216.
11 (10) Accept appropriations, gifts, grants, loans, or
12 other aid from public or private entities. A record of all
13 gifts or grants, stating the type, amount, and donor, shall be
14 clearly set out in the authority's annual report along with
15 the record of other receipts.
16 (11) Provide to public and private entities with
17 technical assistance, education, counseling, and grants to
18 assist the authority in matters related to the authority's
19 purposes.
20 (12) In cooperation with other local, state, or
21 federal governmental agencies or instrumentalities, conduct
22 studies of agricultural needs of the beginning farmer,
23 agricultural producer, and processor, and gather, compile, and
24 exchange with similar authorities and agencies in other states
25 data useful to facilitate decisionmaking.
26 (13) Contract with accountants, architects, attorneys,
27 economists, engineers, housing construction and finance
28 experts, and other advisors, or enter into contracts or
29 agreements for such services with local, state, or federal
30 governmental agencies.
31
13
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 (14) Make, enter into, and execute such contracts,
2 agreements, leases, and other instruments with any person,
3 partnership, corporation, limited liability company, limited
4 agricultural association or trust, including, without
5 limitation, any federal, state, or local governmental agency,
6 and to take such other actions as may be necessary or
7 convenient to accomplish any purpose for which the authority
8 was organized or to exercise any power expressly granted
9 hereunder.
10 (15) Subject to the provisions of chapter 120, make,
11 alter, and repeal rules consistent with the provisions of this
12 act.
13 570.256 Executive director.--
14 (1) The executive director of the authority shall be
15 appointed by the board and shall serve at the pleasure of the
16 authority. The executive director shall be selected primarily
17 for administrative ability and knowledge in the field, without
18 regard to political affiliation.
19 (2) The executive director shall not, directly or
20 indirectly, exert influence to induce any other officers or
21 employees of the state to adopt a political view, or to favor
22 a political candidate for office.
23 (3) The executive director shall advise the authority
24 on matters relating to agricultural land and property and
25 finance; carry out all directives from the authority; and hire
26 and supervise the authority's staff, which shall include a
27 general counsel to advise and assist the executive director in
28 carrying out the purposes of this act, pursuant to the
29 direction of the board.
30 (4) The executive director, as secretary of the
31 authority, shall be custodian of all books, documents, minute
14
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 books, seal, and papers filed with the authority. The
2 executive director may cause to be made copies of all minutes
3 and other records and documents of the authority and shall
4 give certificates under the seal of the authority that the
5 copies are true copies and that all persons dealing with the
6 authority may rely upon the certificates.
7 (5) The executive director and authority staff shall
8 be considered state employees for all purposes including state
9 retirement and other benefit programs, and the carryover of
10 prior rights if such employee is a transferee from another
11 state agency; except, the executive director and general
12 counsel shall be exempt from the provisions of part II of
13 chapter 110.
14 570.257 Annual report.--
15 (1) The authority shall submit to the Governor, the
16 President of the Senate and the Speaker of the House of
17 Representatives, not later than February 15 of each year, a
18 complete and economically designed and reproduced report
19 setting forth:
20 (a) The operations and accomplishments of the
21 authority.
22 (b) The authority's receipts and expenditures during
23 the fiscal year, in accordance with the classifications it
24 establishes for its operating and capital accounts.
25 (c) The authority's assets and liabilities at the end
26 of its fiscal year and the status of reserve, special, and
27 other funds.
28 (d) A schedule of the authority's bonds and notes
29 outstanding at the end of its fiscal year, together with a
30 statement of the amounts redeemed and issued during its fiscal
31 year.
15
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 (e) A statement of the authority's proposed and
2 projected activities.
3 (f) Recommendations to the Legislature, as the
4 authority deems necessary.
5 (g) An analysis of the needs of beginning farmers and
6 other farmers in the state, as well as agribusiness projects
7 funded by the authority.
8 (2) The annual report shall identify performance goals
9 of the authority and clearly indicate the extent of progress
10 during the reporting period in attaining the goals. Where
11 possible, results shall be expressed in terms of number of
12 loans and acres of agricultural land, establishment of new or
13 alternative agricultural crops, and value-added programs for
14 Florida farmers and agribusiness.
15 570.258 Surplus moneys.--Moneys declared by the
16 authority to be surplus moneys which are not required to
17 service bonds and notes, to pay administrative expenses of the
18 authority, or to accumulate necessary operating or loss
19 reserves shall be used by the authority to provide loans,
20 grants, subsidies, and other services or assistance to
21 beginning farmers or agricultural producers through any of the
22 programs authorized in this act.
23 570.259 Combination programs.--Programs authorized in
24 this act may be combined with any other programs authorized in
25 this act or any other chapter of the Florida Statutes or under
26 any federal program or programs of any other state in order to
27 facilitate, as far as practicable, the acquisition and
28 ownership of agricultural land and property by beginning or
29 existing farmers or to facilitate the implementation of soil
30 and water conservation practices, the implementation of new
31 and alternative agricultural crops in this state, and the
16
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 implementation of the technology transfer between the United
2 States Department of Agriculture, the State of Florida, and
3 the Technological Development Research Authority.
4 570.260 Beginning farmer loan program.--
5 (1) The authority shall develop a beginning farmer
6 loan program to facilitate the acquisition of agricultural
7 land and improvements and depreciable agricultural property by
8 beginning farmers. The authority shall exercise the powers
9 granted to it in this act in order to fulfill the goal of
10 providing financial assistance to beginning farmers in the
11 acquisition of agricultural land and improvements and
12 depreciable agricultural property. The authority may
13 participate in and cooperate with programs of the United
14 States Department of Agriculture Consolidated Farm Service
15 Agency, federal land bank, or any other agency or
16 instrumentality of the Federal Government or with any program
17 of any other state agency in the administration of the
18 beginning farmer loan program and in the making or purchasing
19 of bonds, notes, mortgages, or secured loans pursuant to this
20 act.
21 (2) The authority may participate in any federal
22 programs designed to assist beginning farmers or in any
23 related federal or state programs.
24 (3) The authority shall provide by rule the criteria
25 upon which loans to or on behalf of a beginning farmer program
26 will provide and shall ensure that such rules comply with the
27 United States Internal Revenue Code, as from time to time
28 amended, for "first-time farmers" under Section 147 of the
29 Internal Revenue Code.
30 (4) The authority may provide in a mortgage or secured
31 loan made or purchased pursuant to this act that the loan may
17
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 not be assumed or that any interest in the agricultural land
2 or improvements or depreciable agricultural property may not
3 be leased, sold, or otherwise conveyed without its prior
4 written consent and may provide a due-on-sale clause with
5 respect to the occurrence of any of the foregoing events
6 without its prior written consent. The authority may provide
7 by rule the grounds for permitted assumptions of a mortgage or
8 for the leasing, sale, or other conveyance of any interest in
9 the agricultural land or improvements. The authority shall,
10 however, provide and state in a mortgage or secured loan that
11 the authority has the power to raise the interest rate of the
12 loan to the prevailing market rate if the mortgage or secured
13 loan is assumed by a farmer who is already established in that
14 field at the time of the assumption of the loan.
15 (5) The authority may participate in any interest in
16 any mortgage or secured loan made or purchased pursuant to
17 this act with a mortgage or other lender. The participation
18 interest may be on a parity with the interest in the mortgage
19 or secured loan retained by the authority, equally and ratably
20 secured by the mortgage or securing agreement securing the
21 mortgage or secured loan.
22 570.261 Loans to beginning farmers.--
23 (1) The authority may make mortgage or secured loans,
24 including, but not limited to, mortgage or secured loans
25 insured, guaranteed, or otherwise secured by the Federal
26 Government or a federal governmental agency or
27 instrumentality, a state agency, or private mortgage insurers,
28 to beginning farmers to provide financing for agricultural
29 land and improvements or depreciable agricultural property.
30 (2) Mortgage or secured loans shall contain terms and
31 provisions, including interest rates, and be in a form
18
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 established by rules of the authority. The authority may
2 require the beginning farmer to execute a note, loan
3 agreement, or other evidence of indebtedness and furnish
4 additional assurances and guarantees, including insurance,
5 reasonably related to protecting the security of the mortgage
6 or secured loan, as the authority deems necessary.
7 570.262 Loans to mortgage lenders and other lenders.--
8 (1) The authority may make and contract to make loans
9 to mortgage lenders or other lenders on terms and conditions
10 it determines are reasonably related to protecting the
11 security of the authority's investment and to implementing the
12 purposes of this act. Mortgage lenders are authorized to
13 borrow from the authority in accordance with the provisions of
14 this section and the rules of the authority.
15 (2) The authority shall require as a condition of each
16 loan to a mortgage lender that the mortgage lender, within a
17 reasonable period after receipt of the loan proceeds as the
18 authority prescribes by rule, shall have entered into written
19 commitments to make and, within a reasonable period thereafter
20 as the authority prescribes by rule, shall have disbursed the
21 loan proceeds in new mortgage or secured loans to beginning
22 farmers in an aggregate principal amount of not less than the
23 amount of the loan. New mortgage or secured loans shall have
24 terms and conditions as the authority prescribes by rules
25 which are reasonably related to implementing the purposes of
26 this act.
27 570.263 Purchase of loans.--
28 (1) The authority may purchase and make advance
29 commitments to purchase mortgage or secured loans from
30 mortgage lenders at prices and upon terms and conditions as it
31 determines. However, the total purchase price for all mortgage
19
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 or secured loans which the authority commits to purchase from
2 a mortgage lender at any one time shall not exceed the total
3 of the unpaid principal balances of the mortgage or secured
4 loans purchased. Mortgage lenders are authorized to sell
5 mortgage or secured loans to the authority in accordance with
6 the provisions of this section and the rules of the authority.
7 (2) The authority shall require as a condition of
8 purchase of mortgage or secured loans from mortgage lenders
9 that the mortgage lenders certify that the mortgage or secured
10 loans purchased are loans made to beginning farmers. Mortgage
11 or secured loans to be made by mortgage lenders shall have
12 terms and conditions as the authority prescribes by rule. The
13 authority may make a commitment to purchase mortgage or
14 secured loans from mortgage lenders in advance of the time the
15 loans are made by mortgage lenders. The authority shall
16 require as a condition of a commitment that mortgage lenders
17 certify in writing that all mortgage or secured loans
18 represented by the commitment will be made to beginning
19 farmers and that the mortgage lender will comply with other
20 authority specifications.
21 570.264 Powers relating to loans.--Subject to any
22 agreement with bondholders or noteholders, the authority may
23 renegotiate a mortgage or secured loan or a loan to a mortgage
24 lender in default, waive a default or consent to the
25 modification of the terms of a mortgage or secured loan or a
26 loan to a mortgage lender, forgive or forbear all or part of a
27 mortgage or secured loan or a loan to a mortgage lender, and
28 commence, prosecute, and enforce a judgment in any action,
29 including, but not limited to, a foreclosure action, to
30 protect or enforce any right conferred upon it by law,
31 mortgage or secured loan agreement, contract, or other
20
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 agreement and, in connection with any action, bid for and
2 purchase the property or acquire or take possession of it,
3 complete, administer, pay the principal of and interest on any
4 obligations incurred in connection with the property, and
5 dispose of and otherwise deal with the property in a manner
6 the authority deems advisable to protect its interests.
7 570.265 Bonds and notes.--
8 (1) The authority may issue its negotiable bonds and
9 notes in principal amounts which, in the opinion of the
10 authority, are necessary to provide sufficient funds for
11 achievement of its corporate purposes, the payment of interest
12 on its bonds and notes, the establishment of reserves to
13 secure its bonds and notes, and all other expenditures of the
14 authority incident to and necessary or convenient to carry out
15 its purposes and powers. The bonds and notes shall be deemed
16 to be investment securities and negotiable instruments within
17 the meaning of and for all purposes of the Uniform Commercial
18 Code.
19 (2) Bonds and notes are payable solely and only out of
20 the moneys, assets, or revenues of the authority and as
21 provided in the agreement with bondholders or noteholders
22 pledging any particular moneys, assets, or revenues. Bonds or
23 notes are not an obligation of this state or any political
24 subdivision of this state other than the authority within the
25 meaning of any constitutional or statutory debt limitations,
26 but are special obligations of the authority payable solely
27 and only from the sources provided in this act, and the
28 authority shall not pledge the credit or taxing power of this
29 state or any political subdivision of this state other than
30 the authority or make its debts payable out of any moneys
31 except those of the authority.
21
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 (3) Bonds and notes must be authorized by a resolution
2 of the authority. A resolution authorizing the issuance of
3 bonds or notes may, however, delegate to an officer of the
4 authority the power to negotiate and fix the details of an
5 issue of bonds or notes by an appropriate certificate of the
6 authorized officer.
7 (4) In addition to any notice required from time to
8 time under the Internal Revenue Code for federally tax exempt
9 bonds, the authority shall publish a notice of intention to
10 issue bonds or notes in a newspaper of general circulation
11 published in the state. The notice shall include a statement
12 of the maximum amount of bonds or notes proposed to be issued
13 and, in general, what net revenues will be pledged to pay the
14 bonds or notes and interest thereon. An action shall not be
15 brought questioning the legality of the bonds or notes or the
16 power of the authority to issue the bonds or notes or as to
17 the legality of any proceedings in connection with the
18 authorization or issuance of the bonds or notes after 60 days
19 from the date of publication of the notice.
20 (5) Bonds and notes issued by the authority for
21 purposes of financing the beginning farmer loan program
22 provided in s. 570.260 are exempt from all taxation by the
23 state including, but not limited to, income, documentary stamp
24 taxes, and intangible taxes, and interest earned on the bonds
25 and notes is deductible in determining net income for purposes
26 of the corporate income tax under chapter 220.
27 570.266 Reserve funds and appropriations.--The
28 authority may create and establish one or more special funds,
29 each to be known as a "bond reserve fund" and shall pay into
30 each bond reserve fund any moneys appropriated and made
31 available by the state for the purpose of the fund, any
22
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 proceeds of the sale of notes or bonds to the extent provided
2 in the resolutions of the authority authorizing their
3 issuance, and any other moneys which are available to the
4 authority for the purpose of the fund from any other sources.
5 Moneys held in a bond reserve fund, except as otherwise
6 provided in this act, shall be used as required solely for the
7 payment of the principal of bonds secured in whole or in part
8 by the fund or of the sinking fund payments with respect to
9 the bonds, the purchase or redemption of the bonds, the
10 payment of interest on the bonds, or the payments of any
11 redemption premium required to be paid when the bonds are
12 redeemed prior to maturity.
13 570.267 Remedies of bondholders and noteholders.--
14 (1) If the authority defaults in the payment of
15 principal or interest on an issue of bonds or notes at
16 maturity or upon call for redemption and the default continues
17 for a period of 30 days or if the authority fails or refuses
18 to comply with the provisions of this act or defaults in an
19 agreement made with the holders of an issue of bonds or notes,
20 the holders of 25 percent in aggregate principal amount of
21 bonds or notes of the issue then outstanding, by instrument
22 filed in the office of the clerk of the county in which the
23 principal office of the authority is located and proved or
24 acknowledged in the same manner as a deed to be recorded, may
25 appoint a trustee to represent the holders of the bonds or
26 notes for the purposes provided in this section.
27 (2) The authority or any trustee appointed under the
28 indenture under which the bonds or notes are issued may, but
29 upon written request of the holders of 25 percent in aggregate
30 principal amount of the issue of bonds or notes then
31 outstanding shall:
23
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 (a) Enforce all rights of the bondholders or
2 noteholders including the right to require the authority to
3 carry out its agreements with the holders and to perform its
4 duties under this act.
5 (b) Bring suit upon the bonds or notes.
6 (c) By action, require the authority to account as if
7 it were the trustee of an express trust for the holders.
8 (d) By action, enjoin any acts or things which are
9 unlawful or in violation of the rights of the holders.
10 (e) Declare all the bonds or notes due and payable
11 and, if all defaults are made good, then with the consent of
12 the holders of 25 percent of the aggregate principal amount of
13 the issue of bonds or notes then outstanding annul the
14 declaration and its consequences.
15 (3) The trustee shall also have all powers necessary
16 or appropriate for the exercise of functions specifically set
17 forth or incident to the general representation of bondholders
18 or noteholders in the enforcement and protection of their
19 rights.
20 (4) Before declaring the principal of bonds or notes
21 due and payable, the trustee shall first give 30 days' notice
22 in writing to the Governor, to the authority, and to the
23 Attorney General.
24 (5) The circuit court has jurisdiction of any action
25 by the trustee on behalf of bondholders or noteholders. The
26 venue of the action shall be in the county in which the
27 principal office of the authority is located.
28
29 The bondholders or noteholders may, to the extent provided in
30 the resolution to which the bonds or notes were issued or in
31 its agreement with the authority, enforce any of the remedies
24
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 in paragraphs (2)(a)-(e) or the remedies provided in such
2 proceedings or agreements for and on their own behalf.
3 570.268 Agreement of the state.--The state pledges and
4 agrees with the holders of any bonds or notes that the state
5 will not limit or alter the rights vested in the authority to
6 fulfill the terms of agreements made with the holders of such
7 bonds or notes or in any way impair the rights and remedies of
8 the holders of such bonds or notes until the bonds or notes
9 together with the interest thereon, plus interest on unpaid
10 installments of interest, and all costs and expenses in
11 connection with an action by or on behalf of the holders of
12 such bonds are fully met and discharged. The authority may
13 include this pledge and agreement of the state in any
14 agreement with the holders of bonds or notes.
15 570.269 Bonds and notes as legal investments.--Bonds
16 and notes are securities in which public officers, state
17 departments and agencies, political subdivisions, pension and
18 retirement funds, insurance companies and other persons
19 carrying on an insurance business, banks, trust companies,
20 savings and loan associations, investment companies, credit
21 unions, and other persons carrying on a banking business,
22 administrators, executors, guardians, conservators, trustees
23 and other fiduciaries, and other persons authorized to invest
24 in bonds or other obligations of this state may properly and
25 legally invest funds including capital in their control or
26 belonging to them. Bonds and notes are also securities which
27 may be deposited with and received by public officers, state
28 departments and agencies, and political subdivisions for any
29 purpose for which the deposit of bonds or other obligations of
30 this state is authorized.
31 570.270 Moneys of the authority.--
25
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 (1) Moneys of the authority, except as otherwise
2 provided in this act, shall be paid to the authority and shall
3 be deposited in a bank or other financial institution
4 designated by the authority. The moneys of the authority shall
5 be withdrawn on the order of the person authorized by the
6 authority. Deposits shall be secured in the manner determined
7 by the authority. The Auditor General may periodically examine
8 the accounts and books of the authority, including its
9 receipts, disbursements, contracts, leases, sinking funds,
10 investments, and any other records and papers relating to its
11 financial standing. The authority shall not be required to pay
12 a fee for the examination.
13 (2) The authority may contract with holders of its
14 bonds or notes as to the custody, collection, security,
15 investment, and payment of moneys of the authority, of moneys
16 held in trust or otherwise for the payment of bonds or notes
17 and to carry out the contract. Moneys held in trust or
18 otherwise for the payment of bonds or notes or in any way to
19 secure bonds or notes and deposits of the moneys may be
20 secured in the same manner as moneys of the authority, and
21 banks and trust companies may give security for the deposits.
22 (3) Subject to the provisions of any contract with
23 bondholders or noteholders, the authority shall prescribe a
24 system of accounts.
25 (4) The authority shall submit to the Governor, the
26 Auditor General, the President of the Senate, and the Speaker
27 of the House of Representatives within 30 days of receipt by
28 the authority, a copy of the report of every external
29 examination of the books and accounts of the authority other
30 than copies of the reports of examinations made by the Auditor
31 General.
26
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 570.271 Limitation of liability.--Members of the
2 authority and persons acting in its behalf, while acting
3 within the scope of their employment or agency, are not
4 subject to personal liability resulting from carrying out the
5 powers and duties given in this act, and the authority may
6 carry such insurance or other indemnification for any actions
7 arising out of such duties.
8 570.272 Assistance by state officers, agencies, and
9 departments.--State officers, departments, and agencies shall
10 render services to the authority within their respective
11 functions as requested by the authority. The authority shall
12 present to the Division of Bond Finance of the State Board of
13 Administration, on or before the first business day of each
14 calendar year, its projected volume cap requirements pursuant
15 to s. 146 of the Internal Revenue Code, by county, for the
16 ensuing year. The division shall reserve such volume cap
17 allocations for the aggregate amount of the bonds of the
18 authority for such year.
19 570.273 Liberal interpretation.--This act, being
20 necessary for the welfare of this state and its inhabitants,
21 shall be liberally construed to effect its purposes.
22 570.274 Conflicts of interest.--
23 (1) If a member or employee other than the executive
24 director of the authority has an interest, either direct or
25 indirect, in a contract to which the authority is or is to be
26 a party or in a mortgage lender or other lender requesting a
27 loan from or offering to sell mortgage or secured loans to the
28 authority, the interest shall be disclosed to the authority in
29 writing and shall be set forth in the minutes of the
30 authority. The member or employee having the interest shall
31
27
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 not participate in an action by the authority with respect to
2 such contract or mortgage lender or other lender.
3 (2) This section does not limit the right of a member,
4 officer, or employee of the authority to acquire an interest
5 in bonds or notes or to limit the right of a member or
6 employee other than the executive director to have an interest
7 in a bank, insurance company, or other financial institution
8 in which the funds of the authority are deposited or which is
9 acting as trustee or paying agent under a trust indenture to
10 which the authority is a party; nor does this section, except
11 as to the disclosures required by subsection (1), preclude an
12 insurance company or financial institution in which an
13 authority board member or employee, other than the executive
14 director, has an interest from placing insurance, funding
15 bonds, or acquiring or selling notes, mortgages, or other
16 obligations of the authority.
17 (3) The executive director shall not have an interest
18 in a bank or other financial institution in which the funds of
19 the authority are deposited or which is acting as trustee or
20 paying agent under a trust indenture to which the authority is
21 a party. The executive director shall not receive, in addition
22 to fixed salary or compensation, any money or valuable thing,
23 either directly or indirectly or through any substantial
24 interest in any other corporation or business unit, for
25 negotiating, procuring, recommending, or aiding in any
26 purchase or sale of property or loan made by the authority,
27 nor shall the executive director be pecuniarily interested,
28 either as principal, co-principal, agent, or beneficiary,
29 either directly or indirectly or through any substantial
30 interest in any other corporation or business unit, in any
31 purchase, sale, or loan.
28
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 570.275 Exemption from competitive bid laws.--The
2 authority and all contracts made by it in carrying out its
3 public and essential governmental functions shall be exempt
4 from the laws of the state which provide for competitive bids
5 in connection with such contracts.
6 570.276 Trust assets.--The authority shall make
7 application to, and receive from, the United States Secretary
8 of Agriculture, or any other proper federal official, pursuant
9 and subject to the provisions of Pub. L. No. 499, 64 Stat. 152
10 (1950), formerly codified 40 U.S.C. 440 et seq. (1976), all of
11 the trust assets held by the United States in trust for the
12 Florida Rural Rehabilitation Corporation, now dissolved.
13 570.277 Agreements.--The authority may enter into
14 agreements with the United States Secretary of Agriculture
15 pursuant to Pub. L. No. 499 s. 2(f) (1950) upon terms and
16 conditions and for periods of time as are mutually agreeable,
17 authorizing the authority to accept, administer, expend, and
18 use in the State of Florida all or any part of the trust
19 assets or other funds in the state which have been
20 appropriated for use in carrying out the purposes of the
21 Bankhead-Jones Farm Tenant Act and to do any and all things
22 necessary to effectuate and carry out the purposes of said
23 agreements.
24 570.278 Liability.--The United States, the authority,
25 and the United States Secretary of Agriculture shall be held
26 free from liability by virtue of the transfer of assets to the
27 Florida Agricultural Development Authority as specified in
28 this act.
29 570.279 Additional beginning farmer loan program.--
30 (1) The authority may enter into a loan agreement with
31 a beginning farmer to finance, in whole or in part, the
29
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 acquisition by construction or purchase of agricultural land,
2 agricultural improvements, or depreciable agricultural
3 property in excess of the limits of s. 147 of the Internal
4 Revenue Code, as from time to time amended. The repayment
5 obligation of the beginning farmer may be unsecured, or may be
6 secured by a mortgage or security agreement or by other
7 security as the authority deems advisable, and may be
8 evidenced by one or more notes of the beginning farmer and may
9 be in conjunction with other federal, state, or local loan
10 programs or grants or by the authority alone. The loan
11 agreement may contain terms and conditions as the authority
12 deems advisable, as provided by rule.
13 (2) The authority may issue its bonds and notes for
14 the purposes set forth in subsection (1) and may enter into a
15 lending agreement or purchase agreement with one or more
16 bondholders or noteholders containing the terms and conditions
17 of the repayment of and the security for the bonds or notes.
18 Bonds and notes must be authorized by a resolution of the
19 authority. The authority and the bondholders or noteholders
20 may enter into such agreements as provided by rule.
21 570.280 Agricultural loan assistance program.--
22 (1) The authority shall establish and develop an
23 agricultural loan assistance program to facilitate the
24 availability of affordable operating capital to farmers,
25 agricultural producers, or agricultural processors by
26 providing grants to lending or educational institutions as
27 provided by this section.
28 (2) The authority shall make available to farmers and
29 lending institutions eligibility application forms for the
30 agricultural loan assistance program. Applications to the
31 authority for assistance under this section shall be executed
30
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 jointly by the lending institution and the farmer upon
2 approved forms.
3 (3) The authority shall provide in the agricultural
4 loan assistance program that a grant will be provided in
5 conjunction with a farmer's operating loan only if the
6 following criteria are satisfied:
7 (a) The farmer is a resident of the state.
8 (b) The farmer is an individual, a partnership,
9 corporation, limited liability corporation, trust, or limited
10 agricultural association.
11 (c) The farming operation in which the farmer will use
12 the operating loan is located within the state.
13 (d) The operating loan will be used by the farmer for
14 reasonable and necessary expenses and cash flow requirements
15 of farming as defined by rules of the authority.
16 (e) The farmer has made full disclosure of the
17 farmer's finances to the lending institution and to the
18 authority, to the extent required by the authority.
19 (f) Additional requirements as are prescribed by the
20 authority by rule, which may include, but are not limited to:
21 1. Participation in federal crop insurance programs,
22 where available.
23 2. A consideration of the borrower's agreement to
24 maintain farm management techniques and standards established
25 by the authority.
26 3. Participation in federal farm programs, where
27 applicable.
28 4. The maximized use of available loan guarantees
29 where applicable.
30 5. A consideration of factors demonstrating the
31 farmer's need for operating loan assistance and the
31
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 probability of success with the assistance in the farming
2 operation in which the operating loan will be used, including
3 net worth, debt-to-asset ratio, debt service coverage ratio,
4 projected income, and projected cash flow under rules
5 promulgated by the authority.
6 (4) The authority may participate in and cooperate
7 with programs of an agency or instrumentality of the Federal
8 Government in the administration of the agricultural loan
9 assistance program. The authority may provide in the
10 agricultural loan assistance program that a grant may be
11 provided in conjunction with a farmer's operating loan only if
12 the farmer and lending institution participate in one or more
13 operating loan assistance programs of an agency or
14 instrumentality of the Federal Government, which are
15 determined to be appropriate by the authority.
16 (5) Upon approval of an eligibility application and a
17 determination by the authority that assistance pursuant to the
18 agricultural loan assistance program is needed to qualify a
19 farmer and lending institution for participation in an
20 appropriate operating loan assistance program of an agency or
21 instrumentality of the Federal Government, the authority may:
22 (a) Enter into an agreement with the lending
23 institution and the farmer to supplement the assistance to be
24 received pursuant to the federal program, in which agreement
25 the lending institution shall agree to reduce for up to 3
26 years the interest rate on the farmer's operating loan to the
27 rate determined by the authority to be necessary to qualify
28 the farmer and lending institution for participation in the
29 federal program and the farmer shall agree to comply with the
30 rules and requirements established by the authority.
31
32
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 (b) Agree to give the lending institution, for the
2 benefit of the farmer, a grant in an amount to be determined
3 by the authority to partially reimburse the lending
4 institution for the reduction of the interest rate on the
5 farmer's operating loan under rules established by the
6 authority.
7 (6) Notwithstanding the provisions of subsections (4)
8 and (5), upon approval of an eligibility application and a
9 determination by the authority that operating loan assistance
10 will not be available to an individual farmer and lending
11 institution on a timely basis pursuant to an appropriate
12 program of the Federal Government, the authority may:
13 (a) Enter into an agreement with the lending
14 institution and the farmer in which the lending institution
15 shall agree to reduce for up to 3 years the interest rate on
16 the farmer's operating loan to a rate, determined by the
17 authority, below the lending institution's farm operating loan
18 rate as certified to the authority and the farmer shall agree
19 to comply with the rules and requirements established by the
20 authority.
21 (b) Agree to give to the lending institution, for the
22 benefit of the farmer, a grant in the amount, as determined by
23 the authority, up to 3 percent per annum of up to $100,000 of
24 the principal balance of the farmer's operating loan
25 outstanding from time to time, for the term of the loan or for
26 3 years, whichever is less, to partially reimburse the lending
27 institution for the reduction of the interest rate on the
28 borrower's operating loan. However, the grant shall not exceed
29 50 percent of the amount of interest foregone by the lending
30 institution pursuant to the rate reduction under paragraph
31 (a).
33
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 (7) The authority may require a lending institution to
2 submit evidence satisfactory to the authority that the lending
3 institution has complied with the reduction in the interest
4 rate as required by an agreement pursuant to subsection (5) or
5 subsection (6). The authority may inspect any books and
6 records of a lending institution which are pertinent to the
7 administration of the agricultural loan assistance program.
8 (8) In order to assure compliance with this section
9 and rules adopted pursuant to this section, the authority may
10 establish by rule appropriate enforcement provisions,
11 including, but not limited to, the payment of civil penalties
12 by a lending institution or farmer.
13 570.2815 Alternative agriculture assistance
14 programs.--
15 (1) The authority shall create and develop programs to
16 assist farmers, agricultural producers, and agricultural
17 processors who have established or intend to establish in this
18 state alternative agriculture production operations,
19 including, but not limited to, the following assistance:
20 (a) Insurance or loan guarantee program.--An insurance
21 or loan guarantee program to provide for the insuring or
22 guaranteeing of all or part of a loan made to an agricultural
23 producer for the acquisition of seed or root stock to
24 establish or expand an alternative agriculture operation.
25 (b) Interest buy-down program.--The authority may
26 contract with a participating lending institution and a
27 qualified agricultural producer to reduce the interest rate
28 charged on a loan for the acquisition of seed or root stock to
29 establish or expand an alternative agriculture operation. The
30 authority shall determine the amount that the rate is reduced
31 by considering the lending institution's customary loan rate
34
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 for the acquisition of seed or root stock as certified to the
2 authority by the lending institution. As part of the contract,
3 in order to partially reimburse the lending institution for
4 the reduction of the interest rate on the loan, the authority
5 may agree to grant the lending institution any amount foregone
6 by reducing the interest rate on that portion of the loan
7 which is $100,000 or less. The amount reimbursed, however,
8 shall not be more than the lesser of the following:
9 1. Three percent per annum of the principal balance of
10 the loan outstanding at any time for the term of the loan or
11 within 1 year from the loan initiation date as defined by
12 rules adopted by the authority, whichever is less.
13 2. Fifty percent of the amount of interest foregone by
14 the lending institution on the loan.
15 (c) Cost-sharing program.--The authority may contract
16 with an agricultural producer to reimburse the producer for
17 the cost of converting land planted in row crops or pasture to
18 alternative agricultural crops. The amount reimbursed,
19 however, shall not be more than $250 per acre converted, or 50
20 percent of the conversion costs, whichever is less. The
21 contract shall apply to not more than 500 acres of crop or
22 pasture land converted to alternative agricultural crops. The
23 converted land shall be utilized in alternative agriculture
24 production for a minimum of 5 years. The amount to be
25 reimbursed shall be reduced by the amount that the farmer,
26 agricultural producer, or agricultural processor receives
27 under any other state or federal program that contributes
28 toward the cost of converting the same land from established
29 to alternative agricultural crops.
30 (d) Management assistance and training program.--The
31 authority in cooperation with any agency or instrumentality of
35
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 the Federal Government or with any state agency, including any
2 state university or those associations organized for the
3 purpose of assisting agricultural producers involved in
4 alternative agriculture production, or with any farm
5 management company if such company specializes in alternative
6 agriculture production or in assisting alternative agriculture
7 producers, as prescribed by rules adopted by the authority,
8 shall establish programs to train and assist agricultural
9 producers to effectively manage alternative agriculture
10 production operations.
11 (2) An agricultural producer or processor shall be
12 eligible to participate in a program established under this
13 section based upon criteria established by rules of the
14 authority.
15 (3) The authority shall adopt rules to enforce the
16 provisions of this section or the terms of a contract to which
17 the authority is a party. The authority may also enforce the
18 provisions of this section or terms of the contract by
19 bringing an action in any court of competent jurisdiction to
20 recover damages. As a condition of entering into the program,
21 the authority may require that the agricultural producer
22 consent to the jurisdiction of the courts of this state to
23 hear any matter arising from the provisions of this section.
24 Section 2. All funds previously appropriated for the
25 Rural Community Development Revolving Loan Fund established by
26 s. 288.065, Florida Statutes, and remaining in the Rural
27 Community Development Revolving Fund are hereby transferred to
28 the Florida Agricultural Development Authority as created by
29 this act.
30
31
36
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 Section 3. This act shall take effect July 1 of the
2 year in which it is enacted or upon becoming a law, whichever
3 is earlier.
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
37
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 *****************************************
2 HOUSE SUMMARY
3
Creates the "Florida Agricultural Development Act."
4 Provides legislative findings. Defines terms for purposes
of the act. Establishes the Florida Agricultural
5 Development Authority for the purpose of undertaking
programs to assist farmers, beginning farmers, and
6 agribusiness concerns in the purchase, lease, and
acquisition of agricultural land, improvements, and
7 technology, programs aimed at soil and water
conservation, and programs that promote diversification
8 of Florida's farm economy. Provides powers and duties of
the authority. Provides for membership of a board.
9 Provides for terms of board members and for organization
of the board. Provides for the appointment of an
10 executive director and specifies duties. Requires an
annual report. Provides for the use of surplus moneys by
11 the authority. Provides for combination of state and
federal programs to facilitate the purposes of the
12 authority.
13
Establishes a beginning farmer loan program. Provides
14 purposes of the loan program. Authorizes the authority to
participate in federal programs. Requires the authority
15 to provide for loan criteria by rule. Authorizes the
authority to provide loan requirements. Authorizes the
16 authority to make loans to beginning farmers for
agricultural land and improvements and depreciable
17 agricultural property. Authorizes the authority to make
loans to mortgage lenders and other lenders. Authorizes
18 the authority to purchase mortgage loans and secured
loans from mortgage lenders. Provides powers of the
19 authority relating to loans.
20
Provides for the issuance of bonds and notes by the
21 authority. Authorizes the authority to establish bond
reserve funds. Provides remedies of bondholders and
22 holders of notes.
23
Provides requirements with respect to funds of the
24 authority. Authorizes examination of accounts by the
Auditor General. Requires a report. Provides limitation
25 of liability for members of the authority. Requires the
assistance of state officers, agencies, and departments.
26 Requires disclosure of specified conflicts of interest
and prohibits certain participation in the event of a
27 conflict of interest. Specifies conflicts of interest
with respect to the executive director of the authority.
28 Provides exemption from competitive bidding laws.
Provides for receipt of specified trust assets by the
29 authority. Authorizes the authority to enter into
specified agreements.
30
31 Provides for additional beginning farmer and loan
assistance programs. Requires the authority to establish
38
CODING: Words stricken are deletions; words underlined are additions.
Florida House of Representatives - 1998 HB 4051
559-152A-98
1 and develop an agricultural loan assistance program.
Provides program criteria. Requires the authority to
2 create and develop alternative agriculture assistance
programs. Provides for the adoption of rules with respect
3 to enforcement of provisions relative to such programs.
Authorizes the authority to bring action for enforcement.
4
5 Provides for the transfer of specified funds to the
authority.
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
39