Bill Text: MI SB0315 | 2013-2014 | 97th Legislature | Engrossed

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Bill Title: Agriculture; products; potato industry commission; modify provisions for operations and determining assessment rates. Amends secs. 1, 2, 3, 4, 8 & 9a of 1970 PA 29 (MCL 290.421 et seq.).

Spectrum: Partisan Bill (Republican 9-0)

Status: (Engrossed - Dead) 2013-09-17 - Referred To Committee On Agriculture [SB0315 Detail]

Download: Michigan-2013-SB0315-Engrossed.html

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SB-0315, As Passed Senate, September 17, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 315

 

 

April 16, 2013, Introduced by Senators EMMONS, HANSEN, BOOHER, MARLEAU, MOOLENAAR, CASPERSON, WALKER, NOFS and GREEN and referred to the Committee on Agriculture.

 

 

 

     A bill to amend 1970 PA 29, entitled

 

"An act relating to potatoes; to create a potato commission; to

prescribe its powers and duties and authority; to impose an

assessment on the privilege of introducing potatoes into the

channels of trade and commerce; to provide for the collection of

the assessment; to provide for penalties; and to repeal certain

acts and parts of acts,"

 

by amending sections 1, 2, 3, 4, 8, and 9a (MCL 290.421, 290.422,

 

290.423, 290.424, 290.428, and 290.429a), sections 1 and 3 as

 

amended by 1980 PA 304, section 2 as amended by 2005 PA 59, and

 

sections 4 and 8 as amended and section 9a as added by 1996 PA 99.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. As used in this act:

 

     (a) "Commission" means the state potato industry commission.

 

     (b) "Department" means the state department of agriculture and

 

rural development.

 

     (c) "Director" means the director of the department. of

 

agriculture.

 

     (d) "Grower" means any business unit, including a family

 

operation, sole proprietorship, partnership, corporation, company,

 

association, trust, or other business organization engaged in the

 

business of growing potatoes for market.

 

     (e) "Shipper" means a person engaged in the shipping shipment

 

of potatoes, whether as owner, agent, or otherwise; , into the

 

channels of trade; or engaged in the processing of potatoes for

 

human or animal consumption in any form or for any other commercial

 

use.

 

     (f) "Shipment of potatoes" means, and a shipment of potatoes

 

shall be considered to take place, when potatoes are loaded within

 

this state in a rail car, truck, or other conveyance in which the

 

potatoes are to be transported for sale or otherwise put into the

 

channel of trade and commerce.

 

     (g) "Hundredweight" means a 100-pound unit or a combination of

 

packages making a 100-pound unit, or the equivalent in metric

 

units, of any shipment of potatoes.

 

     (h) "Retailer" means a person who sells directly to the

 

consumer in small quantities or broken lots.

 

     (i) "Rule" means a rule promulgated pursuant to the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

24.328.

 

     (j) (i) "Processor" means a person engaged in canning,

 

freezing, dehydrating, chipping, fermenting, distilling,

 

extracting, preserving, or changing the form of potatoes for the

 

purpose of consumption or for any other commercial use.

 

     (k) (j) "Person" means an individual, partnership,

 

corporation, association, cooperative, or any other business unit.

 

     Sec. 2. (1) The state potato industry commission is created

 

within the department. The commission shall be composed of the all

 

of the following:

 

     (a) The director or a person designated by the director from

 

the director's staff, who shall serve ex officio, without vote. ; a

 

     (b) A staff member of Michigan state university appointed by

 

the dean of the department of agriculture and natural resources of

 

that university to serve at the pleasure of the dean, ex officio,

 

without vote. ; and 10 growers, 2 processors, 2 shippers, and 1

 

retailer

 

     (c) The following members appointed by the governor with the

 

advice and consent of the senate: .

 

     (i) Two individuals representing the snack potato manufacturing

 

industry.

 

     (ii) Two individuals representing the seed potato industry.

 

     (iii) Two individuals representing the fresh potato industry.

 

     (iv) One individual representing shippers.

 

     (v) One individual representing shippers or retailers.

 

     (vi) One individual from any of the categories listed in

 

subparagraphs (i) through (v).

 

     (2) A member appointed by the governor under subsection (1)

 

shall be a citizen and resident of this state and of the district

 

from which appointed, shall be who is 18 years of age or older. ,

 

and shall be in compliance with this act. A commission member in

 

the who is a grower category shall be engaged and have been engaged

 

in growing potatoes within this state for a period of not less than

 

2 years immediately before appointment, and shall have derived a

 

substantial portion of his or her income from this activity.

 

     (2) Eight growers shall be appointed to serve on the

 

commission, representing 7 districts throughout the state as

 

follows: District 1—Upper Peninsula counties shall be represented

 

by 2 members. The following districts shall be represented by 1

 

member each: district 2—Antrim, Manistee, Wexford, Missaukee,

 

Roscommon, Mason, Lake, Osceola, Clare, Benzie, Charlevoix,

 

Cheboygan, Crawford, Emmet, Grand Traverse, Kalkaska, Leelanau, and

 

Otsego; district 3—Alcona, Alpena, Montmorency, Oscoda, Presque

 

Isle, Iosco, and Ogemaw; district 4—Kent, Montcalm, Newaygo,

 

Isabella, Mecosta, and Oceana; district 5—Bay, Arenac, Midland,

 

Tuscola, Huron, Sanilac, Gratiot, Gladwin, and Saginaw; district 6—

 

Allegan, Barry, Eaton, Van Buren, Kalamazoo, Calhoun, Berrien,

 

Cass, Clinton, Ionia, Ottawa, Muskegon, St. Joseph, and Branch;

 

district 7—Ingham, Livingston, Oakland, Macomb, Jackson, Washtenaw,

 

Wayne, Hillsdale, Lenawee, Shiawassee, Genesee, Lapeer, St. Clair,

 

and Monroe. The ninth and tenth growers shall serve at large. The

 

other members of the commission, except the ex officio members,

 

shall have been associated with the potato industry for not less

 

than 2 years immediately before appointment.

 

     (3) The term of office of an appointed a commission member

 

appointed under subsection (1)(c) shall be 3 years. The term of an

 

appointed member shall expire on July 1, except that a term shall

 

continue until a successor is appointed and qualified. If during a

 

term a member ceases to possess any of the qualifications

 

prescribed in this act, that member's office shall be vacated. A

 

person appointed to fill a vacancy shall serve for the remainder of

 

the unexpired term and until a successor is appointed and

 

qualified.

 

     (4) The commission shall conduct a meeting of growers and

 

shippers annually.

 

     (5) The commission may conduct a meeting of growers in the

 

district where a vacancy will occur by expiration of a term, to

 

elect nominees for appointment to the commission. Instead of a

 

meeting, nominees may be selected by a vote of growers in the

 

district by mail ballot, providing ballots are mailed by the

 

commission to all growers of record, and in compliance with this

 

act. Not more than 2 nominees for each vacancy on the commission

 

shall be selected. The names of all nominees shall be placed on a

 

list of nominees recommended to the governor, and the governor

 

shall make appointments from that list. The growers at large shall

 

be nominated by a majority of the 8 growers representing the

 

districts. A majority of the 10 grower members shall nominate the

 

processor, shipper, and retail candidates for appointment to the

 

commission. Vacancies on the commission, except from the expiration

 

of term, shall be filled by the governor from nominees selected by

 

the commission. A person appointed as a commission member shall

 

qualify by filing a written acceptance and oath of office within 10

 

days after being notified by the governor of the appointment.

 

     (5) (6) Annually, the commission members shall elect a

 

chairperson from among its appointed members. A majority of the

 

voting members of the commission constitutes a quorum for the

 

transaction of business and the carrying out of the duties of the

 

commission. The business which the commission may perform shall be

 

conducted at a public meeting of the commission held in compliance

 

with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275.

 

Public notice of the time, date, and place of the meeting shall be

 

given in the manner required by the open meetings act, 1976 PA 267,

 

MCL 15.261 to 15.275. Meetings of the commission shall be called by

 

the chairperson, except that special meetings shall be called by

 

the chairperson on petition of 8 5 or more members no not later

 

than 7 days after receiving the petition.

 

     (7) The commission, with the advice and consent of the

 

director and the commission of agriculture, may reapportion either

 

the number of commission members or member districts, or both.

 

Reapportionment of the districts shall be on the basis of

 

production or industry representation. Reapportionment may be

 

commenced not earlier than 30 days after the effective date of the

 

amendatory act that added this subsection. Reapportionment of

 

either members or districts shall not occur more than twice in any

 

5-year period and shall not occur within 6 months before a

 

referendum. After reapportionment under this subsection, if the

 

residence of a member of the commission falls outside the district

 

for which he or she serves on the commission and falls within the

 

district for which another member serves on the commission, then

 

both members shall continue to serve on the commission for a term

 

equal to the remaining term of the member who served for the

 

longest period of time. After the reapportionment described in this

 

subsection, if a district is created within which no member serving

 

on the commission resides, then a member shall be selected in the

 

manner as prescribed in this section. After a reapportionment or

 

redistricting, the commission may temporarily have more members

 

than prescribed by this section until the expiration of the term of

 

the longest-serving member from that district. In the case of a

 

reapportionment conducted under this subsection, the provisions of

 

this subsection prevail over any other conflicting provisions of

 

this section.

 

     (6) (8) The per diem compensation of the appointed members of

 

the commission appointed under subsection (1)(c) shall not exceed

 

$75.00 plus the reimbursement of expenses incurred in attending a

 

commission meeting.

 

     (7) (9) All funds of the commission shall be handled by the

 

commission and all funds received by it the commission shall be

 

used to implement this act. Money received by the commission shall

 

be deposited in banks or other forms of security as may be

 

designated by the commission.

 

     (8) (10) Retailers, processors, and others may support the

 

programs of the commission by paying an annual fee of $100.00.

 

     (9) (11) The commission may accept gifts, and grants,

 

royalties, license fees, interest, income, or other items of value

 

that enhance the programs established under this act.

 

     (10) (12) The commission shall maintain accurate books,

 

records, and accounts of its transactions, which books, records,

 

and accounts shall be open to inspection by the public and shall be

 

subject to audit by the auditor general or a certified public

 

accountant. A document prepared, owned, used, in the possession of,

 

or retained by the commission in the performance of an official

 

function shall be made available to the public in compliance with

 

the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246,

 

except as otherwise provided in section 4a.

 

     (11) (13) The commission may borrow money in anticipation of

 

the receipt of assessments if all of the following conditions are

 

met:

 

     (a) The loan will not be requested or authorized, or will not

 

mature, within 90 days before a resubmittal or termination

 

referendum regarding an assessment under this act.

 

     (b) The amount of the loan does not exceed 50% of the annual

 

average assessment revenue during the previous 3 years.

 

     (c) The loan repayment period does not exceed the time period

 

during which the assessment is made or the time period during which

 

the assessment can reasonably be expected to be imposed.

 

     (d) The loan has the prior written consent of the director.

 

The director may request an audit of the commission by the auditor

 

general before approving the loan.

 

     (12) (14) The director shall assess against the growers and

 

shippers all outstanding loans approved under subsection (13) (11),

 

including interest, if the assessment is terminated.

 

     (13) (15) A The commission shall annually prepare a financial

 

report shall be prepared annually and made shall make that

 

financial report available upon request.

 

     Sec. 3. (1) The commission shall foster, develop, and promote

 

the potato industry through research, promotion, advertising,

 

market expansion, development of new markets, education, and the

 

development and dissemination of market and industry information.

 

The commission may develop procedures and carry out any other

 

activity necessary to accomplish the purposes of this act.

 

     (2) To accomplish its purpose, the commission shall collect,

 

prepare, and disseminate information relating to all of the

 

following:

 

     (a) The importance of potatoes in human nutrition.

 

     (b) The manner, method, and means used and technology employed

 

in the production, transportation, marketing, processing, and

 

grading of potatoes.

 

     (c) The laws of this state relating to the production,

 

transportation, marketing, processing, and grading of potatoes, to

 

insure a pure and wholesome product.

 

     (d) Factors affecting the potato industry, such as unbalanced

 

production, effect of the weather, influence of consumer purchasing

 

power, and price relative to the cost of other foods.

 

     (e) Branding, labeling, stenciling, sealing, or packaging

 

potatoes to protect their identity.

 

     (f) Other information as may be necessary to promote increased

 

consumption of potatoes, and a better understanding and more

 

efficient cooperation between producers, dealers, and the consuming

 

public.

 

     (3) The commission may promulgate rules pursuant to Act No.

 

306 of the Public Acts of 1969, as amended, being sections 24.201

 

to 24.315 of the Michigan Compiled Laws, to implement this act.

 

     (4) The commission may select appoint committees to carry out

 

the various projects covered under this act.

 

     (5) The commission may employ personnel and incur other

 

expenses necessary to carry out this act. A member, employee, or

 

agent of the commission is not liable personally for the contracts

 

of the commission. All salaries, expenses, obligations, and

 

liabilities incurred by the commission are payable only from the

 

funds collected under this act.

 

     Sec. 4. (1) An assessment at the rate of 1 cent not more than

 

5-1/2 cents per hundredweight on potatoes grown in the state shall

 

be levied upon each particular lot or quantity of potatoes and

 

imposed upon each grower with 20 or more acres in the production of

 

potatoes and not more than 1-1/2 cents per hundredweight shall be

 

levied on each particular lot or quantity of potatoes shipped by

 

each shipper within this state as provided by this act. The

 

commission may, by a majority vote, raise the assessment by as much

 

as an additional 1/2 cent per hundredweight. The increased

 

assessment shall be continued if it is approved by a majority vote

 

of those growers and shippers present at the next annual meeting.

 

Not later than July 1 of each year, the commission shall determine

 

the assessment rates for that year and shall notify each grower and

 

shipper of the applicable rate.

 

     (2) In addition to the assessment imposed in subsection (1),

 

an additional assessment may be imposed upon growers upon the

 

recommendation of the commission and the conduct of a referendum in

 

compliance with section 8(3) through (5).

 

     (2) A grower with less than 20 acres in the production of

 

potatoes is considered to be in full compliance with this act and

 

may participate in the programs established under this act if the

 

grower pays an assessment based upon his or her production over 3

 

of the last 5 years.

 

     (3) Each grower shall pay the grower assessment on all

 

potatoes grown in the state by the grower. The shipper shall deduct

 

the grower assessment from money due the grower and remit the

 

grower assessment to the commission. In addition, each shipper

 

shall pay to the commission the shipper assessment on all potatoes

 

purchased, sold, or shipped in the state by the shipper.

 

     (4) The assessment shall not be imposed upon potatoes retained

 

by a grower and used for the grower's own seed purposes or own home

 

consumption.

 

     (5) Every shipper of potatoes shall file an application with

 

the commission on forms prescribed and furnished by the commission

 

which shall contain the name under which the shipper is transacting

 

business within the state, the place or places of business and

 

location of loading and shipping places and agents of the shipper,

 

the names and addresses of the persons constituting a firm or

 

partnership and, if a corporation, the corporation name and the

 

names and addresses of its principal officers and agents within the

 

state. The commission shall issue a certificate to the shipper and

 

a shipper shall not sell or ship potatoes until the certificate is

 

furnished as required by this section.

 

     (6) Each shipper and grower shall keep, as a part of his or

 

her permanent records, a record of all purchases, sales, and

 

shipments of potatoes, which records shall be open for inspection

 

at all times. Each shipper and grower shall file a report with the

 

commission stating the quantity of potatoes received, sold, or

 

shipped by him or her, on forms to be furnished by the commission.

 

The report to be prepared by each shipper shall be is due not later

 

than 15 days after the end of the calendar quarter. The report to

 

be prepared by each grower shall be is due not later than July 15

 

of each year. Both shippers and the growers shall report further

 

pertinent information as the commission prescribes. With the filing

 

of the report, each shipper shall pay to the commission the

 

assessment provided by this act.

 

     (7) An assessment under this section shall not be increased

 

above the rate assessed on the effective date of the amendatory act

 

that added this subsection unless authorized by a referendum

 

pursuant to section 8.

 

     Sec. 8. (1) Within 60 days after the effective date of the

 

2013 amendments to this section, the department shall hold a

 

referendum. For the purpose of the referenda under this act, each

 

grower and shipper who is in compliance with section 4 is entitled

 

to 1 vote. The director shall may promulgate rules pursuant to the

 

administrative procedures act of 1969, Act No. 306 of the Public

 

Acts of 1969, being sections 24.201 to 24.328 of the Michigan

 

Compiled Laws, for conducting a referendum under this act.

 

     (2) If Notwithstanding any other provision of this act, if the

 

director receives a petition, bearing the signatures of not less

 

than 33-1/3% of all shippers, to terminate the shipper assessments,

 

the director shall conduct a referendum by mail. The shipper

 

assessments shall be terminated if 1 of the following occurs:

 

     (a) If more than 50%, by number, of the shippers voting

 

representing more than 50% of the volume of potatoes purchased,

 

sold, or shipped the previous year, vote in favor of terminating

 

the assessment.

 

     (b) If more than 50%, by number, of the shippers voting,

 

representing more than 50% of the volume of potatoes purchased,

 

sold, or shipped the previous year, vote in favor of terminating

 

the assessment.

 

     (3) If Notwithstanding any other provision of this act, if the

 

director receives a petition signed by 25% , or 200, of the growers

 

, whichever is less, for the adoption of an assessment increase

 

above that provided for in section 4(1), he or she shall give

 

notice of a public hearing on the proposed assessment increase. The

 

director may require all shippers as individuals or through their

 

trade associations to file with him or her within 30 days a report,

 

properly certified, showing the correct names and addresses of all

 

growers from whom the shipper received potatoes in the marketing

 

season next preceding the filing of the report. The information

 

contained in the individual reports of shippers filed with the

 

director pursuant to this subsection shall not be made public by

 

the director and shall not be made available to anyone for private

 

use.

 

     (4) The director shall issue a decision within 45 days after

 

the close of the public hearing required under subsection (3) based

 

upon his or her findings, and deliver, by mail or otherwise, copies

 

of the findings and recommendation, approving or disapproving of

 

the proposed assessment increase to all parties of record appearing

 

at the hearing and any other interested parties. The recommendation

 

shall contain the text in full of any proposed assessment increase.

 

The recommendation shall be substantially within the purview of the

 

notice of hearings and shall be supported by evidence taken at the

 

hearing or by documents of which the director is authorized to take

 

official notice.

 

     (5) After recommending the increase of an assessment, the

 

director shall determine by a referendum whether the affected

 

growers assent to the proposed action. The director shall conduct

 

the referendum by mail within 45 days after the issuance of the

 

recommendation. The affected growers shall be considered to have

 

assented to the proposal if more than 50% by number of those voting

 

representing more than 50% of the volume of potatoes produced by

 

those voting assent to the proposal. The director shall establish

 

procedures for determination of volume for the conduct of referenda

 

and other necessary procedures.

 

     (6) For the purpose of referenda under this act, a grower is

 

entitled to 1 vote representing a single firm, individual

 

proprietorship, corporation, company, association, partnership, or

 

husband-wife or family ownership.

 

     Sec. 9a. Five years after the latest referendum held under

 

this act, Except as otherwise provided in this act, a referendum

 

under this act shall be valid for 5 years. Every 5 years, the

 

department shall conduct a referendum at which growers shall vote

 

whether or not the commission shall continue to levy the

 

assessments and otherwise carry out this act. If a majority of the

 

growers voting who represent a majority of the hundredweight sold

 

in the previous year vote against having the commission continue to

 

function, the commission shall cease its operations and deliver its

 

assets to the director who shall transfer the assets to Michigan

 

state university for potato research. A grower is entitled to 1

 

vote and the grower must be able to verify the hundredweight

 

claimed as being sold on the ballot.