Brief (1)
HB 2103, as amended, would amend two sections of law that implement the Agricultural Linked Deposit Loan Program. The bill would expand the total aggregate loans under the program from $50,000,000 to $55,000,000. In addition, the bill would require the interest rate to be recalculated on the first business day of July in addition to the current recalculation requirement on the first business day of January.
Background
This bill was introduced at the request of Representative Schwartz. At the hearing on the bill, Representative Schwartz appeared in support of the bill. In addition, two representatives of farm credit associations, and representatives of the Kansas Farm Bureau, the Kansas Corn Growers, and the Kansas Banker's Association appeared in support of the bill. There were no opponents to the bill. The State Treasurer and the Director of Investments appeared before the Committee to provide information.
The House Committee on Agriculture amended the bill to provide for the recalculation of interest rates in July in addition to the current requirement in January.
The Senate Agriculture Committee amended the bill to eliminate the provision which would have increased the total amount of money available for loans from the Director of Investments pursuant to legislative mandates and to modify the amount of money available for loans through the Agricultural Linked Deposit Loan Program from $100,000,000 in the House version to $55,000,000 (current law permits $50,000,000).
The original fiscal note on the bill indicates that the State Treasurer believes that the bill would require $65,000 from the State General Fund, $55,000 of which would be for a 1.0 FTE accountant position. In addition, the Pooled Money Investment Board indicates that there would be a reduction of $1,000,000 in the State General Fund because of the reduction in state investment income.
1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi