BEFORE THE DEPARTMENT OF AGRICULTURE

OF THE STATE OF MONTANA

 

In the matter of the adoption of New Rules I, II, III, IV, and V and amendment of ARM 4.16.104 pertaining to the Student Loan Assistance Program

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NOTICE OF PUBLIC HEARING ON PROPOSED ADOPTION AND AMENDMENT

 

TO: All Concerned Persons

 

           1. On February 21, 2020, at 10:00 a.m., the Department of Agriculture will hold a public hearing in Room 225 of the Scott Hart Building, at 302 N. Roberts, Helena, Montana, to consider the proposed adoption and amendment of the above-stated rules.

 

2. The Department of Agriculture will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice.  If you require an accommodation, contact the Department of Agriculture no later than 5:00 p.m. on February 17, 2020, to advise us of the nature of the accommodation that you need. Please contact Zach Coccoli, Department of Agriculture, 302 N. Roberts, Helena, Montana, 59601; telephone (406) 444-3144; fax (406) 444-5409; or e-mail [email protected].

 

3. The rules as proposed to be adopted provide as follows:

 

NEW RULE I OBJECTIVES (1)  The primary objectives of the Student Loan Assistance Program are to:

            (a) encourage Montana's college-educated youth to pursue a primary career in farming or ranching;

            (b) reduce financial stress on Montana's farm and ranch operators; and

            (c) promote succession planning to preserve interest in Montana's agricultural future.

 

AUTH: 90-9-203, 90-9-501, MCA

IMP: 90-9-501, 90-9-505, MCA

 

REASON: House Bill 431 signed by Governor Bullock on May 20, 2019 establishes the Montana Farmer Loan Repayment Assistance Program.  Section 90-9-501, MCA requires the program provide for the direct repayment of educational loans of eligible farmers in accordance with the rules adopted by the council pursuant to 90-9-203, MCA.

 

            NEW RULE II APPLICATION PROCEDURES FOR LOAN REPAYMENT ASSISTANCE PROGRAM (1)  Application forms for farmer loan repayment assistance will be published annually on the department's website.

            (2)  Applicants must provide all requested information and meet eligibility and documentation requirements specified in ARM 4.16.103 to be considered eligible for funding.

 

AUTH: 90-9-203, 90-9-501, MCA

IMP: 90-9-502, 90-9-504, MCA

 

REASON: House Bill 431 signed by Governor Bullock on May 20, 2019 establishes the Montana Farmer Loan Repayment Assistance Program.  Sections 90-9-502 and 90-9-504, MCA establish eligibility requirements and conditions that must be monitored by the department and necessary documentation to verify the applicant's eligibility.

 

            NEW RULE III ELIGIBILTY AND DOCUMENTATION REQUIREMENTS 

            (1)  The Agriculture Development Council will direct the department to conduct a review of eligibility prior to making funding decisions.

            (2)  Applicants must provide sufficient documentation to establish:

            (a)  proof of residency;

            (b)  completion of associate or baccalaureate degree from postsecondary institution as defined in 20-26-603, MCA;

            (c)  primary ownership, including an heir, successor, or assignee of an agricultural operation;

            (d)  participation in the day-to-day operations of a farm or ranch; and

            (e)  commitment to operate the farm or ranch for at least five years following application.

            (3)  Applicants must provide documentation of requested educational loan information including but not limited to total outstanding loan amount, loan servicer information, payment schedule, history, and interest rate.

 

AUTH: 90-9-203, 90-9-501, MCA

IMP: 90-9-502, 90-9-504, MCA

 

REASON: House Bill 431 signed by Governor Bullock on May 20, 2019 establishes the Montana Farmer Loan Repayment Assistance Program.  Sections 90-9-502 and 90-9-504, MCA establish eligibility requirements and conditions that must be monitored by the department and requires necessary documentation to verify the applicant's eligibility.

 

            NEW RULE IV ANNUAL MONITORING AND DISBURSEMENTS (1)  The department will conduct annual monitoring activities for ongoing eligibility verification and program compliance.

            (2)  Annual monitoring activities will be documented on reports established by department staff and stored at the department for the duration of the loan assistance plus five years.

            (3)  Disbursements may be made by the department directly to the educational loan servicer or provided to the recipient on a reimbursement basis provided verified loan statements indicating full and timely payments are made available to the department.

 

AUTH: 90-9-203, 90-9-501, MCA

IMP: 90-9-502, 90-9-503, 90-9-504, MCA

 

REASON: House Bill 431 signed by Governor Bullock on May 20, 2019 establishes the Montana Farmer Loan Repayment Assistance Program. Section 90-9-502, MCA establishes eligibility requirements and conditions that must be monitored by the department.  Sections 90-9-503 and 90-9-504, MCA require the council establish procedures to safeguard against misuse of funds and ensure payments to the farmer are received by the educational loan servicer.

 

            NEW RULE V REPAYMENT (1)  Funding recipients who cease to operate the farm or ranch before the end of the five-year commitment period must repay the total amount of assistance received to date.

            (2)  Funding recipients who fail to complete required monitoring reports or abide by written agreement must repay the total amount of assistance received since the date of the last verified report or date of breach.

 

AUTH: 90-9-203, 90-9-501, MCA

IMP: 90-9-502, 90-9-504, MCA

 

REASON: House Bill 431 signed by Governor Bullock on May 20, 2019 establishes the Montana Farmer Loan Repayment Assistance Program.  Section 90-9-502, MCA establishes eligibility requirements and conditions that must be monitored by the department including provisions for repayment. Section 90-9-504, MCA requires documentation necessary to verify the applicant's eligibility throughout the duration of the assistance.

 

4. The rule as proposed to be amended provides as follows, new matter underlined, deleted matter interlined:

 

4.16.104 COUNCIL REVIEW PROCESS PRIOR TO LOAN OR GRANT 

(1)  Prior to making an initial loan or grant determination, the council shall must:

(a) direct the department to ensure applications are completed as required by ARM 4.16.503 or [New Rule III];

(b) review all complete applications and the accompanying materials required by ARM 4.16.503 or [New Rule III];

(c) determine whether each proposed project meets the requirements of 90-9-308, and 90-9-311, and 90-9-502, MCA;

(d) consider information provided by the applicant to the council at a meeting designated for such purpose;

(e) determine whether grant applicants meet the requirements of 90-9-310 and 90-9-504, MCA; and

(f) rank the projects according to the information reviewed.

(2) After the council has reviewed and ranked the projects, it shall make funding decisions based on eligibility, funds availability, and project rankings.

(3) The council may provide preference to projects within targeted areas.

 

AUTH: 90-9-202, 90-9-203, 90-9-501, MCA

IMP: 90-9-102, 90-9-202, MCA

 

REASON: House Bill 431 signed by Governor Bullock on May 20, 2019 establishes the Montana Farmer Loan Repayment Assistance Program and amended 90-9-102 and 90-9-202, MCA to assign responsibility for oversight and implementation to the Agriculture Development Council.

 

            5. Concerned persons may submit their data, views, or arguments either orally or in writing at the hearing. Written data, views, or arguments may also be submitted to: Zach Coccoli, Department of Agriculture, 302 N. Roberts, Montana, 59601; telephone (406) 444-3144; fax (406) 444-5409; or e-mail [email protected], and must be received no later than 5:00 p.m., March 2, 2020.

 

6. Zach Coccoli, Department of Agriculture, has been designated to preside over and conduct this hearing.

 

7. The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices. Notices will be sent by e-mail unless a mailing preference is noted in the request. Such written request may be mailed or delivered to the contact person in 5 above or may be made by completing a request form at any rules hearing held by the department.

 

8. The bill sponsor contact requirements of 2-4-302, MCA, apply and have been fulfilled. The primary bill sponsor was contacted by email on January 21, 2020.

 

9. With regard to the requirements of 2-4-111, MCA, the department has determined that the adoption and amendment of the above-referenced rules will not significantly and directly impact small businesses.

 

 

/s/ Cort Jensen                                           /s/ Ben Thomas                              

Cort Jensen                                                Ben Thomas

Rule Reviewer                                            Director

                                                                    Agriculture

           

Certified to the Secretary of State January 21, 2020.