March 24, 2005, Introduced by Rep. Meyer and referred to the Committee on Agriculture.
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
participation in certain loan programs; to authorize an
appropriation; and to prescribe the duties of certain state
agencies,"
by amending the title and section 2e (MCL 21.142e), the title as
amended by 1993 PA 44 and section 2e as amended by 2004 PA 342.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
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
participation in certain loan programs; to authorize an
appropriation; to authorize certain grants; and to prescribe the
duties of certain state agencies.
Sec. 2e. (1) The state treasurer may loan not more than
$5,000,000.00 in surplus funds, without interest, to sugar beet
growers' cooperatives for the purpose of purchasing the assets of 1
or more agricultural processors if all of the following conditions
are met:
(a) The agricultural processor employs at least 300 full-time
employees and 1,000 seasonal employees and is in bankruptcy
proceedings or was in bankruptcy proceedings at any time during the
1-year period preceding the date of the loan.
(b) The loan amount does not exceed 10% of the total purchase
price of the agricultural processor's assets.
(c) The loan is for a period not to exceed 5 years.
(2) In addition to the conditions provided in subsection (1),
the state treasurer may prescribe additional terms of a loan issued
under this section.
(3) In the case of a loan executed under subsection (1), the
state treasurer, as part of the modification of the loan, shall
subordinate the loan to the primary loan of the sugar beet growers'
cooperative and shall relinquish any enforcement powers or
authority that may exist under the current contract or agreement.
The modification shall be for not more than a $5,000,000.00 loan to
a sugar beet growers' cooperative for the purpose of purchasing the
assets of 1 or more agricultural processors that employ at least
300 full-time employees and 1,000 seasonal employees. The loan and
its modification executed by the state treasurer as a result of
2004 PA 342 is forgiven and is considered to be a grant.
(4) As used in this section, "sugar beet growers' cooperative"
means a farmer owned cooperative comprised of sugar beet growers
who own the assets of the cooperative and use the cooperative's
services or processing equipment.