As used in this part 2, unless the context otherwise requires:
(1) Board means the Colorado agricultural value-added development board created in section 35-75-203.
(2) Department means the department of agriculture.
(3) Development facility means a Colorado facility that either produces goods from an agricultural commodity or uses a process to produce goods from an agricultural product.
(4) Eligible agricultural value-added cooperative means a cooperative association formed pursuant to article 55 or 56 of title 7, C.R.S., for the purpose of operating a development facility and that meets the eligibility criteria established by the board pursuant to section 35-75-204 (2).
(5) Fund means the agriculture value-added cash fund created in section 35-75-205 (1).
(6) Member means a resident individual or a domestic or foreign corporation subject to the provisions of part 3 of article 22 of title 39, C.R.S.
(7) Participant means a resident individual or a domestic or foreign corporation subject to the provisions of part 3 of article 22 of title 39, C.R.S., that contributes cash funds to the board.
Source: L. 2001: Entire part added, p. 624, � 2, effective May 30. L. 2010: (7) amended, (SB 10-212), ch. 412, p. 2032, � 3, effective July 1.
35-75-203. Colorado agricultural value-added development board - creation - members. (1) There is created in the department the Colorado agricultural value-added development board for the purpose of encouraging and promoting agricultural business projects that add value to agricultural products and aid the economies of rural communities. The Colorado agricultural value-added development board is a type 1 entity, as defined in section 24-1-105.
(2) The board shall consist of seven members of the authority. The commissioner of agriculture shall be an ex officio, nonvoting member of the board.
(3) Members of the board shall receive no compensation for their service on the board, but shall be entitled to reimbursement for actual and necessary travel and other actual expenses incurred in the performance of their official duties. The board shall adopt uniform and reasonable rules governing the incurring and paying of such expenses.
Source: L. 2001: Entire part added, p. 624, � 2, effective May 30. L. 2022: (1) amended, (SB 22-162), ch. 469, p. 3404, � 154, effective August 10.
Cross references: For the short title (the Debbie Haskins 'Administrative Organization Act of 1968' Modernization Act) in SB 22-162, see section 1 of chapter 469, Session Laws of Colorado 2022.
35-75-204. Duties of board - agriculture value-added grants, loans and loan guarantees, and equity investments. (1) The board has the power to make grants, loans and loan guarantees, and equity investments to any person, including eligible agricultural value-added cooperatives, as defined in section 35-75-202 (4), for new or ongoing agricultural projects and research that add value to Colorado agricultural products and aid the economy of rural Colorado communities and for agricultural projects that will reduce energy costs for agricultural producers or businesses. The board also has the power to fund market promotion activities of the department pursuant to section 35-75-205 (2)(f).
(2) The board shall employ the following criteria in determining whether to award an agriculture value-added grant, loan, or loan guarantee:
(a) (Deleted by amendment, L. 2007, p. 943, � 1, effective May 17, 2007.)
(b) The experience, professional qualifications, and business background of the directors and consultants chosen to lead the agricultural business project shall be such as to give the project a reasonable chance of success under their leadership;
(c) The contemplated schedule and phasing of the project, whether on an annual or multi-year basis, shall be such as to give the project a reasonable chance of success within three years at a constant or declining rate of support from the board in the form of grants or loans or a combination thereof; and
(d) The economic impact on other local businesses.
(2.5) In addition to the criteria listed in subsection (2) of this section, the board may also consider:
(a) The agricultural business project's planning for long-term success through feasibility studies, marketing plans, and business plans;
(b) The agricultural business project's net economic benefit to the state;
(c) The agricultural business project's net economic impact on other local businesses; and
(d) Any other criteria the board determines are necessary to carry out the purposes of this part 2.
(3) The board may reject any application for grants, loans and loan guarantees, or equity investments pursuant to this part 2.
(4) (a) The board shall require a feasibility study of a member's rural agricultural business project concept to be performed before awarding a grant or loan.
(b) Upon a determination by the board that the project concept is feasible, the board may cause a marketing study to be performed. Such marketing study shall be designed to determine if the project concept may be operated profitably.
(c) Upon a determination by the board that the project concept may be operated profitably, the board may provide for legal assistance to set up the project. Such legal assistance shall include, but not be limited to, providing advice and assistance on the form of business entity and other assistance for which the member may qualify as well as helping the member apply for such assistance.
(5) The board may provide or facilitate grants, loans or loan guarantees, or equity investments for any person who meets the criteria set forth in this part 2 or established by the board under paragraph (d) of subsection (2.5) of this section, including, but not limited to, loans from the United States department of agriculture rural development program, subject to availability. Such financial assistance shall only be provided to feasible project concepts, and the amount of such financial assistance shall be the least amount necessary to cause the project to occur, as determined by the board. The board may structure the financial assistance in a way that causes the project to occur and also provides for a compensatory return on investment or loan payment to the board, based upon the risk of the project concept.
(6) The board may also provide for consulting services for the building and operation of the project. Such consulting services may be provided through state employees or through contracts with private entities.
(7) The board may charge the member a reasonable fee for processing an application for financial assistance or for other services performed by the board or its staff.
(8) The board may consult with other state or federal agencies as necessary to perform its duties pursuant to this part 2.
Source: L. 2001: Entire part added, p. 625, � 2, effective May 30. L. 2007: (1), (2)(a), and (5) amended and (2.5)(d) added, pp. 943, 944, �� 1, 2, effective May 17. L. 2010: (1), IP(2), (2)(c), (3), (4)(a), (4)(c), and (5) amended, (SB 10-212), ch. 412, p. 2033, � 4, effective July 1. L. 2021: (1) amended, (HB 21-1242), ch. 332, p. 2145, � 2, effective June 24.
35-75-205. Grants, loans and loan guarantees, and equity investments - agriculture value-added cash fund - created - report - definition. (1) (a) Money received by the board from public or private gifts, grants, or donations or from any other source shall be forwarded to the state treasurer and shall be credited to the agriculture value-added cash fund, which fund is hereby created. Money in the fund is continuously appropriated to the board and shall be used for the purpose of preparing criteria and reviewing applications as provided in section 35-75-204 and for financial or technical assistance to agricultural projects, project concepts, and research as approved by the board. All interest earned on the investment of money in the fund shall be credited to the fund. The board may provide or facilitate grants, loans and loan guarantees, and equity investments for agricultural projects, project concepts, or research; except that such grants, loans and loan guarantees, and equity investments shall be limited to two million dollars per project and, of the money transferred to the fund pursuant to subsection (4)(a) of this section, the board shall allocate at least one hundred fifty thousand dollars to research, guidance, technical assistance, feasibility studies, and projects related to agrivoltaics. Grants, loans and loan guarantees, and equity investments may only be provided to feasible projects and for an amount that is the least amount necessary to cause the project to occur, as determined by the board. The board may structure the grants, loans and loan guarantees, and equity investments in a way that facilitates the project and also provides for a compensatory return on investment or loan payment to the board based on the risk of the project. Any money credited to the agriculture value-added cash fund and unexpended at the end of any given fiscal year shall remain in the fund and shall not revert to the general fund or any other fund.
(b) As used in this section, agrivoltaics means one or more solar energy generation facilities colocated on the same parcel of land as agricultural production, including crop production, grazing, apiaries, or other production of agricultural commodities for sale in the retail or wholesale market.
(1.5) Repealed.
(2) (a) The board, upon application, may:
(I) Issue certificates of guaranty covering a first loss guarantee up to, but not more than, twenty-five percent of the loan on a declining principal basis for loans to eligible borrowers, executing a note or other evidence of a loan made for the purpose of a loan made pursuant to this part 2, but not to exceed the amount of two hundred fifty thousand dollars for any eligible borrower; and
(II) Pay from the fund to an eligible lender up to twenty-five percent of the amount, on a declining principal basis, of any loss on any guaranteed loan made pursuant to the provisions of this article in the event of default on the loan. Upon payment on the guarantee, the board shall be subrogated to all the rights of the eligible lender.
(b) The board shall charge for each loan made pursuant to this part 2 a one-time participation fee of one percent of the loan amount, which shall be collected by the eligible lender at the time of closing and paid to the board. In addition, the board may charge a special loan guarantee fee of up to one percent per annum of the outstanding principal, which fee shall be collected from the eligible borrower by the eligible lender and paid to the board. Moneys collected shall be deposited in the agriculture value-added cash fund.
(c) Moneys paid to satisfy a defaulted loan made pursuant to this part 2 shall only be paid out of the agriculture value-added cash fund.
(d) The total outstanding loans made pursuant to this part 2 shall at no time exceed an amount which, according to sound actuarial judgment, would allow immediate redemption of at least forty percent of the outstanding loans guaranteed by the fund at any one time.
(e) The board may make financial arrangements for an eligible business to purchase an existing, established development facility.
(f) The department shall, as part of the administration of the agriculture value-added development fund program created in this part 2, establish market promotion activities and may apply to the board to support such activities through disbursements from the fund.
(3) In any given year, at least ten percent of the funds granted to rural agricultural projects and project concepts shall be awarded in response to grant requests of fifty thousand dollars or less. No single rural agricultural project or project concept shall receive more than two hundred thousand dollars in grant awards from the board.
(4) Repealed.
Source: L. 2001: Entire part added, p. 626, � 2, effective May 30. L. 2006: (1.5) added, p. 1742, � 3, effective June 6. L. 2007: (1) amended, p. 944, � 3, effective May 17. L. 2008: (1.5)(a) amended, p. 1873, � 12, effective June 2. L. 2009: (1.5) amended, (SB 09-124), ch. 256, p. 1162, � 1, effective July 1. L. 2010: (1) amended, (SB 10-212), ch. 412, p. 2034, � 5, effective July 1. L. 2012: (1.5) amended, (HB 12-1334), ch. 219, p. 938, � 1, effective July 1. L. 2021: (1) amended and (4) added, (SB 21-235), ch. 232, p. 1228, � 3, effective June 15.
Editor's note: (1) Subsection (1.5)(b) provided for the repeal of subsection (1.5), effective July 1, 2017. (See L. 2012, p. 938.)
(2) Subsection (4)(c) provided for the repeal of subsection (4), effective July 1, 2023. (See L. 2021, p. 1228.)
Cross references: For the legislative declaration in SB 21-235, see section 1 of chapter 232, Session Laws of Colorado 2021.
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