SB-0228, As Passed Senate, April 13, 2005

SUBSTITUTE FOR

SENATE BILL NO. 228

     A bill to establish a loan repayment program for repayment of

certain educational loans to agricultural employees in rural areas;

to provide for the administration of the program; and to prescribe

certain powers and duties of certain state officers, agencies, and

departments.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 1. This act shall be known and may be cited as the "rural

agricultural recruitment act".

     Sec. 2. As used in this act:

     (a) "Agricultural commodities" includes, but is not limited

to, the products of aquaculture, hydroponics, and silviculture.

     (b) "Agricultural employee" means an individual engaged in

eligible agricultural employment.

     (c) "Agricultural facility" means land, or a building or other

improvement on or to land, used for agricultural processing.

     (d) "Agricultural processing" means transforming, packaging,

sorting, or grading livestock or livestock products, plants or

plant products, or other agricultural commodities into goods that

are used for intermediate or final consumption, including goods for

nonfood use, or the manufacture, production, or construction of

agricultural equipment, implements, and supplies. The term

includes, but is not limited to, the following:

     (i) Grain handling and processing, including grain storage,

drying, treatment, conditioning, milling, and packaging.

     (ii) Seed and feed grain development and processing.

     (iii) Fruit and vegetable processing, including preparation,

canning, and packaging.

     (iv) Processing of livestock and livestock products, dairy

products, poultry and poultry products, fish, or apiarian products,

including slaughter, shearing, collecting, preparation, canning,

and packaging.

     (v) Fertilizer and agricultural chemical manufacturing,

processing, application, and supplying.

     (vi) Farm machinery, equipment, and implement manufacturing and

supplying.

     (vii) Manufacturing and supplying of agricultural commodity

processing machinery and equipment, including machinery and

equipment used in slaughter, treatment, handling, collecting,

preparation, canning, or packaging of agricultural commodities.

     (viii) Construction, manufacturing, implementation, supplying,

or servicing of irrigation, drainage, and soil and water

conservation devices or equipment.

     (ix) Fuel processing and development for the production of fuel

from agricultural commodities or by-products.

     (x) Processing and packaging of agricultural commodities

specifically for export.

     (xi) Forestry product processing and supplying, including

sawmilling, wood chipping, timber harvesting, and manufacturing of

prefabricated buildings, paper, furniture, or other goods from

forestry products.

     (xii) Facilities and equipment for research and development of

products, processes, and equipment for the production, processing,

preparation, or packaging of agricultural commodities and by-

products.

     (e) "Approved institution" means a degree- or certificate-

granting public or independent nonprofit college or university,

junior college, or community college in this state.

     (f) "Authority" means the Michigan higher education assistance

authority created by 1960 PA 77, MCL 390.951 to 390.961.

     (g) "Eligible agricultural employment" means either of the

following:

     (i) Full-time employment at an agricultural facility located in

a rural area.

     (ii) Engaging in veterinary practice in a rural area, primarily

as a large animal veterinarian.

     (h) "Eligible debt" means the total unpaid principal balance,

accrued interest, and accrued expenses owed by an agricultural

employee for qualified loans he or she obtained after July 1, 2001

to attend an associate's degree program, bachelor's degree program,

or vocational education program at an approved institution,

calculated at the time he or she first applies for a repayment

under this act.

     (i) "Qualified loan" means a student loan or student loan

guarantee under any of the following programs:

     (i) The federal Perkins loan program described in 34 CFR part

674.

     (ii) The federal Stafford loan program described in 34 CFR part

682

     (iii) The Michigan alternative student loan program authorized

by section 4a of the higher education loan authority act, 1975 PA

222, MCL 390.1154a.

     (j) "Rural area" means a county in this state that has a

population of 70,000 or less.

     (k) "Vocational education program" means a postsecondary

vocational education program that awards certificates of completion

to its graduates.

     Sec. 3. (1) The authority shall administer a partial repayment

program for agricultural employees who have incurred eligible debt.

After each year of continuous eligible agricultural employment, for

not more than 10 years, the authority may repay up to 2.5% of an

agricultural employee's eligible debt, or $750.00, whichever is

less.

     (2) In its sole discretion, the authority may make a pro rata

repayment of a repayment described in subsection (1) for an

agricultural employee who completes part of a year of eligible

agricultural employment, paid to the employee or his or her estate,

if 1 of the following occurs before that year of eligible

employment is completed:

     (a) The employee dies.

     (b) The employee is unable to continue performing eligible

agricultural employment because of a permanent disability.

     (c) The authority finds other extenuating circumstances that

are considered by the authority to constitute a compelling reason

to make a pro rata repayment for that partial year of eligible

agricultural employment.

     (3) The authority may accept funds from any source for the

operation of the repayment program created in subsection (1) and

shall distribute those funds in a manner consistent with this act.

     Sec. 4. (1) Subject to subsection (2), the authority may repay

eligible debt under section 3 to an individual determined by the

authority to meet all of the following eligibility criteria:

     (a) He or she completed the period of continuous eligible

agricultural employment required under section 3 for the repayment.

     (b) He or she received an associate degree or bachelor's

degree from an approved institution after the 2003-2004 academic

year and before beginning his or her eligible agricultural

employment.

     (c) He or she is a United States citizen or permanent resident

of the United States.

     (d) He or she resided continuously in this state for the

completed period of eligible agricultural employment.

     (e) He or she is in compliance with this act and the rules

promulgated under this act.

     (f) He or she has not been convicted of a felony involving an

assault, physical injury, or death.

     (g) He or she meets any other standards established in rules

promulgated by the authority under section 5.

     (2) The authority shall not provide repayment of eligible debt

under this act to more than 1,000 recipients in the 2005-2006 state

fiscal year and shall not provide repayment to more than 1,000 new

recipients in each subsequent state fiscal year. Recipients shall

be selected based on the order applications are received by the

authority from eligible individuals.

     Sec. 5. (1) The authority shall determine the form of an

application for repayment of eligible debt under this act and

establish an application process.

     (2) The authority may promulgate rules necessary for the

implementation of the authority's functions under this act pursuant

to the administrative procedures act of 1969, 1969 PA 306, MCL

24.201 to 24.328. The rules may include additional standards of

eligibility for agricultural employees to receive repayment of

eligible debt under this act.