The proposed bill establishes the Kanbucks program, enabling the state treasurer to invest in linked deposits with eligible financial institutions to provide loans for various purposes, including agricultural production, housing development, business needs, and extraordinary natural gas costs incurred during the severe winter weather event of February 2021. The bill abolishes several existing loan deposit programs, particularly those for agricultural production and housing, while ensuring the continuation of existing linked deposit loans. The state treasurer is authorized to invest up to 5% of the pooled money investment portfolio in linked deposits, with specific loan limits, such as a maximum of $2,500,000 for agricultural production or business loans.

Additionally, the bill outlines the definitions of eligible borrowers and lending institutions, the loan application process, and the responsibilities of the state treasurer and eligible lending institutions in administering the program. It includes provisions for the state treasurer to adopt rules and regulations for program implementation and mandates an annual report on the program's status to be submitted to the governor and legislature. The bill also makes significant deletions from current law regarding linked deposits for agricultural production loans and other specific loan programs, establishing a uniform interest rate that is 2% less than the market rate, and repeals multiple sections of existing statutes to streamline the legal framework governing these financial transactions. The act will take effect upon publication in the statute book.

Statutes affected:
As introduced: 75-4209, 75-4237