FARM PRODUCE INS. FUND; REVISIONS                                                           S.B. 900:

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

Senate Bill 900 (as reported without amendment)

Sponsor:  Senator Joe Hune

Committee:  Commerce

CONTENT

The bill would amend the Farm Produce Insurance Act to require a producer to pay producer premiums until the Farm Produce Insurance Authority board certified that the Farm Produce Insurance Fund contained more than $10.0 million, instead of $5.0 million, at the end of the preceding fiscal year.

The bill specifies that in any fiscal year in which the board certified that the Fund contained more than $10.0 million, instead of $5.0 million, a producer would not have to pay producer premiums.

Currently, a producer is not eligible for reimbursement from the Fund for a claim if, among other things, title to the farm produce that is the subject of the claim was transferred by the producer more than two years before the date the claim is submitted. Under the bill, a producer would not eligible for reimbursement from the Fund for a claim if the producer transferred title to the farm produce more than 18 months before the date the claim was submitted.

The bill would take effect 90 days after its enactment.

MCL 285.317 et al.                                                           Legislative Analyst:  Jeff Mann

FISCAL IMPACT

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

Date Completed:  5-4-16                                                      Fiscal Analyst:  Bruce Baker

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.