An Act To Make Changes to the Potato Marketing Improvement Fund
Maine Legislature, Session 126, LD 0005
Committee Amendment CA_A_H198 (House)
Amends: 5 MRSA §12004-H, 7 MRSA §972-B, 7 MRSA §972-A, 7 MRSA §974-A, 7 MRSA §976, 7 MRSA §977, 10 MRSA §1023-N

COMMITTEE AMENDMENT 'A" to H.P. 9, L.D. 5, Bill, "An Act To Make 
Changes to the Potato Marketing Improvement Fund" 
Amend the bill by striking out everything after the enacting clause and before the 
summary and inserting the following: 
'Sec. 1. 5 MRSA §12004-H, sub-§lO-A is enacted to read: 
to-A. 
Potato Marketing Improvement 
Fund Committee 
Expenses Only 
Sec. 2. 7 MRS A §970 is enacted to read: 
§970. Definitions 
MRSA §972-B 
As used in this article, unless the context otherwise indicates, the following terms 
have the following meanings. 
1. Board. "Board" means the Maine Potato Board established in Title 36, section 
4603. 
2. 
Committee. 
"Committee" means the Potato Marketing Improvement Fund 
Committee under section 972-B. 
3. Fund. "Fund" means the Potato Marketing Improvement Fund established in 
Title 10, section 1023-N. 
Sec. 3. 7 MRSA §972-A, as enacted by PL 2005, c. 335, §3, is repealed. 
Sec. 4. 7 MRSA §972-B is enacted to read: 
§972-B. Potato Marketing Improvement Fund Committee 
1. Members. The Potato Marketing Improvement Fund Committee, as established 
in Title 5, section 12004-H, subsection 1O-A, consists of: 
COMMITTEE AMENDMENT 
R OF S COMMITTEE AMENDMENT "A." to H.P. 9, L.D. 5 
A. The commissioner or the commissioner's designee; and 
B. Six members appointed by the board, 2 of whom must represent the processing 
sector of the potato industry, 2 of whom must represent the seed sector of the potato 
industry and 2 of whom must represent the tablestock sector of the potato industry. 
2. Duties. The committee shall: 
A. 
Advise the board on the development and implementation of programs and 
activities that improve the economic viability of the potato industry; 
B. Advise the board concerning the funding and expenditures of the fund; and 
C. 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. 
Sec. 5. 7 MRS A §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. 6. 7 MRS A §974-A, sub-§l, ,n, 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 beard committee. 
Sec. 7. 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 eomrnissioner 
upon eonsultation with the Potato Marketing Improvement ColIlffiittee board 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 Marketin2: 
lmafOvement Fund fund. 
Sec. 8. 7 MRSA §974-A, sub-§3 is enacted to read: 
3. Approval of loans and grants. The commissioner has authority to approve all 
loans and grants from the fund. 
Sec. 9. 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 FHIld and suffieiently close to aIly local 
office of the board as to foster a dose working relationshif) and f)rovide a eonvenience to 
COMMITTEE AMENDMENT 
It OF S 
COMMITTEE AMENDMENT 'A" to H.P. 9, L.D. 5 
farmers Vlho wish to visit both ageneies fund. This office must be staffed by one or more 
business development specialists whose responsibilities are primarily responsible for 
work associated with the fund as well as other activities as defined by the aepartment 
board. The business development specialists shall must 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 ageney managing the [Hna board and 
must be awarded through competitive bidding. 
Sec. 10. 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 FUfla establishea in Title 
10, sootion 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. 11. 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 Agrieulmre, ConsePiation ana Forestry in 
accordance with Title 7, chapter 103, subchapter 10 Maine Potato Board, established in 
Title 36, section 4603 and referred to in this section as "the board," and the Potato 
Marketing Improvement Fund Committee, established in Title 5, section 12004-H, 
subsection 10-A. 
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. At the discretion of the Commissioner of AgriCUlture, Conservation and 
Forestry, the authority shall make payments directly to the board, which shall use those 
payments to implement the requirements of this section. During any period that the 
commissioner has authorized direct payments from the authority to the board, the 
authority shall make written annual reports to the commissioner and the joint standing 
committee of the Legislature having jurisdiction over agriculture, conservation and 
forestry matters detailing the amounts of payments to the board and the dates payments 
were made and detailing the expenditure of those payments. Repayment of these the 
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 
COMMITTEE AMENDMENT 
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COMMITTEE AMENDMENT ,A" to H.P. 9, L.D. 5 
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 Agrio-ulture, 
Conservation and Forestry commissioner, at tHe oommissioner's disoretion upon 
consultation with the 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 considers 
advisable upon consultation with the board. 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. 12. 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 Agrio-ulmre, Conservation and Forestry board shall adopt rules concerning 
the purchase of existing buildings. 
Sec. 13. Appropriations and allocations. The following appropriations and 
allocations are made. 
AGRICULTURE, CONSERVATION AND FORESTRY, DEPARTMENT OF 
Division of Agricultural Resource Development 0833 
Initiative: Eliminates one Potato Storage Consultant position and deallocates funds from 
transferring the Potato Marketing Improvement Fund to the Maine Potato Board. 
OTHER SPECIAL REVENUE FUNDS 
POSITIONS - LEGISLATIVE COUNT 
Personal Services 
All Other 
OTHER SPECIAL REVENUE FUNDS TOTAL 
SUMMARY 
2013-14 
(1.000) 
($90,491) 
($75,000) 
($165,491) 
2014-15 
(1.000) 
($93,103) 
($75,000) 
($168,103) 
This amendment strikes and replaces the bill. The amendment, like the bill, changes 
the governing authority of the Potato Marketing Improvement Fund from the Department 
of Agriculture, Conservation and Forestry to the Maine Potato Board. The bill requires 
the board to establish the Potato Marketing Improvement Fund Committee to advise the 
board. The amendment instead establishes the Potato Marketing Improvement Fund 
Committee in statute and changes the membership of the committee. The amendment 
authorizes the Finance Authority of Maine, at the discretion of the Commissioner of 
Agriculture, Conservation and Forestry, to make payments to the board from the fund to 
carry out the purposes of the fund. The amendment also requires the authority to provide 
written annual reports to the commissioner and the joint standing committee of the 
COMMITTEE AMENDMENT 
ltOF8 
COMMITTEE AMENDMENT ~O 
H.P. 9, L.D. 5 
Legislature having jurisdiction over agriculture, conservation and forestry matters 
regarding the payments. 
The amendment also adds an appropriations and allocations section. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
Approved: 05/l3/13 frac.. 
LD5 
LR 242(02) 
An Act To Make Changes to the Potato Marketing Improvement Fund 
Fiscal Note for Bill as Amended by Committee Amendment~' ( H - /q~) 
Committee: Agriculture, Conservation and Forestry 
Appropriations! Allocations 
Other Special Revenue Funds 
Revenue 
Other Special Revenue Funds 
Fiscal Detail and Notes 
Fiscal Note Required: Yes 
Fiscal Note 
FY 2013-14 
FY 2014-15 
($165,491) 
($168,103) 
($165,491) 
($168,103) 
Projections 
FY 2015-16 
($170,896) 
($168,103) 
Projections 
FY 2016-17 
($173,773) 
($168,103) 
This legislation transfers governance of the Potato Marketing Improvement Fund from the Department of Agriculture, 
Conservation and Forestry to the Maine Potato Board. As a result, the bill includes a deallocation of$165,491 in 
fiscal year 2013-14 and $168,103 in fiscal year 2014-15 to the department related to Personal Services and All Other 
costs for one Potato Storage Consultant position. Since the bill transfers this position's responsibilities but not the 
actual position to the Maine Potato Board, this analysis assumes the position would be eliminated. Additionally, the 
department receives reimbursement from the Finance Authority of Maine for the costs of this position. This revenue, 
$165,491 in fiscal year 2013-14 and $168,103 in fiscal year 2014-15, would be eliminated in the bill. 
Additional costs to the Finance Authority of Maine can be absorbed within existing budgeted resources. 
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LR0242(02) - Fiscal Note - Page 1 of 1