May 12, 2004, Introduced by Reps. Farhat, Richardville, Shackleton, Stahl, Voorhees, Amos, Palsrok, Taub, Meyer, LaJoy, Garfield, Nitz, DeRoche, Milosch, Pumford, Hummel, Steil, Koetje, Bisbee, Hune, Tabor, Shaffer, DeRossett, Ehardt, Gaffney, Newell, Caswell, Walker, Moolenaar, Acciavatti, Huizenga, Kooiman, Caul, Hoogendyk, Nofs and Sheen and referred to the Committee on Agriculture and Resource Management.
A bill to amend 1939 PA 141, entitled
"Grain dealers act,"
by amending section 7 (MCL 285.67), as amended by 2002 PA 80.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 7. (1) A grain dealer shall file an application for a
2 new license or for renewal or amendment of a license with the
3 department. The department may determine the time when an
4 application is filed and the form of the application. A complete
5 application shall include all of the following:
6 (a) The name and ownership interest of each owner,
7 stockholder, member, or partner of the grain dealer who owns at
8 least 5% of the shares, other than publicly traded shares, or
9 other ownership interests of the grain dealer, or for a grain
10 dealer described in section 9(3), at least 5% of the shares,
11 other than publicly traded shares, or other ownership interests
1 of the parent corporation.
2 (b) The location and storage capacity of each facility of the
3 grain dealer.
4 (c) Proof of insurance for all farm produce stored at each
5 facility of the grain dealer.
6 (d) A statement that none of the events described in section
7 10 have occurred within the 5 years preceding the date of the
8 license application, or if any of those events have occurred, a
9 description of those events.
10 (e) A statement of the total bushels of farm produce handled
11 by the grain dealer during the grain dealer's most recent
12 completed fiscal year.
13 (f) If the grain dealer's most recent completed fiscal year
14 was for a period of less than 12 months or the grain dealer
15 materially changed its farm produce handling practices in that
16 fiscal year, a projection of the total bushels of farm produce
17 the grain dealer expects to handle in the current fiscal year.
18 (g) Copies of all warehouse receipt forms, price later
19 agreement forms, and acknowledgment forms used by the grain
20 dealer.
21 (h) Copies of all of the grain dealer's facility lease
22 agreements and bin charts.
23 (i) If the grain dealer does not maintain an office in this
24 state and does not have a resident agent in this state, the
25 application shall include a written appointment of a statutory
26 agent upon whom process, notice, or demand may be served. The
27 statutory agent shall be an individual residing in this state or
1 a corporation whose principal place of business is located in
2 this state. If the identity or address of the statutory agent
3 changes while the application is pending or after a license is
4 issued, the grain dealer shall within 3 days file with the
5 department a written appointment of the new statutory agent or
6 written notice of the new address, as applicable.
7 (2) The department shall issue or deny a license within 30
8 days after receipt of the
completed complete application under
9 this section, license fee described in section 8, and financial
10 statement described in section 9.
11 (3) For a license renewal, the licensee shall submit the
12 complete application, license fee, and financial statement to the
13 department at least 30 days before the expiration of the current
14 license term.
15 (4) If an application is withdrawn before a license or
16 renewal is approved, the department shall retain $50.00 for
17 processing and return the remainder of the license fee to the
18 grain dealer.
19 (5) By submitting an application, a grain dealer consents to
20 inspection and auditing of its farm produce and financial records
21 and its operations by the department. The grain dealer shall
22 make the records available to the department in this state if the
23 department makes a request to inspect or audit the records.
24 (6) If the department does not issue or deny a license within
25 the 30-day time period described in subsection (2), the
26 department shall return the grain dealer's license fee, and shall
27 reduce the license fee for the grain dealer's next renewal
1 application, if any, by 15%.
2 (7) Beginning January 31, 2005, the director of the
3 department shall submit a report by January 31 of each year to
4 the standing committees and appropriations subcommittees of the
5 senate and house of representatives concerned with agricultural
6 issues. The director shall include all of the following
7 information in the report concerning the preceding calendar
8 year:
9 (a) The number of new and renewal license applications the
10 department processed within the 30-day time period described in
11 subsection (2) and the number of applications the department did
12 not process within that time period.
13 (b) The number of new and renewal license applications the
14 department denied, categorized by reason for denial.
15 (c) The amount of money returned to grain dealers under
16 subsection (6).