Michigan Laws 285.320 – Administrative premium
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Terms Used In Michigan Laws 285.320
- Administrative premium: means the amount of money charged to and collected from a producer under section 10. See Michigan Laws 285.313
- Authority: means the farm produce insurance authority created in section 5. See Michigan Laws 285.313
- Board: means the board of directors of the authority described in section 7. See Michigan Laws 285.313
- Department: means the department of agriculture and rural development. See Michigan Laws 285.313
- Director: means the director of the department or his or her designee. See Michigan Laws 285.313
- Farm produce: means that term as defined in section 2 of the grain dealers act, MCL 285. See Michigan Laws 285.313
- Fund: means the farm produce insurance fund created in section 9. See Michigan Laws 285.313
- in writing: shall be construed to include printing, engraving, and lithographing; except that if the written signature of a person is required by law, the signature shall be the proper handwriting of the person or, if the person is unable to write, the person's proper mark, which may be, unless otherwise expressly prohibited by law, a clear and classifiable fingerprint of the person made with ink or another substance. See Michigan Laws 8.3q
- Licensee: means that term as defined in section 2 of the grain dealers act, MCL 285. See Michigan Laws 285.313
- Net proceeds: means the sale price of farm produce, less usual and customary charges and costs of sale of the farm produce. See Michigan Laws 285.313
- Producer: means a person that owns, rents, leases, or operates a farm on land and who has an interest in and receives all or any part of the proceeds from the sale and delivery in Michigan of farm produce produced from the land to a grain dealer licensed under the grain dealers act. See Michigan Laws 285.313
- Producer security activities: means any action by the director under section 22 of the grain dealers act, MCL 285. See Michigan Laws 285.313
- Sale: means transfer of title. See Michigan Laws 285.313
- state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o
(1) Except as otherwise provided in this section, each producer shall pay to the authority an administrative premium in an amount determined by the board under subsection (2). When the farm produce is sold to a licensee, the licensee shall deduct the administrative premium from the proceeds of sale and pay the premium to the authority on behalf of the producer as provided in subsection (4).
(2) For any calendar year beginning in 2013, the board may establish an administrative premium described in subsection (1). All of the following apply to the amount of an administrative premium established by the board for a calendar year.
(a) The amount of a producer’s premium shall be calculated as a percentage of the net proceeds from all farm produce sold by the producer to a licensee in this state.
(b) The amount of the premium shall reflect the board’s determination of the amount of money that is necessary to reimburse the director for producer security activities.
(c) The board shall consider past and projected costs over a 2-year period in establishing the amount of the premium.
(3) An administrative premium imposed under this section is in addition to any other fees or assessments required by law.
(4) When purchasing farm produce from a producer, a licensee or its agent or representative shall deduct the administrative premium described in subsection (1) from the proceeds of sale and notify the producer of the amount of the deduction in writing. The licensee shall forward the administrative premium to the authority for deposit into the fund on behalf of the producer within 30 days of the close of each calendar quarter.
(5) If the board establishes, adjusts, or eliminates an administrative premium under subsection (2) for a calendar year, the board shall notify the department in writing of that action at least 120 days before January 1 of that calendar year, and the department by first-class mail shall notify each licensee of the requirements of subsection (4) at least 90 days before January 1 of that calendar year.
(6) A licensee shall clearly indicate in its books and records the individual administrative premiums collected by the licensee under subsection (4) and retain those books and records for at least 3 years. A licensee shall make the portion of the books and records of the licensee reflecting the administrative premiums collected available for inspection by the director during regular business hours. The department shall take steps reasonably necessary to verify the accuracy of the portion of the licensee’s books and records that reflect the administrative premiums collected.