HB 1581

1
A bill to be entitled
2An act relating to rural economic development;
3creating ch. 291, F.S., providing a short title;
4providing definitions; establishing the Florida Rural
5Economic Development Commission under the Department
6of Agriculture and Consumer Services; providing for
7membership, terms, reimbursement for per diem and
8travel expenses, conflict of interest, and meetings;
9providing that meetings and records are subject to
10chs. 119 and 286, F.S., relating to public records and
11public meetings; providing for certain officers and
12employees; providing for the administration of the
13chapter; providing powers, including the authority to
14adopt rules; providing for the purchase and sale of
15rural development loans; providing for loans to and
16deposits of funds with lending institutions;
17authorizing insurance of rural development loans;
18authorizing issuance of bonds; exempting contracts
19from the provisions of ch. 287, F.S., relating to
20competitive bids; providing any pledge of funds,
21assets, or revenues is subject to a lien; providing
22for the refunding of bonds; authorizing the commission
23to purchase commission-issued bonds; exempting
24property and obligations from local and state taxes;
25providing certain covenant of the state; providing for
26funds to be held in trust; declaring bonds are
27securities; providing for the creation of accounts and
28audits of the accounts; providing for cooperation of
29state agencies; providing for liberal construction of
30the chapter; providing for deposit of certain assets
31in the General Revenue Fund upon termination of the
32commission; amending s. 159.804, F.S.; providing for
33certain percent allocation to the rural economic
34development bond pool from the allocation of state
35volume limitation for private activity bonds; creating
36s. 159.8082, F.S.; creating the rural economic
37development bond pool; providing purpose; providing
38for allocation to the pool; amending s. 159.809, F.S.;
39providing for recapture of certain unused allocations
40to be returned pro rata to certain pools; providing an
41effective date.
42
43Be It Enacted by the Legislature of the State of Florida:
44
45     Section 1.  Chapter 291, Florida Statutes, consisting of
46sections 291.011, 291.021, 291.031, 291.041, 291.051, 291.061,
47291.071, 291.081, 291.091, 291.101, 291.111, 291.121, 291.131,
48291.141, 291.151, 291.161, 291.171, 291.181, 291.191, 291.201,
49and 291.211, is created to read:
50     291.011  Short title.--This chapter may be cited as the
51"Florida Rural Economic Development Act."
52     291.021  Definitions.--As used in this chapter:
53     (1)  "Agricultural improvement" means any improvement,
54building, structure, fixture, or equipment suitable for use in
55farming, producing, or processing agricultural products or
56byproducts; energy conserving equipment and renewable energy
57equipment and technology, such as biogas turbines or internal
58combustion engines, low-pressure irrigation pumps, gasifiers,
59hydrogen fuel cells, ethanol production facilities, aerobic
60digesters, and anaerobic digesters; water conservation and
61pollution prevention devices; and other similar technology
62located on agricultural land in this state.
63     (2)  "Agricultural land" means land in this state suitable
64for use in farming, producing, or processing animal or plant
65products, including waste disposal, and federally recognized
66Indian tribal government lands.
67     (3)  "Agricultural processor" means a person who engages in
68the business of processing products derived from animals or
69plants and their byproducts within this state, including,
70without limitation, agricultural commodities, biomass and biogas
71energy, compost, waste treatment facilities, organic fertilizer,
72soil amendment processing, and any and all products disposed of
73or made or derived from agricultural or biomass stock, as
74defined by the commission under rules adopted by the commission
75from time to time under chapter 120.
76     (4)  "Agricultural producer" means a person who engages in
77the business of producing and marketing products derived from
78animals or plants and their byproducts in this state and
79includes a farmer.
80     (5)  "Audit" means the annual audit of the commission's
81accounting records by the commission's certified public
82accountants and shall include any audit required of the
83commission by the federal Single Audit Act Amendments of 1996
84and similar laws of the state.
85     (6)  "Bond" means a bond issued by the commission.
86     (7)  "Commission" means the Florida Rural Economic
87Development Commission established under s. 291.031.
88     (8)  "Farming" means the cultivation or use of land in this
89state for the production of any and all plant and animal
90agricultural crops, including biomass and biogas, fiber crops,
91citrus crops, poultry and ratites, eggs, milk, fruits, nuts,
92trees, vegetables, flowers, ferns or other horticultural crops,
93grazing and forage production, farm-raised ungulates and other
94livestock, aquaculture, hydroponics, organics, silviculture,
95forest products, or other farming activities designated by the
96commission by rule.
97     (9)  "Internal Revenue Code" means the Internal Revenue
98Code of 1986, as amended.
99     (10)  "Lending institution" means a bank, credit union,
100trust company, mortgage company, national banking association,
101savings bank, savings and loan association, building and loan
102association, insurance company, investment banker, mortgage
103banker or company, small business investment company, credit
104union, cooperative bank, pension or retirement fund, any state
105or federal governmental agency or instrumentality, including the
106United States Department of Agriculture's Farm Service Agency or
107any of its local associations, the Commodity Credit Corporation,
108Federal Land Bank, Production Credit Association, the United
109States Small Business Administration, or any other financial
110institution or entity authorized to do business in this state or
111hereunder or operating under the supervision of any federal
112agency or any corporation organized or operating pursuant to s.
11325 of the Federal Reserve Act.
114     (11)  "Mortgage" means a mortgage, mortgage deed, deed of
115trust, or other instrument creating a first lien, subject only
116to title exceptions and encumbrances acceptable to the
117commission, including any other mortgage liens of equal standing
118with or subordinate to the mortgage loan retained by a seller or
119conveyed to a mortgage lender on a fee interest in agricultural
120land and agricultural improvements.
121     (12)  "Mortgage lender" means a bank, trust company,
122mortgage company, national banking association, savings and loan
123association, insurance company, any state or federal
124governmental agency or instrumentality, or any other financial
125institution or public or private entity authorized to make
126mortgage loans or secured loans in this state.
127     (13)  "Mortgage loan" means a financial obligation secured
128by a mortgage.
129     (14)  "Note" means a bond anticipation note or other
130obligation or evidence of indebtedness issued by the commission.
131     (15)  "Renewable energy" means energy produced from any
132nondepletable source and specifically includes hydrogen fuel
133cells, biogas, and solar, wind, hydraulic, and geothermal
134energy.
135     (16)  "Rural" means an area or person located in a county
136having a population of 75,000 or fewer or a county having a
137population of 150,000 or fewer that is contiguous to a county
138having a population of 75,000 or fewer.
139     (17)  "Rural development loan" means any loan made by the
140commission for any of the activities or purposes defined herein.
141     (18)  "Secured loan" means a financial obligation secured
142by a chattel mortgage, security agreement, or other instrument
143creating a lien on an interest in agricultural property.
144     (19)  "State agency" means any board, commission,
145department, public officer, or other agency or authority of the
146state.
147     (20)  "Structure" means any single-family dwelling located
148on agricultural land that is or will be occupied by a farmer or
149other agricultural producer or processor as well as any
150structures attached to or incidental to the use of the dwelling.
151     291.031  Florida Rural Economic Development Commission.--
152     (1)  The Florida Rural Economic Development Commission, a
153body politic and corporate, is created under the Department of
154Agriculture and Consumer Services exercising limited quasi-
155legislative or quasi-judicial powers, or both, independently of
156the Commissioner of Agriculture and is an instrumentality of the
157state for the performance of essential public functions.
158     (2)  The commission shall consist of 10 members appointed
159by the Commissioner of Agriculture. Of the 10 members, 4 members
160shall represent financial institutions incorporated in this
161state whose primary market is rural enterprises such as
162agriculture; 3 members shall represent state trade associations
163whose products are primarily produced in rural counties; and 3
164members shall be individuals who are engaged in a traditionally
165rural-based private enterprise.
166     (3)  Members shall serve terms of 4 years except members
167initially appointed to the commission. Members initially
168appointed to the commission shall serve the following terms:
169     (a)  Of the four appointees representing financial
170institutions incorporated in this state whose primary market is
171rural enterprises such as agriculture, one member shall serve a
1722-year term and one member shall serve a 3-year term.
173     (b)  Of the three appointees representing state trade
174associations whose products are primarily produced in rural
175counties, one member shall serve a 2-year term and one member
176shall serve a 3-year term.
177     (c)  Of the three appointees who are individuals engaged in
178a traditionally rural-based private enterprise, one member shall
179serve a 2-year term and one member shall serve a 3-year term.
180     (4)  Each member may be appointed to no more than two
181consecutive terms, except that a member shall continue to serve
182until his or her successor is appointed.
183     (5)  If a vacancy occurs, the Commissioner of Agriculture
184shall appoint a person to serve for the remainder of the
185unexpired term in the same manner as the original appointment.
186     (a)  A person appointed to fill a vacancy may be
187reappointed to no more than one term of 4 years.
188     (b)  No vacant office shall be included in the
189determination of a quorum.
190     (6)  A majority of members of the commission constitutes a
191quorum, and the commission may take official action by a
192majority vote of the members present at any meeting at which a
193quorum is present and a final action is taken. A vacancy in the
194membership does not impair the right of a majority to exercise
195all rights and perform all duties of the commission.
196     (7)  The members shall serve without compensation but are
197entitled to receive reimbursement from funds of the commission
198for per diem and travel expenses as provided under s. 112.061
199     (8)  A member of the commission who is present at any
200meeting of the commission may not abstain from voting in regard
201to any decision, ruling, or act, and a vote shall be recorded
202for each member present, except when a member has or appears to
203have a possible conflict of interest under s. 112.311, s.
204112.313, or s. 112.3143. In such cases, the member shall comply
205with the disclosure requirements of s. 112.3143. This subsection
206neither limits the right of a member or employee of the
207commission to acquire an interest in bonds or notes nor limits
208the right of a member or employee other than the executive
209director to have an interest in a bank, insurance company, or
210other financial institution in which the funds of the commission
211are deposited or which is acting as trustee or paying agent
212under a trust indenture to which the commission is a party. This
213section also does not, except as to the disclosures required
214under s. 112.3143, preclude an insurance company or financial
215institution in which a member or employee of the board, other
216than the executive director, has an interest from placing
217insurance, funding bonds, or acquiring or selling notes,
218mortgages, or other obligations of the commission.
219     (9)  The commission shall meet quarterly and may meet more
220frequently upon call of the chair.
221     (10)  The commission may delegate to one or more of the
222members or employees or agents of the commission such powers and
223duties as it may deem proper.
224     (11)  The domicile of the commission shall be the City of
225Tallahassee and such other places within the state as the
226commission shall adopt by rule.
227     (12)  The commission and its advisory committees or similar
228groups created by the commission, including any not-for-profit
229subsidiaries, are subject to chapter 119, relating to public
230records, and chapter 286, relating to public meetings and
231records. Meetings of the commission at which official acts are
232taken are subject to the provisions of s. 286.011.
233     291.041  Officers and employees; administration of
234chapter.--
235     (1)  The commission shall elect annually a chair and vice
236chair from among its members.
237     (2)  The commission shall appoint an executive director who
238shall be exempt from part II of chapter 110 and shall be a state
239employee for purposes of this chapter. The salary of the
240executive director shall be set by the commission.
241     (3)  The executive director shall administer and enforce
242this chapter in accordance with rules adopted by the commission.
243The executive director may employ personnel as may be necessary
244to administer and enforce this chapter, subject to the approval
245of a majority of the members of the commission. All employees
246shall be under the supervision of the executive director.
247     (4)  The executive director shall not have an interest in a
248bank or other financial institution in which the funds of the
249commission are deposited or which is acting as trustee or paying
250agent under a trust indenture to which the commission is a
251party. The executive director may not receive, in addition to a
252fixed salary or compensation, any money or valuable thing,
253either directly or indirectly or through any substantial
254interest in any other business entity, for negotiating,
255procuring, recommending, or aiding in any purchase or sale of
256property or loan made by the commission. The executive director
257may not be financially interested, either as principal, co-
258principal, agent, or beneficiary, either directly or indirectly
259or through any substantial interest in any other business
260entity, in any purchase, sale, or loan made by the commission.
261     (5)  The commission may employ on a contractual basis
262legal, financial, and technical experts and consultants as it
263deems necessary.
264     291.051  Powers.--The commission shall have all the powers
265necessary to give effect to and carry out the purposes and
266provisions of this chapter, including the power to:
267     (1)  Sue and be sued in its own name and in the name of any
268subsidiary corporation or entity that may be created under this
269chapter.
270     (2)  Have and alter a corporate seal.
271     (3)  Adopt and amend bylaws for the internal organization
272and management of the commission.
273     (4)  Adopt rules pursuant to ss. 120.536(1) and 120.54 to
274implement this chapter conferring duties upon it.
275     (5)  Make and execute contracts and other instruments
276necessary or convenient for the exercise of its powers and
277duties under this chapter with any federal or state governmental
278agency, public or private corporation, lending institution, or
279other entity or person. Any county or municipality or any
280special district or local government entity established pursuant
281to law is authorized to enter into contracts and otherwise
282cooperate with the commission to facilitate the purposes of this
283chapter.
284     (6)  Accept, administer, and expend donations of real or
285personal property from any source or receive, administer, and
286expend appropriations from the Legislature and financial
287assistance, guarantees, insurance, or subsidies from the federal
288or state government.
289     (7)  Renegotiate, refinance, or foreclose on any mortgage,
290security interest, or lien; bring any action to protect or
291enforce any right or benefit conferred upon the commission by
292any law, mortgage, security interest, lien, contract, or other
293agreement; bid for and purchase property at any foreclosure or
294at any other sale or otherwise acquire or take possession of any
295property; or complete, administer, pay the principal of and
296interest on any obligation incurred in connection with such
297property, or dispose of and otherwise deal with the property in
298a manner as may be necessary or desirable to protect the
299interest of the commission or of holders of its bonds therein,
300subject to the rights of holders of bonds of the commission.
301     (8)  Procure or provide for the procurement of insurance or
302reinsurance against any loss in connection with its property or
303operations, including, but not limited to, insurance,
304reinsurance, or other guarantees from any federal or state
305governmental agency or private insurance company for the payment
306of any bonds issued by the commission, or bonds, notes, or any
307other obligations or evidences of indebtedness issued or made by
308any subsidiary corporation or entity created pursuant to
309subsection (19) or by any lending institution or other entity or
310person; or insurance or reinsurance against loss with respect to
311agricultural loans, mortgages, mortgage loans, or any other type
312of loan, including the power to pay premiums on such insurance
313or reinsurance.
314     (9)  Make, insure, coinsure, reinsure, or cause to be
315insured, coinsured, or reinsured agricultural loans, mortgage
316loans, mortgages, or any other type of loan; pay or receive
317premiums on such insurance, coinsurance, or reinsurance;
318establish reserves for losses; and participate in the insurance,
319coinsurance, or reinsurance of agricultural loans, mortgage
320loans, mortgages, or any other type of loan with the federal or
321state government or private insurance company.
322     (10)  Undertake and carry out or authorize the completion
323of studies and analyses of rural and agricultural conditions and
324needs within the state, needs relating to the promotion of
325agricultural exports, and ways of meeting such needs; make the
326studies and analyses available to the public and to the
327agricultural industry; and engage in research or disseminate
328information on agriculture and agricultural exports.
329     (11)  Accept federal, state, or private financial or
330technical assistance and comply with any conditions for that
331assistance, provided the conditions are not in conflict with
332this chapter.
333     (12)  Establish, pay, and collect fees and charges in
334connection with its loans, deposits, insurance commitments, and
335services, including, but not limited to, reimbursement of the
336costs of issuing bonds, origination and servicing fees, and
337insurance premiums.
338     (13)  Make loans to or deposits with lending institutions
339and purchase or sell agricultural loans.
340     (14)  Acquire or contract to acquire from any person, firm,
341corporation, municipality, or federal or state agency, by grant,
342purchase, or otherwise, real or personal property or any
343interest therein; own, hold, clear, improve, lease, construct,
344or rehabilitate and sell, invest, assign, exchange, transfer,
345convey, lease, mortgage, or otherwise dispose of or encumber the
346same, subject to the rights of holders of the bonds of the
347commission, at public or private sale, with or without
348competitive bid.
349     (15)  Borrow money, issue bonds, and provide for the rights
350of the lenders or holders thereof and purchase, discount, sell,
351negotiate, guarantee, insure, coinsure, and reinsure notes,
352drafts, checks, bills of exchange, acceptances, bankers
353acceptances, cable transfers, letters of credit, and other
354evidence of indebtedness, with or without credit enhancement
355devices.
356     (16)  Consent to any modification with respect to the rate
357of interest, time, payment of any installment of principal or
358interest, security or any other term or condition of any loan,
359contract, mortgage, mortgage loan or commitment therefor, or
360agreement of any kind to which the commission is a party or
361beneficiary, subject to the rights of holders of the bonds of
362the commission.
363     (17)  Maintain an office or offices at such place or places
364as the commission shall determine.
365     (18)  Serve as the beneficiary of any public trust.
366     (19)  Create subsidiary corporations or entities as may be
367necessary in order to borrow money, insure or reinsure
368agricultural loans, or issue bonds in the international
369financial market.
370     (20)  Purchase or participate in the purchase and enter
371into commitments by itself or together with others for the
372purchase of federally issued securities, provided that the
373proceeds of the securities are used in accordance with this
374chapter.
375     (21)  Make and execute contracts for the administration,
376servicing, or collection of any mortgage loan, loan agreement,
377or purchase agreement with a mortgage lender or servicing agent
378for the duration of the loan or agreement and pay the reasonable
379value of the services rendered to the commission under the
380contracts. The fees and charges for the services may be paid
381directly by the borrower to the lender or servicing agent or may
382be deducted from the interest collected by the lender or
383servicing agent.
384     (22)  Make and execute agreements, contracts, and other
385instruments necessary or convenient in the exercise of the
386powers and duties of the commission, including contracts with
387any person, local government, federally recognized Indian tribal
388government, or other entity. All local governments of the state
389are authorized to enter into and do all things necessary to
390perform the contracts and otherwise cooperate with the
391commission to facilitate the implementation of this chapter.
392     291.061  Purchase and sale of rural development loans.--The
393commission may purchase or contract to purchase and sell or
394contract to sell rural development loans made by lending
395institutions. All lending institutions are authorized to
396purchase and sell rural development loans to the commission in
397accordance with this chapter and the rules adopted under this
398chapter. To the extent that any provision of this section is
399inconsistent with any provision of law governing lending
400institutions, the provisions of this section shall control.
401     291.071  Loans and deposits.--The commission may make or
402contract to make loans to and deposits with lending
403institutions. All lending institutions may borrow funds and
404accept deposits from the commission in accordance with this
405chapter and the rules adopted under this chapter. The commission
406shall require that all proceeds of the loans to or deposits with
407lending institutions, or an equivalent amount, shall be used by
408the lending institutions to make agricultural loans, subject to
409the terms and conditions as the commission may prescribe. To the
410extent that any provision of this section is inconsistent with
411any provision of the law governing lending institutions, the
412provisions of this section shall control.
413     291.081  Insurance of rural development loans.--
414     (1)  The commission may insure and reinsure rural
415development loans made by lending institutions, subject to the
416terms, conditions, limitations, collateral and security
417provisions, and reserve requirements as shall be determined by
418rule of the commission.
419     (2)  Unless otherwise determined by the commission,
420insurance of rural development loans shall be in the amount of
421100 percent of the unpaid principal and interest on each loan.
422     (3)  An insured rural development loan shall be in default
423when the holder of the loan makes application to the commission
424for payment of insurance on the loan stating that the loan is in
425default in accordance with the terms of any agreement with
426respect to the insurance executed pursuant to this section.
427     (4)  The commission may enter into agreements with any
428person, lending institution, or holder of an insured rural
429development loan upon the terms as may be agreed upon between
430the commission and the person, lending institution, or holder to
431provide for the administration of, applications for, and
432repayment of insured rural development loans and to establish
433the conditions for payment of insurance by the commission and
434the servicing, suit upon, or foreclosure of insured rural
435development loans.
436     (5)  In calculating the aggregate value of all rural
437development loans insured by the commission and outstanding at
438any one time for purpose of insurance, the total value of funds,
439investments, guarantees, properties, and other assets of the
440commission shall be taken into consideration. The insurance may
441be further expanded by use of federal, state, or private loan
442insurance, reinsurance, or guarantees of which the commission is
443or shall become the beneficiary.
444     291.091  Bonds of the commission.--
445     (1)  The commission may issue from time to time bonds,
446notes, bond anticipation notes, renewal notes, refunding bonds,
447interim certificates, certificates of indebtedness, debentures,
448warrants, commercial paper, or other obligations or evidences of
449indebtedness, hereinafter collectively referred to as "bonds,"
450to provide funds for and to fulfill and achieve its authorized
451public functions or corporate purposes, as set forth in this
452chapter, including, but not limited to, the purchase of rural
453development loans from lending institutions, the making of loans
454to or deposits with lending institutions, the payment of
455interest on bonds of the commission, the establishment of
456reserves to secure such bonds, and the establishment of reserves
457with respect to the insurance of rural development loans, and
458all other purposes and expenditures of the commission incident
459to and necessary or convenient to carry out the purposes of this
460chapter.
461     (2)  Except as otherwise provided by the commission, all
462bonds issued by the commission shall be negotiable instruments
463and may be general obligations of the commission, secured by the
464full faith and credit of the commission, and payable out of any
465money, assets, or revenues of the commission or from any other
466sources whatsoever that may be available to the commission.
467Obligations issued under this chapter shall not be deemed to
468constitute a debt, liability, or obligation of the state or of
469any political subdivision thereof or a pledge of the faith and
470credit of the state or of any such political subdivision but
471shall be payable solely from the revenues or assets of the
472commission. Obligations issued under this chapter shall not be
473deemed to constitute a debt, liability, or obligation of the
474state or of any political subdivision thereof or a pledge of the
475faith and credit of the state or of any such political
476subdivision but shall be payable solely from the revenues or
477assets of the commission. Each obligation issued under this
478chapter shall contain on the face thereof a statement to the
479effect that the commission shall be obligated to pay neither the
480same nor the interest thereon except from the revenues or assets
481pledged therefor and that neither the faith and credit nor the
482taxing power of the state or of any political subdivision
483thereof is pledged to the payment of the principal of or the
484interest on such obligation.
485     (3)  Bonds shall be authorized, issued, and sold by a
486resolution of the commission adopted as provided in this chapter
487and in accordance with applicable provisions of the Internal
488Revenue Code. The bonds may be of such series; bear such date or
489dates; mature at such time or times; bear interest at such rate
490or rates, including variable, adjustable, or zero interest
491rates; be payable at such time or times; be in such
492denominations; be sold at such price or prices, at public or
493private negotiated sale; be in such form; carry such
494registration and exchangeability privileges; be payable at such
495place or places; be subject to such terms of redemption; and be
496entitled to such priorities on the income, revenue, and receipts
497of, or available to, the commission as may be provided by the
498commission in the resolution or resolutions providing for the
499issuance and sale of the bonds of the commission.
500     (4)  Bonds of the commission shall be signed by the members
501or officers of the commission, by either manual or facsimile
502signature, as shall be determined by resolution or resolutions
503of the commission and shall have impressed or imprinted thereon
504the seal of the commission, or a facsimile thereof. The coupons
505attached to coupon bonds of the commission shall bear the
506facsimile signature of the member or officer of the commission
507as shall be determined by resolution or resolutions of the
508commission. The commission may also provide for the
509authentication of the bonds, notes, or coupons by a trustee or
510fiscal agent.
511     (5)  Any bonds of the commission may be validly issued,
512sold, and delivered, notwithstanding that one or more of the
513members or officers of the commission signing the bonds or whose
514facsimile signature may be on the bonds or on coupons, shall
515have ceased to be a member or officer of the commission at the
516time such bonds shall actually have been delivered.
517     (6)  Bonds of the commission may be sold for such price, in
518such manner, and from time to time as may be determined by the
519commission to be most beneficial, and the commission may pay all
520expenses, premiums, fees, or commissions which it may deem
521necessary or advantageous in connection with the issuance and
522sale thereof, subject to this chapter.
523     (7)  Bonds or notes may be issued in coupon or in
524registered form, or both, as the commission may determine, and
525provision may be made for the registration of any coupon bonds
526or notes as to principal alone and also as to both principal and
527interest, and for the reconversion into coupon bonds or notes of
528any bonds or notes registered as to both principal and interest,
529and for the interchange of registered and coupon bonds or notes.
530     (8)  Prior to the preparation of definitive bonds, the
531commission may, under like restrictions, issue interim receipts
532or temporary bonds, with or without coupons, exchangeable for
533definitive bonds when such bonds shall have been executed and
534are available for delivery. The commission may also provide for
535the replacement of any bonds or notes that shall become
536mutilated or shall be destroyed or lost.
537     (9)  Bonds or notes may be issued under this chapter
538without obtaining, except as otherwise expressly provided in
539this chapter, the consent of any department, division,
540commission, board, body, bureau, or agency of the state and
541without any other proceedings or the happening of any conditions
542or things other than those proceedings, conditions, or things
543which are specifically required by this chapter and the
544provisions of the resolution authorizing the issuance of such
545bonds or notes or the trust agreement securing the same.
546     291.101  Exemption from competitive bid.--The commission
547and all contracts made by it in carrying out its public and
548essential governmental functions are exempt from the laws of
549this state, under part I of chapter 287, which provide for
550competitive bids in connection with such contracts.
551     291.111  Statutory pledge.--Any pledge made by the
552commission shall be valid and binding from time to time when the
553pledge is made. The money, assets, or revenues of the commission
554so pledged and thereafter received by the commission shall
555immediately be subject to the lien of such pledge without any
556physical delivery thereof or further act, and the lien of any
557pledge shall be valid and binding as against all parties having
558claims of any kind in tort, contract, or otherwise against the
559commission, irrespective of whether such parties have notice
560thereof. Neither the resolution nor any other instrument by
561which a pledge is created need be recorded or filed in order to
562establish and perfect a lien or security interest in the
563property so pledged by the commission. Nothing in this section
564shall be construed to prohibit the commission from selling any
565assets subject to any such pledge except to the extent that any
566such sale may be restricted by the trust agreement or resolution
567providing for the issuance of such obligations.
568     291.121  Refunding bonds.--
569     (1)  Subject to the rights of the holders of the bonds of
570the commission, the commission may issue from time to time its
571bonds for the purpose of refunding any bonds of the commission
572then outstanding, together with the payment of any redemption
573premiums thereon and interest accrued or to accrue to the date
574of redemption of the outstanding bonds. All such refunding bonds
575of the commission shall be issued, sold or exchanged, and
576delivered; shall be secured; and shall be subject to this
577chapter in the same manner and to the same extent as any other
578bonds issued by the commission pursuant to this chapter, unless
579otherwise determined by resolution of the commission. Refunding
580bonds issued by the commission as provided in this section may
581be sold or exchanged for outstanding bonds of the commission
582and, if sold, the proceeds may be applied, in addition to any
583other authorized purposes, to the purchase, redemption, or
584payment of the outstanding bonds.
585     (2)  Pending the application of the proceeds of any such
586refunding obligations, with any other available funds, to the
587payment of the principal, accrued interest, and any redemption
588premium on the obligations being refunded, and, if so provided
589or permitted in the resolution authorizing the issuance of such
590refunding obligations or in the trust agreement securing the
591same, to the payment of any interest on such refunding
592obligations and any expenses in connection with the refunding,
593such proceeds may be invested in direct obligations of, or
594obligations the principal of and the interest on which are
595unconditionally guaranteed by, the United States of America
596which shall mature or which shall be subject to redemption by
597the holders thereof, at the option of the holders, not later
598than the respective dates when the proceeds, together with the
599interest accruing thereon, will be required for the purposes
600intended.
601     291.131  Purchase of bonds by commission.--Subject to the
602rights of holders of bonds, the commission shall have the power
603out of any funds available therefor to purchase bonds of the
604commission, which shall thereupon be canceled at a price not
605exceeding:
606     (1)  The optional redemption price then applicable plus
607accrued interest to the next interest payment date thereon, if
608the bonds are then subject to optional redemption; or
609     (2)  The optional redemption price applicable on the first
610date after such purchase upon which the notes or bonds become
611subject to optional redemption plus accrued interest to such
612date, if the bonds are not then subject to optional redemption.
613     291.141  Exemption from taxes.--The exercise of the powers
614granted by this chapter will be in all respects for the benefit
615of the people of the state, for their well-being and prosperity,
616and for the improvement of their social and economic conditions.
617The commission shall not be required to pay any tax or
618assessment on any property owned by the commission under this
619chapter or upon the income therefrom. Any obligations issued by
620the commission under this chapter shall at all times be free
621from taxation by the state or any local unit or political
622subdivision or other instrumentality of the state.
623     291.151  Covenant of state.--In consideration of the
624acceptance of and payment for the bonds of the commission by the
625holders thereof, the state does pledge to and agree with the
626holders of any bonds of the commission issued pursuant to this
627chapter that the state will not impair, limit, or alter the
628rights vested in the commission to fulfill the terms of any
629agreements made with the holders of the bonds of the commission
630or in any way impair the rights or remedies of the holders
631thereof until such bonds, together with the interest thereon,
632with interest on any unpaid installments of interest, and all
633costs and expenses in connection with any action or proceedings
634by or on behalf of such holders, are fully met and discharged.
635The commission is authorized to include this pledge and
636agreement of the state in any agreement with the holders of
637bonds of the commission.
638     291.161  Funds held in trust.--
639     (1)  Notwithstanding any other provisions of law to the
640contrary, all funds received under this chapter shall be deemed
641to be funds held in trust, to be held and applied solely as
642provided in this chapter. Interest earned from these funds and
643interest received from loans made from these funds may be used
644for any purpose set out in this chapter and for the costs of
645administering this chapter. The resolution authorizing any
646obligations or the trust agreement securing any obligations may
647provide that any of these funds may be temporarily invested
648pending the disbursement of the funds and shall provide that any
649officer with whom or any bank or trust company with which such
650funds shall be deposited shall act as trustee of the funds and
651shall hold and apply the funds for the purposes under this
652chapter, subject to any rules adopted pursuant to this chapter
653and any provisions in the provision or trust agreement.
654     (2)  All funds of the commission may be invested in the
655following:
656     (a)  Bonds, notes, or treasury bills of the United States.
657     (b)  Nonconvertible debt securities of the following
658issuers:
659     1.  The Federal Home Loan Bank Board.
660     2.  Fannie Mae.
661     3.  The Federal Farm Credit Bank.
662     4.  The Student Loan Marketing Association.
663     (c)  Any other obligations not listed above which are
664guaranteed as to principal and interest by the Federal
665Government or any of its agencies.
666     (d)  Certificates of deposit and other evidences of deposit
667at state and federal chartered banks and savings and loan
668associations, provided that any principal amount of such
669certificate in excess of the amount insured by the Federal
670Government or any agency thereof be fully collateralized.
671     (e)  Obligations of the United States or its agencies under
672a repurchase agreement for a shorter time than the maturity date
673of the security itself if the market value of the security
674itself is more than the amount of funds invested.
675     (f)  Money market funds whose portfolios consist of any of
676the foregoing investments.
677     (g)  A guaranteed investment or similar contract, which
678provides for the investment of funds at a guaranteed rate of
679return, with an insurance company or depository financial
680institution with a claim-paying rating of no less than either of
681the two highest grades given by a nationally recognized rating
682agency.
683     (h)  Any other investment authorized by law for the
684investment of funds by a unit of local government.
685     291.171  Bonds as legal investment and security for public
686deposits.--Obligations issued under this chapter are securities
687in which all public officers and public bodies of the state and
688its political subdivisions, all insurance companies, trust
689companies, banking associations, investment companies,
690executors, administrators, trustees, and other fiduciaries may
691properly and legally invest funds, including capital in their
692control or belonging to them. Such obligations are hereby made
693securities that may properly and legally be deposited with and
694received by any state or municipal officer or any agency or
695political subdivision of the state for any purpose for which the
696deposit of bonds, notes, or obligations of the state is now or
697may hereafter be authorized by law.
698     291.181  Accounts and audits.--
699     (1)  Subject to the provisions of any contract with the
700holders of its bonds, the commission shall establish a system of
701accounts.
702     (2)  The commission may cause an independent audit of its
703books and accounts to be prepared annually, and the cost thereof
704may be paid from any available funds of the commission.
705     (3)  No later than December 31 of each year, the commission
706shall submit to the Commissioner of Agriculture, the Governor,
707the President of the Senate, and the Speaker of the House of
708Representatives an annual report on the operations of the
709commission. No later than March 1 of each year, the commission
710shall submit to the Commissioner of Agriculture, the Governor,
711the President of the Senate, and the Speaker of the House of
712Representatives a copy of the report of each audit of the books
713and accounts of the commission.
714     291.191  Cooperation of state agencies.--Each state officer
715and agency may render services to the commission within their
716respective functions as may be requested by the commission.
717     291.201  Construction of chapter.--This chapter, being
718necessary for the welfare of the state and its residents, shall
719be liberally construed to effect its purposes.
720     291.211  Termination of the commission.--In the event of
721the termination of the commission, all of its rights, funds,
722assets, and revenues in excess of its obligations shall be
723deposited in the General Revenue Fund.
724     Section 2.  Subsection (1) of section 159.804, Florida
725Statutes, is amended to read:
726     159.804  Allocation of state volume limitation.--The
727division shall annually determine the amount of private activity
728bonds permitted to be issued in this state under the Code and
729shall make such information available upon request to any person
730or agency. The total amount of private activity bonds authorized
731to be issued in this state pursuant to the Code shall be
732initially allocated as follows on January 1 of each year:
733     (1)(a)  On January 1, 1993, the first $75 million of the
734state volume limitation shall be allocated to the manufacturing
735facility pool established pursuant to s. 159.8081. This
736allocation shall be increased in subsequent years in increments
737of $7.5 million as follows: On January 1 of each year, if at
738least 75 percent of the preceding year's allocation under this
739subsection was used to issue bonds by November 15 of that year,
740the allocation to the pool for the current year must equal the
741sum of the amount that was allocated to the pool in the
742preceding year plus an additional $7.5 million. If, however, 75
743percent of the preceding year's allocation was not used to issue
744bonds by November 15, the allocation to the pool for the current
745year must be the same amount as that allocated to the pool in
746the preceding year.
747     (b)  On January 1, 2006, the next $25 million of the state
748volume limitation shall be allocated to the rural economic
749development bond pool established under s. 159.8082. This
750allocation shall be increased in subsequent years in increments
751of $5 million as follows: On January 1 of each year, if at least
75275 percent of the preceding year's allocation under this
753subsection was used to issue bonds by November 15 of that year,
754the allocation to the pool for the current year must equal the
755sum of the amount that was allocated to the pool in the
756preceding year plus an additional $5 million; if, however, 75
757percent of the preceding year's allocation was not used to issue
758bonds by November 15, the allocation to the pool for the current
759year must be the same amount as that allocated to the pool in
760the preceding year.
761     (c)(b)  If on January 1 of any year, under federal law,
762bonds for manufacturing facilities or rural economic development
763no longer require or are eligible for an allocation pursuant to
764s. 146 of the Code or if a separate volume cap is established
765for rural economic development bonds under federal law, the
766allocation of the state volume limitation in the manufacturing
767facility pool or the rural economic development bond pool, or
768both if applicable, shall be divided among the remaining pools
769in the following manner: 50 percent to be shared by the 17
770regions for use in the manner prescribed in subsection (2); 25
771percent for use by the Florida Housing Finance Corporation in
772the manner prescribed in subsection (3); 5 percent for use in
773the state allocation pool in the manner prescribed in subsection
774(4); and 20 percent for use in the Florida First Business
775allocation pool in the manner prescribed in subsection (5).
776     (d)(c)  If the state volume limitation imposed on private
777activity bonds under s. 146 of the Code is decreased, the amount
778allocated to the manufacturing facility pool shall be decreased
779in proportion to the percentage the state volume limitation is
780decreased.
781     Section 3.  Section 159.8082, Florida Statutes, is created
782to read:
783     159.8082  Rural economic development bond pool.--
784     (1)  There is established the rural economic development
785bond pool. The rural economic development bond pool is available
786solely to provide written confirmations for private activity
787bonds to the Florida Rural Economic Development Commission to
788finance rural economic development as described in chapter 291.
789Allocations from this pool must be awarded for use on a
790statewide basis pursuant to the procedures specified in s.
791159.805, except that the provisions of s. 159.805(2) and (3) do
792not apply. In issuing written confirmations of allocations for
793rural economic development projects, the division must use the
794rural economic development bond pool. If allocation is not
795available from the rural economic development bond pool, the
796division must issue written confirmations of allocations for
797rural economic development projects under s. 159.806 or s.
798159.807, in that order. For the purposes of determining priority
799within a regional allocation pool or the state allocation pool,
800notices of intent to issue bonds for rural economic development
801projects to be issued from a regional allocation pool or the
802state allocation pool are considered to have been received by
803the division at the time it is determined by the division that
804the rural economic development bond pool is unavailable to issue
805confirmation for the rural development project.
806     (2)  Any written confirmation issued by the director
807pursuant to this section has no effect unless the bonds to which
808such confirmation applies have been issued by the Florida Rural
809Economic Development Commission and written notice of the
810issuance has been provided to the director on or before November
81115, unless funds eligible for carryforward were granted for the
812allocation.
813     Section 4.  Subsection (3) of section 159.809, Florida
814Statutes, is amended to read:
815     159.809  Recapture of unused amounts.--
816     (3)  On October 1 of each year, any portion of the
817allocation made to the Florida First Business allocation pool
818pursuant to s. 159.804(5) or subsection (1) or subsection (2),
819which is eligible for carryforward pursuant to s. 146(f) of the
820Code but which has not been certified for carryforward by the
821Office of Tourism, Trade, and Economic Development, after
822allocating an amount equal to the fiscal year pool amount of the
823rural economic development bond pool under s. 159.804(1), shall
824be returned, pro rata, to the Florida First Business allocation
825pool and the rural economic development bond pool.
826     Section 5.  This act shall take effect upon becoming a law.


CODING: Words stricken are deletions; words underlined are additions.