House Agriculture Committee hears testimony on bills to repeal wholesale potato-dealer licensing

The House Agriculture Committee considered testimony on House Bill 4881 and House Bill 4882, measures that would repeal Michigan's licensing requirement for wholesale potato dealers and related bond provisions.

Representative Nyar, sponsor and committee member, told the panel the bills are part of a "red tape package" intended to remove outdated or ineffective regulations affecting the potato industry. He said potatoes are a significant state crop, "supporting about 20,000 jobs and roughly $2.5 billion in revenue," and argued the legacy $100,000 bond requirement in the Wholesale Potato Dealers Act no longer provides meaningful protection to growers. "By repealing this outdated state licensing system, these bills will eliminate red tape, reduce cost to businesses, and allow MDARD to focus its resources on more effective programs and better serve the farmers and consumers," Representative Nyar said.

Committee members pressed for details about the program's current scope and fiscal impact. One lawmaker asked how many growers currently pay the license; Representative Nyar said it is "literally a handful," and the committee's fiscal analysis shows the program transacts less than $1,000 in fees at present. Representative Skeggs asked whether the bond had ever been used to reimburse unpaid growers since the statute's 1964 enactment; Representative Nyar said he was not aware of a specific claim and offered to follow up with the committee.

Dr. Kelly Turner, testifying for potato growers, told the committee there are "between 18 and 20 wholesale potato dealers" or entities that meet the statutory definition in Michigan. Turner recounted that in the early 1990s the failure of a distributor (Jack Mall Potato Company) left growers unpaid and that even then the bond covered only a fraction of losses. "The dollar amounts are ridiculous," Turner said, characterizing the current bond and licensing regime as ineffective and arguing that MDARD's staff time would be better spent on other priorities. Turner also described the marketing role commodity groups play in educating consumers about where processed food originates.

The committee read into the record written support from Mikaela (MDARD), Tim Golding and Sunny Koch of Americans for Prosperity, Michigan. No formal committee vote on House Bills 4881 or 4882 was recorded during the session. Representative Alexander moved to excuse absent members; the motion prevailed by voice. With no further business, the chair adjourned the committee.

Next steps: The bills were discussed and received testimony but no committee action on the measures was recorded in the transcript; representatives indicated staff follow-up on historical bond use would be provided.