HB-6122, As Passed House, September 9, 2004

SUBSTITUTE FOR

HOUSE BILL NO. 6122

                                                                             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 section 2e (MCL 21.142e), as added by 2001 PA 123.              

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                   

5   conditions are met:                                                         

6       (a) The agricultural processor employs at least 300 full-time               

7   employees and 1,000 seasonal employees and is in bankruptcy                 

House Bill No. 6122 (H-1) as amended September 9, 2004

1   proceedings or was in bankruptcy proceedings at any time during             

2   the 1-year period preceding the date of the loan.                           

3       (b) The loan amount does not exceed 10% of the total purchase               

4   price of the agricultural processor's assets.                               

5       (c) The loan is for a period not to exceed 5 years.                         

6       (2) In addition to the conditions provided in subsection (1),               

7   the state treasurer may prescribe additional terms of a loan                

8   issued under this section.                                                  

9       (3)  A sugar beet growers' cooperative that wishes to apply                 

10  for a loan under this section shall submit a loan application to            

11  the state treasurer before January 1, 2002. In the case of a               

12  loan executed under subsection (1), the state treasurer, as part            

13  of the modification of the loan, shall subordinate the loan to              

14  the primary loan of the sugar beet growers' cooperative and shall           

15  relinquish any enforcement powers or authority that may exist               

16  under the current contract or agreement.  The modification shall            

17  be for not more than a $5,000,000.00 loan to a sugar beet                   

18  growers' cooperative for the purpose of purchasing the assets of            

19  1 or more agricultural processors that employ at least 300                  

20  full-time employees and 1,000 seasonal employees.  [         

21                                                                              

22                                                                              

23                    ]                                                         

24      (4) As used in this section, "sugar beet growers'                           

25  cooperative" means a farmer owned cooperative comprised of sugar            

26  beet growers who own the assets of the cooperative and use the              

27  cooperative's services or processing equipment.