Bill Summary – FastDemocracy

Legislative Analysis
AGRICULTURAL COMMODITY REPORT REQUIREMENTS                                  Phone: (517) 373-8080
                                                                            http://www.house.mi.gov/hfa
Senate Bill 691 (S-1) as reported from House committee                      Analysis available at
Sponsor: Sen. Sam Singh                                                     http://www.legislature.mi.gov
House Committee: Agriculture
Senate Committee: Natural Resources and Agriculture
Complete to 5-20-24
                                                                  (Enacted as Public Act 60 of 2024)
SUMMARY:
       Senate Bill 691 would amend the Agricultural Commodities Marketing Act to change the
       monetary threshold at which a committee created and operating under the act is required to be
       audited annually, and it would also modify how often a committee below that threshold must
       be audited.
               Committee means the commodity committee or advisory board established under a
               marketing program established by order of the director of the Michigan Department of
               Agriculture and Rural Development (MDARD) under the act prescribing rules and
               regulations governing the marketing for processing, distributing, selling, or handling
               an agricultural commodity produced in Michigan or agricultural commodity input
               during a specified period.
       Currently, all committees must be audited at least annually, unless they have annual assets of
       $50,000 or less over a three-year average. If so, then they must be audited twice between
       referenda, which take place every five years. The bill changes this threshold to provide that, if
       a committee collects annual producer assessments of $40,000 or less, averaged over three
       years, then the committee must be audited once in the second or third year between referenda.
        Additionally, under current law, committees that are under the threshold must undergo a
        financial review in the years an audit is not conducted. The bill would eliminate the financial
        review requirement bill.
        Finally, the bill also would add language specifying that nothing in act’s audit provisions
        prevents MDARD from conducting oversight activities authorized by the act.
        MCL 290.658
BACKGROUND:
        When a referendum is conducted, producers in that commodity group decide whether to
        continue a marketing program checkoff assessment, which provides the funds for marketing
        that commodity. (This is separate from a federal checkoff program, which is not subject to
        referendum under the act if certain criteria are met).
        The following commodity groups are currently organized under the Agricultural Commodities
        Marketing Act:
           • Michigan Apple Committee.
House Fiscal Agency                                                                           Page 1 of 2
            •   Michigan Asparagus Marketing Advisory Board.
            •   Michigan Blueberry Commission.
            •   Michigan Carrot Commission.
            •   Michigan Cherry Committee.
            •   Michigan Corn Marketing Program Committee.
            •   Michigan Dairy Marketing Program Committee.
            •   Michigan Onion Committee.
            •   Michigan Soybean Committee.
            •   Michigan Tree Fruit Commission.
            •   Michigan Wheat Promotion Committee.
BRIEF DISCUSSION:
        The bill would affect two commodity groups in Michigan, those for onions and carrots.
        According to testimony from the Michigan Vegetable Council, the bill would allow the onion
        committee to channel the cost of auditing under the current schedule back into other allowed
        activities. Because the onion committee collects less than $30,000 in most years, the auditing
        cost reflects a significant portion of its budget.
FISCAL IMPACT:
        The bill would have no direct fiscal impact on the state or local units of government. The funds
        collected by commodity groups organized under the act are resources of those groups, not state
        resources. The costs of audits required under the act are borne by the respective commodity
        groups. By reducing the thresholds for audit requirements, the bill could result in reduced costs
        to some commodity groups organized under the act.
POSITIONS:
        A representative of the Michigan Vegetable Council testified in support of the bill. (5-15-24)
        The following entities indicated support for the bill (5-15-24):
           • Michigan Department of Agriculture and Rural Development
           • Michigan Farm Bureau
           • Michigan Carrot Commission
                                                           Legislative Analyst: Josh Roesner
                                                                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.
House Fiscal Agency                                                  SB 691 (S-1) as reported   Page 2 of 2
Statutes affected: 
Substitute (S-1): 290.658
Senate Introduced Bill: 290.658
As Passed by the Senate: 290.658
As Passed by the House: 290.658
Public Act: 290.658
Senate Enrolled Bill: 290.658