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SB 1004

Agriculture: marketing; length of time a cooperative may hold the funds of its members; limit. Amends sec. 4 of 1972 PA 344 (MCL 290.704).

2025-2026 Regular Session Introduced by Kevin Daley and 4 co-sponsors

The bill prohibits holding member funds beyond 10 years and strengthens penalties for coercion or discrimination by handlers or associations in agricultural marketing.

REFERRED TO COMMITTEE ON NATURAL RESOURCES AND AGRICULTURE
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Bill Summary · SB 1004

Summary of SB 1004 (Michigan) – 2025-2026 Session

Purpose and intent

  • SB 1004 would amend the Agriculture: Marketing and Bargaining Act (1972 PA 344), specifically section 4, to address conduct by associations and handlers in the marketing of agricultural commodities.
  • A primary policy focus is to prevent improper handling of members’ funds and to delineate permissible and prohibited practices in collective marketing arrangements.

Key provisions and changes

  • Prohibited practices by handlers (Section 4(1)):

    • Coercion or interference with a producer’s right to join, belong to, or refrain from joining an association (or deal with a handler) (paragraphs a, b, c).
    • Providing money or inducements to a producer to cease membership in an association (paragraph d).
    • Circulating unsubstantiated or false reports about associations or handlers (paragraph e).
    • Conspiring with others to violate the act (paragraph f).
    • Refusing to bargain with accredited associations, including those with prior substantial dealings (paragraph g, h).

  • Prohibited practices by associations (Section 4(2)):

    • Entering into contracts that discriminate against producers represented by an accredited association (even if the producer is not a member) (Section 4(2)(a)).
    • Acting contrary to the association’s bylaws (Section 4(2)(b)).
    • Refusing to bargain with handlers with whom the accredited association or its producers had prior substantial dealings (Section 4(2)(c)).
    • Coercing or intimidating a handler to breach or terminate a contract with an association or a producer (Section 4(2)(d)).
    • Circulating unsubstantiated reports about finances or activities of other associations or handlers (Section 4(2)(e)).
    • Conspiring or colluding to violate the act (Section 4(2)(f)).
    • Holding the money of the association’s members for more than 10 years after receipt of the money (Section 4(2)(g)):
    • This is the notable new limitation: member funds held by an association cannot exceed 10 years from the date the association received the funds.
    • If an association violated this rule prior to the amendatory act, it has 2 years after the amendatory act’s effective date to return the money to members.

  • Enforcement and procedures (Section 4(3)–(7)):

    • The Department may receive sworn complaints and investigate alleged violations.
    • If there is reasonable cause, the Department issues a complaint and holds a hearing under the Administrative Procedures Act.
    • Findings based on a preponderance of the evidence can lead to orders to cease the violation and take affirmative actions to effectuate the act’s policies; dismissal if not proven.
    • The Department may modify or set aside findings or orders during the administrative process.
    • The Department determines who bears the costs of proceedings (i.e., which party pays for enforcement).

Affected parties

  • Producers of agricultural commodities who join or consider joining associations.
  • Accredited or prospective accredited associations representing producers in bargaining units.
  • Handlers of agricultural products who have or may have dealings with associations and their member producers.
  • The Department of Natural Resources and Agriculture (acting as enforcement authority).

Important timelines and administrative notes

  • The 10-year cap on holding member funds becomes effective upon the amendatory act’s effective date.
  • Associations in violation prior to that date have a two-year window after the amendatory act’s effective date to return funds to members.
  • The bill specifies that proceedings under this act follow the Administrative Procedures Act (1969 PA 306).

Practical impact

  • Strengthens protections for producers against coercive or discriminatory practices by handlers and between associations and handlers.
  • Establishes a concrete financial accountability measure requiring associations not to hold member funds indefinitely; sets a 10-year maximum holding period and a grace period for pre-existing violators.
  • Expands and clarifies enforcement mechanisms for the department to address unfair practices in agricultural marketing and bargaining.

Status (as of introduction)

  • Introduced May 21, 2026.
  • Referred to the Committee on Natural Resources and Agriculture.
  • Sponsored by Senators McBroom (primary), Daley, Lauwers, Santana, and Victory; with co-sponsors listed.

Compiled from official sources — confirm details with the bill’s official record.

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