Section 285.319 - Farm produce insurance fund; establishment; payments; allocation for administrative expenses; payment for legal services and expenses; investment officer; manner of investment; estab - Michigan Statutes

FARM PRODUCE INSURANCE ACT (EXCERPT)
Act 198 of 2003

285.319 Farm produce insurance fund; establishment; payments; allocation for administrative expenses; payment for legal services and expenses; investment officer; manner of investment; establishment of fiscal year.

Sec. 9.

(1) The farm produce insurance fund is established under the direction and control of the board. The fund shall consist of producer premiums, money from any other source, and interest and earnings from any other source. The board shall direct payments from the fund only for the following purposes:

(a) Payment of valid claims under section 15.

(b) Payment of producer premium refunds under section 13.

(c) Payment of administrative expenses under subsection (2).

(d) Payment of legal fees and legal expenses under subsection (3).

(2) The board shall allocate money from the fund to a separate administrative expenses account to pay administrative expenses. This allocation shall not exceed $250,000.00 in any fiscal year. Administrative expenses under this subsection include the actual cost of processing refunds of producer premiums, enforcement, record keeping, ordinary management and investment fees connected with the operation of the fund, verification cost under section 11(5), and any other expenses approved by the board. Administrative expenses do not include legal fees and legal expenses described in subsection (3).

(3) For legal services requested by the board, the board shall pay for any legal services and legal expenses required by the authority, board, or fund from money in the fund. Legal services and expenses described in this subsection are not administrative expenses and shall not be paid from the administrative expenses account.

(4) The treasurer of the board shall act as the investment officer of the fund and shall invest or direct a financial institution to invest the money in the fund that is not currently needed to meet the obligations of the fund. The treasurer of the board shall invest or direct the investment of the money only in the manner permitted in section 1 of 1943 PA 20, MCL 129.91. Interest and earnings shall be credited to the fund.

(5) The fund shall operate on a fiscal year established by the board.

History: 2003, Act 198, Imd. Eff. Nov. 10, 2003