Senate Bill sb2512

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    Florida Senate - 2005                                  SB 2512

    By Senator Lawson





    6-1319-05

  1                      A bill to be entitled

  2         An act relating to rural economic development;

  3         creating ss. 291.40-291.65, F.S.; providing a

  4         short title; providing legislative findings;

  5         providing definitions; establishing the Florida

  6         Rural Economic Development Authority; providing

  7         powers and duties; providing for membership of

  8         its board; providing for terms of board

  9         members; providing for organization of the

10         board; providing general powers of the

11         authority; providing for an executive director

12         and specifying duties; requiring an annual

13         report; providing for the use of surplus moneys

14         by the authority; providing for the combination

15         of state and federal and international programs

16         to facilitate the purpose of the authority;

17         authorizing the authority to participate in

18         federal, state, and local programs; requiring

19         the authority to provide for loan criteria by

20         rule; authorizing the authority to provide for

21         loan requirements; authorizing the authority to

22         make loans or grants, directly or as agent for

23         federal programs, for agricultural land and

24         facilities improvements and to providers and

25         producers of biomass and renewable energy

26         technology and products and equipment and

27         facilities and to animal waste treatment and

28         byproduct-conversion facilities; authorizing

29         the authority to make loans to mortgage lenders

30         and other lenders; authorizing the authority to

31         purchase mortgage loans and secured loans from

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 1         mortgage lenders; providing powers of the

 2         authority relating to loans; providing for the

 3         issuance of bonds and notes by the authority;

 4         authorizing the authority to establish bond

 5         reserve funds; providing remedies of

 6         bondholders and holders of notes; providing

 7         that bonds and notes are legal investments;

 8         providing requirements with respect to funds of

 9         the authority; authorizing the examination of

10         accounts by the Auditor General; requiring a

11         report; limiting the liability of members of

12         the authority; requiring the assistance of

13         state officers, agencies, and departments in

14         expediting and facilitating the authority's

15         purposes; providing for liberal construction of

16         the act; requiring disclosure of specified

17         conflicts of interest; prohibiting certain

18         participation in the event of a conflict of

19         interest; specifying conflicts of interest with

20         respect to the executive director of the

21         authority; providing an exemption from

22         competitive bidding requirements; authorizing

23         the authority to enter into specified

24         agreements; providing for liability; requiring

25         the authority to establish and develop a rural

26         development loan assistance program; providing

27         program criteria; authorizing the authority to

28         create and develop alternative agriculture

29         assistance and renewable energy programs;

30         providing for the adoption of rules with

31         respect to enforcement of provisions relative

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    Florida Senate - 2005                                  SB 2512
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 1         to such programs; authorizing the authority to

 2         bring action for enforcement; creating s.

 3         159.8082, F.S.; establishing the rural economic

 4         development bond pool; amending s. 159.804,

 5         F.S.; providing for specific allocations of

 6         state volume limitations to the rural economic

 7         development pool; amending s. 159.809, F.S.;

 8         specifying provisions for bond issuance reports

 9         not received; providing an effective date.

10  

11  Be It Enacted by the Legislature of the State of Florida:

12  

13         Section 1.  Section 291.40, Florida Statutes, is

14  created to read:

15         291.40  Short title.--Sections 291.40-291.65 may be

16  cited as the "Florida Rural Economic Development Act."

17         Section 2.  Section 291.41, Florida Statutes, is

18  created to read:

19         291.41  Legislative findings.--

20         (1)  The Legislature finds that the ability of

21  residents of the state to pursue rural enterprises in all

22  aspects of sustainable agriculture, including the use and

23  conversion of farm waste products into renewable energy,

24  compost, and soil amendments and including biomass energy

25  production and other natural resource-based enterprises, have

26  been detrimentally affected by causes and events beyond their

27  control or the control of the state, including

28  treaty-supported foreign competition, termination of

29  long-established federal loan and subsidy programs, and a

30  shortage of funds from private market sources at rates of

31  interest generally available under revenue bond programs to

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 1  non-rural industries. These conditions have detrimentally

 2  affected continued agricultural operations by established

 3  farmers and rural economic development in this state. The

 4  ordinary operation of private enterprise has not corrected the

 5  situation. Such conditions have worked to the detriment of the

 6  economy and social welfare of the state and threaten to

 7  destroy the basic fabric of the rural areas in this state,

 8  such as the family farm and rural communities. The state's

 9  farm and rural development policy should enhance opportunities

10  for people to generate farm incomes comparable to the incomes

11  in other economic sectors, to provide value-added offsets to

12  their costs, and to provide such other economic assistance as

13  is necessary and proper. The United States Congress has

14  recognized the need to provide assistance to the rural segment

15  of the national economy and has instituted programs to assist

16  farmers and agribusiness by means of tax policy as well as

17  loans, grants, technology transfers, and credit enhancement to

18  qualified state agencies. The Legislature should also

19  encourage, by all suitable means, intellectual, scientific,

20  economic, and agricultural improvement in the rural parts of

21  this state. The public good is served by a policy of

22  facilitating access to capital by farmers and agribusinesses

23  that are unable to obtain capital elsewhere. Therefore, the

24  Legislature finds that conditions exist in the state which

25  require the creation of a corporate entity that has the power

26  to issue notes, bonds, and other evidences of indebtedness and

27  to form, organize, and operate wholly-owned, not-for-profit

28  Florida corporations in order to make, acquire, or facilitate

29  loans for the acquisition or development of agricultural

30  lands, improvements, and facilities. All of the purposes

31  stated in this section are public purposes and uses for which

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 1  public moneys may be borrowed, expended, advanced, loaned, or

 2  granted.

 3         (2)  The Legislature recognizes that many of the

 4  programs that were approved by Congress in the Federal

 5  Agricultural Improvement and Reform Act of 1996, as amended,

 6  and the Farm Security and Rural Investment Act of 2002 and

 7  that can supplement and enhance the authority's mission are

 8  continuing to be implemented. Therefore, the authority is

 9  granted broad powers to adopt rules to carry out the purposes

10  set forth in this act to maximize the benefits to the

11  residents of this state from all federal, state, local, or

12  private-initiative programs of the authority.

13         Section 3.  Section 291.42, Florida Statutes, is

14  created to read:

15         291.42  Definitions.--

16         (1)  As used in this act, the term:

17         (a)  "Agribusiness" means the production, processing,

18  and distribution of farm products and activities related to

19  their lawful pursuits.

20         (b)  "Agricultural improvements" means any

21  improvements, buildings, structures, fixtures, or equipment

22  suitable for use in farming, producing, or processing

23  agricultural products or byproducts and renewable energy

24  equipment, such as biogas turbines or internal combustion

25  engines, gasifiers, aerobic digesters, anaerobic digesters,

26  and other like technology, located on agricultural land in

27  this state. The term includes both any single-family dwelling

28  located on agricultural land which is or will be occupied by a

29  farmer and structures attached to or incidental to the use of

30  the dwelling.

31  

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 1         (c)  "Agricultural land" means land in this state

 2  suitable for use in farming, producing, or processing

 3  agricultural products, specifically including lands so

 4  designated by the Land Management Advisory Council established

 5  under s. 259.035.

 6         (d)  "Agricultural producer" means a person that

 7  engages in the business of producing and marketing

 8  agricultural produce in this state and includes a farmer.

 9         (e)  "Agricultural processor" means a person that

10  engages in the business of processing agricultural products

11  within this state, including, without limitation, agricultural

12  commodities, agricultural byproducts, biomass energy and

13  compost, organic fertilizer and soil amendment processing, and

14  any and all products made or derived from agricultural or

15  biomass stock as defined by the authority under rules adopted

16  by the authority under chapter 120.

17         (f)  "Audit" means the annual audit of the accounting

18  records of the authority by the authority's certified public

19  accountants and includes any audit required of the authority

20  by the federal Single Audit Act Amendments of 1996 and similar

21  laws of this state.

22         (g)  "Authority" means the Florida Rural Economic

23  Development Authority established by this act.

24         (h)  "Bankhead-Jones Farm Tenant Act" means the act

25  cited as 50 Stat. 522 (1937), formerly codified as 7 U.S.C. s.

26  1000 et seq., and repealed by Pub. L. No. 87-128 (1961).

27         (i)  "Bonds" means bonds issued by the authority.

28         (j)  "Conservation farm equipment" means planters,

29  cultivators, and tillage equipment used for reduced-tillage or

30  no-till planting of crops, including anaerobic fermentation

31  and digester components and facilities, biomass and biogas

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 1  processing equipment, and animal and other solid-waste and

 2  water nutrient-reduction or conservation equipment.

 3         (k)  "Tax-approved agricultural property" means real or

 4  personal property suitable for use in farming for which an

 5  exemption or reduction from ad valorem, income, excise, sales,

 6  or use tax in this state is available pursuant to law.

 7         (l)  "FAIR Farm Act" means the Federal Agricultural

 8  Improvement and Reform Act of 1996, 110 Stat. 889, et seq., as

 9  amended.

10         (m)  "Farm Security and Rural Investment Act" means the

11  Farm Security and Rural Investment Act of 2002, Pub. Law No.

12  107-171.

13         (n)  "Farming" means the cultivation or use of land in

14  this state for the production of any and all agricultural

15  crops, including biomass and biogas, fiber crops, citrus

16  crops, poultry and ratites, eggs, milk, fruits, nuts,

17  vegetables, flowers, ferns, or other horticultural crops,

18  grazing and forage production, swine, livestock, farm-raised

19  deer, aquaculture, hydroponics, organics, silviculture, forest

20  products, or other such activities designated by the authority

21  by rule.

22         (o)  "Homeland Security" means the United States

23  Department of Agriculture, this state and its agencies, and

24  other state and local responsible entities, programs, or

25  initiatives established under the United States Department of

26  Homeland Security.

27         (p)  "Internal Revenue Code" means the Internal Revenue

28  Code of 1986, as amended.

29         (q)  "Lending institution" means a bank, credit union,

30  trust company, mortgage company, national banking association,

31  savings and loan association, insurance company, any state or

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 1  federal governmental agency or instrumentality, including the

 2  United States Department of Agriculture's Farm Service Agency

 3  or any of its local associations, or any other financial

 4  institution or entity authorized to make farm loans in this

 5  state.

 6         (r)  "Mortgage" means a mortgage, mortgage deed, deed

 7  of trust, or other instrument creating a first lien, subject

 8  only to title exceptions and encumbrances acceptable to the

 9  authority, including any other mortgage liens of equal

10  standing with or subordinate to the mortgage loan retained by

11  a seller or conveyed to a mortgage lender, on a fee interest

12  in agricultural land and agricultural improvements.

13         (s)  "Mortgage lender" means a bank, trust company,

14  mortgage company, national banking association, savings and

15  loan association, insurance company, any state or federal

16  governmental agency or instrumentality, or any other financial

17  institution or public or private entity authorized to make

18  mortgage loans or secured loans in this state.

19         (t)  "Mortgage loan" means a financial obligation

20  secured by a mortgage.

21         (u)  "Note" means a bond anticipation note or other

22  obligation or evidence of indebtedness issued by the

23  authority.

24         (v)  "Renewable energy" means energy produced from any

25  nondepletable source and specifically includes biogas, solar,

26  wind, hydraulic, and geothermal energy.

27         (w)  "Soil and water conservation practices" has the

28  meaning described in chapter 582 and includes renewable

29  energy, solid-waste and wastewater disposal systems, including

30  biogas generating aerobic and anaerobic digestion and

31  fermentation systems, and other equipment and facilities

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 1  designed to process and preserve agricultural soil, water, and

 2  matter, including any and all nitrogen-reduction,

 3  phosphorus-reduction, and other nutrient-reduction programs

 4  that affect groundwater and other water supplies in an

 5  environmentally responsible manner.

 6         (x)  "Secured loan" means a financial obligation

 7  secured by a chattel mortgage, security agreement, or other

 8  instrument creating a lien on an interest in agricultural

 9  property.

10         (y)  "State agency" means any board, commission,

11  department, public officer, or other agency or authority of

12  the state.

13         (z)  The authority may by rule define other terms

14  applicable to this act and may clarify the definitions in this

15  section to assure eligibility for funds, insurance, or

16  guarantees available under federal, state, or local laws, to

17  assure compliance with federal tax law and regulations under

18  the Internal Revenue Code and applicable state statutes, and

19  to carry out the public purposes of this act.

20         Section 4.  Section 291.43, Florida Statutes, is

21  created to read:

22         291.43  Establishment of authority; powers and duties;

23  board; earnings.--

24         (1)  There is created a corporation to be known as the

25  Florida Rural Economic Development Authority. The authority is

26  a body politic and corporate of the state exercising public

27  and essential governmental functions. The authority shall

28  establish programs that:

29         (a)  Assist farmers, agriculture processors,

30  agriculture producers, and other agribusinesses in purchasing,

31  leasing, or otherwise acquiring agricultural land,

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 1  improvements, equipment, technology, including renewable or

 2  energy-efficient technology equipment and facilities, and

 3  agricultural property for sustainable farming.

 4         (b)  Provide financing to farmers for soil and water

 5  conservation practices, such as groundwater and aquifer

 6  remediation and preservation and renewable energy initiatives,

 7  and to farmers and agribusinesses involved in the collection,

 8  remediation, utilization, transportation, treatment, and

 9  disposal of agricultural waste or wastewater discharged from

10  concentrated animal feeding operations or other agricultural

11  enterprises.

12         (c)  Promote diversification of the rural and farm

13  economy in this state through the growth and development of

14  new crops or livestock that are not customarily grown or

15  produced in this state or that emphasize a vertical

16  integration of agricultural products produced or raised in

17  this state into a finished agricultural product or byproduct

18  for consumption or use; and promote the use of renewable

19  energy sources derived from agriculture biomass and

20  utilization of biogas, solar, and wind energy generators for

21  power and heating and cooling and the preservation of natural

22  resources.

23         (d)  Assist in financing operating expenses and

24  cash-flow requirements of farming and conservation practices.

25         (e)  Assist qualified producers, processors, and

26  manufacturers of agriculture products, equipment, and

27  technology, and support organizations within the state with

28  financing research and development and other capital

29  requirements or operating expenses.

30         (2)  The powers of the authority are vested in and

31  exercised by a board of 10 members. The Chief Financial

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 1  Officer of the state shall serve as a non-voting, ex officio

 2  member of the board. Of the remaining members, three members

 3  shall be appointed by the President of the Senate, three

 4  members shall be appointed by the Speaker of the House of

 5  Representatives, and three members shall be appointed by the

 6  Governor.

 7         (3)  Except for the appointment of initial members of

 8  the board, the members of the board shall be appointed for

 9  terms of 3 years. One of the initial board members appointed

10  by the President of the Senate, the Speaker of the House of

11  Representatives, and the Governor shall be appointed for a

12  1-year term, one for a 2-year term, and one for a 3-year term.

13  Following the initial appointment of members to the board,

14  each subsequent appointee shall be appointed for a 3-year term

15  following the expiration of his or her predecessor's term and

16  must be confirmed by the serving members. A person appointed

17  to fill a vacancy shall serve only for the unexpired portion

18  of the term. A member is eligible for reappointment. An

19  appointed member may be removed from office by the board for

20  misfeasance, malfeasance, willful neglect of duty, or other

21  just cause, after notice and hearing before the Florida

22  Commission on Ethics, unless the notice and hearing is

23  expressly waived in writing. An appointed member of the

24  authority may also serve as a member of any other authority,

25  association, or enterprise, public or private.

26         (4)  The members shall elect a chair and a vice chair

27  annually and other officers as necessary. The executive

28  director of the authority shall serve as secretary to the

29  board. Meetings of the board shall be held at the call of the

30  chair or upon the request of two members and may be held

31  telephonically as provided in the by-laws of the authority.

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 1  Any meeting at which official acts are to be taken or at which

 2  the public business of the authority is to be transacted or

 3  discussed must be open and notice must be given to the public.

 4         (5)  Five voting members of the board constitute a

 5  quorum, and the affirmative vote of a majority of the voting

 6  members is necessary for any substantive action taken by the

 7  board. The majority may not include any member who has a

 8  conflict of interest. A statement by a member that he or she

 9  has a conflict of interest is conclusive for this purpose. A

10  vacancy in the membership does not impair the right of a

11  quorum to exercise all rights and perform all duties of the

12  board.

13         (6)  The members of the board shall receive per diem

14  and travel expenses as provided in s. 112.061 while in

15  performance of their duties.

16         (7)  The members of the board shall give bond as

17  required by law for public officers.

18         (8)  The net earnings of the authority, beyond that

19  necessary for retirement of its notes, bonds, or other

20  obligations or to implement the authorized public purposes and

21  programs, may not inure to the benefit of any person other

22  than the state. Upon termination of the existence of the

23  authority, title to all property owned by the authority,

24  including any net earnings, shall vest in the state.

25         Section 5.  Section 291.44, Florida Statutes, is

26  created to read:

27         291.44  General powers.--The authority has all of the

28  general powers needed to carry out its purposes and duties and

29  to exercise its specific powers, including, but not limited

30  to, the power to:

31  

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 1         (1)  Issue its tax-exempt bonds, including private

 2  activity bonds, conduit bonds, or other similar bonding

 3  vehicles, but none that pledge the full faith and credit of

 4  the state, and taxable negotiable bonds and notes as provided

 5  in this act in order to finance the programs described in this

 6  act and as adopted by rule under this act.

 7         (2)  Sue and be sued in its own name.

 8         (3)  Have and alter a corporate seal.

 9         (4)  Make and alter bylaws for its management and

10  programs.

11         (5)  Make and execute agreements, contracts, and other

12  instruments, with any public or private entity, including any

13  federal, state, or local governmental agency or

14  instrumentality, such as the Farm Service Agency. The

15  authority may enter into contracts with any firm of attorneys

16  and other professional advisors, including independent

17  certified public accountants, to prepare an annual report on

18  behalf of the authority. The authority may enter into

19  contracts with insurance companies, mortgage lenders, mortgage

20  brokers, banks, consultants, or others for the origination and

21  servicing of any financing instrument, mortgage, or secured

22  loan issued by or on behalf of the authority. All political

23  subdivisions, including federal, state, and local agencies,

24  may enter into contracts and otherwise cooperate with the

25  authority.

26         (6)  Lease, purchase, accept a gift or donation of, or

27  otherwise acquire, use, own, hold, improve, or otherwise deal

28  in or with, real or personal property, or sell, convey,

29  mortgage, pledge, lease, exchange, or otherwise dispose of any

30  assets, loans, and equity interests acquired in the financing

31  of projects funded by the authority, or any other property or

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 1  interest in property, as the board considers necessary in

 2  transacting the business of the authority.

 3         (7)  Procure insurance against any loss in connection

 4  with its operations or property interests, including pool

 5  insurance on any group of mortgages or secured loans.

 6         (8)  Fix and collect fees and charges for its services.

 7         (9)  Subject to an agreement with bondholders or note

 8  holders, invest or deposit moneys in a manner determined by

 9  the authority, notwithstanding chapters 215 and 216.

10         (10)  Accept appropriations, gifts, grants, loans, or

11  other aid from public or private persons or entities. A record

12  of all gifts or grants, stating the type, amount, and donor,

13  must be clearly set out in the authority's annual report along

14  with the record of other receipts.

15         (11)  Provide public and private entities with

16  technical assistance, education, counseling, and grants to

17  assist the authority in fulfilling the authority's purposes.

18         (12)  Participate with other local, state, or federal

19  agencies or instrumentalities, and international agencies, in

20  research and development programs of the United States

21  Department of Agriculture, United States Department of Energy,

22  and the Environmental Protection Agency, such as the AgSTAR

23  Program and the United States Department of Energy's Renewable

24  Energy Laboratory, to encourage the use of biogas capture and

25  utilization at animal feeding operations that manage manures,

26  conduct studies of technological needs of the farmer and other

27  agricultural producers and processors, and gather, compile,

28  and exchange with similar authorities and agencies in other

29  states data useful to facilitate decisionmaking.

30         (13)  Contract with private accountants, architects,

31  attorneys, economists, engineers, housing construction and

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 1  finance experts, and other advisors or enter into contracts

 2  for such services with local, state, federal, or international

 3  governmental agencies.

 4         (14)  Execute contracts, agreements, leases, and other

 5  instruments with any person, partnership, corporation, limited

 6  liability company, limited agricultural association, or trust,

 7  including any federal, state, or local governmental agency,

 8  and take actions necessary to accomplish any purpose for which

 9  the authority was organized or to exercise any power expressly

10  granted to the authority.

11         (15)  Form, organize, and operate wholly-owned Florida

12  not-for-profit corporations to facilitate the lending

13  functions contemplated by this act.

14         (16)  Adopt rules under chapter 120 relating to

15  programs under the jurisdiction of the authority, including

16  the Farm Service Agency's Preferred Lender Program, its

17  Certified Lender Program, its Standard Eligible Lender

18  Program, and Small Business Administration lending programs

19  for which farmers and other agribusiness enterprises may be

20  eligible, and all beginning farmer loan programs, agricultural

21  loan assistance programs, and renewable energy and alternative

22  agricultural assistance programs.

23         Section 6.  Section 291.45, Florida Statutes, is

24  created to read:

25         291.45  Executive director.--

26         (1)  The board shall appoint the executive director of

27  the authority, who serves at the pleasure of the authority.

28  The executive director must be selected for his or her

29  administrative ability and knowledge in the fields of

30  agriculture and finance, without regard to political

31  affiliation.

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 1         (2)  The executive director may not, directly or

 2  indirectly, exert influence to induce any other officer or

 3  employee of the state to adopt a political view or to favor a

 4  political candidate for office.

 5         (3)  The executive director shall advise the authority

 6  on matters relating to farmers, agricultural land and

 7  property, agribusinesses and producers, and renewable energy

 8  resources and water quality resources, including the financing

 9  of such resources; carry out all directives from the

10  authority; and hire and supervise the authority's staff, which

11  shall include a general counsel to advise and assist the

12  executive director in carrying out the purposes of this act,

13  pursuant to the direction of the board.

14         (4)  The executive director, as secretary of the

15  authority, is custodian of all books, documents, minute books,

16  seals, and papers filed with the authority. The executive

17  director may authorize duplication of all minutes and other

18  records and documents of the authority and shall give

19  certificates under the seal of the authority that the copies

20  are true copies and that all persons dealing with the

21  authority may rely upon the certificates.

22         (5)  The executive director and authority staff shall

23  be considered state employees for all purposes including state

24  retirement and other benefit programs and the carryover of

25  prior rights if such employee is a transferee from another

26  state agency, except that the executive director and general

27  counsel are exempt from part. II of chapter 110.

28         Section 7.  Section 291.46, Florida Statutes, is

29  created to read:

30         291.46  Annual report.--

31  

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 1         (1)  The authority annually shall submit to the

 2  Governor, the Chief Financial Officer, the President of the

 3  Senate, and the Speaker of the House of Representatives, not

 4  later than February 15, a complete and economically designed

 5  and reproduced report that sets forth:

 6         (a)  The operations and accomplishments of the

 7  authority.

 8         (b)  The authority's receipts and expenditures during

 9  the fiscal year, in accordance with the classifications it

10  establishes for its operating and capital accounts.

11         (c)  The authority's assets and liabilities at the end

12  of its fiscal year and the status of reserve, special, and

13  other funds.

14         (d)  A schedule of the authority's bonds and notes

15  outstanding at the end of its fiscal year, together with a

16  statement of the amounts redeemed and issued during its fiscal

17  year.

18         (e)  A statement of the authority's proposed and

19  projected activities.

20         (f)  Recommendations to the Legislature, as the

21  authority considers necessary or desirable.

22         (g)  An analysis of the financing needs of farmers,

23  agriculture processors, agriculture producers, and other

24  agribusiness interests in the state, as well as of

25  agribusiness projects funded by the authority.

26         (2)  The annual report, together with the authority's

27  audited annual statements of financial condition for the

28  period prepared by the authority's certified public

29  accountants, including, specifically, their review and

30  comments on the authority's activities described in paragraphs

31  (1)(b), (c), and (d), must identify performance goals of the

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 1  authority and must clearly indicate the extent of progress

 2  during the reporting period in attaining the goals. If

 3  possible, results must be expressed in terms of total number

 4  and amount of loans and the acres of agricultural land

 5  benefitted by the authority's activities, in the authority's

 6  assistance in the establishment of new or alternative

 7  agricultural crops, innovative technology, renewable energy

 8  and related equipment and facilities, and value-added programs

 9  for farmers and agribusinesses in the state.

10         Section 8.  Section 291.47, Florida Statutes, is

11  created to read:

12         291.47  Surplus moneys.--Moneys declared by the

13  authority to be surplus moneys that are not required to

14  service bonds and notes, to pay administrative expenses of the

15  authority, or to accumulate necessary operating or loss

16  reserves must be used by the authority to provide loans,

17  grants, subsidies, and other services or assistance to

18  farmers, agriculture processors, agriculture producers, or

19  other agribusinesses through any of the programs authorized in

20  this act.

21         Section 9.  Section 291.48, Florida Statutes, is

22  created to read:

23         291.48  Combination programs.--Programs authorized

24  under this act may be combined with any other programs in this

25  state authorized by law or authorized under any federal

26  program or programs of any other state in order to facilitate

27  the acquistion and ownership of agricultural land, property,

28  tools, equipment, and other tangible and intangible assets by

29  farmers or agribusinesses to facilitate the implementation of:

30         (1)  Soil and water conservation practices;

31  

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 1         (2)  New and alternative agricultural crops and

 2  processes;

 3         (3)  An agricultural renewable energy program;

 4         (4)  A program to provide a self-sufficient power,

 5  heat, and cooling system for agriculture and rural communities

 6  and residents; and

 7         (5)  The technology transfer between the United States

 8  Department of Agriculture, the University of Florida-IFAS, the

 9  Florida Agricultural and Mechanical University, this state,

10  and other public bodies and private enterprises.

11         Section 10.  Section 291.49, Florida Statutes, is

12  created to read:

13         291.49  Loans to mortgage lenders or other lenders.--

14         (1)  The authority may make loans to mortgage lenders

15  or other lenders on terms and conditions that it determines

16  are reasonably related to protecting the security of the

17  authority's investment and to administering this act. Mortgage

18  lenders may borrow from the authority under this section and

19  the rules of the authority.

20         (2)  The authority shall require as a condition of each

21  loan to a mortgage lender that the mortgage lender, within a

22  reasonable period after receipt of the loan proceeds as the

23  authority prescribes by rule, enter into written commitments

24  to make and, within a reasonable period thereafter as the

25  authority prescribes by rule, disburse the loan proceeds in

26  new mortgage or secured loans to farmers, agricultural

27  processors, agricultural producers, or other renewable energy

28  or agribusinesses in an aggregate principal amount of not less

29  than the amount of the loan. New mortgages or secured loans

30  must have such terms and conditions as the authority

31  

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 1  prescribes by rules and as are reasonably related to

 2  implementing the purposes of this act.

 3         Section 11.  Section 291.50, Florida Statutes, is

 4  created to read:

 5         291.50  Purchase of loans.--

 6         (1)  The authority may purchase and make advance

 7  commitments to purchase mortgages or secured loans from

 8  mortgage lenders at prices and upon terms and conditions that

 9  it determines. The total purchase price for all mortgage or

10  secured loans that the authority commits to purchasing from a

11  mortgage lender at any one time may not exceed the total of

12  the unpaid principal balances of the mortgage or secured loans

13  purchased. Mortgage lenders are authorized to sell mortgage or

14  secured loans to the authority under this section and the

15  rules of the authority.

16         (2)  The authority shall require as a condition of

17  purchase of mortgage or secured loans from mortgage lenders

18  that the mortgage lenders certify that the mortgage or secured

19  loans purchased are loans made to farmers, agricultural

20  processors, agricultural producers, or other agribusinesses.

21  Mortgages or secured loans made by mortgage lenders must have

22  such terms and conditions as the authority prescribes by rule.

23  The authority may commit to purchasing mortgages or secured

24  loans from mortgage lenders in advance of the time the loans

25  are made by mortgage lenders. The authority shall require as a

26  condition of a commitment that mortgage lenders certify in

27  writing that all mortgages or secured loans represented by the

28  commitment will be made to farmers, agricultural processors,

29  agricultural producers, or other agribusinesses, and that the

30  mortgage lender will comply with other requirements of the

31  authority.

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 1         Section 12.  Section 291.51, Florida Statutes, is

 2  created to read:

 3         291.51  Powers relating to loans.--Subject to any

 4  agreement with bondholders or noteholders, the authority may

 5  renegotiate a mortgage or secured loan or a loan to a mortgage

 6  lender in default, waive a default, or consent to the

 7  modification of the terms of a mortgage or secured loan or a

 8  loan to a mortgage lender, forgive or forbear all or part of a

 9  mortgage or secured loan or a loan to a mortgage lender, and

10  commence, prosecute, and enforce a judgment in any action,

11  including, but not limited to, a foreclosure action, to

12  protect or enforce any right conferred upon it by law,

13  mortgage, or secured loan agreement, contract, or other

14  agreement and, in connection with any action, may bid for and

15  purchase the property or acquire or take possession of it,

16  complete, administer, and pay the principal of, and interest

17  on, any obligations incurred in connection with the property,

18  and may dispose of or otherwise deal with the property in a

19  manner the authority considers advisable to protect its

20  interests.

21         Section 13.  Section 291.52, Florida Statutes, is

22  created to read:

23         291.52  Bonds and notes.--

24         (1)  The authority may issue its negotiable bonds and

25  notes, whether tax-exempt or taxable, in principal amounts

26  that, in the opinion of the authority, are necessary to

27  provide sufficient funds for achievement of its corporate

28  purposes, the payment of interest on its bonds and notes, the

29  establishment of reserves to secure its bonds and notes, and

30  all other expenditures of the authority incident to and

31  necessary or convenient to carrying out its purposes and

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 1  powers. The bonds and notes are investment securities and

 2  negotiable instruments within the meaning of and for all

 3  purposes of the Uniform Commercial Code.

 4         (2)  Bonds and notes are payable solely from the

 5  moneys, assets, or revenues of the authority and as provided

 6  in the agreement with bondholders or noteholders pledging any

 7  particular moneys, assets, or revenues. Bonds or notes are not

 8  an obligation of this state or any political subdivision of

 9  this state other than the authority within the meaning of any

10  constitutional or statutory debt limitations, but are special

11  obligations of the authority payable solely from the sources

12  provided in this act, and the authority may not pledge the

13  credit or taxing power of this state or any political

14  subdivision of this state other than the authority, or make

15  its debts payable out of any moneys except those of the

16  authority.

17         (3)  Bonds and notes must be authorized by a resolution

18  of the authority. A resolution authorizing the issuance of

19  bonds or notes may, however, delegate to an officer of the

20  authority the power to negotiate and fix the details of an

21  issue of bonds or notes by an appropriate certificate of the

22  authorized officer.

23         (4)  In addition to any notice required under the

24  Internal Revenue Code for federally tax-exempt bonds, the

25  authority shall publish a notice of intention to issue bonds

26  or notes in a newspaper of general circulation published in

27  the state. The notice must include a statement of the maximum

28  amount of bonds or notes proposed to be issued and, in

29  general, what net revenues will be pledged to pay the bonds or

30  notes and interest thereon. An action may not be brought

31  questioning the legality of the bonds or notes or the power of

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 1  the authority to issue the bonds or notes or as to the

 2  legality of any proceedings in connection with the

 3  authorization or issuance of the bonds or notes more than 60

 4  days after the date of publication of the notice.

 5         (5)  Bonds and notes issued by the authority for

 6  purposes of financing a loan program for farmers, agricultural

 7  processors, agricultural producers, or other renewable-energy

 8  businesses or agribusinesses are exempt from all taxation by

 9  the state, including income taxes, documentary stamp taxes,

10  and intangible taxes, and interest earned on the bonds and

11  notes is deductible in determining net income for purposes of

12  the corporate income tax under chapter 220.

13         Section 14.  Section 291.53, Florida Statutes, is

14  created to read:

15         291.53  Reserve funds and appropriations.--The

16  authority may create and establish one or more special funds,

17  each to be known as a bond reserve fund, and shall pay into

18  each bond reserve fund any moneys appropriated and made

19  available by the state for the purpose of the fund, any

20  proceeds of sale of notes or bonds to the extent provided in

21  the resolutions of the authority authorizing their issuance,

22  and any other moneys that are available to the authority for

23  the purpose of the fund from any other sources. Moneys held in

24  a bond reserve fund, except as otherwise provided in this act,

25  must be used as required solely for the payment of the

26  principal of bonds secured in whole or in part by the fund or

27  of the sinking fund payments with respect to the bonds, the

28  purchase or redemption of the bonds, the payment of interest

29  on the bonds, or the payments of any redemption premium

30  required to be paid when the bonds are redeemed prior to

31  maturity.

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 1         Section 15.  Section 291.54, Florida Statutes, is

 2  created to read:

 3         291.54  Remedies of bondholders and noteholders.--

 4         (1)  If the authority defaults in the payment of

 5  principal or interest on an issue of bonds or notes at

 6  maturity or upon call for redemption and the default continues

 7  for a period of 30 days, or if the authority fails or refuses

 8  to comply with this act or defaults in an agreement made with

 9  the holders of an issue of bonds or notes, the holders of 25

10  percent of the aggregate principal amount of bonds or notes of

11  the issue then outstanding, by instrument filed in the office

12  of the clerk of the county in which the principal office of

13  the authority is located and proved or acknowledged in the

14  same manner as a deed to be recorded, may appoint a trustee to

15  represent the holders of the bonds or notes for the purposes

16  provided in this section.

17         (2)  The authority or any trustee appointed under the

18  indenture under which the bonds are issued may, and upon

19  written request of the holders of 25 percent of the aggregate

20  principal amount of the issue of bonds or notes then

21  outstanding, shall:

22         (a)  Enforce all rights of the bondholders or

23  noteholders, including the right to require the authority to

24  carry out its agreements with the holders and to perform its

25  duties under this act.

26         (b)  Bring suit upon the bonds or notes.

27         (c)  By legal action, require the authority to account

28  as if it were the trustee of an express trust for the holders.

29         (d)  By legal action, enjoin any acts or things that

30  are unlawful or in violation of the rights of the holders.

31  

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 1         (e)  Declare all the bonds or notes due and payable

 2  and, if all defaults are made good and with the consent of the

 3  holders of 25 percent of the aggregate principal amount of the

 4  issue of bonds or notes then outstanding, annul the

 5  declaration and its consequences.

 6         (3)  The trustee has powers necessary for the exercise

 7  of functions specifically set forth in or incident to the

 8  general representation of bondholders or noteholders in the

 9  enforcement and protection of their rights.

10         (4)  Before declaring the principal of bonds or notes

11  due and payable, the trustee shall first give 30 days' notice

12  in writing to the Governor, to the Chief Financial Officer, to

13  the Attorney General, and to the authority.

14         (5)  The circuit court has jurisdiction of any action

15  by the trustee on behalf of bondholders or noteholders. The

16  venue of the action shall be in the county in which the

17  principal office of the authority is located.

18         (6)  The bondholders or noteholders may, to the extent

19  provided in the resolution to which the bonds or notes were

20  issued or in its agreement with the authority, enforce any of

21  the remedies in paragraphs (2)(a)-(e) or the remedies provided

22  in such proceedings or agreements for and on their own behalf.

23         Section 16.  Section 291.55, Florida Statutes, is

24  created to read:

25         291.55  Agreement of the state.--The state pledges and

26  agrees with the holders of any bonds or notes that the state

27  will not limit or alter the rights vested in the authority to

28  fulfill the terms of agreements made with the holders of such

29  bonds or notes or in any way impair the rights and remedies of

30  the holders until the bonds or notes, together with the

31  interest thereon, plus interest on unpaid installments of

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 1  interest, and all costs and expenses in connection with an

 2  action by or on behalf of the holders, are fully met and

 3  discharged. The authority may include this pledge and

 4  agreement of the state in any agreement with the holders of

 5  bonds or notes.

 6         Section 17.  Section 291.56, Florida Statutes, is

 7  created to read:

 8         291.56  Bonds and notes as legal investments.--Bonds

 9  and notes are securities in which public officers, state

10  departments and agencies, political subdivisions, pension and

11  retirement funds, insurance companies and other persons

12  carrying on an insurance business, banks, trust companies,

13  savings and loan associations, investment companies, credit

14  unions and other persons carrying on a banking business,

15  administrators, executors, guardians, conservators, trustees

16  and other fiduciaries, and other persons authorized to invest

17  in bonds or other obligations of this state may legally invest

18  funds, including capital in their control or belonging to

19  them. The bonds and notes are also securities that may be

20  deposited with and received by public officers, state

21  departments and agencies, and political subdivisions for any

22  purpose for which the deposit of bonds or other obligations of

23  this state is authorized.

24         Section 18.  Section 291.57, Florida Statutes, is

25  created to read:

26         291.57  Moneys of the authority.--

27         (1)  Moneys of the authority, except as otherwise

28  provided in this act, must be paid to the authority and

29  deposited in a bank or other financial institution designated

30  by the authority. The money may be withdrawn on the order of

31  the person authorized by the authority. Deposits must be

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 1  secured in the manner determined by the authority. The

 2  authority's certified public accountants and the Auditor

 3  General shall annually examine the accounts and books of the

 4  authority, including its receipts, disbursements, contracts,

 5  leases, sinking funds, investments, and any other records and

 6  papers relating to its financial standing.

 7         (2)  The authority may contract with holders of its

 8  bonds or notes as to the custody, collection, security,

 9  investment, and payment of moneys of the authority, of moneys

10  held in trust or otherwise for the payment of bonds or notes,

11  and to carry out the contact. Moneys held in trust or

12  otherwise for the payment of bonds or notes or in any way to

13  secure bonds or notes and deposits of the moneys may be

14  secured in the same manner as moneys of the authority, and

15  banks and trust companies may give security for the deposits.

16         (3)  Subject to the provisions of any contract with

17  bondholders or noteholders, the authority shall prescribe a

18  system of accounts.

19         (4)  The authority shall submit to the Governor, the

20  Chief Financial Officer, the President of the Senate, and the

21  Speaker of the House of Representatives, and the Auditor

22  General, within 30 days after its receipt by the authority, a

23  copy of the report of every external examination of the books

24  and accounts of the authority other than copies of the reports

25  of examinations made by the Auditor General.

26         Section 19.  Section 291.58, Florida Statutes, is

27  created to read:

28         291.58  Limitation of liability.--Members of the

29  authority and persons acting in its behalf, while acting

30  within the scope of their employment or agency, are not

31  subject to personal liability resulting from carrying out the

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 1  powers and duties given to the authority under this act, and

 2  the authority may carry insurance or other indemnification for

 3  any actions arising out of such duties.

 4         Section 20.  Section 291.59, Florida Statutes, is

 5  created to read:

 6         291.59  Assistance by state officers, agencies and

 7  departments.--States officers, departments, and agencies shall

 8  provide services to the authority within their respective

 9  functions as requested by the authority.

10         Section 21.  Section 291.60, Florida Statutes, is

11  created to read:

12         291.60  Liberal Interpretation.--This act, being

13  necessary for the welfare of this state and its inhabitants,

14  shall be liberally construed to effect its purposes.

15         Section 22.  Section 291.61, Florida Statutes, is

16  created to read:

17         291.61  Conflicts of interest.--

18         (1)  If a member or employee other than the executive

19  director of the authority has an interest, either direct of

20  indirect, in a contract to which the authority is a party or

21  in a mortgage lender or other lender requesting a loan from or

22  offering to sell mortgage or secured loans to the authority,

23  the interest must be disclosed to the authority in writing and

24  must be set forth in the minutes of the authority. The member

25  or employee having the interest may not participate in an

26  action by the authority with respect to such contract or

27  mortgage lender or other lender.

28         (2)  This section does not limit the right of a member,

29  officer, or employee of the authority to acquire an interest

30  in bonds or notes or limit the right of a member or employee

31  other than the executive director to have an interest in a

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 1  bank, insurance company, or other financial institution in

 2  which the funds of the authority are deposited or which is

 3  acting as trustee or paying agent under a trust indenture to

 4  which the authority is a party. Moreover, this section, except

 5  as to the disclosures required by subsection (1), does not

 6  preclude an insurance company or financial institution in

 7  which an authority board member or employee, other than the

 8  executive director, has an interest from placing insurance,

 9  funding bonds, or acquiring or selling notes, mortgages, or

10  other obligations of the authority.

11         (3)  The executive director may not have an interest in

12  a bank or other financial institution in which the funds of

13  the authority are deposited or which is acting as trustee or

14  paying agent under a trust indenture to which the authority is

15  a party. The executive director may not receive, in addition

16  to fixed salary or compensation, any money or valuable thing,

17  either directly or indirectly or through any substantial

18  interest in any other corporation or business unit, for

19  negotiating, procuring, recommending, or aiding in any

20  purchase or sale of property or loan made by the authority,

21  nor may the executive director have a pecuniary interest,

22  either as principal, co-principal, agent, or beneficiary,

23  either directly or indirectly or through any substantial

24  interest, in any other corporation or business unit that is

25  involved with the authority, in any purchase, sale, or loan.

26         Section 23.  Section 291.62, Florida Statutes, is

27  created to read:

28         291.62  Exemption from competitive bid laws.--The

29  authority and all contracts made by it in carrying out its

30  public and essential governmental functions are exempt from

31  

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 1  the laws of the state which provide for competitive bids in

 2  connection with such contracts.

 3         Section 24.  Section 291.63, Florida Statutes, is

 4  created to read:

 5         291.63  Trust assets.--The authority shall apply to the

 6  United States Secretary of Agriculture, or any other proper

 7  federal official, pursuant and subject to the provisions of

 8  Pub. L. No. 499, 64 Stat. 152 (1950) formerly codified 40

 9  U.S.C. 440 et seq. (1976), for the transfer of the trust

10  assets held by the United States in trust for the Florida

11  Rural Rehabilitation Corporation, now dissolved.

12         Section 25.  Section 291.64, Florida Statutes, is

13  created to read:

14         291.64  Agreements.--The authority may enter into

15  agreements with the United States Secretary of Agriculture

16  pursuant to Pub. L. No. 499 s. 2(f) (1950), upon terms and

17  conditions and for periods of time as mutually agreeable,

18  authorizing the authority to accept, administer, expend, and

19  use in this state all or any part of the trust assets or other

20  funds in this state which have been appropriated for use in

21  carrying out the purposes of the Bankhead-Jones Farm Tenant

22  Act and to do all things necessary to effectuate and carry out

23  the purposes of those agreements.

24         Section 26.  Section 291.65, Florida Statutes, is

25  created to read:

26         291.65  Liability.--The United States, the authority,

27  and the United States Secretary of Agriculture shall be held

28  free from liability by virtue of the transfer of assets to the

29  Florida Rural Economic Development Authority as specified in

30  this act.

31  

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 1         Section 27.  Section 159.8082, Florida Statutes, is

 2  created to read:

 3         159.8082  Rural economic development bond pool.--

 4         (1)  There is established the rural economic

 5  development bond pool. The rural economic development bond

 6  pool is available solely to provide written confirmations for

 7  private activity bonds to the Florida Rural Economic

 8  Development Authority to finance rural economic development as

 9  described in ss. 291.40-291.65. Allocations from this pool

10  must be awarded for statewide use pursuant to the procedures

11  specified in s. 159.805, except that s. 159.805(2) and (3) do

12  not apply. In issuing written confirmations of allocations for

13  rural economic development projects, the division must use the

14  rural economic development bond pool. If allocation is not

15  available from the rural economic development bond pool, the

16  division must issue written confirmations of allocations for

17  rural economic development projects under s. 159.806 or s.

18  159.807, in that order. For the purposes of determining

19  priority within a regional allocation pool or the state

20  allocation pool, notices of intent to issue bonds for rural

21  economic development projects to be issued from a regional

22  allocation pool or the state allocation pool are considered to

23  have been received by the division at the time it is

24  determined by the division that the rural economic development

25  bond pool is unavailable to issue confirmation for such a

26  rural development project.

27         (2)  A written confirmation issued by the director

28  under this section has no effect unless the bonds to which the

29  confirmation applies have been issued by the Florida Rural

30  Economic Development Authority and written notice of such

31  issuance has been provided to the director on or before

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 1  November 15, unless a carryforward has been granted for the

 2  allocation.

 3         Section 28.  Section 159.804, Florida Statutes, is

 4  amended to read:

 5         159.804  Allocation of state volume limitation.--The

 6  division shall annually determine the amount of private

 7  activity bonds permitted to be issued in this state under the

 8  Code and shall make such information available upon request to

 9  any person or agency.  The total amount of private activity

10  bonds authorized to be issued in this state pursuant to the

11  Code shall be initially allocated as follows on January 1 of

12  each year:

13         (1)(a)  On January 1, 1993, the first $75 million of

14  the state volume limitation shall be allocated to the

15  manufacturing facility pool established pursuant to s.

16  159.8081. This allocation shall be increased in subsequent

17  years in increments of $7.5 million as follows:  On January 1

18  of each year, if at least 75 percent of the preceding year's

19  allocation under this subsection was used to issue bonds by

20  November 15 of that year, the allocation to the pool for the

21  current year must equal the sum of the amount that was

22  allocated to the pool in the preceding year plus an additional

23  $7.5 million.  If, however, 75 percent of the preceding year's

24  allocation was not used to issue bonds by November 15, the

25  allocation to the pool for the current year must be the same

26  amount as that allocated to the pool in the preceding year.

27         (b)  On January 1, 2005, the next $25 million of the

28  state volume limitation shall be allocated to the rural

29  economic development bond pool established under s. 159.8082.

30  This allocation shall be increased in subsequent years in

31  increments of $5 million as follows: on January 1 of each

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 1  year, if at least 75 percent of the preceding year's

 2  allocation under this subsection was used to issue bonds by

 3  November 15 of that year, the allocation to the pool for the

 4  current year must equal the sum of the amount that was

 5  allocated to the pool in the preceding year plus an additional

 6  $5 million; if, however, 75 percent of the preceding year's

 7  allocation was not used to issue bonds by November 15, the

 8  allocation to the pool for the current year must be the same

 9  amount as that allocated to the pool in the preceding year.

10         (c)(b)  If on January 1 of any year, under federal law,

11  bonds for manufacturing facilities or rural economic

12  development no longer require or are eligible for an

13  allocation pursuant to s. 146 of the Code, or if a separate

14  volume cap is established for rural economic development bonds

15  under federal law, the allocation of the state volume

16  limitation in the manufacturing facility pool or rural

17  economic development pool, or both if applicable, shall be

18  divided among the remaining pools in the following manner: 50

19  percent to be shared by the 17 regions for use in the manner

20  prescribed in subsection (2); 25 percent for use by the

21  Florida Housing Finance Corporation in the manner prescribed

22  in subsection (3); 5 percent for use in the state allocation

23  pool in the manner prescribed in subsection (4); and 20

24  percent for use in the Florida First Business allocation pool

25  in the manner prescribed in subsection (5).

26         (d)(c)  If the state volume limitation imposed on

27  private activity bonds under s. 146 of the Code is decreased,

28  the amount allocated to the manufacturing facility pool shall

29  be decreased in proportion to the percentage the state volume

30  limitation is decreased.

31  

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 1         (2)(a)  Fifty percent of the state volume limitation

 2  remaining after the allocations allocation made pursuant to

 3  subsection (1) shall be allocated among the regions

 4  established in paragraph (b) for use by all agencies whose

 5  boundaries are coterminous with or contained within each

 6  region. The volume limitation for each regional allocation

 7  pool must be an amount that bears the same ratio to 50 percent

 8  of the state volume limitation remaining after the allocations

 9  allocation made pursuant to subsection (1) for such calendar

10  year as the population of the region bears to the population

11  of the entire state.

12         (b)  The following regions are established for the

13  purposes of this allocation:

14         1.  Region 1 consisting of Bay, Escambia, Holmes,

15  Okaloosa, Santa Rosa, Walton, and Washington Counties.

16         2.  Region 2 consisting of Calhoun, Franklin, Gadsden,

17  Gulf, Jackson, Jefferson, Leon, Liberty, and Wakulla Counties.

18         3.  Region 3 consisting of Alachua, Bradford, Columbia,

19  Dixie, Gilchrist, Hamilton, Lafayette, Madison, Suwannee,

20  Taylor, and Union Counties.

21         4.  Region 4 consisting of Baker, Clay, Flagler,

22  Nassau, Putnam, and St. Johns Counties.

23         5.  Region 5 consisting of Citrus, Hernando, Levy,

24  Marion, Pasco, and Sumter Counties.

25         6.  Region 6 consisting of Lake, Osceola, and Seminole

26  Counties.

27         7.  Region 7 consisting of DeSoto, Hardee, Highlands,

28  Manatee, Okeechobee, and Polk Counties.

29         8.  Region 8 consisting of Charlotte, Collier, Glades,

30  Hendry, Lee, Monroe, and Sarasota Counties.

31  

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 1         9.  Region 9 consisting of Indian River, Martin, and

 2  St. Lucie Counties.

 3         10.  Region 10 consisting of Broward County.

 4         11.  Region 11 consisting of Dade County.

 5         12.  Region 12 consisting of Duval County.

 6         13.  Region 13 consisting of Hillsborough County.

 7         14.  Region 14 consisting of Orange County.

 8         15.  Region 15 consisting of Palm Beach County.

 9         16.  Region 16 consisting of Pinellas County.

10         17.  Region 17 consisting of Brevard and Volusia

11  Counties.

12         (3)(a)  Twenty-five percent of the state volume

13  limitation remaining after the allocations allocation made

14  pursuant to subsection (1) shall be allocated to the Florida

15  Housing Finance Agency Corporation for use in connection with

16  the issuance of housing bonds of that corporation or its

17  assigns.

18         (b)  The Florida Housing Finance Agency Corporation

19  need not apply to the division for an allocation of its volume

20  limitation granted under paragraph (a) for bonds it issues

21  prior to July 1 of any year and is not subject to the fee

22  required under s. 159.811. However, for bonds it intends to

23  issue between July 1 and September 29 of any year, utilizing

24  the allocation granted under paragraph (a), the Florida

25  Housing Finance Agency Corporation must submit a notice of

26  intent to issue to the division not later than June 30 of such

27  year, and a written confirmation of allocation shall be

28  granted if a sufficient amount of that allocation is

29  available.

30         (c)  The Florida Housing Finance Agency Corporation, in

31  its discretion, may, prior to July 1 of each year, assign any

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 1  portion of the Florida Housing Finance Agency Corporation

 2  allocation to any agency for the issuance of housing bonds,

 3  taking into consideration the ability of the agency to timely

 4  issue such bonds, the need and public purpose to be served by

 5  the issue, and the ability of the agency to comply with the

 6  requirements of federal and state law.  Such an assignment is

 7  not effective until receipt by the division of notification of

 8  the assignment.  A separate allocation from the division is

 9  not needed for bonds issued prior to July 1 utilizing such an

10  assignment.  An agency that intends to utilize such an

11  assignment to issue housing bonds between July 1 and September

12  29 of any year must submit a notice of intent to issue to the

13  division for the amount of such assignment not later than June

14  30, and a written confirmation of allocation shall be granted

15  if a sufficient amount of the allocation under paragraph (a)

16  is available.  Any amounts representing assignments of which

17  the division had been notified by the Florida Housing Finance

18  Agency Corporation but for which an issuance report or notice

19  of intent to issue pursuant to this subsection has not been

20  received by the division by June 30 of any year shall be

21  reallocated to the state allocation pool on July 1 of that

22  year.

23         (4)  Five percent of the state volume limitation

24  remaining after the allocations allocation made pursuant to

25  subsection (1) shall be allocated to the state allocation

26  pool, for use as provided in s. 159.807.

27         (5)  Twenty percent of the state volume limitation

28  remaining after the allocations allocation made pursuant to

29  subsection (1) shall be allocated to the Florida First

30  Business allocation pool, to be used as provided in s.

31  159.8083.

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 1         Section 29.  Subsections (3) and (4) of section

 2  159.809, Florida Statutes, are amended to read:

 3         159.809  Recapture of unused amounts.--

 4         (3)  On October 1 of each year, any portion of the

 5  allocation made to the Florida First Business allocation pool

 6  pursuant to s. 159.804(5) or subsection (1) or subsection (2),

 7  which is eligible for carryforward pursuant to s. 146(f) of

 8  the Code but which has not been certified for carryforward by

 9  the Office of Tourism, Trade, and Economic Development, after

10  allocating an amount equal to the amount allocated to the

11  Florida rural economic development pool under s. 159.804(1),

12  shall be returned pro rata to the Florida First Business

13  allocation pool.

14         (4)  On November 16 of each year, any portion of the

15  initial allocation, made pursuant to s. 159.804(1), s.

16  159.804(5), or subsection (1) or, subsection (2), or

17  subsection (3), other than as provided in s. 159.8083, for

18  which an issuance report for bonds utilizing such an

19  allocation has not been received by the division prior to that

20  date shall be added to the state allocation pool.

21         Section 30.  This act shall take effect upon becoming a

22  law.

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 1            *****************************************

 2                          SENATE SUMMARY

 3    Creates the "Florida Rural Economic Development Act."
      Establishes the Florida Rural Economic Development
 4    Authority. Authorizes loans and grants for the
      improvement of agricultural land and facilities, for
 5    providers and producers of biomass and renewable energy
      technology and products and equipment and facilities, and
 6    for animal waste treatment and byproduct-conversion
      facilities. Provides for the issuance of bonds. Limits
 7    legal liability. Authorizes a rural development loan
      assistance program. Establishes the rural economic
 8    development pool. Provides for specific allocations of
      state volume limitations to the pool. Specifies
 9    requirements for bond issuance reports that are not
      received. (See bill for details.)
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