SENATE BILL No. 551

June 26, 2001, Introduced by Senators GOSCHKA, GAST, GOUGEON and MC MANUS

and referred to the Committee on Appropriations.

A bill to amend 1855 PA 105, entitled

"An act to regulate the disposition of the surplus funds in the

state treasury; to provide for the deposit of surplus funds in

certain financial institutions; to lend surplus funds pursuant to

loan agreements secured by certain commercial, agricultural, or

industrial real and personal property; to authorize the loan of

surplus funds to certain municipalities; to authorize the partic-

ipation in certain loan programs; to authorize an appropriation;

and to prescribe the duties of certain state agencies,"

(MCL 21.141 to 21.147) by adding section 2e.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 SEC. 2E. (1) THE STATE TREASURER MAY LOAN NOT MORE THAN

2 $5,000,000.00 IN SURPLUS FUNDS, WITHOUT INTEREST, TO SUGAR BEET

3 GROWERS' COOPERATIVES FOR THE PURPOSE OF PURCHASING THE ASSETS OF

4 1 OR MORE AGRICULTURAL PROCESSORS IF ALL OF THE FOLLOWING CONDI-

5 TIONS ARE MET:

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1 (A) THE AGRICULTURAL PROCESSOR EMPLOYS AT LEAST 300

2 FULL-TIME EMPLOYEES AND 1,000 SEASONAL EMPLOYEES AND IS IN

3 BANKRUPTCY PROCEEDINGS.

4 (B) THE LOAN AMOUNT DOES NOT EXCEED 10% OF THE TOTAL PUR-

5 CHASE PRICE OF THE AGRICULTURAL PROCESSOR'S ASSETS.

6 (C) THE LOAN IS FOR A PERIOD NOT TO EXCEED 5 YEARS.

7 (2) IN ADDITION TO THE CONDITIONS PROVIDED IN SUBSECTION

8 (1), THE STATE TREASURER MAY PRESCRIBE ADDITIONAL TERMS OF A LOAN

9 ISSUED UNDER THIS SECTION.

10 (3) AS USED IN THIS SECTION, "SUGAR BEET GROWERS'

11 COOPERATIVE" MEANS A FARMER OWNED COOPERATIVE COMPRISED OF SUGAR

12 BEET GROWERS WHO OWN THE ASSETS OF THE COOPERATIVE AND USE THE

13 COOPERATIVE'S SERVICES OR PROCESSING EQUIPMENT.

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