HB-4623, As Passed House, May 10, 2005

SUBSTITUTE FOR

HOUSE BILL NO. 4623

     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 section 2 (MCL 290.422), as amended by 2000 PA 5.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

within the department. The commission shall be composed of the

director or a person designated by the director from the director's

staff, who shall serve ex officio, without vote; a staff member of

Michigan state university appointed by the dean of agriculture 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 appointed by the governor with the advice and consent of

the senate. A member appointed by the governor shall be a citizen

and resident of this state and of the district from which

appointed, shall be 18 years of age or older, and shall be in

compliance with this act. A commission member in the 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 member 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.

     (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 members no 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, than 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.

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

of the commission shall not exceed $75.00 plus the reimbursement of

expenses incurred in attending a commission meeting.

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

commission and all funds received by it 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.

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

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

(11)  (10) The commission may accept gifts and grants.

(12)  (11) 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.

(13)  (12) 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.

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

shippers all outstanding loans approved under subsection  (12)

(13), including interest, if the assessment is terminated.

(15)  (14) A financial report shall be prepared annually and

made available upon request.