HB 0905

CS

CHAMBER ACTION

1	The Committee on Finance & Tax recommends the following:
2
3	Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to the Florida beef industry; creating s.
7	570.9135, F.S.; providing a popular name; providing
8	legislative intent; defining terms; creating the Florida
9	Beef Council, Inc.; authorizing the council to impose an
10	assessment on each head of cattle sold in the state
11	subject to approval by referendum; providing powers and
12	duties of the council and restrictions upon actions of the
13	council; providing for a board of directors of the
14	council; providing requirements for a referendum on
15	assessments; allowing the council to accept grants and
16	gifts; providing guidelines for payments to other
17	organizations; providing for the collection of assessments
18	at the time of sale; requiring the council to maintain a
19	separate accounting of assessments received; providing for
20	legal action to collect delinquent assessments; providing
21	for the collection of penalties, enforcement costs, court
22	costs, and reasonable attorney fees; providing for a
23	collection allowance; providing for refunds; providing for
24	a referendum on continuing the assessment; providing for
25	council bylaws; providing a 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 created
30	to read:
31	570.9135  Beef Market Development Act; definitions; Florida
32	Beef Council, Inc., creation, governing board, powers and
33	duties; referendum on assessments; payments to organizations for
34	services; collecting and refunding assessments; vote on
35	continuing the assessment; council bylaws.--
36	(1)  POPULAR NAME.--This act shall be known by the popular
37	name the "Beef Market Development Act."
38	(2)  LEGISLATIVE INTENT.--The Legislature intends by this
39	act to promote the growth of the cattle industry in this state;
40	to assure the public of an adequate and wholesome food supply;
41	to provide for the general economic welfare of producers,
42	consumers of beef, and the state; and to provide the beef cattle
43	production and feeding industry of this state with the authority
44	to establish a self-financed, self-governed program to help
45	develop, maintain, and expand the state, national, and foreign
46	markets for beef and beef products that are produced, processed,
47	or manufactured in this state.
48	(3)  DEFINITIONS.--As used in this act, the term:
49	(a)  "Beef" or "beef products" means the products of beef
50	intended for human consumption which are derived from any bovine
51	animal, regardless of age, including, but not limited to, veal.
52	(b)  "Cattle" means such animals as are so designated by
53	federal law, including any marketing, promotion, and research
54	orders as are in effect. Unless such federal law provides to the
55	contrary, the term "cattle" includes all bovine animals,
56	regardless of age, including, but not limited to, calves. A cow
57	and nursing calf sold together are considered one unit.
58	(c)  "Collection agent" means a person who sells, offers
59	for sale, markets, distributes, trades, or processes cattle that
60	have been purchased or acquired from a producer or that are
61	marketed on behalf of a producer. The term also includes
62	meatpacking firms and their agents that purchase or consign to
63	purchase cattle.
64	(d)  "Council" means the Florida Beef Council, Inc.
65	(e)  "Department" means the Department of Agriculture and
66	Consumer Services.
67	(f)  "Person" means any natural person, partnership,
68	corporation, company, association, society, trust, or other
69	business unit or organization.
70	(g)  "Producer" means a person that has owned or sold
71	cattle in the previous calendar year or that presently owns
72	cattle.
73	(4)  FLORIDA BEEF COUNCIL, INC.--
74	(a)  There is created the Florida Beef Council, Inc., a
75	not-for-profit corporation organized under the laws of this
76	state and operating as a direct-service organization of the
77	department.
78	(b)  The council is authorized to impose an assessment of
79	not more than $1 on each head of cattle sold in the state if the
80	imposition of the assessment is approved by referendum pursuant
81	to subsection (6). The proceeds of the assessment shall be used
82	to fund the activities of the council. The council shall:
83	1.  Establish the amount of the assessment at not more than
84	$1 per head of cattle.
85	2.  Develop, implement, and monitor a collection system for
86	the assessment.
87	3.  Coordinate the collection of the assessment with other
88	states.
89	4.  Establish refund procedures.
90	5.  Conduct referenda under subsections (6) and (12).
91	(c)  In addition, the council shall:
92	1.  Plan, implement, and conduct programs of promotion,
93	research, and consumer information or industry information which
94	are designed to strengthen the cattle industry's market position
95	in this state and in the nation and to maintain and expand
96	domestic and foreign markets and expand uses for beef and beef
97	products.
98	2.  Use the proceeds of the assessment for the purpose of
99	funding cattle production and beef research, education,
100	promotion, and consumer and industry information in this state
101	and in the nation.
102	3.  Plan and implement a cattle and beef industry feedback
103	program in this state.
104	4.  Coordinate research, education, promotion, and consumer
105	and industry information programs with any national programs or
106	programs of other states.
107	5.  Develop new uses and markets for beef and beef
108	products.
109	6.  Develop and improve methods of distributing beef and
110	beef products to the consumer.
111	7.  Develop methods of improving the quality of beef and
112	beef products for the benefit of consumers.
113	8.  Inform and educate the public concerning the nutritive
114	and economic values of beef and beef products.
115	9.  Serve as a liaison within the beef and other food
116	industries of the state and elsewhere in matters that would
117	increase efficiencies that ultimately benefit both consumers and
118	industry.
119	10.  Buy, sell, mortgage, rent, or improve, in any manner
120	that the council considers expedient, real property or personal
121	property, or both.
122	11.  Publish and distribute such papers or periodicals as
123	the board of directors considers necessary to encourage and
124	accomplish the purposes of the council.
125	12.  Do all other acts necessary or expedient for the
126	administration of the affairs and attainment of the purposes of
127	the council.
128	13.  Approve an annual plan, budget, and audit for the
129	council.
130	(d)1.  The council may not participate in or intervene in
131	any political campaign on behalf of or in opposition to any
132	candidate for public office. This restriction includes, but is
133	not limited to, a prohibition against publishing or distributing
134	any statements.
135	2.  No part of the net receipts of the council shall inure
136	to the benefit of or be distributable to its directors, its
137	officers, or other private persons, except that the council may
138	pay reasonable compensation for services rendered by staff
139	employees and may make payments and distributions in furtherance
140	of the purposes of this act.
141	3.  Notwithstanding any other provision of law, the council
142	may not carry on any other activities not permitted to be
143	carried on:
144	a.  By a corporation exempt from federal income tax under
145	s. 501(c)(3) of the Internal Revenue Code of 1986, as amended;
146	or
147	b.  By a corporation to which contributions are deductible
148	under s. 170(c)(2) of the Internal Revenue Code of 1986, as
149	amended.
150	4.  Notwithstanding any other statement of the purposes and
151	responsibilities of the council, the council may not engage in
152	any activities or exercise any powers that are not in
153	furtherance of its specific and primary purposes.
154	(5)  GOVERNING BOARD.--
155	(a)  The Florida Beef Council, Inc., shall be governed by a
156	board of directors composed of 13 members, including: eight
157	representatives of the Florida Cattlemen's Association, of whom
158	one shall be a representative of the Florida Association of
159	Livestock Markets and one shall be a practicing order buyer; one
160	representative of Dairy Farmers, Inc.; one representative of
161	Florida CattleWomen, Inc.; one representative of the Florida
162	Farm Bureau Federation; one representative of the allied
163	industry; and one representative of the University of Florida
164	Institute of Food and Agricultural Sciences.
165	(b)  The initial board of directors shall be appointed by
166	the Commissioner of Agriculture for a 1-year term. Thereafter,
167	each board member shall be appointed to serve a 3-year term and
168	may be reappointed to serve an additional consecutive term. A
169	member may not serve more than two consecutive terms. Each
170	vacancy shall be filled in accordance with the bylaws of the
171	council. A member must be a resident of this state and must be a
172	producer who has been a producer for at least the 5 years
173	immediately preceding the first day of his or her service on the
174	board, except that the representatives of the Florida Farm
175	Bureau Federation, the allied industry, and the Institute of
176	Food and Agricultural Sciences need not be producers. All beef
177	council board positions shall be unsalaried; however, the board
178	members are entitled to reimbursement as provided in s. 112.061
179	for travel and other expenses incurred in carrying out the
180	intents and purposes of this act. The Commissioner of
181	Agriculture may designate an ex officio nonvoting member of the
182	board of directors.
183	(c)  The council shall provide for its officers through its
184	bylaws, including the ability to set forth offices and
185	responsibilities and form committees necessary for the
186	implementation of this act.
187	(d)  If a member of the board misses three consecutive,
188	officially called meetings, the board of directors may declare
189	that position vacant.
190	(6)  REFERENDUM ON ASSESSMENTS.--All producers in this
191	state shall have the opportunity to vote in a referendum to
192	determine whether the council shall be authorized to impose an
193	assessment of not more than $1 per head on cattle sold in the
194	state. The referendum shall pose the question: "Do you approve
195	of an assessment program, up to $1 per head of cattle pursuant
196	to s. 570.9135, Florida Statutes, to be funded through specific
197	contributions that are mandatory and refundable upon request?"
198	(a)  A referendum held under this section must be conducted
199	by secret ballot at extension offices of the University of
200	Florida Institute of Food and Agricultural Sciences or at
201	offices of the United States Department of Agriculture, with the
202	cooperation of the department.
203	(b)  Notice of a referendum to be held under this act must
204	be given at least once in trade publications, the public press,
205	and statewide newspapers at least 30 days before the referendum
206	is held.
207	(c)  Additional referenda many be held to authorize the
208	council to increase the assessment to more than $1 per head of
209	cattle. Such referenda shall pose the question: "Do you approve
210	of granting the Florida Beef Council, Inc., authority to
211	increase the per-head-of-cattle assessment pursuant to s.
212	570.9135, Florida Statutes, from (present rate) up to a maximum
213	of (proposed rate) per head?" Referenda may not be held more
214	often than once every 3 years.
215	(d)  Each cattle producer is entitled to only one vote in a
216	referendum held under this act. Proof of identification and
217	cattle ownership must be presented before voting.
218	(e)  A simple majority of those casting ballots shall
219	determine any issue that requires a referendum under this act.
220	(7)  ADDITIONAL POWERS AND DUTIES OF THE COUNCIL.--
221	(a)  The council shall:
222	1.  Receive and disburse funds, as prescribed in this act,
223	to be used in administering and implementing the act.
224	2.  Maintain a permanent record of its business
225	proceedings.
226	3.  Maintain a permanent, detailed record of its financial
227	dealings.
228	4.  Prepare periodic reports and an annual report of its
229	activities for the fiscal year, for review by the beef industry
230	in this state, and file its annual report with the department.
231	5.  Prepare, for review by the beef industry in this state,
232	periodic reports and an annual accounting for each fiscal year
233	of all receipts and expenditures, and retain a certified public
234	accountant for this purpose.
235	6.  Appoint a licensed banking institution to serve as the
236	depository for program funds and to handle disbursements of
237	those funds.
238	7.  Maintain frequent communication with officers and
239	industry representatives at the state and national levels,
240	including the department.
241	8.  Maintain an office in this state.
242	(b)  The council may:
243	1.  Conduct or contract for scientific research with any
244	accredited university, college, or similar institution and enter
245	into other contracts or agreements that will aid in carrying out
246	the purposes of the program, including contracts for the
247	purchase or acquisition of facilities or equipment necessary to
248	carry out the purposes of the program.
249	2.  Disseminate reliable information benefiting the
250	consumer and the beef industry on subjects such as, but not
251	limited to, the purchase, identification, care, storage,
252	handling, cookery, preparation, serving, and nutritive value of
253	beef and beef products.
254	3.  Provide to government bodies, on request, information
255	relating to subjects of concern to the beef industry, and act
256	jointly or in cooperation with the state or Federal Government,
257	and agencies thereof, in the development or administration of
258	programs that the council considers to be consistent with the
259	objectives of the program.
260	4.  Sue and be sued as a council without individual
261	liability of the members for acts of the council when acting
262	within the scope of the powers of this act and in the manner
263	prescribed by the laws of this state.
264	5.  Borrow from licensed lending institutions money in
265	amounts that are not cumulatively greater than 50 percent of the
266	council's anticipated annual income.
267	6.  Maintain a financial reserve for emergency use, the
268	total of which must not exceed 50 percent of the council's
269	anticipated annual income.
270	7.  Appoint advisory groups composed of representatives
271	from organizations, institutions, governments, or businesses
272	related to or interested in the welfare of the beef industry and
273	the consuming public.
274	8.  Employ subordinate officers and employees of the
275	council, prescribe their duties, and fix their compensation and
276	terms of employment.
277	9.  Cooperate with any local, state, regional, or
278	nationwide organization or agency engaged in work or activities
279	consistent with the objectives of the program.
280	10.  Cause any duly authorized agent or representative to
281	enter upon the premises of any collection agent and examine or
282	cause to be examined by the authorized agent only books, papers,
283	and records that deal with the payment of the assessment
284	provided for in this act or with the enforcement of this act.
285	11.  Do all other things necessary to further the intent of
286	this act which are not prohibited by law.
287	(8)  ACCEPTANCE OF GRANTS AND GIFTS.--The council may
288	accept grants, donations, contributions, or gifts from any
289	source if the use of such resources is not restricted in any
290	manner that the council considers to be inconsistent with the
291	objectives of the program.
292	(9)  PAYMENTS TO ORGANIZATIONS.--
293	(a)  The council may pay funds to other organizations for
294	work or services performed which are consistent with the
295	objectives of the program.
296	(b)  Before making payments described in this subsection,
297	the council must secure a written agreement that the
298	organization receiving payment will:
299	1.  Furnish at least annually, or more frequently on
300	request of the council, written or printed reports of program
301	activities and reports of financial data that are relative to
302	the council's funding of such activities; and
303	2.  Agree to have appropriate representatives attend
304	business meetings of the council as reasonably requested by the
305	chair of the council.
306	(c)  The council may require adequate proof of security
307	bonding on funds paid to any individual, business, or other
308	organization.
309	(10)  COLLECTION OF MONEYS AT TIME OF SALE.--
310	(a)  Each collection agent may deduct from the gross
311	receipts of the producer, at the time of sale, the assessment
312	imposed by the council.
313	(b)  The collection agent shall collect all such moneys and
314	forward them to the council periodically, at least once a month,
315	and the council shall provide appropriate business forms for the
316	convenience of the collecting agent in executing this duty.
317	(c)  The council shall maintain within its financial
318	records a separate accounting of all moneys received under this
319	subsection.
320	(d)  The assessment is due and payable upon the sale of
321	cattle in this state. The assessment constitutes a personal debt
322	of the producer who is so assessed or who otherwise owes the
323	assessment. If a producer fails to remit any properly due
324	assessment, the council may bring a civil action against that
325	person in the circuit court of any county for the collection
326	thereof and may add a penalty in the amount of 10 percent of the
327	assessment owed, the cost of enforcing the collection of the
328	assessment, court costs, and reasonable attorney fees. The
329	action shall be tried and judgment rendered as in any other
330	cause of action for debts due and payable. All assessments,
331	penalties, and enforcement costs are due and payable to the
332	council.
333	(e)  The council may adopt reciprocal agreements with other
334	beef councils or similar organizations relating to moneys
335	collected by Florida collection agents on cattle from other
336	states and to Florida cattle sold at other state markets.
337	(f)  The collection agent shall be entitled to deduct 2.5
338	percent of the amount collected to retain as a reasonable
339	collection allowance prior to remitting the funds to the
340	council.
341	(11)  REFUNDS.--
342	(a)  A producer who has had moneys deducted from his or her
343	gross sales receipts under this act is entitled to a prompt and
344	full refund on request.
345	(b)  The council shall make available to all collection
346	agents business forms permitting requests for refund, which
347	forms are to be submitted by the objecting producer within 45
348	days after the sale transaction takes place.
349	(c)  A refund claim must include the claimant's signature,
350	date of sale, place of sale, number of cattle, and amount of
351	assessment deducted, and must have attached thereto proof of the
352	assessment deducted.
353	(d)  If the council has reasonable doubt that a refund
354	claim is valid, it may withhold payment and take such action as
355	it considers necessary to determine the validity of the claim.
356	Any dispute arising under this subsection shall be determined as
357	specified in paragraph (10)(d).
358	(e)  Only the producer may initiate a request for refund.
359	(12)  VOTE ON CONTINUING THE ASSESSMENT.--Upon the delivery
360	by certified mail to the Florida Beef Council, Inc., office of
361	petitions from at least 1,800 producers or 10 percent of
362	Florida's producers as determined by the department, whichever
363	is less, stating, "Shall the assessment authorized by the Beef
364	Market Development Act continue?" the council shall, within 90
365	days, conduct a referendum to determine whether a majority of
366	the producers voting in the referendum support the continuation
367	of the Beef Market Development Act. All signatures must be
368	collected within a 12-month period. A referendum held under this
369	subsection may not be held more than one time in a 3-year
370	period. Qualifications for identification and vote are the same
371	as those required in subsection (6).
372	(13)  BYLAWS.--The Florida Beef Council, Inc., shall,
373	within 90 days after this section becomes a law, adopt bylaws to
374	carry out the intents and purposes of this act. These bylaws may
375	be amended with a 30-day notice to board members at any regular
376	or special meeting called for this purpose. The bylaws must
377	conform to the requirements of this act but may also address any
378	matter not in conflict with the general laws of this state.
379	Section 2.  This act shall take effect upon becoming a law;
380	however, an assessment on a head of cattle sold may not be
381	imposed under this act, nor may a referendum relating to such
382	assessment be conducted, before the effective date that the stay
383	is vacated for the injunction issued by the United States
384	District Court of the District of South Dakota, Northern
385	Division in Livestock Marketing Association et al. v. USDA and
386	Nebraska Cattlemen, Inc. et al., 207 F. Supp. 2d 992, of
387	collection of the assessment authorized by the Beef Promotion
388	and Research Act, 7 U.S.C. s. 2901, et seq., and the Beef Order
389	promulgated thereunder, or before the assessment authorized by
390	the Beef Promotion and Research Act, 7 U.S.C. s. 2901, et seq.,
391	and the Beef Order promulgated thereunder, is otherwise
392	repealed, stayed, or enjoined by the United States Congress, by
393	a court, or by other operation of law. Such date shall be
394	determined by the Florida Commissioner of Agriculture.

CODING: Words stricken are deletions; words underlined are additions.