Citations Affected: IC 15-6; noncode.
Synopsis: Dairy industry development board. Creates the Indiana dairy
industry development board. Establishes the procedure for selection of
board members and operation of the board. Imposes an assessment of
$0.10 per hundredweight on all milk produced in Indiana for
commercial use. Establishes the dairy industry development fund and
requires that all assessments be deposited in the fund. Allows the board
to use money from the fund to sponsor projects with any private or
public organization for advertising and promotion, market research,
nutrition and product research and development, and nutrition and
educational programs. Requires the board to file an annual report.
Establishes a procedure for the initial selection of the board and terms
of initial board members.
Effective: January 1, 2000 (retroactive).
January 10, 2000, read first time and referred to Committee on Agriculture, Natural
Resources and Rural Development.
January 25, 2000, amended, reported _ Do Pass; referred to Committee on Ways and
Means pursuant to Rule 127.
January 31, 2000, removed from Committee on Ways and Means. Referral under Rule 127
was not substantially justified.
February 1, 2000, read second time, ordered engrossed.
February 2, 2000, engrossed.
February 7, 2000, read third time, passed. Yes 93, nays 3.
A BILL FOR AN ACT to amend the Indiana Code concerning
agriculture and animals.
partnership, a limited liability company, a public or private
corporation, a political subdivision (as defined in IC 36-1-2-13), a
cooperative, a society, an association, or a fiduciary.
Sec. 6. As used in this chapter, "producer" means a person
engaged in the production of milk in Indiana for commercial use,
including a producer-processor.
Sec. 7. As used in this chapter, "producer-processor" means a
producer who processes and markets the producer's own milk.
Sec. 8. As used in this chapter, "qualified program" means a
state or regional dairy product promotion, research, or nutrition
education program that:
(1) is certified under 7 CFR 1150.153, as amended; and
(2) meets the following requirements:
(A) Conducts activities (as defined in 7 CFR 1150.114,
1150.115, and 1150.116) intended to increase consumption
of milk and dairy products.
(B) Is financed primarily by producers, either individually
or through cooperative associations.
(C) Does not use a private brand or trade name in
advertising and promotion of dairy products unless the
national dairy promotion and research board established
under 7 CFR 1150.131 and the United States Secretary of
Agriculture concur that the requirement should not apply.
(D) Certifies to the United States Secretary of Agriculture
that a request from a producer for a refund under the
program will be honored by forwarding the part of the
refund equal to the amount of credit that otherwise would
be applicable to the program under 7 CFR 1150.152(c) to
either the national dairy promotion and research board or
a qualified program designated by the producer.
(E) Does not use program funds to influence governmental
policy or action.
Sec. 9. (a) The Indiana dairy industry development board is
established.
(b) The board consists of:
(1) at least nine (9); and
(2) not more than twenty-five (25);
voting members appointed under section 12 of this chapter.
(c) Each voting member of the board must:
(1) be a resident of Indiana;
(2) be at least twenty-one (21) years of age;
(3) have been actually engaged in the production of milk in
Indiana for at least one (1) year; and
state's milk marketings; and
(B) notify the board that the producers desire to be
considered collectively for purposes of representation on
the board.
(b) In addition to the members appointed under subsection (a),
the board shall appoint one (1) board member to represent a
producer or group of producers described in subsection (a)(2) for
each additional ten percent (10%) of the state's milk marketings
exceeding three percent (3%) that the producer or group of
producers represents.
(c) The board shall make the appointments required under this
section not later than thirty (30) days after the close of the period
for submission of nominations under section 11 of this chapter.
(d) An appointment made by the board under this section may
not result in a producer or group of producers having two (2)
members on the board at the same time who represent the same
share of the state's milk marketings.
(e) If a producer or group of producers entitled to
representation on the board fails to submit a nomination, the board
may appoint any individual who meets the requirements of section
9(c) of this chapter to represent the producer or group of
producers.
Sec. 13. (a) The term of office of a board member is three (3)
years.
(b) A member continues in office until a successor who meets the
qualifications set forth in section 9(c) of this chapter is elected.
(c) A member may not serve for more than a total of three (3)
terms.
(d) If, upon expiration of the term of a board member, the
producer or group of producers who nominated the member no
longer represents the percentage of the state's milk marketings
required under section 12 of this chapter, a person may not be
appointed to replace the board member.
Sec. 14. Each member of the board is entitled to reimbursement
for traveling expenses and other expenses actually incurred in
connection with the member's duties, as provided in the state travel
policies and procedures established by the Indiana department of
administration and approved by the budget agency. However,
board members are not entitled to a salary or per diem.
Sec. 15. (a) A member's term of office terminates, and the
member's office becomes vacant if:
(1) the member:
(A) dies;
principal, agent, or employee, except for their own individual acts
that result in the violation of any law.
(c) No employee of the board may be held responsible
individually for the act or omission of a member of the board.
(d) Any liability of the members of the board is several and not
joint. A member of the board may not be held liable for the default
of another member.
Sec. 23. (a) The board shall file a report with the commissioner
before October 1.
(b) The report required under subsection (a) must contain the
following information:
(1) The income received from the assessments and penalties
collected under this chapter for the preceding fiscal year.
(2) The expenditure of funds by the board during the year for
the administration of this chapter.
(3) A brief description of all contracts requiring the
expenditure of funds by the board and the action taken by the
board on all such contracts.
(4) An explanation of all programs relating to the discovery,
promotion, and development of markets and industries for the
utilization of dairy products and the direct expense associated
with each program.
(5) The name and address of each member of the board.
(6) A brief description of the rules, regulations, and orders
adopted and promulgated by the board.
(c) The report required under subsection (a) shall be available
to the public upon request.
Sec. 24. An assessment of ten cents ($0.10) per hundredweight
is imposed on all milk produced in Indiana for commercial use.
Sec. 25. A producer shall remit the assessment required under
section 24 of this chapter to the board:
(1) not later than the last day of the month following the
month in which the milk is commercially used; and
(2) together with a report in a form approved by the board
detailing all assessments collected and remitted under this
chapter.
Sec. 26. The board shall remit all assessments received under
this chapter to the treasurer of state for deposit in the Indiana
dairy industry development fund established by section 28 of this
chapter.
Sec. 27. The board shall establish procedures for allowing a
producer to direct the distribution of the producer's assessment to:
(1) the national dairy board; or
(a) As used in this SECTION, "board" has the meaning set forth
in IC 15-6-4-1, as added by this act.
(b) As used in this SECTION, "commissioner" refers to the
commissioner of agriculture or the commissioner's designee.
(c) As used in this SECTION, "producer" has the meaning set
forth in IC 15-6-4-6, as added by this act.
(d) Notwithstanding IC 15-6-4-10 through IC 15-6-4-11, as
added by this act, the commissioner shall, not later than thirty (30)
days after the effective date of this act:
(1) determine:
(A) the percentage of the state's milk marketings produced
by each producer registered with the state board of animal
health or the United States Department of Agriculture;
and
(B) the number of representatives, if any, each producer is
entitled to have on the board; and
(2) inform each producer described in subdivision (1)(A) of
the determinations made under subdivision (1).
(e) The commissioner shall make the determinations required
under this SECTION based upon:
(1) the 1999 year-end milk marketing figures from the United
States Department of Agriculture; and
(2) the formula prescribed under IC 15-6-4-12, as added by
this act.
(f) Notwithstanding IC 15-6-4-12, as added by this act, the
commissioner shall appoint the initial members of the board. Not
later than thirty (30) days after receiving a notice from the
commissioner under subsection (d), a producer or group of
producers entitled to representation on the board may submit
nominations to the commissioner for initial board members.
(g) A producer or group of producers may submit two (2)
nominations for each initial board member to which the producer
or group of producers is entitled.
(h) Not later than thirty (30) days after the close of the period
for initial submission of nominations under subsection (g), the
commissioner shall appoint initial board members from among the
nominations made in accordance with IC 15-6-4-12, as added by
this act.
(i) If a producer or group of producers entitled to
representation on the initial board fails to submit a nomination, the
commissioner may appoint any individual who meets the
requirements of IC 15-6-4-9(c), as added by this act, to represent
the producer or group of producers.