Relating to health care; prescribing an effective date.

2025 Regular Session Introduced by Dick Anderson and 6 co-sponsors

Reduces audit frequency and costs for small commodity committees by lowering the annual assessment threshold to $40,000 and allowing audits once in the second or third year between

In committee upon adjournment.

SB 691 — Summary (Agricultural Commodities Marketing Act: audit requirements for commodity committees)

Status: Enacted as Public Act 60 of 2024; effective June 20, 2024.

Overview / Purpose
- SB 691 amends section 8 of the Agricultural Commodities Marketing Act (MCL 290.658) to change audit frequency rules for smaller commodity committees established under state marketing programs. The stated intent is to reduce audit burden and costs for committees that collect relatively small producer assessments.

Key provisions
- Threshold change: Replaces the previous $50,000 threshold (annual assets, 3‑year average) with a $40,000 threshold measured as annual collected producer assessments (3‑year average).
- Audit frequency for small committees:
- Committees with annual collected producer assessments of $40,000 or less (3‑year average) must be audited once in the second or third year between referenda (referenda are conducted every five years).
- The prior requirement that such committees be audited twice between referenda and have a financial review in non‑audit years is eliminated.
- Audit and reporting mechanics:
- All expenditures generally must be audited by a certified public accountant at least annually (subject to the small‑committee exception above).
- Certified public accountants must provide copies of the audit to committee members and the Michigan Department of Agriculture and Rural Development (MDARD) director no later than 30 days after audit completion.
- An activity and financial report must be published annually and made available to interested parties.
- Funds and oversight:
- Money and assets collected by marketing programs remain non‑state funds that must be deposited in a Michigan financial institution and used only for permitted program expenses and authorized grants.
- The bill explicitly states it does not prevent MDARD from conducting any oversight activities authorized under the Act.

Who is affected
- Primary: Commodity committees (and the organized commodity groups they represent) that operate under the Agricultural Commodities Marketing Act — e.g., commissions/committees for onions, carrots, apples, blueberries, dairy, etc.
- Smaller committees (notably vegetable committees like the Onion and Carrot Committees) stand to reduce audit costs and administrative time.
- MDARD retains oversight authority.

Fiscal and procedural impact
- State fiscal impact: None. Funds handled by commodity committees are not state funds; audit costs are borne by the committees.
- Local/committee impact: Potential cost savings and administrative relief for committees at or below the new $40,000 assessment threshold.
- Implementation: Changes apply under the amended text of MCL 290.658; audits continue to be performed by certified public accountants and relevant reporting steps remain in place.

Context / Rationale
- Supporters argued audits are necessary but can impose disproportionate cost and time burdens on very small committees; lowering the threshold and reducing audit frequency allows more assessment dollars to be used for program activities (marketing, research, grant administration) rather than audit costs.

Relevant statute amended: MCL 290.658.