Download Zipped Introduced WordPerfect SB0235S02.ZIP
[Status][Bill Documents][Fiscal Note][Bills Directory]

Second Substitute S.B. 235

Senator Ralph Okerlund proposes the following substitute bill:




Chief Sponsor: Ralph Okerlund

House Sponsor: Kay L. McIff

             7      LONG TITLE
             8      General Description:
             9          This bill addresses loans made from the Utah Rural Rehabilitation Fund.
             10      Highlighted Provisions:
             11          This bill:
             12          .    addresses the Department of Agriculture's conduct of the Rural Rehabilitation
             13      Program;
             14          .    expands the ability to make loans from the Utah Rural Rehabilitation Fund to
             15      include loans made to a ranch;
             16          .    requires the department to obtain certain loan guarantees from the United States
             17      Department of Agriculture;
             18          .    provides requirements for any revenue bonds secured by loans made under the Rural
             19      Rehabilitation Program;
             20          .    requires the transfer of $2,000,000 from the Agriculture Resource Development
             21      Fund to the Utah Rural Rehabilitation Fund; and
             22          .    makes technical changes.
             23      Monies Appropriated in this Bill:
             24          None
             25      Other Special Clauses:

             26          This bill provides an immediate effective date.
             27      Utah Code Sections Affected:
             28      AMENDS:
             29          4-19-1, as last amended by Laws of Utah 2007, Chapter 179
             30          4-19-2, as last amended by Laws of Utah 2009, Chapter 260
             31      ENACTS:
             32          4-19-5, Utah Code Annotated 1953
             34      Be it enacted by the Legislature of the state of Utah:
             35          Section 1. Section 4-19-1 is amended to read:
             36           4-19-1. Department responsible for conduct and administration of rural
             37      rehabilitation program.
             38          (1) The department shall conduct and administer the federally funded portions of the
             39      rural rehabilitation program within the state in accordance with the agreement entered into in
             40      January 1975, between the United States of America through its Farm Home Administration
             41      and the state through its commissioner.
             42          (2) The department shall conduct and administer the state funded portions of the Rural
             43      Rehabilitation Program in accordance with this chapter.
             44          Section 2. Section 4-19-2 is amended to read:
             45           4-19-2. Department authorized to approve and make grants and loans, acquire
             46      property, or lease or operate property.
             47          (1) The department, in conjunction with the administration of the rural rehabilitation
             48      program, may:
             49          [(1)] (a) approve and make a loan to a farm [or], ranch, or agricultural cooperative
             50      association regulated under Title 3, [General Provisions Relating to Agricultural Associations]
             51      Uniform Agricultural Cooperative Association Act, subject to Section 4-19-3 , including:
             52          [(a)] (i) taking security for the loan through a mortgage, trust deed, pledge, or other
             53      security device;
             54          [(b)] (ii) purchasing a promissory note, real estate contract, mortgage, trust deed, or
             55      other instrument or evidence of indebtedness; [and]
             56          [(c)] (iii) collecting, compromising, canceling, or adjusting a claim or obligation

             57      arising out of the administration of the rural rehabilitation program; and
             58          (iv) secure loan protection guarantees, as available under United States Department of
             59      Agriculture programs for loans made by the department;
             60          [(2)] (b) purchase or otherwise obtain property in which the department has acquired
             61      an interest on account of a mortgage, trust deed, lien, pledge, assignment, judgment, or other
             62      means at any execution or foreclosure sale;
             63          [(3)] (c) operate or lease, if necessary to protect its investment, property in which it has
             64      an interest or sell or otherwise dispose of the property; and
             65          [(4)] (d) approve and make an education loan or an education grant to an individual for
             66      the purpose of attending a vocational school, college, or university to obtain additional
             67      education, qualifications, or skills.
             68          (2) Proceeds of revenue bonds issued in accordance with Title 63B, Chapter 16, State
             69      Financing Consolidation Act, shall:
             70          (a) be for emergency relief loans in accordance with this section and Section 4-19-3 to
             71      agriculture sectors under severe stress, as determined by the Agricultural Advisory Board; and
             72          (b) (i) be secured with United States Department of Agriculture loan protection
             73      guarantees; or
             74          (ii) to the extent not secured in accordance with Subsection (2)(b)(i), shall be secured
             75      with sufficient funds or other collateral to assure the revenue bond repayment.
             76          Section 3. Section 4-19-5 is enacted to read:
             77          4-19-5. Transfer of funds between Agriculture Resource Development Fund and
             78      Utah Rural Rehabilitation Fund.
             79          The director of the Division of Finance shall, on April 1, 2010, transfer $2,000,000
             80      from the Agriculture Resource Development Fund, created in Section 4-18-6 , to the Utah Rural
             81      Rehabilitation Fund, created in Section 4-19-4 , to make loans in accordance with this chapter.
             82          Section 4. Effective date.
             83          If approved by two-thirds of all the members elected to each house, this bill takes effect
             84      upon approval by the governor, or the day following the constitutional time limit of Utah
             85      Constitution Article VII, Section 8, without the governor's signature, or in the case of a veto,
             86      the date of veto override.

[Bill Documents][Bills Directory]