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 related to 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 limits on the amount of loans issued to eligible borrowers.

Additionally, the bill outlines definitions for eligible borrowers and lending institutions, the loan application process, and the responsibilities of the state treasurer and lending institutions in administering the program. It includes provisions for competitive interest rates on loans and mandates the state treasurer to adopt rules for program administration, along with an annual report on its status to the governor and legislature. The bill also amends existing laws regarding state fund management, updates procedures for accepting investment account requests from banks, and repeals several statutes related to linked deposits and interest rates for various loan programs, establishing that linked deposits will be set at an interest rate 2% lower than the market rate, recalculated annually.

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