February 17, 2005, Introduced by Senators VAN WOERKOM, GILBERT, JELINEK, GOSCHKA, CROPSEY, STAMAS, BIRKHOLZ, KUIPERS, ALLEN and BROWN and referred to the Committee on Agriculture, Forestry and Tourism.
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, a building or other
improvement on or to land, and any personal properties necessary or
suitable for use in farming, ranching, the production of
agricultural commodities, or the treating, processing, or storing
of agricultural commodities.
(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 buildings, structures, equipment, implements, and
supplies, or any other process used in agricultural production.
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) Farm building and farm structure manufacturing,
construction, and supplying.
(ix) Construction, manufacturing, implementation, supplying, or
servicing of irrigation, drainage, and soil and water conservation
devices or equipment.
(x) Fuel processing and development for the production of fuel
from agricultural commodities or by-products.
(xi) Processing and packaging of agricultural commodities
specifically for export.
(xii) Forestry product processing and supplying, including
sawmilling, wood chipping, timber harvesting, and manufacturing of
prefabricated buildings, paper, furniture, or other goods from
forestry products.
(xiii) 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) "Department" means the department of agriculture.
(g) "Eligible agricultural employment" means full-time
employment at an agricultural facility located in a rural area.
(h) "Eligible debt" means the total unpaid debt or expenses
owed by an agricultural employee as a result of loans taken to
attend an associate degree or bachelor's degree program at an
eligible institution, calculated at the time he or she first
applies for a repayment under this act.
(i) "Rural area" means a county in this state that has a
population of 75,000 or less.
Sec. 3. (1) The department shall administer a repayment
program for agricultural employees who have incurred eligible debt.
The department may each year repay up to 20% of the agricultural
employee's eligible debt, for not more than 5 years, as follows:
(a) After 1 year of continuous eligible agricultural
employment, up to 20% of the agricultural employee's eligible debt,
or $20,000.00, whichever is less.
(b) After the second year of continuous eligible agricultural
employment, up to 20% of the agricultural employee's eligible debt,
or $20,000.00, whichever is less.
(c) After the third year of continuous eligible agricultural
employment, up to 20% of the agricultural employee's eligible debt,
or $20,000.00, whichever is less.
(d) After the fourth year of continuous eligible agricultural
employment, up to 20% of the agricultural employee's eligible debt,
or $20,000.00, whichever is less.
(e) After the fifth year of continuous eligible agricultural
employment, up to 20% of the agricultural employee's eligible debt,
or $20,000.00, whichever is less.
(2) In its sole discretion, the department may make a pro rata
repayment of eligible debt 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 department finds other extenuating circumstances that
are considered by the department to constitute a compelling reason
to make a pro rata repayment for that partial year of eligible
agricultural employment.
(3) The department 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. The department may repay eligible debt under section 3
to an individual determined by the department 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 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 department under section 5.
Sec. 5. (1) The department shall determine the form of an
application for repayment of eligible debt under this act and
establish an application process.
(2) The department may promulgate rules necessary for the
implementation of the department'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.