POTATO COMM. BORROWING AUTHORITY - S.B. 755: FLOOR ANALYSIS



Senate Bill 755 (as reported by the Committee of the Whole)

Sponsor: Senator Joanne G. Emmons

Committee: Economic Development, International Trade and Regulatory Affairs


CONTENT


The bill would amend Public Act 29 of 1970, which provides for the State Potato Industry Commission, to permit the Commission to borrow money in anticipation of receiving assessments from potato growers and shippers, if certain conditions were met.


The bill would require the following: The loan would not be requested or authorized, or not mature, within 90 days before a resubmittal or termination referendum regarding an assessment under the Act; the loan amount did not exceed 50% of the annual average assessment revenue during the previous three years; the loan repayment period did not exceed the time period during which the assessment was made or during which the assessment could reasonably be expected to be imposed; and, the loan had the prior written consent of the Director of the Department of Agriculture.


Currently, the term of office of an appointed member of the Commission is three years. An appointed member is not eligible to serve more than two three-year terms in succession, after which the member may be reappointed only after a three-year absence. The bill would delete this restriction.


(The Act requires that an assessment of one cent per hundredweight on potatoes grown in the State be levied on each lot or quantity of potatoes and imposed on each grower and shipper in the State. The Commission may, by a majority vote, raise the assessment by as much as an additional one-half cent per hundredweight.)


MCL 290.422 - Legislative Analyst: L. Arasim


FISCAL IMPACT


The bill would have no fiscal impact on State or local government.


Date Completed: 11-2-99 - Fiscal Analyst: P. GrahamFloor\sb755 - Bill Analysis @ http://www.state.mi.us/sfa

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.