HB-4751, As Passed House, October 12, 2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 4751

 

June 14, 2011, Introduced by Rep. Johnson and referred to the Committee on Agriculture.

 

     A bill to amend 1972 PA 344, entitled

 

"Agricultural marketing and bargaining act,"

 

by amending sections 2, 2a, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,

 

14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, and 25 (MCL 290.702,

 

290.702a, 290.703, 290.704, 290.705, 290.706, 290.707, 290.708,

 

290.709, 290.710, 290.711, 290.712, 290.713, 290.714, 290.715,

 

290.716, 290.717, 290.718, 290.719, 290.720, 290.721, 290.722,

 

290.723, 290.724, and 290.725), sections 3 and 17 as amended by

 

1980 PA 195.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2. As used in this act:

 

     (a) "Association" means a cooperative association of producers

 

or a division thereof, or a federation of cooperative associations

 


of producers, engaged in the marketing, bargaining, shipping, or

 

processing functions of an agricultural commodity on behalf of its

 

members who are producers of such the agricultural commodity.

 

     (b) "Accredited association" means an association accredited

 

in accordance with this act.

 

     (c) "Person" means an individual, partnership, corporation, or

 

association.

 

     (d) "Board" means the agricultural marketing and bargaining

 

board created in section 3."Department" means the department of

 

agriculture and rural development.

 

     (e) "Producer" means any person who produces or causes to be

 

produced in any 1 marketing period within the previous 2 marketing

 

periods , any agricultural commodity in a quantity beyond his or

 

her own family use and having a minimum value at first point of

 

sale as determined by the board department for that agricultural

 

commodity, and who is able, to during the marketing period, to

 

transfer to a handler or an association a merchantable title to the

 

agricultural commodity or provide management, labor, machinery,

 

facilities, or any other production input, with the assumption of

 

risk, for the production of the agricultural commodity under a

 

written or oral contract.

 

     (f) "Agricultural commodity" means all perishable fruits and

 

vegetables as defined by the board. department. The kinds, types,

 

and subtypes of products to be classed together as an agricultural

 

commodity for the purposes of this act shall be determined by the

 

board department on the basis of common usage and practice.

 

     (g) "Handler" means a person other than an association engaged

 


in the business or practice of acquiring any of the following:

 

     (i) Acquiring agricultural commodities from producers or

 

associations for processing or sale. ; grading,

 

     (ii) Grading, packaging, handling, storing, or processing

 

agricultural commodities received from producers or associations. ;

 

contracting

 

     (iii) Contracting or negotiating contracts or other

 

arrangements, written or oral, with producers or associations with

 

respect to the production of any agricultural commodity. ; or

 

acting

 

     (iv) Acting as an agent or broker for a handler in the

 

performance of any function or act specified above. It Handler does

 

not include a producer who sells at a retail establishment which

 

that he or she owns and operates or who sells directly to consumers

 

at a produce market , agricultural commodities produced by him or

 

her and agricultural commodities produced by another producer

 

subject to value limitation established by the board.department.

 

     (h) "Marketing period" for an agricultural commodity shall be

 

means a period of time determined by the board department during

 

which producers normally deliver for sale to handlers or contract

 

with handlers for the production and future delivery for sale of

 

substantially all of a crop or periodic production of the

 

agricultural commodity.

 

     (i) "Member" means a producer who has entered into a contract

 

with an association appointing the association as his or her

 

exclusive agent in negotiations with handlers with respect to the

 

marketing of an agricultural commodity.

 


     (j) "Unfair practices" means those practices prohibited under

 

section 4.

 

     Sec. 2a. Any sale of a commodity by a producer to another

 

producer for his or her own exclusive use and not for resale or any

 

sale of fresh market produce directly to a consumer consumers or to

 

a retail store or stand for resale to consumers shall be excluded

 

from the provisions of is exempt from this act.

 

     Sec. 3. (1) An agricultural marketing and bargaining board is

 

created within the department of agriculture. The board department

 

shall administer this act.

 

     (2) The board consists of 5 individuals who shall be citizens

 

of the state appointed by the governor with the advice and consent

 

of the senate, not more than 3 of whom shall be affiliated with the

 

same political party. A minimum of 2 members of the board shall

 

derive a substantial portion of their livelihood from agricultural

 

enterprises. One member shall be considered a lay person, who shall

 

not be a producer, handler, or a member of an association, as

 

defined under this act. The governor shall designate 1 member of

 

the board to serve as chairperson of the board. The original board

 

shall be composed of 2 members of the board for a 1-year term, 1

 

member of the board for a 2-year term, 1 member of the board for a

 

3-year term and 1 member of the board for a 4-year term. The

 

governor shall indicate the length of term when making the

 

appointment of the original board. As the term of each member of

 

the board expires, the governor, with the advice and consent of the

 

senate, shall appoint a successor to serve for a term of 4 years.

 

An individual appointed to fill a vacancy caused by other than

 


expiration of the term shall be appointed only for the unexpired

 

term of the member of the board whom the individual succeeds.

 

     (3) A member of the board may be removed by the governor, upon

 

notice and hearing, for neglect of duty, or for corrupt conduct in

 

office, or for any other misfeasance or malfeasance but not for any

 

other cause.

 

     (4) A vacancy in the board shall not impair the right of the

 

remaining members to exercise the powers of the board. Three

 

members of the board constitutes a quorum.

 

     (5) Members of the board shall receive per diem reimbursement

 

fixed by the legislature and necessary traveling and subsistence

 

expenses incurred while attending meetings of the board or engaged

 

in the performance of official responsibilities delegated by the

 

board or other amounts as may be appropriated by the legislature.

 

     (2) (6) Services for implementing this act shall be provided

 

by the department of agriculture from appropriations made by the

 

legislature.

 

     (7) The business which the board may perform shall be

 

conducted at a public meeting of the board held in compliance with

 

Act No. 267 of the Public Acts of 1976, as amended, being sections

 

15.261 to 15.275 of the Michigan Compiled Laws. Public notice of

 

the time, date, and place of the meeting shall be given in the

 

manner required by Act No. 267 of the Public Acts of 1976, as

 

amended.

 

     (3) (8) The board department may promulgate rules necessary

 

for the administration of this act in accordance with and subject

 

to Act No. 306 of the Public Acts of 1969, as amended, being

 


sections 24.201 to 24.315 of the Michigan Compiled Laws.the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

24.328.

 

     Sec. 4. (1) Producers of agricultural commodities are free to

 

may join together voluntarily in associations as authorized by law

 

without interference by handlers. A handler shall not engage nor or

 

permit an employee or agent to engage in any of the following

 

practices: , defined as unfair practices:

 

     (a) To coerce a producer in the exercise of his or her right

 

to join and belong to or to refrain from joining or belonging to an

 

association or to refuse to deal with a producer because of the

 

exercise of his or her right to join and belong to an association

 

except as provided in section 15.

 

     (b) To discriminate against a producer with respect to price,

 

quantity, quality, or other terms of purchase, acquisition, or

 

other handling of agricultural products because of his or her

 

membership in or contract with an association.

 

     (c) To coerce or intimidate a producer to breach, cancel, or

 

terminate a membership agreement or marketing contract with an

 

association or a contract with a handler.

 

     (d) To pay or loan money, give anything of value, or offer any

 

other inducement or reward to a producer for refusing or ceasing to

 

belong to an association.

 

     (e) To make or circulate unsubstantiated reports about the

 

finances, management, or activities of associations or handlers.

 

     (f) To conspire, combine, agree, or arrange with any other

 

person to do or aid or abet the doing of any practice which is in

 


violation of this act.

 

     (g) To refuse to bargain with an accredited association with

 

whom the handler has had prior dealings or with an accredited

 

association whose producers in the bargaining units have had

 

substantial dealing with the handler prior to the accreditation of

 

the association.

 

     (h) To negotiate with a producer included in the bargaining

 

unit after an association is accredited.

 

     (2) An association shall not engage nor or permit an employee

 

or agent to engage in the following practices: , defined as unfair

 

practices:

 

     (a) To enter into a contract which that discriminates against

 

a producer represented by an accredited association whether or not

 

he or she is a member producer.

 

     (b) To act in a manner contrary to the by-laws bylaws of the

 

association.

 

     (c) To refuse to bargain with a handler with whom the

 

accredited association has had prior dealing or with whom its

 

producers have had substantial dealing prior to the accreditation

 

of the association.

 

     (d) To coerce or intimidate a handler to breach, cancel, or

 

terminate a membership agreement or marketing contract with an

 

association or a contract with a producer.

 

     (e) To make or circulate unsubstantiated reports about the

 

finances, management or activities of other associations or

 

handlers.

 

     (f) To conspire, combine, agree, or arrange with any other

 


person to do or aid or abet the doing of any practice which that is

 

in violation of this act.

 

     (3) For the purpose of enforcing this act, the board

 

department may receive sworn complaints with respect to violations

 

or threatened violations. The board department may make all

 

necessary investigations, examinations, or inspections of any

 

violation or threatened violation specified in the sworn complaint

 

filed with the board.department. If, upon such an investigation,

 

the board department considers that there is reasonable cause to

 

believe that a person charged has committed a an unfair practice,

 

in violation of this act, the board department shall issue and

 

cause to be served a complaint upon the person in accordance with

 

Act No. 306 of the Public Acts of 1969, as amended. the

 

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

24.328. The complaint shall summon the person to a hearing before

 

the board or a member thereof department or a hearing officer at

 

the time and place fixed.provided in the complaint.

 

     (4) If, upon a preponderance of the evidence, the board

 

department determines that the person complained of has committed a

 

an unfair practice, in violation of this act, it the department

 

shall state its findings of fact and shall issue and cause to be

 

served on the person complained of an order requiring him or her to

 

cease the violation and shall order further affirmative action as

 

will effectuate the policies of this act.

 

     (5) If, upon a preponderance of the evidence, the board

 

department is of the opinion that the person complained of has not

 

committed a an unfair practice, in violation of this act, it the

 


department shall make its findings of fact and issue an order

 

dismissing the complaint.

 

     (6) Until the record in a case has been filed in a court, as

 

provided in this act, the board department, at any time upon

 

reasonable notice and in such manner as it deems the department

 

considers proper, may modify or set aside, in whole or in part, any

 

finding or order made or issued by it.the department.

 

     (7) The department shall determine whether the expense of the

 

proceedings shall be borne by any person found to have committed a

 

practice in violation of this section.

 

     Sec. 5. (1) The board department may petition the court of

 

appeals for the enforcement of its orders , and for appropriate

 

temporary relief or restraining order orders and shall file in the

 

court the record in the proceedings. Upon the filing of the

 

petition, the court shall cause notice to be served upon the person

 

complained of, and thereupon shall have jurisdiction of the

 

proceeding and of the question to be determined, and may grant

 

temporary relief or restraining order as it deems considers just

 

and proper and to make and enter a decree enforcing, modifying, and

 

enforcing as so modified, or setting aside in whole or in part the

 

order of the board. department. An objection that has not been

 

urged before the board, a member thereof department or a hearing

 

officer before whom a hearing was conducted shall not be considered

 

by the court, unless the failure or neglect to urge the objection

 

shall be is excused because of extraordinary circumstances. The

 

findings of the board department with respect to questions of fact

 

are conclusive if supported by substantial evidence on the record

 


considered as a whole. is conclusive. If either party applies to

 

the court for leave to adduce additional evidence and shows to the

 

satisfaction of the court that the additional evidence is material

 

and that there were reasonable grounds for the failure to adduce

 

the evidence in the hearing before the board, department, the court

 

may order additional evidence to be taken before the board, a

 

member thereof, department or hearing officer and to be made a part

 

of the record. The board department may modify its findings as to

 

the facts, or make new findings, by reason of additional evidence

 

so taken and filed, and it shall file the modified or new findings,

 

which findings with respect to questions of fact if supported by

 

substantial evidence on the record considered as a whole shall be

 

conclusive, and shall file its recommendations, if any, for the

 

modification or setting aside of its original order. Upon the

 

filing of the record with it the court, the jurisdiction of the

 

court shall be exclusive and its judgment and decree shall be

 

final, except that it shall be subject to review in accordance with

 

established procedures for appeal.

 

     (2) Any person aggrieved by a final order of the board

 

department granting or denying in whole or in part the relief

 

sought may obtain a review of an order in the court of appeals, by

 

filing in the court a written petition requesting that the order of

 

the board department be modified or set aside. A copy of the

 

petition shall be transmitted by the clerk of the court to the

 

board department, and the aggrieved party shall file in the court

 

the record in the proceeding certified by the board. department.

 

Upon the filing of the petition, the court shall proceed in the

 


same manner as in the case of an application by the board

 

department under this section and shall have the same jurisdiction

 

to grant temporary relief or a restraining order as it deems

 

considers just and proper, and in like manner to make and enter a

 

decree enforcing, modifying, and enforcing as so modified, or

 

setting aside in whole or in part the order of the board; the

 

department. The findings of the board department with respect to

 

questions of fact if supported by substantial evidence on the

 

record considered as a whole shall in like manner be

 

conclusive.shall be conclusive if supported by substantial evidence

 

on the record as a whole.

 

     (3) The commencement of proceedings under this section shall

 

not stay enforcement of the board's department's decision, but the

 

board department or the reviewing court may order a stay upon such

 

terms as it deems the court considers proper.

 

     Sec. 6. (1) The board department shall determine whether a

 

proposed bargaining unit is appropriate. This determination shall

 

be made upon the petition of an association representing not less

 

than 10% of the producers of the commodity eligible for membership

 

in the proposed bargaining unit as defined by the association. An

 

association with an overlapping definition of bargaining unit may,

 

upon the presentation of a petition by not less than 10% of the

 

producers eligible for membership in the overlapping bargaining

 

unit, contest the proposed bargaining unit. The board department

 

shall hold a hearing in accordance with Act No. 306 of the Public

 

Acts of 1969, as amended the administrative procedures act of 1969,

 

1969 PA 306, MCL 24.201 to 24.328, to resolve the dispute.

 


     (2) In making its determination, the board department shall

 

define as appropriate the largest bargaining unit in terms of the

 

quantity of the agricultural commodity produced, the definition of

 

the agricultural commodity, the geographic area covered, and the

 

number of producers included as is consistent with the following

 

criteria:

 

     (a) The community of interest of the producers included. ;

 

     (b) The potential serious conflicts of interests interest

 

among members of the proposed unit. ;

 

     (c) The effect of exclusions on the capacity of the

 

association to effectively bargain for the bargaining unit as

 

defined. ;

 

     (d) The kinds, types, and subtypes of products to be classed

 

together as agricultural commodity for which the bargaining unit is

 

proposed. ;

 

     (e) Whether the producers eligible for membership in the

 

proposed bargaining unit meet the definition of "producer" for the

 

agricultural commodity involved. ;

 

     (f) The wishes of the producers. ;

 

     (g) The pattern of past marketing of the commodity.

 

     Sec. 7. An association shall be accredited upon determination

 

by the board department that the association meets all of the

 

following:

 

     (a) The association meets the requirements of the Capper-

 

Volstead act, 7 U.S.C. 291-2.USC 291 to 292.

 

     (b) The association has submitted a copy of its bylaws, which

 

shall provide that: all of the following:

 


     (i) Each member of the association shall have 1 vote in all

 

votes of the membership of the association. ; that officers

 

     (ii) Officers or directors shall be elected by a majority of

 

the members voting or by delegates representing a majority of the

 

membership. ; and that all

 

     (iii) All elections shall be by secret ballot.

 

     (c) The association has marketing and bargaining contracts for

 

the current or next marketing period with more than 50% of the

 

producers of an agricultural commodity who are in the bargaining

 

unit and these contracts cover more than 50% of the quantity of

 

that commodity produced by producers in the bargaining unit. The

 

board department may determine the quantity produced by the

 

bargaining unit using information on production in prior marketing

 

periods, current market information, and projections on production

 

during the current market periods. marketing period. The board

 

department shall exclude from that quantity any quantity of the

 

agricultural commodity contracted by producers with producer owned

 

and controlled processing cooperatives and any quantity produced by

 

handlers. An association whose main purpose is bargaining but which

 

processes a surplus into a form which is not the subject of

 

bargaining is not a processing cooperative. The contracts with

 

members shall specify the agricultural commodity and that the

 

members have appointed the association as their exclusive agent in

 

negotiations with handlers for prices and other terms of trade with

 

respect to the sale and marketing of the agricultural commodity and

 

obligate them to dispose of their production or holdings of the

 

agricultural commodity through or at the direction of the

 


association.

 

     (d) The association has established and authorized a marketing

 

and bargaining committee to negotiate with handlers for the

 

agricultural commodity. The committee shall be comprised composed

 

of members elected by the members in a secret ballot election. The

 

production of the agricultural commodity shall comprise a

 

significant portion of the total farming operation of each

 

committee member. Members who have any quantity of the commodity

 

contracted with a producer owned and controlled processing

 

cooperative are not eligible to serve on a marketing and bargaining

 

committee for such commodity.

 

     Sec. 8. (1) An association desiring accreditation shall file

 

with the board department a written request for accreditation in

 

the form as required by the board. department. The request shall

 

contain properly certified evidence that the association meets the

 

standards for accreditation and shall be accompanied by a report of

 

the names and addresses of members, the name of each handler to

 

whom the member delivered or contracted to deliver the agricultural

 

commodity during the previous 2 marketing periods, and the quantity

 

delivered. A fee to cover the costs of the board department in

 

processing the request shall be established by rule and paid by the

 

association when the request is filed.

 

     (2) The board department may require all handlers of an

 

agricultural commodity produced in the bargaining unit area as

 

individuals or through their trade association to file with the

 

board department, within 30 days following a request, a properly

 

certified report, properly certified, showing the correct names and

 


addresses of all producers of the agricultural commodity who have

 

delivered the agricultural commodity to the handler during the 2

 

marketing periods preceding the filing of the report and the

 

quantities of the agricultural commodity received by the handler

 

from each named producer during the periods. The information

 

contained in the individual reports of handlers filed with the

 

board department shall not be made public by the board department

 

nor shall it be made available to any person for private use.

 

     Sec. 9. (1) Within 60 days following the date of filing with

 

the board department a request for accreditation by an association,

 

the board department shall determine whether the association shall

 

be accredited. If the board department determines that insufficient

 

evidence was filed by the association, the board department may

 

permit the association to file an amended request for accreditation

 

within 30 days following the determination and notification of the

 

association.

 

     (2) Within 30 days following the board's department's

 

preliminary finding that the association is to be accredited, the

 

board department shall hold a public hearing to obtain further

 

evidence relevant to confirmation that the association is to be

 

accredited. Producers of record involved in the bargaining unit

 

shall be notified of the hearing by mail and publication in a

 

newspaper of general circulation in the bargaining unit area at

 

least 10 days prior to the date of the hearing.

 

     Sec. 10. (1) The board department shall issue and publish its

 

determination within 30 days after the close of the hearing. If the

 

determination of the board department is to accredit the

 


association, the board department shall include a preliminary

 

declaration of accreditation in its determination. The preliminary

 

declaration of accreditation shall clearly state that the

 

association shall represent all producers, members, and nonmembers

 

alike, who are in the bargaining unit and act as exclusive sales

 

agents for the bargaining unit in negotiations with handlers. A

 

producer covered in a declaration of accreditation may join the

 

association and have full membership rights therein. in the

 

association. Handlers shall deduct marketing service fees from the

 

proceeds to be paid to producers for the agricultural commodity in

 

the amount as determined by the association and forward the service

 

fees promptly to the association. The fees shall be within

 

guidelines determined by the board department and shall be subject

 

to review by the board department upon petition by 15% of the

 

affected producers.

 

     (2) The accreditation of the association by the board

 

department shall be effective 30 days after the publication of the

 

preliminary declaration of accreditation. The board department

 

shall delay the accreditation of the association whenever it if the

 

department receives during the 30-day period a petition signed by

 

at least 1/3 of the producers in the bargaining unit who produce at

 

least 1/3 of the production of the agricultural commodity produced

 

by the bargaining unit, exclusive of quantities contracted with

 

processing cooperatives and produced by handlers, and requesting

 

that the association should not be accredited. The board department

 

shall determine, by a mail referendum of bargaining unit producers

 

within 30 days following receipt of the petition, if producers

 


assent to the accreditation of the association. Producers in the

 

bargaining unit shall be deemed considered to have assented to

 

accreditation if more than 50% of the producers in the bargaining

 

unit who produce more than 50% of the volume of the affected

 

commodity assent to representation by the association.

 

     (3) All affected producers, handlers, and other interested

 

parties shall be notified of the outcome of the referendum within

 

10 days following the referendum. Accreditation shall be effective

 

immediately if producers assent. Accreditation shall be denied

 

without the required assent of the producers.

 

     (4) An association which that is denied accreditation may not

 

file another request for accreditation for a period of 1 year.

 

     Sec. 11. An accredited association shall file an annual report

 

with the board department in such form as required by the board

 

department to determine if the association continues to meet the

 

requirements of for accreditation as provided in section 7.

 

     Sec. 12. (1) To revoke the accreditation of an accredited

 

association, the board department shall employ a procedure similar

 

to the accreditation procedure set forth in sections 8, 9, and 10.

 

Revocation Subject to subsection (2), revocation of accreditation

 

shall be considered by the board department upon receipt of any of

 

the following: conditions:

 

     (a) Upon receipt of a A request from an accredited association

 

for its own disaccreditation.

 

     (b) Upon receipt of a A petition requesting that the

 

accredited association be disaccredited and bearing the signatures

 

of at least 1/3 of the producers in the bargaining unit who produce

 


at least 1/3 of the bargaining unit production of the agricultural

 

commodity exclusive of quantities contracted with processing

 

cooperatives and produced by handlers.

 

     (2) (c) A request for revocation of accreditation may not be

 

accepted by the board department during the marketing period or for

 

a 60-day period prior thereto.

 

     Sec. 13. (1) As used in this act, "bargaining" means the

 

mutual obligation of a handler and an accredited association or

 

their designated representatives to meet at reasonable times and

 

confer and negotiate in good faith. The obligation does not require

 

either party to agree to a proposal or to make a concession. An

 

accredited association is the exclusive representative of all

 

producers in the bargaining unit for the purpose of bargaining with

 

all handlers that purchase the agricultural commodity produced in

 

the bargaining unit. Negotiations may include all terms relative to

 

trading between handlers and producers of the agricultural

 

commodity such as the following:

 

     (a) Prices and related terms of sale.

 

     (b) Quality specifications.

 

     (c) Quantity to be marketed.

 

     (d) Transactions involving products and services utilized by 1

 

party and provided to the other party.

 

     (2) The parties shall notify the board department of the

 

commencement of negotiations.

 

     Sec. 14. (1) Upon the request of an accredited association or

 

upon the request of a handler, the board department shall provide

 

for the mediation of the issues in dispute. The board department

 


shall take such steps as it deems considers expedient to effect a

 

voluntary, amicable, and expeditious adjustment and settlement of

 

the differences and issues between the association and the handler

 

which could disrupt the normal sale and purchase of the

 

agricultural commodity between producers and the handler. The board

 

department shall do all of the following:

 

     (a) Arrange for, hold, adjourn, or reconvene a conference or

 

conferences between disputants and 1 or more of their

 

representatives.

 

     (b) Invite the disputants and their representatives to attend

 

the conference and submit, orally or in writing, the differences

 

between the disputants.

 

     (c) Discuss the differences with the disputants or their

 

representatives.

 

     (d) Assist in negotiating and drafting agreements for the

 

adjustment and settlement of differences.

 

     (2) In implementing its duties under this section, the board

 

department may designate 1 of its members or retain a competent

 

individual to act in on its behalf. and may delegate to the

 

designee its duties, and for such purpose, the designee shall have

 

all of the powers conferred upon the board in connection with the

 

discharge of the duties so delegated. If the board department seeks

 

to retain an individual to mediate a dispute, it the department

 

shall attempt to retain an individual who has experience in

 

mediation and in agricultural marketing.

 

     (3) Where an individual is retained, the board department

 

shall establish his or her fee in advance.

 


     Sec. 15. At any time prior to 30 days before the first day of

 

the marketing period, if an agreement on the issues in dispute

 

between the accredited association and the handler has not been

 

reached, the handler may elect not to purchase, directly or

 

indirectly, any quantity of the agricultural commodity produced in

 

the bargaining unit during the marketing period. or If an agreement

 

on the issues in dispute between the accredited association and the

 

handler has not be reached, the affected producers may elect, as

 

represented by the association, not to sell, directly or

 

indirectly, any quantity of the agricultural commodity to the

 

handler during the marketing period. If either party makes an

 

election, the other party is not under an obligation to continue

 

bargaining with the party so electing during that marketing period.

 

     Sec. 16. (1) If the election provided for in section 15 is not

 

exercised by the association or the handler involved in

 

negotiations, and if the issues in dispute are not agreed upon

 

through good-faith bargaining by the first day of the marketing

 

period for the agricultural commodity, the parties shall be deemed

 

considered to have consented to the settlement of all issues in

 

dispute by arbitration and the association shall agree that

 

producers shall deliver the agricultural commodity to the handler

 

or initiate the production of the agricultural commodity for future

 

delivery to the handler and the handler shall accept delivery of

 

the agricultural commodity or shall commit for the future delivery

 

of the agricultural commodity. Where

 

     (2) If the quantity of the agricultural commodity to be

 

marketed is in dispute, the handler shall offer to accept for

 


delivery a reasonable quantity of the agricultural commodity. This

 

offer shall be made in writing to the accredited association at

 

least 7 days prior to the start of the marketing period. A copy of

 

this offer shall be sent by registered mail to the board.

 

department. The accredited association may file a claim for relief

 

with the board department if it feels that the offer is

 

unreasonable. The board department shall determine the issue of

 

reasonableness at a hearing in accordance with Act No. 306 of the

 

Public Acts of 1969, as amended. the administrative procedures act

 

of 1969, 1969 PA 306, MCL 24.201 to 24.328. This determination

 

shall have priority over all other board department matters. The

 

board department shall base its determination on all of the

 

following:

 

     (a) Projections as to the quantity of the agricultural

 

commodity to be produced. ,

 

     (b) the The relationship between the quantity of the commodity

 

available and the amount of the quantity accepted by the handler. ,

 

     (c) the The kind, grade, and quality of the commodity

 

available. , and

 

     (d) the The past practices of the handler in relation to the

 

items in subdivisions (a), (b), and (c).

 

     (3) If, upon the preponderance of the evidence, the board

 

department is of the opinion that the quantity is unreasonable, it

 

shall order the handler to accept the quantity which the board

 

department finds to be reasonable. The finding of the board

 

department shall be final, subject to later modification by the

 

joint settlement committee. This finding shall be enforced in

 


accordance with the provisions of as provided in section 5. Within

 

15 days following the start of the marketing period for the

 

agricultural commodity, the board department shall establish a

 

joint settlement committee to arbitrate the issues in dispute.

 

     (4) (2) The joint settlement committee consists of 1

 

committeeman committee member selected by the association, 1

 

committeeman committee member selected by the handler, and 1

 

committeeman committee member selected by the committeeman

 

committee members representing the association and the handler.

 

This third committeeman committee member shall be chairman

 

chairperson of the committee. If the third committeeman committee

 

member cannot be agreed upon by the association and the handler

 

committeeman committee members, the board department shall submit a

 

list composed of the names of 5 persons knowledgeable knowledgable

 

in the marketing of the agricultural commodity from which the third

 

committeeman committee member shall be chosen. The selection shall

 

be made by the association representative and the handler

 

representative each striking 2 different names from the list. The

 

remaining name shall be the person who serves as the third

 

committeeman committee member and as its chairman. chairperson. The

 

order of striking shall be determined by chance.

 

     Sec. 17. The chairperson of a joint settlement committee

 

established under section 16 shall call a hearing to begin within

 

15 days after the joint settlement committee is established and

 

shall give reasonable notice of the time , and place of the

 

hearing. The chairperson shall preside over the hearing and shall

 

take testimony. Upon application and for good cause shown, and upon

 


such terms and conditions as that are just, a person having a

 

substantial interest therein in the dispute may be granted leave to

 

intervene by the joint settlement committee. Any oral or

 

documentary evidence and other data deemed considered relevant by

 

the joint settlement committee may be received in evidence. The

 

proceedings shall be informal. Technical rules of evidence shall

 

not apply and the competency of the evidence shall not thereby be

 

deemed considered impaired. A verbatim record of the proceedings

 

shall be made and the chairperson shall arrange for the necessary

 

recording service. Transcripts may be ordered at the expense of the

 

party ordering them but the transcripts shall not be necessary for

 

a decision by the joint settlement committee. The expense of the

 

proceedings, including a fee to the chairperson, established in

 

advance by the board department shall be borne equally by each of

 

the parties to the dispute. and the state. The hearing conducted by

 

the arbitration panel joint settlement committee may be adjourned

 

from time to time, but, unless otherwise agreed by the parties,

 

shall be concluded within 30 days of the time of its commencement.

 

Its majority The actions and rulings of a majority of the members

 

of the joint settlement committee shall constitute the actions and

 

rulings of the joint settlement committee.

 

     Sec. 18. The joint settlement committee may administer oaths,

 

require the attendance of witnesses, and require the production of

 

such books, papers, contracts, agreements, and documents as may be

 

deemed by it considered material by the committee to a just

 

determination of the issues in dispute, and for such purpose may

 

issue subpeonas. subpoenas. If any person refuses to obey a

 


subpeona, subpoena, or refuses to be sworn or to testify, or if any

 

witness, party, or attorney is guilty of any contempt while in

 

attendance at any hearing, the joint settlement committee may, or

 

the attorney general if requested shall, invoke the aid of any

 

circuit court within the jurisdiction in which the hearing is being

 

held, which court shall issue an appropriate order. Any failure to

 

obey the order may be punished by the court as contempt.

 

     Sec. 19. The committee within Within 20 days after the

 

conclusion of the hearing or such further time to which the parties

 

may agree, the joint settlement committee shall make written

 

findings of fact and issue its written award upon the issues

 

presented to it and upon the record made before it, and shall mail

 

or otherwise deliver a true copy thereof to the parties or their

 

representatives. The award of the joint settlement committee shall

 

be limited to the last offer of the association or the last offer

 

of the handler, which whichever more nearly complies with the

 

criteria contained in section 20.

 

     Sec. 20. The joint settlement committee shall base its

 

decision upon the following factors:

 

     (a) Prices or projected prices for the agricultural commodity

 

paid by competing handlers in the market area or competing market

 

areas.

 

     (b) Amount of the commodity produced or projections of

 

production in the production area or competing marketing areas.

 

     (c) Relationship between the quantity produced and the

 

quantity handled by the handler.

 

     (d) The producers producer's cost of production including the

 


cost which would be involved in paying farm labor a fair wage rate.

 

     (e) The average consumer prices for goods and services,

 

commonly known as the cost of living.

 

     (f) The impact of the award on the competitive position of the

 

handler in the marketing area or competing areas.

 

     (g) The impact of the award on the competitive position of the

 

agricultural commodity in relationship to competing commodities.

 

     (h) A fair return on investment.

 

     (i) Kind, quality, or grade of the commodity involved.

 

     (j) Stipulation of the parties.

 

     (k) Such other factors which are normally or traditionally

 

taken into consideration in determining prices, quality, quantity,

 

and the costs of other services involved.

 

     Sec. 21. A majority decision of the joint settlement

 

committee, if supported by competent, material and substantial

 

evidence on the whole record, shall be final and binding upon the

 

parties, and may be enforced, at the instance insistence of either

 

party or of the joint settlement committee in the court of appeals.

 

     Sec. 22. A party who wilfully willfully disobeys a lawful

 

order of enforcement by the court of appeals pursuant to section 21

 

, or wilfully willfully encourages or offers resistance to such

 

order shall be in contempt. The punishment for each day the

 

contempt persists , may be a fine fixed in the discretion of the

 

court in an amount not to exceed $500.00 per day.

 

     Sec. 23. (1) Awards of the joint settlement committee shall be

 

reviewable by the court of appeals but only for the following

 

reasons: that the

 


     (a) The joint settlement committee was without or exceeded its

 

jurisdiction. ; the

 

     (b) The award is unsupported by competent, material, and

 

substantial evidence on the whole record. ; or the

 

     (c) The award was procured by fraud, collusion, or other

 

similar and unlawful means.

 

     (2) The pendency of such a proceeding for review shall not

 

automatically stay the order of the joint settlement committee.

 

     Sec. 24. Within 30 days after an accredited association

 

negotiates a contract with a handler or receives a joint settlement

 

committee award, it shall send to the board department by

 

registered mail a copy of the contract or award.

 

     Sec. 25. (1) At all reasonable times, the board department

 

shall have access to and the right to copy evidence relating to any

 

person or action under investigation by it in connection with any

 

failure or refusal to bargain or for engaging in unfair practices.

 

     (2) In case of contumacy or refusal to obey a subpeona

 

subpoena issued to any person under this act, the circuit court,

 

upon application by the board, department, shall have jurisdiction

 

to order such the person to appear before the board department to

 

produce evidence or to give testimony touching on the matter under

 

investigation, and any failure to obey such the order may be

 

punished by the court as a contempt.

 

     (3) Complaints, orders, and other processes and papers of the

 

board department under this act may be served personally, by

 

registered mail, by telegraph, or by leaving a copy thereof at the

 

principal office or place of business of the person required to be

 


served. The verified return of service shall be proof of the

 

service. Witnesses summoned before the board department shall be

 

paid the same fee and mileage allowance that are paid witnesses in

 

circuit court and witnesses whose depositions are taken, and the

 

person taking the same shall be entitled to the same fees as are

 

paid for like services in circuit court.

 

     (4) All processes of any court of to which an application or

 

petition may be made under this act may be served at any place in

 

the state wherein the person or persons required to be served

 

reside or may be found.