November 8, 2017, Introduced by Reps. Victory, Lower, Pagel, Hoadley, Miller, Cole, Sheppard, Rendon, Whiteford, Sabo, Elder, Cochran, Robinson, LaGrand, Sneller, Ellison, Brinks, Faris, Phelps, Green, Dianda, Leutheuser, Canfield, LaFave, Bellino and Glenn and referred to the Committee on Agriculture.
A bill to regulate the distribution and planting of seed
potatoes; to prescribe the powers and duties of the department of
agriculture and rural development; to create a fund; to provide
remedies and prescribe penalties; and to repeal acts and parts of
acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the "seed
potato act".
Sec. 2. As used in this act:
(a) "Advisory committee" means the seed potato advisory
committee created in section 6.
(b) "Certified seed" means a class of seed that meets the
requirements of 1959 PA 221, MCL 286.71 to 286.75, and the rules
promulgated under that act.
(c) "Certifying authority" means the official seed-certifying
agency of this state or the authorized seed potato certifying
agency of another state, territory, or country.
(d) "Cultivar" means unique variety.
(e) "Department" means the department of agriculture and rural
development.
(f) "Director" means the director of the department.
(g) "Distribute" means to offer for sale, sell, barter,
deliver, supply, furnish, or otherwise provide seed potatoes.
(h) "Field year" means the number of years a particular seed
lot has been grown in the field after greenhouse propagation.
(i) "Fund" means the seed potato fund created in section 10.
(j) "Hundredweight" means a unit of weight equal to 100
pounds.
(k) "Person" means an individual, partnership, association,
corporation, governmental entity, or other legal entity.
(l) "Rule" means a rule promulgated pursuant to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328.
(m) "Seed lot" means all the seed potatoes of the same variety
that are of a single class and specific seed source and are
harvested from a field or stored together in a specific storage
facility.
(n) "Seed potato" means the tuber that is used for the
reproduction of the potato.
(o) "State national harmonization program" means the state
national harmonization program for seed potatoes developed by the
plant protection and quarantine program of the Animal and Plant
Health Inspection Service in the United States Department of
Agriculture.
Sec. 3. (1) Beginning January 1, 2021, a person who
distributes combined seed lots sufficient to plant 1 or more acres
in this state as determined by the director by rule must distribute
only certified seed.
(2) All seed lots of seed potatoes subject to subsection (1)
must at the time of distribution, be accompanied by all of the
following documents:
(a) An official tag or bulk certificate indicating their
status as certified seed.
(b) A certificate of shipping point inspection.
(c) A North American plant health certificate issued by the
certifying authority for seed potatoes imported from outside of
this state.
(d) Any other documentation necessary to provide the
information required by subsection (3).
(3) The documents described in subsection (2) must provide the
following:
(a) A description of the grade of the seed potatoes.
(b) The findings of field inspections and postharvest
inspections conducted on each seed lot of seed potatoes.
(c) The field year of the seed potatoes.
(d) Evidence that the seed potatoes were tagged and, if
imported from outside this state, packed and sealed under the
certification standards of the state, territory, or country in
which they were grown.
Sec. 4. (1) Beginning January 1, 2021, and except as otherwise
permitted under this section, seed potatoes in combined seed lots
that are sufficient to plant 1 or more acres as determined by the
director by rule may only be planted if the seed potatoes are
certified seed. Seed potatoes imported into this state must meet
the minimum standards in the state national harmonization program
and in any active applicable quarantine or rule.
(2) Beginning January 1, 2021, a potato grower may plant
uncertified potatoes if both of the following conditions are met:
(a) The potatoes were grown and stored as part of that
grower's farming operations.
(b) The uncertified potatoes are no more than 1 field year
from certified seed potatoes.
(3) Beginning January 1, 2021, in any year that there is an
insufficient volume of any cultivar of certified seed potatoes and
seed potatoes meeting the requirements of this section, potato
growers may apply to the advisory committee for permission to plant
uncertified seed potatoes. Upon recommendation from the advisory
committee, the director may grant applying growers permission to
plant uncertified seed potatoes for only that growing season.
Sec. 5. (1) Beginning January 1, 2021, each person growing
potatoes in this state in combined seed lots of 1 acre or greater
shall notify the director of this fact by January 1 of each year
and shall keep and maintain records as described in this section.
The records must contain the information required for an
independent records review conducted under subsection (2). Growers
shall maintain the records for a period of at least 2 years at the
grower's business address.
(2) Beginning January 1, 2021, the director shall select a
qualified department employee or independent auditor to perform a
records review on at least 10% of potato growers subject to this
act once every seed potato crop cycle. The director shall determine
a method for the annual random selection of growers.
(3) A records review performed under this section must verify
records that trace back the grower's potatoes, including records
that evidence both of the following:
(a) Acreage planted by cultivar.
(b) Hundredweight and source of the seed potatoes used to
plant the acreage, with verifiable documents related to the
following:
(i) For seed potatoes purchased, the documents described in
section 3.
(ii) For seed potatoes planted as provided under section 4,
the testing history and seed potatoes used to replant the grower's
own operations.
(4) If the independent auditor who conducted the records
review believes that a violation of this section has occurred, he
or she shall notify the director within 5 business days. The
director must then investigate the alleged violation according to
section 8.
Sec. 6. (1) The seed potato advisory committee is created.
(2) The advisory committee shall consist of 5 members
appointed by the director as follows:
(a) Two commercial potato growers who do not grow seed
potatoes.
(b) The current chair of the Michigan Seed Potato Association.
(c) One person employed by Michigan State University.
(d) One person employed by the department.
(3) Whenever possible, the advisory committee members
appointed under subsection (2)(c) and (d) must have knowledge of or
experience with seed potatoes.
(4) Except as provided in subsection (5), members appointed to
the advisory committee shall serve for terms of 3 years. Members
may be appointed for an unlimited number of terms, except that a
member appointed under subsection (2)(a) may not serve more than 2
terms consecutively.
(5) In the event of a vacancy on the advisory committee prior
to the completion of a member's full term, the director shall
appoint a person to complete the remainder of that term. The person
appointed under this subsection must represent the same group as
the member he or she is replacing, as provided in subsection (2).
(6) The members of the advisory committee will receive no
compensation or reimbursement for any expenses incurred in the
exercise of their duties.
(7) The advisory committee shall advise the director in
establishing rules under this act, assist in the determination of
availability of seed potatoes, recommend whether to grant
permission to plant uncertified seed potatoes, recommend
independent auditors to perform records reviews under section 5,
and consult with the director regarding the administration and
enforcement of this act.
Sec. 7. In addition to any other duties provided in this act,
the director shall do both of the following:
(a) Administer and enforce this act.
(b) Promulgate rules necessary for the administration and
enforcement of this act, including rules that do all of the
following:
(i) Establish requirements for compliance.
(ii) Allow for the random selection of 10% of potato growers
subject to the annual records review required under section 5(2).
(iii) Establish methods for determining whether there are
unacceptable levels of disease beyond the level of tolerance
established under 1959 PA 221, MCL 286.71 to 286.75, and the rules
promulgated under that act for seed potatoes planted under section
4(3).
(iv) Set a schedule of fees for services performed by the
department.
Sec. 8. (1) Beginning January 1, 2021, the director, upon the
director's own motion or upon the recommendation of an independent
auditor under section 5(2), may make an investigation necessary to
determine compliance with this act.
(2) For an inspection under subsection (1), the director must
have free and unimpeded access during regular business hours,
either upon consent of the owner or upon obtaining an
administrative search warrant, to inspect any records required to
be kept pursuant to this act.
(3) The director may make copies of any records inspected
under subsection (2).
(4) The director may do 1 or more of the following:
(a) Administer oaths.
(b) Take statements.
(c) Issue subpoenas to compel the attendance of witnesses.
(d) Issue subpoenas for the production of any books,
memoranda, papers, or other documents, articles, or instruments.
(5) Upon failure or refusal of any person to obey a subpoena
issued under subsection (4), the director may petition the district
court to enter an order compelling that person to comply with the
subpoena.
(6) Failure to obey an order of the court entered under
subsection (5) may be punishable as contempt of court.
(7) A complaint made to the director and the results of the
director's investigations must be closed to public inspection
unless disclosed pursuant to court order, during the investigatory
period and until the complaint is dismissed or the notice of
hearing and charges are served.
Sec. 9. (1) Beginning January 1, 2021, and except as otherwise
provided in this section, the director may impose an administrative
fine on any person that violates this act or a rule promulgated
under this act. An administrative fine imposed under this section
may not exceed $2,500.00 per violation.
(2) Beginning January 1, 2021, a person who plants or
distributes potatoes in violation of this act or a rule promulgated
under this act is subject to an administrative fine, as determined
by the director. An administrative fine imposed by the director
under this subsection must be at least $20.00 per acre but may not
exceed $100.00 per acre per violation.
(3) Beginning January 1, 2021, a person who fails to maintain
complete and accurate records under section 5 or a rule promulgated
under this act regarding records or fees is subject to an
administrative fine, as determined by the director. An
administrative fine imposed by the director under this subsection
must be at least $500.00 but may not exceed $1,000.00.
(4) An administrative fine may not be imposed under this
section unless the person charged with the violation is given
notice and an opportunity for a hearing held under the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328.
(5) If the director is unable to collect an administrative
fine or if any person fails to pay all or a set portion of an
administrative fine, the director may bring suit in any court of
competent jurisdiction to recover the fine plus costs and attorney
fees.
(6) Money collected from any administrative fine imposed under
this section must be paid to the state treasurer, who shall credit
the same to the fund.
Sec. 10. (1) Beginning January 1, 2021, the seed potato fund
is created within the state treasury.
(2) The state treasurer may receive money or other assets from
any source for deposit into the fund, including all fees and
administrative fines collected under this act. The state treasurer
shall direct the investment of the fund. The state treasurer shall
credit to the fund interest and earnings from fund investments.
(3) Money in the fund at the close of the fiscal year must
remain in the fund and may not lapse to the general fund.
(4) The department shall be the administrator of the fund for
auditing purposes.
(5) The department shall expend money from the fund, upon
appropriation, only to implement this act.
Sec. 11. This act is repealed effective January 1, 2023.
Enacting section 1. This act takes effect 90 days after the
date it is enacted into law.