Oklahoma 2025 Regular Session

Oklahoma House Bill HB1541 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3		-	SENATE FLOOR VERSION - HB1541 SFLR Page 1
4		-	(Bold face denotes Committee Amendments) 1
	3	+	ENGR. H. B. NO. 1541 Page 1 1
5	4		2
6	5		3
7	6		4
8	7		5
9	8		6
10	9		7
11	10		8
12	11		9
13	12		10
14	13		11
15	14		12
16	15		13
17	16		14
18	17		15
19	18		16
20	19		17
21	20		18
22	21		19
23	22		20
24	23		21
25	24		22
26	25		23
27	26		24
28	27
29		-	SENATE FLOOR VERSION
30		-	April 7, 2025
31		-
32		-
33	28		ENGROSSED HOUSE
34	29		BILL NO. 1541 By: Patzkowsky of the House
35	30
36	31		and
37	32
38		-	Kern and Frix of the Senate
	33	+	Frix of the Senate
	34	+
	35	+
39	36
40	37
41	38
42	39
43	40		An Act relating to the Agriculture Linked Deposit
44	41		Program; amending 2 O.S. 2021, Sections 5 -82, 5-85,
45	42		and 5-86, which relate to administration of the
46	43		linked deposit program; modifying definitions;
47	44		modifying provisions related to guidelines; modifying
48	45		certain deposit amount; amending 62 O.S. 2021,
49	46		Section 88-1B, which relates to maximum deposits by
50	47		State Treasurer; modifying definitions; providing an
51	48		effective date; and declaring an emergency.
52	49
53	50
54	51
	52	+
	53	+
	54	+
	55	+
55	56		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
56	57		SECTION 1. AMENDATORY 2 O.S. 2021, Section 5 -82, is
57	58		amended to read as follows:
58	59		Section 5-82. As used in the Oklahoma Agricultural Linked
59	60		Deposit Program:
60	61		1. "Agricultural domestic corporation" means any domestic
61	62		corporation formed or licensed pursuant to the Oklahoma General
62	63		Corporation Act or a limited domestic liability company formed or
63	64		licensed pursuant to the Oklahoma Limited Liabilit y Company Act and
64	65		meeting the requirements of paragraph 5 of subsection A of Section
65		-	955 of Title 18 of the Oklahoma Statutes and meeting the
66	66
67		-	SENATE FLOOR VERSION - HB1541 SFLR Page 2
68		-	(Bold face denotes Committee Amendments) 1
	67	+	ENGR. H. B. NO. 1541 Page 2 1
69	68		2
70	69		3
71	70		4
72	71		5
73	72		6
74	73		7
75	74		8
76	75		9
77	76		10
78	77		11
79	78		12
80	79		13
81	80		14
82	81		15
83	82		16
84	83		17
85	84		18
86	85		19
87	86		20
88	87		21
89	88		22
90	89		23
91	90		24
92	91
	92	+	955 of Title 18 of the Oklahoma Statutes and meeting the
93	93		requirements of subsection A of Section 951 of Title 18 of the
94	94		Oklahoma Statutes;
95	95		2. "Agricultural linked deposit " means a certificate of deposit
96	96		placed by the State Treasurer with an eligible lending institution
97	97		or an investment in bonds, notes, debentures, or other obligations
98	98		or securities issued by the federal farm credit bank with regard to
99	99		an eligible lending i nstitution for the purpose of carrying out the
100	100		intent of this program;
101	101		3. "Agricultural Linked Deposit Loan Package" means the forms
102	102		provided by the State Treasurer for the purpose of applying for an
103	103		agricultural linked deposit;
104	104		4. "Alternative agricultu ral products" means those products
105	105		included in a report submitted by the Cooperative Extension Service
106	106		of Oklahoma State University to the Oklahoma Department of
107	107		Agriculture, Food, and Forestry, and any other products which the
108	108		State Board of Agriculture d etermines will diversify Okla homa's
109	109		agricultural industry so as to broaden Oklahoma's economic base , but
110	110		alternative agricultural products shall not mean medical marijuana
111	111		growing operations;
112	112		5. "An at-risk farm or ranch business" shall be one that seeks
113	113		a production loan and meets the following criteria:
114	114		a. at least sixty percent (60%) of gross income derived
115	115		from farming and/or ranching, and
116		-	b. a debt-to-asset ratio over forty percent (40%);
117	116
118		-	SENATE FLOOR VERSION - HB1541 SFLR Page 3
119		-	(Bold face denotes Committee Amendments) 1
	117	+	ENGR. H. B. NO. 1541 Page 3 1
120	118		2
121	119		3
122	120		4
123	121		5
124	122		6
125	123		7
126	124		8
127	125		9
128	126		10
129	127		11
130	128		12
131	129		13
132	130		14
133	131		15
134	132		16
135	133		17
136	134		18
137	135		19
138	136		20
139	137		21
140	138		22
141	139		23
142	140		24
143	141
	142	+	b. a debt-to-asset ratio over forty percent (40%);
144	143		6. "Eligible agricultural business" means:
145	144		a. any person engaged in producing, processing, or
146	145		marketing alternative agricultural products,
147	146		b. any person who is establishing a veterinary practice
148	147		in which at least thirty percent (30%) of the practice
149	148		consists of services for large animals and the total
150	149		loan amount shall not exceed Two Hundred Fifty
151	150		Thousand Dollars ($250,000.00),
152	151		c. an at-risk farm or ranch business , operating within
153	152		the State of Oklahoma in operation that has developed
154	153		a management plan through the Intensive Financial
155	154		Management and Planning Support ( IFMAPS) program of
156	155		the Cooperative Extension Service of Oklahoma State
157	156		University or the Farm Business Management Program of
158	157		the Oklahoma Department of Career and Technology
159	158		Education, or
160	159		d. a healthy corner store as certified by the Oklahoma
161	160		Department of Agriculture, Food, and Forestry;
162	161		7. "Eligible lending institution" means a financial institution
163	162		that agrees to participate in the Oklahoma Agricultural Linked
164	163		Deposit Program, and:
165	164		a. is eligible to be a depository of state funds, or
166	165
167		-	SENATE FLOOR VERSION - HB1541 SFLR Page 4
168		-	(Bold face denotes Committee Amendments) 1
	166	+	ENGR. H. B. NO. 1541 Page 4 1
169	167		2
170	168		3
171	169		4
172	170		5
173	171		6
174	172		7
175	173		8
176	174		9
177	175		10
178	176		11
179	177		12
180	178		13
181	179		14
182	180		15
183	181		16
184	182		17
185	183		18
186	184		19
187	185		20
188	186		21
189	187		22
190	188		23
191	189		24
192	190
193	191		b. is an institution of the farm credit system o rganized
194	192		under the federal "Farm Credit Act of 1971", 12 U.S.C.
195	193		2001, as amended; and
196	194		8. "Healthy corner store" means a grocery store certified by
197	195		the Oklahoma Department of Agriculture, Food, and Forestry pursuant
198	196		to rules adopted by the State Board of Agriculture that markets
199	197		locally grown fresh fruits and vegetables and nutritious foods and
200	198		for which the sale of beer and tobacco products constitutes less
201	199		than ten percent (10%) of its gross sales excluding gasoline and
202	200		other nongrocery products, such oth er requirements as may be
203	201		established in rules adopted by the State Board of Agriculture, and
204	202		that is located in a geographical area that is underserved by
205	203		grocery outlets meeting those requirements.
206	204		SECTION 2. AMENDATORY 2 O.S. 2021, Section 5 -85, is
207	205		amended to read as follows:
208	206		Section 5-85. A. The State Treasurer is authorized to issue
209	207		guidelines and administer the Oklahoma Agricultural Linked Deposit
210	208		Program. The State Treasurer is further authori zed to issue
211	209		guidelines in a manner similar to Article I of the Administrative
212	210		Procedures Act.
213	211		B. The State Treasurer shall submit an annual report outlining
214	212		the status of the Oklahoma Agricultural Linked Deposit Program to
215	213		the Governor, the Lieutenant Go vernor, the President Pro Tempore of
216	214		the Senate, and the Speaker of the House of Representatives.
217	215
218		-	SENATE FLOOR VERSION - HB1541 SFLR Page 5
219		-	(Bold face denotes Committee Amendments) 1
	216	+	ENGR. H. B. NO. 1541 Page 5 1
220	217		2
221	218		3
222	219		4
223	220		5
224	221		6
225	222		7
226	223		8
227	224		9
228	225		10
229	226		11
230	227		12
231	228		13
232	229		14
233	230		15
234	231		16
235	232		17
236	233		18
237	234		19
238	235		20
239	236		21
240	237		22
241	238		23
242	239		24
243	240
244	241		SECTION 3. AMENDATORY 2 O.S. 2021, Section 5 -86, is
245	242		amended to read as follows:
246	243		Section 5-86. A. The State Treasurer is authorized to
247	244		disseminate information a nd provide agricultural linked deposit loan
248	245		packages to the lending institutions eligible for participation in
249	246		the Oklahoma Agricultural Linked Deposit Program.
250	247		B. The agricultural linked deposit loan package shall be
251	248		completed by the borrower before being forwarded to the lending
252	249		institution for consideration. Any technical assistance in
253	250		completing the agricultural loan package shall be provided by the
254	251		Oklahoma Department of Agriculture, Food, and Forestry.
255	252		C. 1. An eligible lending institution that de sires to receive
256	253		an agricultural linked deposit shall accept and review applications
257	254		for loans from eligible agricultural businesses. The lending
258	255		institution shall apply all usual lending standards to determine the
259	256		credit worthiness of each eligible agricultural business. No single
260	257		linked deposit for an alternative agricultural product shall exceed
261	258		One Million Dollars ($1,000,000.00). No single linked deposit for
262	259		an at-risk farm or ranch operation or a healthy corner store shall
263	260		exceed Three Hundred Fifty Thousand Dollars ($350,000.00) One
264	261		Million Dollars ($1,000,000.00). No single linked deposit for a
265	262		healthy corner store shall exceed Three Hundred Fifty Thousand
266	263		Dollars ($350,000.00) .
267	264
268		-	SENATE FLOOR VERSION - HB1541 SFLR Page 6
269		-	(Bold face denotes Committee Amendments) 1
	265	+	ENGR. H. B. NO. 1541 Page 6 1
270	266		2
271	267		3
272	268		4
273	269		5
274	270		6
275	271		7
276	272		8
277	273		9
278	274		10
279	275		11
280	276		12
281	277		13
282	278		14
283	279		15
284	280		16
285	281		17
286	282		18
287	283		19
288	284		20
289	285		21
290	286		22
291	287		23
292	288		24
293	289
294	290		2. Only one linked deposit loan shall be made and be
295	291		outstanding at any one time to any farmer eligible agriculture
296	292		business. However, the linked deposit loan may be refinanced.
297	293		3. No loan shall be made to any officer or director of the
298	294		lending institution making the loan.
299	295		D. An eligible agricultural business shall cer tify on its loan
300	296		application that the reduced rate loan will be used exclusively for
301	297		the purposes outlined in paragraph 6 of Section 5 -82 of this title.
302	298		E. In considering which eligible agricultural businesses to
303	299		include in the agricultural linked deposit loan package for reduced
304	300		rate loans, the eligible lending institution shall give priority to
305	301		the economic and health needs of the area in which the business is
306	302		located and other factors it considers appropriate to determine th e
307	303		relative financial need of the business.
308	304		F. 1. The eligible lending institution shall forward to the
309	305		State Treasurer an agricultural linked deposit loan package in the
310	306		form and manner prescribed and approved by the State Treasurer. The
311	307		package shall include information regarding the amount of the loan
312	308		requested by each eligible agricultural business and any other
313	309		information regarding each business the State Treasurer and the
314	310		State Board of Agriculture requires. The institution shall certify
315	311		that each applicant is an eligible agr icultural business, and shall,
316	312		for each business, certify the present borrowing rate applicable to
317	313		each specific eligible agricultural business.
318	314
319		-	SENATE FLOOR VERSION - HB1541 SFLR Page 7
320		-	(Bold face denotes Committee Amendments) 1
	315	+	ENGR. H. B. NO. 1541 Page 7 1
321	316		2
322	317		3
323	318		4
324	319		5
325	320		6
326	321		7
327	322		8
328	323		9
329	324		10
330	325		11
331	326		12
332	327		13
333	328		14
334	329		15
335	330		16
336	331		17
337	332		18
338	333		19
339	334		20
340	335		21
341	336		22
342	337		23
343	338		24
344	339
345	340		2. The institution and applicant shall certify that each
346	341		applicant is an eligible agricultural business and that the values
347	342		used to calculate the ratios of debt to assets have not been changed
348	343		or manipulated in order to qualify the applicant for the program.
349	344		3. Whoever knowingly makes a false statement concerning a
350	345		linked deposit loan application shall be prohibi ted from
351	346		participating in the linked deposit loan program.
352	347		G. Upon receipt of a completed agricultural linked deposit loan
353	348		package, the State Treasurer may review or audit the information
354	349		contained in the completed agricultura l linked deposit loan package,
355	350		including, but not limited to, a review or audit of the values used
356	351		to calculate the ratios of debts to assets as provided by the
357	352		applicant and the institution. The State Treasurer shall forward
358	353		the completed agricultural li nked deposit loan package to the Board.
359	354		The Board or its designee shall review the agricultural linked
360	355		deposit loan package to determine if the package qualifies under
361	356		this program. The Board shall make a recommendation concerning the
362	357		package within ten (10) business days. The Board or its designee
363	358		shall return the package to the State Treasurer with a written
364	359		recommendation of approval or rejection within ten (10) business
365	360		days. If the Board or its designee recommends rejection, the
366	361		written recommendation shall include reasons for the rejection. The
367	362		Board or its designee shall forward a copy of the rejection notice
368	363		to the lending institution and the borrower. The State Treasurer
369	364
370		-	SENATE FLOOR VERSION - HB1541 SFLR Page 8
371		-	(Bold face denotes Committee Amendments) 1
	365	+	ENGR. H. B. NO. 1541 Page 8 1
372	366		2
373	367		3
374	368		4
375	369		5
376	370		6
377	371		7
378	372		8
379	373		9
380	374		10
381	375		11
382	376		12
383	377		13
384	378		14
385	379		15
386	380		16
387	381		17
388	382		18
389	383		19
390	384		20
391	385		21
392	386		22
393	387		23
394	388		24
395	389
396	390		shall keep a chronological list of applications forwarded by the
397	391		Board for approval or rejection all application recommendations
398	392		received.
399	393		SECTION 4. AMENDATORY 62 O.S. 2021, Section 88.1B, is
400	394		amended to read as follows:
401	395		Section 88.1B. A. The amount that the State Treasurer may
402	396		invest in all linked d eposit programs authorized by law shall not
403	397		exceed the lesser of Two Hundred Twenty-five Million Dollars
404	398		($225,000,000.00) Five Hundred Million Dollars ($500,000,000.00) or
405	399		fifteen percent (15%) of all monies available to the State Treasurer
406	400		for investment as calculated by taking the average of the quarter -
407	401		end amount for the previous four (4) quarters.
408	402		B. The State Treasurer shall on a quarterly basis review the
409	403		percentage of total investable state funds invested in all linked
410	404		deposit programs created by l aw to determine compliance wi th
411	405		subsection A of this section.
412	406		C. If the State Treasurer determines that more than the amount
413	407		allowable pursuant to subsection A of this section is invested in
414	408		all linked deposit programs created by law, the State Treasurer
415	409		shall suspend any renewal or any initiation of new linked deposit
416	410		program investments until the time that the State Treasurer
417	411		determines the investment percentage limitation established by this
418	412		section has been met and except as provided by Section 88.1A o f this
419	413		title.
420	414
421		-	SENATE FLOOR VERSION - HB1541 SFLR Page 9
422		-	(Bold face denotes Committee Amendments) 1
	415	+	ENGR. H. B. NO. 1541 Page 9 1
423	416		2
424	417		3
425	418		4
426	419		5
427	420		6
428	421		7
429	422		8
430	423		9
431	424		10
432	425		11
433	426		12
434	427		13
435	428		14
436	429		15
437	430		16
438	431		17
439	432		18
440	433		19
441	434		20
442	435		21
443	436		22
444	437		23
445	438		24
446	439
447	440		SECTION 5. This act shall become effective July 1, 2025.
448	441		SECTION 6. It being immediately necessary for the preservation
449	442		of the public peace, health or safety, an emergency is hereby
450	443		declared to exist, by reas on whereof this act shall take effect and
451	444		be in full force from and after its passage and approval.
452		-	COMMITTEE REPORT BY: COMMITTEE ON AGRICULTURE AND WILDLIFE
453		-	April 7, 2025 - DO PASS
	445	+	Passed the House of Representatives the 17th day of March, 2025.
	446	+
	447	+
	448	+
	449	+
	450	+	Presiding Officer of the House
	451	+	of Representatives
	452	+
	453	+
	454	+
	455	+	Passed the Senate the _____ day of __________, 2025.
	456	+
	457	+
	458	+
	459	+
	460	+	Presiding Officer of the Senate