Legislative Analysis
Phone: (517) 373-8080
FARM PRODUCE INSURANCE ACT
http://www.house.mi.gov/hfa
Senate Bill 508 as passed the Senate Analysis available at
Sponsor: Sen. Kevin Hertel http://www.legislature.mi.gov
Committee: Appropriations
Complete to 10-9-2023
SUMMARY:
Senate Bill 508 would amend section 7 of the Farm Produce Insurance Act to specify the
amount a voting member of the Farm Produce Insurance Authority board may receive as per
diem compensation and mileage reimbursement for attending board meetings or performing
duties on behalf of the authority. The bill would limit the reimbursement amount established
by the board to $75 for per diem compensation and mileage reimbursement.
There are eight voting members of the board eligible to receive reimbursement. The board
meets twice each year.
While the act currently authorizes per diem compensation to board members, the act also limits
the per diem to the maximum reimbursement rates for the Michigan Commission of
Agriculture and Rural Development. The rates for the commission are currently $0.
MCL 285.317
BACKGROUND:
The Farm Produce Insurance Act establishes a kind of insurance pool for producers who suffer
losses as result of a grain dealer failure. This is a voluntary insurance program. A producer
who participates in the program would be covered against losses from grain dealer failure; a
producer who did not participate would not be covered against such losses.
The Farm Produce Insurance Authority1 is a public body housed within the Michigan
Department of Agriculture and Rural Development (MDARD), but is not a part of the
department. The authority exercises its own prescribed statutory powers, duties, and functions,
including budgeting, independently of MDARD, the MDARD director, and the Commission
of Agriculture and Rural Development.
FISCAL IMPACT:
The bill would not have a material fiscal impact on state or local government.
Fiscal Analyst: William E. Hamilton
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations, and does not constitute an official statement of legislative intent.
1
https://www.michigan.gov/mdard/about/boards/farm-produce-insurance-authority
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Statutes affected:
Senate Introduced Bill: 285.317
As Passed by the Senate: 285.317
As Passed by the House: 285.317
Public Act: 285.317
Senate Enrolled Bill: 285.317