Bill Text: MI HB4546 | 2013-2014 | 97th Legislature | Engrossed
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 7-0)
Status: (Passed) 2013-12-31 - Assigned Pa 202'13 2013 Addenda [HB4546 Detail]
Download: Michigan-2013-HB4546-Engrossed.html
HB-4546, As Passed Senate, December 11, 2013
HOUSE BILL No. 4546
April 16, 2013, Introduced by Reps. Outman, Kelly, Rendon, VerHeulen, Johnson, Muxlow and Yonker 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.
House Bill No. 4546 as amended November 14, 2013
(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 [college ] 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
House Bill No. 4546 as amended November 14, 2013
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,
House Bill No. 4546 as amended November 14, 2013
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.
