An Act To Make Changes to the Potato Marketing Improvement Fund
Maine Legislature, Session 126, LD 0005
Committee: Agriculture, Conservation and Forestry
Sponsors: WILLETTE, JACKSON, BLACK, CRAY, LONG, SAUCIER, TYLER, SHERMAN
Amends: 7 MRSA §972-A, 7 MRSA §972-B, 7 MRSA §973-A, 7 MRSA §974-A, 7 MRSA §976, 7 MRSA §977, 10 MRSA §1023-N

Legislative Document 
No. 5 
H.P. 9 
House of Representatives, January 15, 2013 
An Act To Make Changes to the Potato Marketing Improvement 
Fund 
Reference to the Committee on Agriculture, Conservation and Forestry suggested and 
ordered printed. 
MILLICENT M. MacFARLAND 
Clerk 
Presented by Representative WILLETTE of Mapleton. 
Cosponsored by Senator JACKSON of Aroostook and 
Representatives: BLACK of Wilton, CRAY of Palmyra, LONG of Sherman, McELWEE of 
Caribou, SAUCIER of Presque Isle, TYLER of Windham, Senator: SHERMAN of Aroostook. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  7 MRSA §972-A, as enacted by PL 2005, c. 335, §3, is repealed. 
Sec. 2.  7 MRSA §972-B is enacted to read: 
§972-B.  Potato Marketing Improvement Fund Committee 
The Maine Potato Board, established in Title 36, section 4603 and referred to in this 
article as "the board," shall establish the Potato Marketing Improvement Fund 
Committee, referred to in this article as "the committee," to advise the board on the 
development and implementation of programs and activities that improve the economic 
viability of the potato industry. The committee also shall advise the board concerning the 
funding and expenditures of the Potato Marketing Improvement Fund created pursuant to 
Title 10, section 1023-N and referred to in this article as "the fund."  The committee shall 
make recommendations to the board on authorized uses of the fund and activities relating 
to the fund other than activities relating to the processing of loan applications or the 
servicing and administration of loans. 
The board shall appoint 7 members to the committee.  One member must be the past 
president of the board, and the remaining members must represent all sectors of the 
potato industry, with 2 members each from the processing, seed and tablestock sectors. 
Sec. 3.  7 MRSA §973-A, as enacted by PL 2001, c. 125, §3, is amended to read: 
§973-A.  Administration of Potato Marketing Improvement Fund 
The commissioner board shall administer the Potato Marketing Improvement Fund 
established under Title 10, section 1023-N fund. 
Sec. 4.  7 MRSA §974-A, sub-§1, ¶D, as amended by PL 2005, c. 335, §4, is 
further amended to read: 
D.    Other terms and conditions prescribed by rule by the commissioner board upon 
consultation with the board committee. 
Sec. 5.  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 rate for state loans is 5%.  Loans current on 
April 21, 1988 must be renegotiated to an interest rate of 5%. 
A fee for administrative costs, which must be at a rate set by rule by the commissioner 
board upon consultation with the Potato Marketing Improvement Committee committee 
but that may not exceed 1% 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 fund. 
Sec. 6.  7 MRSA §976, as amended by PL 2005, c. 335, §6, is further amended to 
read: 
§976.  Aroostook County office 
The department 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 and sufficiently close to any local 
office of the board as to foster a close working relationship and provide a convenience to 
farmers who wish to visit both agencies fund.  This office must be staffed by one or more 
business development specialists whose responsibilities are as defined by the department 
board.  The business development specialists shall be available in the Aroostook County 
office on a regular basis. 
Should the performance of the functions of the business development specialists be 
contracted for, this contract must be made by the agency managing the fund board and 
must be awarded through competitive bidding. 
Sec. 7.  7 MRSA §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 fund on a periodic basis to be determined by the department board to 
cover the costs of administering the fund and any grants made. 
Sec. 8.  10 MRSA §1023-N, first ¶, as amended by PL 2005, c. 335, §7 and PL 
2011, c. 657, Pt. W, §6, is further amended to read: 
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 
authority to be used solely for investment in the Maine potato industry.  The fund must be 
administered by the Commissioner of Agriculture, Conservation and Forestry in 
accordance with Title 7, chapter 103, subchapter 10 Maine Potato Board, established in 
Title 36, section 4603.  All money received by the authority from any source for the 
development and implementation of improved storage, packing and marketing and 
programs and activities that improve the economic viability of the potato industry 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 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; for programs and activities that improve the economic viability of 
the potato industry; 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 the grants authorized 
by Title 7, section 975-A.  In order to provide additional amounts for loans, the 
Commissioner of Agriculture, Conservation and Forestry, at the commissioner's 
discretion, Maine Potato Board may take such actions and enter 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 commissioner 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. 
Sec. 9.  10 MRSA §1023-N, 2nd ¶, as enacted by PL 2001, c. 125, §6 and 
amended by PL 2011, c. 657, Pt. W, §5, is further amended to read: 
A purchaser of a modern storage facility 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 
Department of Agriculture, Conservation and Forestry Maine Potato Board shall adopt 
rules concerning the purchase of existing buildings. 
SUMMARY 
This bill changes the governing authority of the Potato Marketing Improvement Fund 
from the Department of Agriculture, Conservation and Forestry to the Maine Potato 
Board.  This bill requires the Maine Potato Board to establish the Potato Marketing 
Improvement Fund Committee to advise the board.