Citations Affected: IC 4-4; IC 4-12-9.
Synopsis: Rural development and tobacco farmers funds. Establishes
the rural development administration fund and advisory board.
Replaces the tobacco farmers and rural community impact fund with
the tobacco farmers fund to establish a phase II payment program for
tobacco growers and quota owners and make other grants and loans to
tobacco growers and quota owners. Makes continuing appropriations
to the value added research fund, the rural development administration
fund, the Indiana rural development council, and the tobacco farmers
fund.
Effective: July 1, 2003.
January 21, 2003, read first time and referred to Committee on Agriculture, Natural
Resources and Rural Development.
A BILL FOR AN ACT to amend the Indiana Code concerning state
offices and administration and to make an appropriation.
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2003]:
Chapter 9.3. Rural Development Administration Fund
Sec. 1. (a) The rural development administration fund is
established to enhance and develop rural communities. The fund
shall be administered by the rural development council.
(b) The expenses of administering the fund shall be paid from
the money in the fund.
(c) Notwithstanding IC 5-13, the treasurer of state shall invest
the money in the fund not currently needed to meet the obligations
of the fund under
IC 5-10.3-5.
The treasurer of state may contract
with investment management professionals, investment advisers,
and legal counsel to assist in the management of the fund and may
pay the state expenses incurred under those contracts.
(d) Money in the fund at the end of a state fiscal year does not
revert to the state general fund.
Sec. 2. (a) Money in the fund may be used for the following
purposes:
(1) To create, assess, and assist a pilot project to enhance the
economic and community development in a rural area.
(2) To establish a local revolving loan fund for an industrial,
a commercial, an agricultural, or a tourist venture.
(3) To provide a loan or grant for an economic development
project in a rural area.
(4) To provide technical assistance to a rural organization.
(5) To assist in the development and creation of a rural
cooperative.
(6) To address rural workforce development challenges.
(7) To assist in addressing telecommunications needs in a
rural area.
(b) Expenditures from the fund are subject to appropriation by
the general assembly and approval by the rural development
council (IC 4-4-9.5). The council may not approve an expenditure
from the fund unless the rural development administration
advisory board established under by 4 of this chapter recommends
the expenditure.
Sec. 3. (a) There is annually appropriated to the rural
development administration fund two million five hundred
thousand dollars ($2,500,000) from the state general fund for use
in carrying out the purposes of section 2 of this chapter.
(b) The money appropriated by this section does not revert to
the state general fund at the end of any fiscal year but remains
available to the rural development administration fund until the
purpose for which it was appropriated is fulfilled.
Sec. 4. (a) The rural development administration advisory board
is established to make recommendations concerning the
expenditure of money from the fund.
(b) The advisory board shall meet at least four (4) times per
year and shall also meet at the call of the executive director of the
rural development council.
(c) The rural advisory board consists of the following members:
(1) The executive director of the rural development council,
who serves as an ex officio member and as the chairperson of
the advisory board.
(2) Two (2) members of the senate, who may not be members
of the same political party, and who are appointed by the
president pro tempore of the senate.
(3) Two (2) members of the house of representatives, who may
not be members of the same political party, and who are
appointed by the speaker of the house of representatives.
(4) A representative of the commissioner of agriculture, to be
appointed by the governor.
(5) A representative of the department of commerce, to be
appointed by the governor.
(6) A representative of the department of workforce
development, to be appointed by the governor.
(7) Two (2) persons with knowledge and experience in state
and regional economic needs, to be appointed by the
governor.
(8) A representative of a local rural economic development
organization, to be appointed by the governor.
(9) A representative of a small town or rural community, to be
appointed by the governor.
(10) A representative of the rural development council, to be
appointed by the governor.
(11) A representative of rural education, to be appointed by
the governor.
(12) A representative of the league of regional conservation
and development districts, to be appointed by the governor.
(13) A person currently enrolled in rural secondary education,
to be appointed by the governor.
(d) The members of the advisory board listed in subsection
(c)(1) through (c)(3) are nonvoting members.
(e) The term of office of a legislative member of the advisory
board is four (4) years. However, a legislative member of the
advisory board ceases to be a member if the member:
(1) is no longer a member of the chamber from which the
member was appointed; or
(2) is removed from the advisory board by the appointing
authority who appointed the legislator.
(f) The term of office of a voting member of the advisory board
is four (4) years. However, a voting member serves at the pleasure
of the governor and may be removed for any reason.
(g) If a vacancy exists on the advisory board, the appointing
authority who appointed the former member whose position has
become vacant shall appoint an individual to fill the vacancy for
the balance of the unexpired term.
(h) Six (6) voting members of the advisory board constitute a
quorum for the transaction of business at a meeting of the advisory
board. The affirmative vote of at least six (6) voting members is
necessary for the advisory board to take action.
entered into by tobacco growing states and major tobacco
companies and dated July 19, 1999.
(5) "Tobacco grower" has the meaning set forth in the
National Tobacco Grower Settlement Trust Agreement.
(6) "Tobacco quota owner" has the meaning set forth in the
National Tobacco Grower Settlement Trust Agreement.
or facilities established for the purpose of assisting tobacco quota
owners and tobacco growers to capture additional revenues from
non-tobacco agricultural commodities.
(3) Agricultural mentoring programs, entrepreneurial leadership
development, and tuition and scholarships to assist displaced
tobacco growers in acquiring new training and employment skills.
(4) Academic research to identify new transitional crop
enterprises to replace tobacco production.
(5) Market facility development for marketing current and new
crop enterprises.
(6) Administrative and planning services for local communities
and economic development entities that suffer a negative impact
from the loss of tobacco production.
(7) Establishment and operation of a regional economic
development consortium to address common problems faced by
local communities that suffer a negative impact from the loss of
tobacco production.
(b) Expenditures from the fund for an agricultural grant or loan
program under subsection (a)(2) are subject to appropriation by the
general assembly and approval by the the commissioner of agriculture.
The commissioner of agriculture may not approve an expenditure from
the fund for an agricultural grant or loan program under
subsection (a)(2) unless that expenditure has been recommended by
the advisory board established by section 4 of this chapter.
(c) There is annually appropriated to the fund from the interest
that accrues from investment of the Indiana tobacco Master
Settlement Agreement fund two million five hundred thousand
dollars ($2,500,000) for use in providing agricultural grant and
loan programs under subsection (a)(2).
of the senate.
(3) Two (2) members of the house of representatives, who may
not be members of the same political party, appointed by the
speaker of the house of representatives.
(4) The following appointees by the governor who represent the
following organizations or interests:
(A) Two (2) tobacco growers.
(B) One (1) tobacco quota owner.
(C) Two (2) persons with knowledge and experience in state
and regional economic development needs.
(D) One (1) person representing small towns or rural
communities.
(E) One (1) person representing the Indiana Rural
Development Council.
(F) One (1) person representing the Southern Indiana Rural
Development Project.
(G) One (1) person representing agricultural programs at
universities located in Indiana.
The members of the advisory board listed in subdivisions (1) through
(3) are nonvoting members. The members of the advisory board listed
in subdivision (4) are voting members.
(c) The term of office of a legislative member of the advisory board
is four (4) years. However, a legislative member of the advisory board
ceases to be a member of the advisory board if the member:
(1) is no longer a member of the chamber from which the member
was appointed; or
(2) is removed from the advisory board under subsection (d).
(d) A legislative member of the advisory board may be removed at
any time by the appointing authority who appointed the legislative
member.
(e) The term of office of a member of the advisory board appointed
under subsection (a)(4) is four (4) years. However, these members
serve at the pleasure of the governor and may be removed for any
reason.
(f) If a vacancy exists on the advisory board with respect to a
legislative member or the members appointed under subsection (a)(4),
the appointing authority who appointed the former member whose
position has become vacant shall appoint an individual to fill the
vacancy for the balance of the unexpired term.
(g) Five (5) voting members of the advisory board constitute a
quorum for the transaction of business at a meeting of the advisory
board. The affirmative vote of at least five (5) voting members of the
advisory board is necessary for the advisory board to take action.
(h) Each member of the advisory board who is not a state employee
is not entitled to the minimum salary per diem provided by
IC 4-10-11-2.1
(b). The member is, however, entitled to reimbursement
for traveling expenses as provided under
IC 4-13-1-4
and other
expenses actually incurred in connection with the member's duties as
provided in the state policies and procedures established by the Indiana
department of administration and approved by the budget agency.
(i) Each member of the advisory board who is a state employee but
who is not a member of the general assembly is entitled to
reimbursement for traveling expenses as provided under
IC 4-13-1-4
and other expenses actually incurred in connection with the member's
duties as provided in the state policies and procedures established by
the Indiana department of administration and approved by the budget
agency.
(j) Each member of the advisory board who is a member of the
general assembly is entitled to receive the same per diem, mileage, and
travel allowances paid to legislative members of interim study
committees established by the legislative council. Per diem, mileage,
and travel allowances paid under this subsection shall be paid from
appropriations made to the legislative council or the legislative services
agency.
(k) Payments authorized for members of the advisory board under
subsections (h) through (i) are payable from the tobacco farmers and
rural community impact fund.
payments to tobacco growers and tobacco quota owners for
the years 1999 through 2002 equal to the amounts described
in the Phase II agreement.
(b) The commissioner of agriculture shall certify the amounts
determined under subsection (a) to the budget agency and the
auditor of state. Notwithstanding
IC 4-12-1-14.3
, the amounts
certified by the commissioner of agriculture shall be transferred to
the fund from the Indiana tobacco Master Settlement Agreement
fund.
(c) The commissioner of agriculture shall distribute money in
the fund to tobacco growers and tobacco quota owners using the
same formula and process used for the Phase II payment program.
The commissioner of agriculture may contract with consultants,
financial institutions, and legal counsel to assist in the
administration of this section and may pay the expenses of those
contracts from money in the fund.
(d) Money transferred to the fund under this section is annually
appropriated for the purposes set forth in this section.
(e) This section expires June 30, 2011.