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An Act
ENROLLED HOUSE
BILL NO. 1541 By: Patzkowsky of the House
and
Kern and Frix of the Senate
An Act relating to the Agriculture Linked Deposit
Program; amending 2 O.S. 2021, Sections 5-82, 5-85,
and 5-86, which relate to administration of the
linked deposit program; modifying definitions;
modifying provisions related to guidelines; modifying
certain deposit amount; amending 62 O.S. 2021,
Section 88-1B, which relates to maximum deposits by
State Treasurer; modifying definitions; providing an
effective date; and declaring an emergency.
SUBJECT: Agriculture Linked Deposit Program
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 2 O.S. 2021, Section 5-82, is
amended to read as follows:
Section 5-82. As used in the Oklahoma Agricultural Linked
Deposit Program:
1. "Agricultural domestic corporation" means any domestic
corporation formed or licensed pursuant to the Oklahoma General
Corporation Act or a limited domestic liability company formed or
licensed pursuant to the Oklahoma Limited Liability Company Act and
meeting the requirements of paragraph 5 of subsection A of Section
955 of Title 18 of the Oklahoma Statutes and meeting the
requirements of subsection A of Section 951 of Title 18 of the
Oklahoma Statutes;
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2. "Agricultural linked deposit" means a certificate of deposit
placed by the State Treasurer with an eligible lending institution
or an investment in bonds, notes, debentures, or other obligations
or securities issued by the federal farm credit bank with regard to
an eligible lending institution for the purpose of carrying out the
intent of this program;
3. "Agricultural Linked Deposit Loan Package" means the forms
provided by the State Treasurer for the purpose of applying for an
agricultural linked deposit;
4. "Alternative agricultural products" means those products
included in a report submitted by the Cooperative Extension Service
of Oklahoma State University to the Oklahoma Department of
Agriculture, Food, and Forestry, and any other products which the
State Board of Agriculture determines will diversify Oklahoma's
agricultural industry so as to broaden Oklahoma's economic base, but
alternative agricultural products shall not mean medical marijuana
growing operations;
5. "An at-risk farm or ranch business" shall be one that seeks
a production loan and meets the following criteria:
a. at least sixty percent (60%) of gross income derived
from farming and/or ranching, and
b. a debt-to-asset ratio over forty percent (40%);
6. "Eligible agricultural business" means:
a. any person engaged in producing, processing, or
marketing alternative agricultural products,
b. any person who is establishing a veterinary practice
in which at least thirty percent (30%) of the practice
consists of services for large animals and the total
loan amount shall not exceed Two Hundred Fifty
Thousand Dollars ($250,000.00),
c. an at-risk farm or ranch business, operating within
the State of Oklahoma in operation that has developed
a management plan through the Intensive Financial
Management and Planning Support (IFMAPS) program of
the Cooperative Extension Service of Oklahoma State
University or the Farm Business Management Program of
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the Oklahoma Department of Career and Technology
Education, or
d. a healthy corner store as certified by the Oklahoma
Department of Agriculture, Food, and Forestry;
7. "Eligible lending institution" means a financial institution
that agrees to participate in the Oklahoma Agricultural Linked
Deposit Program, and:
a. is eligible to be a depository of state funds, or
b. is an institution of the farm credit system organized
under the federal "Farm Credit Act of 1971", 12 U.S.C.
2001, as amended; and
8. "Healthy corner store" means a grocery store certified by
the Oklahoma Department of Agriculture, Food, and Forestry pursuant
to rules adopted by the State Board of Agriculture that markets
locally grown fresh fruits and vegetables and nutritious foods and
for which the sale of beer and tobacco products constitutes less
than ten percent (10%) of its gross sales excluding gasoline and
other nongrocery products, such other requirements as may be
established in rules adopted by the State Board of Agriculture, and
that is located in a geographical area that is underserved by
grocery outlets meeting those requirements.
SECTION 2. AMENDATORY 2 O.S. 2021, Section 5-85, is
amended to read as follows:
Section 5-85. A. The State Treasurer is authorized to issue
guidelines and administer the Oklahoma Agricultural Linked Deposit
Program. The State Treasurer is further authorized to issue
guidelines in a manner similar to Article I of the Administrative
Procedures Act.
B. The State Treasurer shall submit an annual report outlining
the status of the Oklahoma Agricultural Linked Deposit Program to
the Governor, the Lieutenant Governor, the President Pro Tempore of
the Senate, and the Speaker of the House of Representatives.
SECTION 3. AMENDATORY 2 O.S. 2021, Section 5-86, is
amended to read as follows:
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Section 5-86. A. The State Treasurer is authorized to
disseminate information and provide agricultural linked deposit loan
packages to the lending institutions eligible for participation in
the Oklahoma Agricultural Linked Deposit Program.
B. The agricultural linked deposit loan package shall be
completed by the borrower before being forwarded to the lending
institution for consideration. Any technical assistance in
completing the agricultural loan package shall be provided by the
Oklahoma Department of Agriculture, Food, and Forestry.
C. 1. An eligible lending institution that desires to receive
an agricultural linked deposit shall accept and review applications
for loans from eligible agricultural businesses. The lending
institution shall apply all usual lending standards to determine the
credit worthiness of each eligible agricultural business. No single
linked deposit for an alternative agricultural product shall exceed
One Million Dollars ($1,000,000.00). No single linked deposit for
an at-risk farm or ranch operation or a healthy corner store shall
exceed Three Hundred Fifty Thousand Dollars ($350,000.00) One
Million Dollars ($1,000,000.00). No single linked deposit for a
healthy corner store shall exceed Three Hundred Fifty Thousand
Dollars ($350,000.00).
2. Only one linked deposit loan shall be made and be
outstanding at any one time to any farmer eligible agriculture
business. However, the linked deposit loan may be refinanced.
3. No loan shall be made to any officer or director of the
lending institution making the loan.
D. An eligible agricultural business shall certify on its loan
application that the reduced rate loan will be used exclusively for
the purposes outlined in paragraph 6 of Section 5-82 of this title.
E. In considering which eligible agricultural businesses to
include in the agricultural linked deposit loan package for reduced
rate loans, the eligible lending institution shall give priority to
the economic and health needs of the area in which the business is
located and other factors it considers appropriate to determine the
relative financial need of the business.
F. 1. The eligible lending institution shall forward to the
State Treasurer an agricultural linked deposit loan package in the
form and manner prescribed and approved by the State Treasurer. The
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package shall include information regarding the amount of the loan
requested by each eligible agricultural business and any other
information regarding each business the State Treasurer and the
State Board of Agriculture requires. The institution shall certify
that each applicant is an eligible agricultural business, and shall,
for each business, certify the present borrowing rate applicable to
each specific eligible agricultural business.
2. The institution and applicant shall certify that each
applicant is an eligible agricultural business and that the values
used to calculate the ratios of debt to assets have not been changed
or manipulated in order to qualify the applicant for the program.
3. Whoever knowingly makes a false statement concerning a
linked deposit loan application shall be prohibited from
participating in the linked deposit loan program.
G. Upon receipt of a completed agricultural linked deposit loan
package, the State Treasurer may review or audit the information
contained in the completed agricultural linked deposit loan package,
including, but not limited to, a review or audit of the values used
to calculate the ratios of debts to assets as provided by the
applicant and the institution. The State Treasurer shall forward
the completed agricultural linked deposit loan package to the Board.
The Board or its designee shall review the agricultural linked
deposit loan package to determine if the package qualifies under
this program. The Board shall make a recommendation concerning the
package within ten (10) business days. The Board or its designee
shall return the package to the State Treasurer with a written
recommendation of approval or rejection within ten (10) business
days. If the Board or its designee recommends rejection, the
written recommendation shall include reasons for the rejection. The
Board or its designee shall forward a copy of the rejection notice
to the lending institution and the borrower. The State Treasurer
shall keep a chronological list of applications forwarded by the
Board for approval or rejection all application recommendations
received.
SECTION 4. AMENDATORY 62 O.S. 2021, Section 88.1B, is
amended to read as follows:
Section 88.1B. A. The amount that the State Treasurer may
invest in all linked deposit programs authorized by law shall not
exceed the lesser of Two Hundred Twenty-five Million Dollars
($225,000,000.00) Five Hundred Million Dollars ($500,000,000.00) or
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fifteen percent (15%) of all monies available to the State Treasurer
for investment as calculated by taking the average of the quarter-
end amount for the previous four (4) quarters.
B. The State Treasurer shall on a quarterly basis review the
percentage of total investable state funds invested in all linked
deposit programs created by law to determine compliance with
subsection A of this section.
C. If the State Treasurer determines that more than the amount
allowable pursuant to subsection A of this section is invested in
all linked deposit programs created by law, the State Treasurer
shall suspend any renewal or any initiation of new linked deposit
program investments until the time that the State Treasurer
determines the investment percentage limitation established by this
section has been met and except as provided by Section 88.1A of this
title.
SECTION 5. This act shall become effective July 1, 2025.
SECTION 6. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
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Passed the House of Representatives the 17th day of March, 2025.
Presiding Officer of the House
of Representatives
Passed the Senate the 6th day of May, 2025.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________