AGRICULTURAL DEVELOPMENT GRANTS S.B. 134 (S-1):
FLOOR SUMMARY
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Senate Bill 134 (Substitute S-1 as reported)
Sponsor: Senator Gerald Van Woerkom
Committee: Agriculture and Bioeconomy
CONTENT
The bill would amend the Julian-Stille Value-Added Act to do the following:
-- Allow the Agricultural Development Fund to be used for grants only, eliminating provisions under which the Fund also may be used for low-interest loans and loan guarantees for qualified agricultural loans, and rename the Fund the "Agricultural Development Grant Fund".
-- Require the Michigan Clean Air Fund to be used for grants only, rather than grants and loans.
-- Transfer the administration of the agricultural value-added grant program from the Agriculture Commission to the Michigan Department of Agriculture (MDA).
-- Designate the MDA as the administrator of both Funds for audit purposes.
MCL 285.302 et al. Legislative Analyst: Curtis Walker
FISCAL IMPACT
In fiscal year 2005-06, $10.0 million was appropriated from the 21st Century Jobs Trust Fund to the Agricultural Development Fund, with $5.0 million designated for a value-added grants program and $5.0 million for low-interest agricultural loans. The loan program has not been implemented and the bill would revise the statute to allow the entire $10.0 million to be spent through the grants program. The loans were designed to function as a revolving loan program to continue the program indefinitely. This function would be eliminated under the bill since the grantees would not have to repay the grant awards.
Date Completed: 2-12-09 Fiscal Analyst: Jessica Runnels
Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb134/0910