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 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 loan limits set for different categories, 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 the director of investments in managing the program. It includes provisions for competitive interest rates on loans and mandates the state treasurer to adopt rules for the program's administration and provide annual reports to the governor and legislature. Significant deletions from current law include the removal of references to agricultural production loan deposits and various loan deposit programs that previously specified interest rates at 2% less than the market rate, streamlining the investment process and potentially altering the interest rate structure for linked deposits. The act will take effect upon publication in the statute book.

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