SB-1169, As Passed House, September 14, 2006

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 1169

     A bill to amend 2000 PA 322, entitled

"Julian-Stille value-added act,"

(MCL 285.301 to 285.304) by adding section 2a.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 2a. (1) The agricultural development fund is created as a

revolving fund within the department of treasury to be administered

by the department. The state treasurer shall direct the investment

of the fund. Money in the fund at the close of the fiscal year

shall remain in the fund and shall not lapse to the general fund.

The department may utilize up to 4% of the fund for administrative

purposes. The state treasurer shall credit to the fund money from

the following sources:

     (a) Appropriations.

     (b) Money or other assets from any source for deposit into the

fund, including federal money, other state revenues, gifts,

bequests, or donations, as well as money from any other source

provided by law.

     (c) Any money representing loan repayments and interest on the

loans.

     (2) Of the money appropriated under 2006 PA 153 from the 21st

century jobs trust fund, not more than 10% shall be used for grants

and the remaining shall be used for loans and loan guarantees. The

maximum grant from the fund shall not exceed $250,000.00. The

maximum low-interest loan supported by the fund shall not exceed

$500,000.00.

     (3) Upon request from the commission of agriculture, the state

treasurer shall invest the money in the agricultural development

fund in a manner similar to the qualified agricultural loan program

established in section 2a of 1855 PA 105, MCL 21.142a, as provided

in section 2.

     Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 93rd Legislature are

enacted into law:

     (a) Senate Bill No. 1167.

     (b) Senate Bill No. 1168.