Senate Bill sb1770c1

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    Florida Senate - 2004        (Corrected Copy)   CS for SB 1770

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


    303-2144-04

  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,

22         court costs, and reasonable attorney's fees;

23         providing for a collection allowance; providing

24         for refunds; providing for a referendum on

25         continuing this act; providing for council

26         bylaws; providing a contingent effective date.

27  

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

29  

30         Section 1.  Section 570.9135, Florida Statutes, is

31  created to read:

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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 whether the assessment program within this act

15  should be approved, with a separate question to determine

16  whether the program, if approved, will be funded through

17  specific contributions that are mandatory and refundable upon

18  request or voluntary at the point of sale.

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

20  conducted by secret ballot at extension offices of the

21  Institute of Food and Agricultural Sciences of the University

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

23  Agriculture with the cooperation of the department.

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

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

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

27  referendum is held.

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

29  the amount of assessments to be deducted from the gross

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

31  in a 3-year period.

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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 may deduct from the gross receipts of the seller,

10  at the time of sale, an assessment in an amount of up to $1

11  per head, as recommended by the council, on all cattle

12  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.

18         (c)  The council shall maintain within its financial

19  records a separate accounting of all moneys received under

20  this subsection.

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

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

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

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

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

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

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

28  the cost of enforcing the collection of the assessment, court

29  costs, and reasonable attorney's fees. The action shall be

30  tried and judgment rendered as in any other cause of action

31  

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 1  for debts due and payable. All assessments, penalties, and

 2  enforcement costs are due and payable to the council.

 3         (e)  All moneys deducted under this subsection are

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

 5  provided for under the tax laws of this state.

 6         (f)  The council may adopt reciprocal agreements with

 7  other beef councils or similar organizations relating to

 8  moneys collected at Florida collecting agencies on cattle from

 9  other states and to Florida cattle sold at other state

10  markets.

11         (g)  The collecting agent shall be entitled to deduct

12  2.5 percent of the amount collected to retain as a reasonable

13  collection allowance prior to remitting the funds to the

14  council.

15         (11)  REFUNDS.--

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

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

18  prompt and full refund on request.

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

20  agents business forms permitting requests for refund, which

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

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

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

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

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

26  deducted, and must have attached thereto proof of the

27  assessment deducted.

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

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

30  as it considers necessary to determine the validity of the

31  

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 1  claim. Any dispute arising under this subsection shall be

 2  determined as specified in paragraph (10)(d).

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

 4  refund.

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

 6  certified mail to the Florida Beef Council office of petitions

 7  from at least 15 counties containing signatures of at least

 8  200 beef producers from each county and stating "Shall the

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

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

11  majority of the beef producers voting in the referendum

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

13  referendum held under this subsection may not be held more

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

15  signature and vote are the same as those required in

16  subsection (6).

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

18  90 days after this act becomes a law, adopt bylaws to carry

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

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

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

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

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

24  state.

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

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

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

28  assessments be conducted, before the effective date of

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

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

31  Florida Commissioner of Agriculture.

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 1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 2                         Senate Bill 1770

 3                                 

 4  Instead of determining the amount of assessments on the sale
    of cattle, the initial referendum will let the beef producers
 5  decide if an assessment program is wanted, and if so, whether
    the program would be mandatory with refund provisions or
 6  voluntary at the point of sale.

 7  The time period in which a referendum can address the issue of
    a prospective increase is changed from once in a 5-year period
 8  to once in a 3-year period.

 9  Language is changed from "shall" to "may" to clarify that the
    program is a voluntary program and that the assessment is
10  capped at $1.00 per head as set by the Beef Council.

11  Deletes a provision that put the collecting agent's license at
    risk for failure to collect and forward funds.
12  
    Adds "attorney fees" to amounts that can be recovered in
13  collection actions and provides that refund disputes will be
    handled in the same manner as collection disputes.
14  
    Allows a collection agent to retain 2 1/2 percent as a
15  collection allowance.

16  

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