An Act To Transfer Responsibility of Potato Marketing Matters to the Maine Potato Board
Maine Legislature, Session 122, LD 1002
Committee: Agriculture, Conservation and Forestry
Sponsors: MARTIN, LUNDEEN, CLUKEY, CHURCHILL, EDGECOMB, FISCHER, JACKSON, PARADIS, SHERMAN
Amends: 7 MRSA §950, 7 MRSA §972, 7 MRSA §973-A, 7 MRSA §974-A, 7 MRSA §975-A, 10 MRSA §1023-N

Legislative Document 
No.t002 
S.P.342 
In Senate, February 24,2005 
An Act To Transfer Responsibility of Potato Marketing Matters to 
the Maine Potato Board 
Reference to the Committee on Agriculture, Conservation and Forestry suggested and 
ordered printed. 
Presented by Senator MARTIN of Aroostook. 
Cosponsored by Representative LUNDEEN of Mars Hill and 
JOY J. O'BRIEN 
Secretary of the Senate 
Senator: CLUKEY of Aroostook, Representatives: CHURCHILL of Washburn, EDGECOMB 
of Caribou, FISCHER of Presque Isle, JACKSON of Fort Kent, PARADIS of Frenchville, 
SHERMAN of Hodgdon, SMITH ofYan Buren. 
Printl"d on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. I. 7 MRSA §950, sub-§2-A is enacted to read: 
2-A. 
~iJl.fL~9j;,~t:..Q_BQ~I:g-"-. __ 
"Maj.ne Pot.ato Boar:d" means th.e 
Maine Potato Board as established in Title 36, section 4603. 
Sec. 2. 7 MRS A §971, as enacted by PL 1981, c. 5l3, §7, is 
amended to read: 
§971. Purpose 
The 
Legislature finds 
that agriculture, particularly the 
production and marketing of potatoes, is a significant and unique 
component of the economy of the State and is the single most 
important 
component 
of 
the 
economy 
of 
northern 
Maine. 
The 
Legislature further finds that the potato industry in Maine is in 
serious decline and, that unless major changes in the existing 
infrastructure, 
packing, 
storing 
and 
marketing 
systems 
are 
accomplished, 
the 
industry 
will 
not 
remain 
viable. 
The 
Legislature 
intends 
through 
this 
Article 
and 
Article 
to 
stimulate the improvement of the potato industry. The Legislature 
finds that a strengthened potato industry will benefit the entire 
economy and promote improvement and stabilization in the use of 
our agricultural resources for the benefit of the people of this 
State. It is the 
intent of 
the Legislature 
to provide 
the 
statutory framework 
and initial funding 
to begin 
and 
expand 
programs for improved marketing systems, including modernization, 
construction and operation of storage and centralized packing 
facilities for potatoes, and to expand and develop infrastructure. 
Sec. 3. 7 MRSA §972, as amended by PL 2001, c. 125, §1, is 
further amended to read: 
§972. Potato Marketing Improvement Committee 
There is established an advisory committee, as authorized by 
Title 5, section 12004-H, 
subsection 10, of 10 members to be 
known as the Potato Marketing Improvement Committee. 
The Potato 
Marketing 
Improvement 
Committee shall advise the 
eemmissieaeF 
Maine 
Potato Board on the development 
and 
implementation of 
improved potato marketing systems, including the modernization, 
construction 
and 
operation 
of 
storage 
and 
central 
packing 
facilities, and the expansion and development of infrastructure. 
The Potato Marketing Improvement Committee shall also advise the 
eemmissieae~ Maine 
Potato 
Board 
concerning 
the 
funding 
and 
expenditures of the Potato Marketing Improvement Fund created 
pursuant to Title 10, section 1023-N. 
The 
eemm;j,ss;j,eRe~ Maine 
Potato Board shall appoint one member representing the University 
of 
Maine 
System, 
one 
member 
representing 
the 
~a~me~s--Heme 
Page l-LR0730(1) 
.. 
AamiBis~Fa~ieB United States 
Department 
of 
Agriculture, 
Farm 
Service Agency, one member representing the Farm Credit System, 
one member representing the ge~aF~meB~-~~-~~-eaG-GemmHBi~y 
gevele~meB~ department and one 
member representing the 
~H9lie 
Agricultural Bargaining CounciL 
or 
a 
successor organization. 
Each executive council established pursuant to Title 36, section 
4603, subsection 3, shall appoint one person to serve as a member 
of the committee. 
The eemmissieBeF Maine Potato Board and the 
executive 
councils 
shall 
appoint 
as 
members 
persons 
with 
education, training or experience relevant to the development and 
implementation of improved potato marketing systems, 
including 
the modernization, 
construction and operation of storage 
and 
central packing facilities L 
and with an understanding of the 
importance of those facilities for potato quality and marketing. 
When the eemmissieBeF Maine Potato Board finds it appropriate, 
the members 
representing the 
~aFmeFs--Home--AQm.iRi6~Fa~ieB Farm 
Service 
Agen~ and the Farm Credit System may serve as a loan 
L8 
review committee and advise the eemmissieBeF Maine Potato Board, 
on a confidential basis, on applications for funding. 
Sec. 4. 7 MRSA §973-A, as enacted by PL 2001, c. 125, §3, is 
amended to read: 
§913-A. Administration of Potato Marketing Improvement Fund 
2tl 
The 
eemmissieBeF Maine Potato 
Potato Marketing Improvement 
Fund 
section 1023-N. 
Board shall administer 
established under Title 
the 
10, 
.10 
Sec. 5. 7 MRS A §974-A. sub-§!, llD. as enacted by PL 1987, c. 
.12 
.14 
J Ci 
319, §4, is amended to read: 
D. 
Other terms and conditions prescribed by rule by the 
eemmissieBeF Maine Potato Board upon consultation with the 
Potato Marketing Improvement Committee. 
Sec. 6. 7 MRSA §974-A. sub-§2. as amended by PL 2001, c. 125, 
§4, is further amended to read: 
2. 
State loan interest rate. 
The interest 
loans 
is 
5%. 
Loans 
current 
on 
April 
21, 
renegotiated to an interest rate of 5%. 
rate 
1988 
for state 
must 
be 
A fee for administrative costs, which must be at a rate set by 
rule by the eemmissieBeF Maine Potato Board upon consultation 
'Hi 
"ri th the Potato Marketing Improvement Committee but that may not 
exceed 1
'0 of the loan, must be charged on all loans made for 
projects, the total cost of which exceeds $50,000. 
This fee must 
be deposited in the Potato Marketing Improvement Fund. 
')0 
Sec. 7. 7 MRSA §975-A, as amended by PL 1997, c. 388, §3, is 
further amended to read: 
§975-A. Interest on Potato Marketing Improvement Fund balance 
Allor any portion of the interest earned or accruing on the 
cash balance of the Potato Marketing Improvement Fund may be used 
R 
for grants to partially or fully fund research projects to study 
and 
assess 
technical 
problems 
experienced 
with 
new 
and 
retrofitted storage facilities and to develop means of dealing 
with 
such problems, 
or 
to 
examine, 
monitor 
and develop 
new 
technologies for the production, storage and handling of potatoes 
or to develop infrastructure. 
Sec. 8. 7 MRS A §976, as enacted by PL 1989, c. 502, Pt. B, 
§6, is amended to read: 
§976. Aroostook County office 
The aeI"aJ?t:meat: Maine Potato Board shall maintain or arrange 
for the maintenance of an office in Aroostook County located in a 
town most convenient to the largest number of potential users of 
the Potato Marketing Improvement Fund 
aaa--s-u-f.f.,i-€.,i-ent..,l-y-~M-&e--t:e 
aay-.,l~£e.,l-~~~~~~-~Re-Ma.,i£€-~~~-~~-as-~~-~~~-~-e±ese 
weJ?*ia~--r~~~~-~£B--I"F9¥iae-~-€eB¥eBieB€e--~-.f~~~-wRe 
wisR-~~-~i&-i-t,...-9G-t,.R--a~eaeies. 
This office sRall must be staffed 
by --a--
one or more business development sI"eeia±ist: specialists 
whose responsibilities sRall-ee pre as defined by the aeI"aJ?t:meat: 
board. 
The 
business development 
sI"eeiaJis£--sRa±l specialists 
must be available in the Aroostook County office on a regular 
basis. 
Should the performance of 
the functions of the business 
development 
sI"eeialis~ 
specialists 
be 
contracted 
for, 
this 
contract sRall must be made by the agency managing the fund and 
sRall must be awarded through competitive bidding. 
Sec. 9. 7 MRS A §977, as enacted by PL 2001, c. 125, §5, is 
amended to read: 
§977. Potato Marketing Improvement Fund Operating Account 
There is established a 
Potato Marketing Improvement Fund 
Operating Account. 
This 
account draws 
funds 
from 
the Potato 
Marketing 
Improvement 
Fund 
established 
in Title 
10, 
section 
1023-N on a periodic basis to be determined by the aeI"aJ?t:meat: 
Maine Potato Board to cover the costs of administering the fund 
and any grants made. 
Sec. 10. 10 MRSA §1023-N, as enacted by PL 2001, c. 125, §6, 
is amended to read: 
§1023-N. Potato Marketing Improvement Fund 
There 
is created 
a 
fund 
known 
as 
the 
Potato Marketing 
Improvement Fund, referred to in this section as the "fund." 
The 
fund must be deposited with and maintained by the author i ty~ 
be used solely for investment in the Maine potato industry. 
The 
fund must be administered by the 
GemmissieaeF--Q-t--A~£ie\:l.J,t\:l.£eT 
~eee-~-R-1H-a-1--Re6e\:l.£eeS Maine Potato Board in accordance with 
Title 7, chapter 103, subchapter X 10. 
All money received by the 
authority from any source for the development and implementation 
of an improved storage, packing aaeL marketing and infrastructure 
development program must be credited to the fund. 
Any money 
credited to the fund from the issuance of bonds on behalf of the 
State for agricultural development may 
be 
used only for the 
HI 
purposes of state loans as prescribed by Title 7, section 974-A 
to 
provide 
assistance 
to 
potato 
farmers 
for 
the 
design, 
construction, 
improvement, 
support 
and 
operation 
of 
storage, 
packing and marketing facilities and infrastructure development 
and 
to 
pay 
the 
administrative 
costs 
of 
processing 
loan 
applications and servicing and administering the fund and loans 
and grants made therein, to the extent that the costs exceed the 
fee 
for administrative costs established by Title 7, 
section 
974-A, subsection 2. 
Repayment of these loans and interest on 
the loans must be credited to the fund to be available for making 
additional state loans for the same purposes, except that any 
interest earned on the cash balance of the fund may be used for 
\0 
the grants authorized by Title 7, 
section 975-A. 
In order to 
provide 
additional 
amounts 
for 
loans, 
the 
Gemmi-ssi-e-aeF---ef 
J2 
A~~i-e\:l.*t\:l.£eT--F~~tl---and---R-,*F-a-1--Rese\:l.~ees Maine Potato Board, at tne 
eemmi-ssi-eRe~!..s its discretion, may take such actions and enter 
J4 
into such agreements as may be necessary to sell or assign up to 
$2,000,000 
in 
the 
aggregate 
principal 
amount 
of 
loans 
and 
undivided interests in a pool of loans and assign or pledge any 
mortgage or other security to the authority, under the terms and 
conditions 
the 
eemmissieRe~ 
Maine 
Potato 
Board 
considers 
advisable. 
The 
assignment 
and 
related transactions 
may 
not 
result in indebtedness of the State. 
The proceeds of the sale or 
assignment must be credited to the fund and used for the purposes 
authorized in this section. 
A 
purchaser 
of 
a 
modern 
storage 
facility 
or 
other 
infrastructurE1. that was previously financed with a state loan 
from the fund may receive a loan under the conditions of this 
section. 
Mortgages obtained from the fund may be 
assumed by 
subsequent 
purchasers 
of 
the 
property. 
The 
~eFaFtmeat--ef 
A~~i-e\:l.*t\:l.~eT--F-()(}d...-aRe--R-tH---a--l--Rese\:l.FeeS Mgj..ne Potato Board shall 
SO 
adopt rules concerning the purchase of existing buildings. 
Rules adopted pursuant to this section are routine technical 
rules as defined in Title 5, chapter 375, subchapter ±±-A 2-A. 
These 
rules 
must 
include 
provisions 
that 
ensure 
that 
such 
purchases are in keeping with the purposes and intent of this 
subchapter and of Private and Special Law 1981, chapters 65 and 
75. 
They must also include a definition of a modern storage 
facility. 
SUMMARY 
This bill transfers the responsibilities of the Commissioner 
of Agriculture, 
Food and Rural 
Resources 
as 
they pertain to 
potato marketing, the Potato Marketing Improvement Committee and 
the Potato Marketing Improvement Fund to the Maine Potato Board.