Senate Bill sb1770

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    Florida Senate - 2004                                  SB 1770

    By Senators Argenziano, Dockery, Crist, Hill, Bullard,
    Wasserman Schultz, Siplin, Pruitt, Aronberg, Posey, Smith,
    Peaden, Campbell, Alexander and Bennett



    3-857-04

  1                      A bill to be entitled

  2         An act relating to the Florida beef industry;

  3         creating s. 570.9135, F.S.; providing a short

  4         title; providing legislative intent; defining

  5         terms; creating the Florida Beef Council, Inc.;

  6         providing purposes; providing powers and duties

  7         of the council and restrictions upon actions of

  8         the council; providing for a board of directors

  9         of the council; providing for a referendum on

10         assessments proposed to be deducted from the

11         sale of each head of cattle; allowing the

12         council to accept grants and gifts; providing

13         guidelines for payments to other organizations;

14         providing for the collection of assessments at

15         the time of marketing; providing duties of

16         marketing agents and collecting agents;

17         requiring the council to maintain a separate

18         accounting of moneys received from assessments;

19         providing for legal action to collect

20         delinquent assessments; providing for the

21         collection of penalties, enforcement costs, and

22         court costs; providing for refunds; providing

23         for a referendum on continuing this act;

24         providing for council bylaws; providing a

25         contingent effective date.

26  

27  Be It Enacted by the Legislature of the State of Florida:

28  

29         Section 1.  Section 570.9135, Florida Statutes, is

30  created to read:

31  

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 1         570.9135  Beef Market Development Act; definitions;

 2  Florida Beef Council, Inc., creation, purposes, governing

 3  board, powers, and duties; referendum on assessments imposed

 4  on gross receipts from cattle sales; payments to organizations

 5  for services; collecting and refunding assessments; vote on

 6  continuing the act; council bylaws.--

 7         (1)  SHORT TITLE.--This act may be cited as the "Beef

 8  Market Development Act."

 9         (2)  LEGISLATIVE INTENT.--The Legislature intends by

10  this act to promote the growth of the cattle industry in this

11  state; to assure the public an adequate and wholesome food

12  supply; to provide for the general economic welfare of

13  producers and consumers of beef and the state; and to provide

14  the beef cattle production and feeding industry of this state

15  with the authority to establish a self-financed, self-governed

16  program to help develop, maintain, and expand the state,

17  national, and foreign markets for beef and beef products that

18  are produced, processed, or manufactured in this state.

19         (3)  DEFINITIONS.--As used in this act, the term:

20         (a)  "Beef" or "beef products" means the products of

21  beef intended for human consumption which are derived from any

22  bovine animal, regardless of age, including, but not limited

23  to, veal.

24         (b)  "Cattle" means such animals as are so designated

25  by federal law, including any marketing, promotion, and

26  research orders as are in effect. Unless such federal law

27  provides to the contrary, the term "cattle" includes all

28  bovine animals, regardless of age, including, but not limited

29  to, calves. A cow and nursing calf sold together are

30  considered one unit.

31         (c)  "Council" means the Florida Beef Council, Inc.

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 1         (d)  "Department" means the Department of Agriculture

 2  and Consumer Services.

 3         (e)  "Market agent," "market agency," "collection

 4  agent," or "collection agency" means a person who sells,

 5  offers for sale, markets, distributes, trades, or processes

 6  cattle that have been purchased or acquired from a producer or

 7  that are marketed on behalf of a producer. The terms also

 8  include meatpacking firms and their agents which purchase or

 9  consign to purchase cattle.

10         (f)  "Person" means any natural person, partnership,

11  corporation, company, association, society, trust, or other

12  business unit or organization.

13         (g)  "Producer" means a person that has owned or sold

14  cattle in the previous calendar year or presently owns cattle.

15         (4)  FLORIDA BEEF COUNCIL, INC.; CREATION; PURPOSES.--

16         (a)  There is created the Florida Beef Council, Inc., a

17  not-for-profit corporation organized under the laws of this

18  state and operating as a direct-service organization of the

19  department.

20         (b)  The intents and purposes of this act shall be

21  financed through an assessment imposed on each head of cattle

22  sold in this state, which assessment must be approved by a

23  simple majority vote of beef producers in this state.

24         (c)  The purposes and objectives of the program are to:

25         1.  Plan, implement, and conduct programs of promotion,

26  research, and consumer information or industry information

27  which are designed to strengthen the cattle industry's market

28  position in this state and in the nation and to maintain and

29  expand domestic and foreign markets and uses for beef and beef

30  products.

31  

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 1         2.  Administer and receive assessments from any cattle

 2  sold in this state for the purpose of funding cattle

 3  production and beef research, education, promotion, and

 4  consumer and industry information in this state and in the

 5  nation.

 6         3.  Develop, implement, and monitor the

 7  assessment-collection system for this state.

 8         4.  Plan and implement a cattle and beef industry

 9  feedback program in this state.

10         5.  Coordinate the assessment system for this state

11  with any national program, as well as with other states, so as

12  to coordinate research, education, promotion, industry, and

13  consumer information programs.

14         6.  Develop new uses and markets for beef and beef

15  products.

16         7.  Develop and improve methods of distributing beef

17  and beef products to the consumer.

18         8.  Develop methods of improving the quality of beef

19  and beef products for the benefit of consumers.

20         9.  Inform and educate the public concerning the

21  nutritive and economic values of beef and beef products.

22         10.  Serve as a liaison within the beef and other food

23  industries of the state and elsewhere in matters that would

24  increase efficiencies that ultimately benefit both consumers

25  and industry.

26         11.  Establish the amount per head for an assessment to

27  be collected for this state.

28         12.  Coordinate collection of assessments among

29  neighboring states.

30         13.  Establish refund procedures and criteria for any

31  producer from whom an assessment has been collected.

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 1         14.  Buy, sell, mortgage, rent, or improve, in any

 2  manner that the council considers expedient, real property or

 3  personal property, or both.

 4         15.  Publish and distribute such papers or periodicals

 5  as the board of directors considers necessary to encourage and

 6  accomplish the purposes of the council.

 7         16.  Do all other acts necessary or expedient for the

 8  administration of the affairs and attainment of the purposes

 9  of the council.

10         17.  Approve an annual plan, budget, and audit for the

11  council.

12         (d)1.  The council may not participate in or intervene

13  in any political campaign on behalf of or in opposition to any

14  candidate for public office. This restriction includes, but is

15  not limited to, a prohibition against publishing or

16  distributing any statements.

17         2.  No part of the net receipts of the council shall

18  inure to the benefit of or be distributable to its directors,

19  its officers, or other private persons, except that the

20  council may pay reasonable compensation for services rendered

21  by staff employees and may make payments and distributions in

22  furtherance of the purposes of this act.

23         3.  Notwithstanding any other provision of law, the

24  council may not carry on any other activities not permitted to

25  be carried on:

26         a.  By a corporation exempt from federal income tax

27  under s. 501(c)(3) of the Internal Revenue Code of 1986, as

28  amended; or

29         b.  By a corporation to which contributions are

30  deductible under s. 170(c)(2) of the Internal Revenue Code of

31  1986, as amended.

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 1         4.  Notwithstanding any other statement of the purposes

 2  and responsibilities of the council, the council may not

 3  engage in any activities or exercise any powers that are not

 4  in furtherance of its specific and primary purposes.

 5         (5)  GOVERNING BOARD.--

 6         (a)  The Florida Beef Council, Inc., shall be governed

 7  by a board of directors composed of 13 members, including 8

 8  representatives of the Florida Cattlemen's Association, of

 9  whom one is a representative of the Florida Association of

10  Livestock Markets; one a representative of the Dairy Farmers,

11  Inc.; one a representative of the Florida CattleWomen, Inc.;

12  one a representative of the Florida Farm Bureau Federation;

13  one an allied-industry representative; and one an Institute of

14  Food and Agricultural Sciences representative.

15         (b)  The initial board of directors shall be appointed

16  by the Commissioner of Agriculture for a term of 1 year. Each

17  subsequent vacancy shall be filled in accordance with the

18  bylaws of the council. Thereafter, each board member shall be

19  appointed to serve a 3-year term and may be reappointed to

20  serve an additional consecutive term. A member may not serve

21  more than two consecutive terms. A member must be a resident

22  of this state and must be a beef producer who has been a beef

23  producer for at least the 5 years immediately preceding the

24  first day of his or her service on the board, except that the

25  representative of the Florida Farm Bureau Federation, the

26  allied-industry representative, and the Institute of Food and

27  Agricultural Sciences representative need not be beef

28  producers. All beef council board positions shall be

29  unsalaried; however, the board members are entitled to

30  reimbursement as provided in s. 112.061 for travel and other

31  

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 1  expenses incurred in carrying out the intents and purposes of

 2  this act.

 3         (c)  The council shall provide for its officers through

 4  its bylaws, including the ability to set forth offices and

 5  responsibilities and form committees necessary for the

 6  implementation of this act. The Commissioner of Agriculture

 7  may designate an exofficio nonvoting member of the board of

 8  directors.

 9         (d)  If a member of the board misses three consecutive,

10  officially called meetings, the board of directors may declare

11  that position vacant.

12         (6)  REFERENDUM ON ASSESSMENTS.--All beef producers in

13  this state shall have the opportunity to vote in a referendum

14  to determine the amount of assessments to be deducted from the

15  gross receipts of the sale of cattle in this state to be used

16  to finance this act.

17         (a)  A referendum held under this section must be

18  conducted by secret ballot at extension offices of the

19  Institute of Food and Agricultural Sciences of the University

20  of Florida or at offices of the United States Department of

21  Agriculture with the cooperation of the department.

22         (b)  Notice of a referendum to be held under this act

23  must be given at least once in trade publications, the public

24  press, and statewide newspapers at least 30 days before the

25  referendum is held.

26         (c)  Only one referendum on a prospective increase in

27  the amount of assessments to be deducted from the gross

28  receipts of the sale of cattle in this state may be conducted

29  in a 5-year period.

30  

31  

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 1         (d)  Each cattle producer is entitled to only one vote

 2  in a referendum held under this act. Proof of identification

 3  and cattle ownership must be presented before voting.

 4         (e)  A simple majority of those casting ballots shall

 5  determine any issue that requires a referendum under this act.

 6         (7)  POWERS AND DUTIES OF THE COUNCIL.--

 7         (a)  The council shall:

 8         1.  Receive and disburse funds, as prescribed elsewhere

 9  in this act, to be used in administering and implementing the

10  act.

11         2.  Maintain a permanent record of its business

12  proceedings.

13         3.  Maintain a permanent, detailed record of its

14  financial dealings.

15         4.  Prepare periodic reports and an annual report of

16  its activities for the fiscal year, for review by the beef

17  industry in this state, and file its annual report with the

18  department.

19         5.  Prepare, for review by the beef industry in this

20  state, periodic reports and an annual accounting for each

21  fiscal year of all receipts and expenditures, and shall retain

22  a certified public accountant for this purpose.

23         6.  Appoint a licensed banking institution to serve as

24  the depository for program funds and to handle disbursements

25  of those funds.

26         7.  Maintain frequent communication with officers and

27  industry representatives at the state and national levels,

28  including the department.

29         8.  Maintain an office in this state.

30         (b)  The council may:

31  

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 1         1.  Conduct or contract for scientific research with

 2  any accredited university, college, or similar institution,

 3  and enter into other contracts or agreements that will aid in

 4  carrying out the purposes of the program, including contracts

 5  for the purchase or acquisition of facilities or equipment

 6  necessary to carry out the purposes of the program.

 7         2.  Disseminate reliable information benefiting the

 8  consumer and the beef industry on subjects such as, but not

 9  limited to, the purchase, identification, care, storage,

10  handling, cookery, preparation, serving, and nutritive value

11  of beef and beef products.

12         3.  Provide to government bodies, on request,

13  information relating to subjects of concern to the beef

14  industry, and may act jointly or in cooperation with the state

15  or Federal Government, and agencies thereof, in the

16  development or administration of programs that the council

17  considers to be consistent with the objectives of the program.

18         4.  Sue and be sued as a council without individual

19  liability of the members for acts of the council when acting

20  within the scope of the powers of this act and in the manner

21  prescribed by the laws of this state.

22         5.  Borrow from licensed lending institutions money in

23  amounts that are not cumulatively greater than 50 percent of

24  the council's anticipated annual income.

25         6.  Maintain a financial reserve for emergency use, the

26  total of which must not exceed 50 percent of the council's

27  anticipated annual income.

28         7.  Appoint advisory groups composed of representatives

29  from organizations, institutions, governments, or businesses

30  related to or interested in the welfare of the beef industry

31  and the consuming public.

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 1         8.  Employ subordinate officers and employees of the

 2  council, prescribe their duties, and fix their compensation

 3  and terms of employment.

 4         9.  Cooperate with any local, state, regional, or

 5  nationwide organization or agency engaged in work or

 6  activities consistent with the objectives of the program.

 7         10.  Cause any duly authorized agent or representative

 8  to enter upon the premises of any market agency, market agent,

 9  collection agency, or collection agent and examine or cause to

10  be examined by the authorized agent only books, papers, and

11  records that deal with the payment of the assessment provided

12  for in this act or with the enforcement of this act.

13         11.  Do all other things necessary to further the

14  intent of this act which are not prohibited by law.

15         (8)  ACCEPTANCE OF GRANTS AND GIFTS.--The council may

16  accept grants, donations, contributions, or gifts from any

17  source if the use of such resources is not restricted in any

18  manner that the council considers to be inconsistent with the

19  objectives of the program.

20         (9)  PAYMENTS TO ORGANIZATIONS.--

21         (a)  The council may pay funds to other organizations

22  for work or services performed which are consistent with the

23  objectives of the program.

24         (b)  Before making payments described in this

25  subsection, the council must secure a written agreement that

26  the organization receiving payment will:

27         1.  Furnish at least annually, or more frequently on

28  request of the council, written or printed reports of program

29  activities and reports of financial data that are relative to

30  the council's funding of such activities; and

31  

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 1         2.  Agree to have appropriate representatives attend

 2  business meetings of the council as reasonably requested by

 3  the chairperson of the council.

 4         (c)  The council may require adequate proof of security

 5  bonding on funds paid to any individual, business, or other

 6  organization.

 7         (10)  COLLECTION OF MONEYS AT TIME OF MARKETING.--

 8         (a)  Each marketing agency licensed to do business in

 9  this state shall deduct from the gross receipts of the seller,

10  at the time of sale, an assessment established by referendum

11  in an amount of up to $1 per head, as recommended by the

12  council, on all cattle marketed in this state.

13         (b)  The collecting agent shall collect all such moneys

14  and forward them to the council periodically, at least once a

15  month, and the council shall provide appropriate business

16  forms for the convenience of the collecting agent in executing

17  this duty. Failure of the collecting agent to deduct or

18  forward funds under this subsection is grounds for the council

19  to request that the department suspend or refuse to issue the

20  collecting agent's license.

21         (c)  The council shall maintain within its financial

22  records a separate accounting of all moneys received under

23  this subsection.

24         (d)  Any due and payable assessment required under this

25  act constitutes a personal debt of the person who is so

26  assessed or who otherwise owes the assessment. If a person

27  fails to remit any properly due assessment, the council may

28  bring a civil action against that person in the circuit court

29  of any county for the collection thereof, and may add a

30  penalty in the amount of 10 percent of the assessment owed,

31  the cost of enforcing the collection of the assessment, and

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 1  court costs. The action shall be tried and judgment rendered

 2  as in any other cause of action for debts due and payable. All

 3  assessments, penalties, and enforcement costs are due and

 4  payable to the council.

 5         (e)  All moneys deducted under this subsection are

 6  considered to be bona fide business expenses for the seller as

 7  provided for under the tax laws of this state.

 8         (f)  The council may adopt reciprocal agreements with

 9  other beef councils or similar organizations relating to

10  moneys collected at Florida collecting agencies on cattle from

11  other states and to Florida cattle sold at other state

12  markets.

13         (11)  REFUNDS.--

14         (a)  A seller of cattle who has had moneys deducted

15  from his gross sales receipts under this act is entitled to a

16  prompt and full refund on request.

17         (b)  The council shall make available to all collecting

18  agents business forms permitting requests for refund, which

19  forms are to be submitted by the objecting cattle producer or

20  owner within 45 days after the sale transaction takes place.

21         (c)  A refund claim made by the cattle producer or

22  owner must include the claimant's signature, date of sale,

23  place of sale, number of cattle, and amount of assessment

24  deducted, and must have attached thereto proof of the

25  assessment deducted.

26         (d)  If the council has reasonable doubt that a refund

27  claim is valid, it may withhold payment and take such action

28  as it considers necessary to determine the validity of the

29  claim.

30         (e)  Only the producer may initiate a request for

31  refund.

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 1         (12)  VOTE ON CONTINUING THE ACT.--Upon the delivery by

 2  certified mail to the Florida Beef Council office of petitions

 3  from at least 15 counties containing signatures of at least

 4  200 beef producers from each county and stating "Shall the

 5  Beef Market Development Act continue," the council shall,

 6  within 90 days, conduct a referendum to determine whether a

 7  majority of the beef producers voting in the referendum

 8  support the continuation of the Beef Market Development Act. A

 9  referendum held under this subsection may not be held more

10  than one time in each 5-year period. Qualifications for

11  signature and vote are the same as those required in

12  subsection (6).

13         (13)  BYLAWS.--The Florida Beef Council shall, within

14  90 days after this act becomes a law, adopt bylaws to carry

15  out the intents and purposes of this act. These bylaws may be

16  amended with a 30-day notice to board members at any regular

17  or special meeting called for this purpose. The bylaws must

18  conform to the requirements of this act, but may also address

19  any matter not in conflict with the general laws of this

20  state.

21         Section 2.  This act shall take effect upon becoming a

22  law; however, an assessment on head of cattle sold may not be

23  imposed under this act, nor may a referendum relating to such

24  assessments be conducted, before the effective date of

25  dissolution of the Beef Promotion and Research Act of 1985,

26  Pub. L. No. 99-198, which date shall be determined by the

27  Florida Commissioner of Agriculture.

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 1            *****************************************

 2                          SENATE SUMMARY

 3    Creates the "Beef Market Development Act." Creates the
      Florida Beef Council, Inc. Provides for a program of
 4    assessing fees on the sale of cattle, contingent on the
      dissolution of a federal program. (See bill for details.)
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