CHAPTER 11. PROMOTION OF AGRICULTURAL PRODUCTS
IC 15-15-11
Chapter 11. Promotion of Agricultural Products
IC 15-15-11-1
"Agricultural commodity"
Sec. 1. As used in this chapter, "agricultural commodity" meanspoultry, poultry products, cattle, dairy products, sheep, wool, mint,or soybeans.
As added by P.L.2-2008, SEC.6.
IC 15-15-11-2
"Commercial quality"
Sec. 2. As used in this chapter, "commercial quantity" means aquantity produced and marketed through commercial channels oftrade.
As added by P.L.2-2008, SEC.6.
IC 15-15-11-3
"Commodity market development council"
Sec. 3. As used in this chapter, "commodity market developmentcouncil" refers to a group representative of the agriculturalcommodity.
As added by P.L.2-2008, SEC.6.
IC 15-15-11-4
"Dean of agriculture"
Sec. 4. As used in this chapter, "dean of agriculture" refers to thedean of agriculture of Purdue University. The term includes thedean's designee.
As added by P.L.2-2008, SEC.6.
IC 15-15-11-5
"Director"
Sec. 5. As used in this chapter, "director" refers to the director ofthe department of agriculture.
As added by P.L.2-2008, SEC.6.
IC 15-15-11-6
"Handler"
Sec. 6. As used in this chapter, "handler" means a person whoengages in the selling, marketing, or distribution of an agriculturalcommodity that the person:
(1) has purchased for resale; or
(2) is marketing on behalf of a producer.
The term includes a producer who distributes an agriculturalcommodity that the producer has produced.
As added by P.L.2-2008, SEC.6.
IC 15-15-11-7
"Processor" Sec. 7. As used in this chapter, "processor" means a personengaged in the receiving, grading, packing, canning, freezing, drying,or other methods of preparation for market of agriculturalcommodities produced in Indiana for sale.
As added by P.L.2-2008, SEC.6.
IC 15-15-11-8
"Producer"
Sec. 8. As used in this chapter, "producer" means an individual,a firm, a limited liability company, a corporation, a partnership, or anunincorporated association engaged in Indiana in the business ofproducing for market or receiving income from an agriculturalcommodity in commercial quantities.
As added by P.L.2-2008, SEC.6.
IC 15-15-11-9
Marketing program; commodity market development council;establishment; fees
Sec. 9. (a) A marketing program proposed or adopted under thischapter may include any of the following:
(1) Market development and research programs.
(2) Market promotion, education, and public relations programs.
(3) Market information services.
(4) The right to contract with qualified organizations, agencies,or individuals for any of the activities described in subdivision(1), (2), or (3).
(b) A commodity market development council organized underthis chapter may not do any of the following:
(1) Establish, promulgate, or fix the price of an agriculturalcommodity.
(2) Limit the production of an agricultural commodity in anyway.
(3) Use the fees collected under this chapter for political orlegislative activity of any kind.
As added by P.L.2-2008, SEC.6.
IC 15-15-11-10
Commodity market council; petition; establishment; membership
Sec. 10. (a) A representative group of at least five percent (5%)of the producers of an agricultural commodity may petition the deanof agriculture for permission to establish a commodity marketdevelopment council.
(b) A petition described in subsection (a) must include thefollowing:
(1) A statement of the area of production to be included. Thearea must be statewide. However, the area may be limited to awell defined smaller area if the area is the principal commercialproducer of the agricultural commodity in Indiana.
(2) A statement of the general purposes of the agriculturalcommodity market development council program. The purposes
may include research, education, market development,publicity, sales promotion, and cooperation with other state,regional, and national organizations.
(3) The amount of the fee to be collected for each designatedunit of commercial quantities of the agricultural commodity.
(4) The method to be used in the collection of the fee.
(5) The composition, qualification, terms of office, method ofnomination, election, filling unexpired terms, expenses, andduties of the members of the commodity market developmentcouncil. However, the following apply to the council:
(A) The council must consist of an odd number of at leastfive (5) but not more than fifteen (15) members. A membermay not serve on the council for more than six (6)consecutive years. A majority of the council members mustbe producers selected by producers.
(B) The dean of agriculture serves as an ex officio memberof the council.
(C) The director of the Indiana state department ofagriculture or the director's designee serves as an ex officiomember of the council.
(6) The method of conducting the referendum of the agriculturalcommodity producers. The method must be either by mail or bypolling place, depending on the area and volume of thecommodity.
As added by P.L.2-2008, SEC.6. Amended by P.L.120-2008, SEC.51.
IC 15-15-11-11
Hearing; findings
Sec. 11. (a) A hearing held under section 12 of this chapter mustbe public, and a permanent record must be made of all testimonyreceived. The dean of agriculture shall conduct the hearing and maymake the determination from the record.
(b) The dean of agriculture shall give notice of the hearing bypublication in trade journals and newspapers of general circulationin each area affected not later than ten (10) days before the date ofthe hearing. The representative group must pay all fees for initialorganization in cash to the dean. Initial organization fees may not bepaid from state money.
(c) The dean of agriculture shall do the following:
(1) Make and publish findings based upon the facts, testimony,and evidence received at the public hearing.
(2) Provide for copies of the dean of agriculture's findings anddecisions to be delivered or mailed to all parties of recordappearing at the hearing or the parties' attorneys of record.
As added by P.L.2-2008, SEC.6.
IC 15-15-11-12
Referendum; notice; fee changes
Sec. 12. (a) If the director approves the petition, in whole or asrevised, the director shall call a referendum among producers of
commercial quantities of the commodity to vote upon establishmentof the proposed commodity market development program.
(b) Before issuance of a notice of referendum on a proposedcommodity market development program, the director shall establishthe number of producers qualified of that particular agriculturalcommodity. The producers must register with the director, who shallmaintain a list of those producers. At least twenty percent (20%) ofthe producers must register before a referendum may be held. Thedirector shall establish a registration period for establishing,continuing, changing, or terminating a marketing program after thedirector calls for a referendum. Postdating of a registration is void.The producer or handler list established under this subsection is finaland conclusive in making determinations relative to the assent ofproducers upon the issuance, amendment, or termination of acommodity market development program.
(c) The director shall publish a notice of referendum to theattention of producers in the newspapers or trade journals within theaffected area that the director prescribes. The director may also mailnotice to all producers or handlers on the current list of producers.
(d) If the majority of those who actually vote favor the adoptionof the proposal in the petition, the director shall declare the proposalto be adopted.
(e) A proposal to change the amount of the fee or to make othermajor changes in the program may be made only if a proposal for thechange is adopted by a two-thirds (2/3) vote of the commoditymarket development council or by petition of twenty-five percent(25%) of the agricultural commodity producers. The proposal mustthen be submitted to a referendum under which the same percentagesof votes favoring the proposal (by number and production) arerequired for approval as were required for establishment of theoriginal market development program.
(f) A proposal to terminate a commodity market developmentprogram may be made only if a proposal for termination is adoptedby a majority of the commodity market development council or bypetition of two percent (2%) of the agricultural commodityproducers. The proposed termination must be submitted to areferendum under which a simple majority of those voting in favorof termination of the program is required for termination.
(g) A referendum to:
(1) set up a commodity market development council for aparticular commodity;
(2) change the amount of fee;
(3) make other major changes; or
(4) terminate a commodity market development council;
may not be held within twelve (12) months of a referendumconducted for a similar purpose for the same agricultural commodity.
(h) The director shall conduct a referendum on the continuationof the commodity market development council at least one (1) timeevery three (3) years.
(i) Any eligible producer may register to participate in a
referendum on the continuation or termination of a program.Registration for such a referendum may not be limited to thoseproducers who registered for the referendum to establish theprogram.
As added by P.L.2-2008, SEC.6.
IC 15-15-11-13
Commodity market development council; advice to director
Sec. 13. The director shall be guided by the advice,recommendations, and assistance of the commodity marketdevelopment council about:
(1) the collection and expenditures of funds; and
(2) audits and refunds;
associated with the commodity market development program.
As added by P.L.2-2008, SEC.6.
IC 15-15-11-14
Fee imposed
Sec. 14. (a) As used in this section, "commercial channel of trade"means that series of transactions leading directly from the finalproducer of the agricultural commodity to the purchase of theagricultural commodity by a processor.
(b) The fee for an agricultural commodity imposed under thischapter must be paid when the final producer places the agriculturalcommodity in a commercial channel of trade.
As added by P.L.2-2008, SEC.6.
IC 15-15-11-15
Fee collection; penalty; individual commodity council marketdevelopment fund; accounting statement
Sec. 15. (a) Except as provided in subsection (b), the director shallcollect the fee imposed under the commodity market developmentprogram from the producers, handlers, or processors.
(b) This subsection applies to a commodity market developmentprogram for cattle, dairy products, or soybeans. The director shallcollect ninety-seven percent (97%) of the fee imposed under thecommodity market development program from the producers,handlers, or processors. A producer, handler, or processor may retainthe remaining three percent (3%) as compensation for collecting thefee.
(c) If a market development fee is unpaid on the date that the feewas due, a penalty of one percent (1%) per month is imposedbeginning on the date the fee was due until payment plus the penaltyis received by the director. If, after notice, a person defaults in apayment of the fee or penalties imposed under this subsection, theamount due shall be collected by civil action in the name of the stateof Indiana at the request of the director, and the person adjudged indefault shall pay the costs of the action. The attorney general, at therequest of the director, and, if requested by the attorney general, theprosecuting attorney of any county, in which a cause of action arose
under the provisions for the collection of fees due and unpaid, shallinstitute proper action in an Indiana court for the collection of unpaidfees and penalties.
(d) The individual commodity council market development fundis established. The fund consists of all fees paid to the director underthat agricultural commodity program. The director shall spend allmoney credited to the fund, less administration expenses, for the useand benefit of the commodity market development council for whichthe fund is established.
(e) The director shall submit an annual statement to thecommodity market development council that shows all receipts,administration expenses, refunds, and the balance credited to thefund.
(f) Not more than one (1) fee may be collected for an agriculturalcommodity under this chapter or under a federal program forpromotion or market development.
As added by P.L.2-2008, SEC.6.
IC 15-15-11-16
Audit of funds
Sec. 16. The state board of accounts shall audit the funds receivedand expended by the commodity market development council underthis chapter.
As added by P.L.2-2008, SEC.6.
IC 15-15-11-17
Commodity market development council's duties
Sec. 17. The director shall assist a commodity marketdevelopment council to do the following:
(1) Elect a chairperson and any other officers.
(2) Authorize the expenditure of a budgeted amount of thecouncil market development fund in the administration of thecommodity market development program.
(3) Collect commodity market development fees.
(4) Perform other necessary duties.
As added by P.L.2-2008, SEC.6.
IC 15-15-11-18
Refunded fees
Sec. 18. (a) A producer or handler is entitled to have the fees paidby the producer or handler refunded as provided in this section.
(b) A producer or handler must file a request for refund with thedirector not later than one hundred eighty (180) days after thepayment of the fees.
(c) The director shall provide forms for the request of refund offees under this section. A refund form shall be made available to aproducer or handler when payment is made.
(d) For the purpose of making an application for a refund, aproducer is considered the agent of all persons who have an interestin the agricultural commodity. The interest of each person in the
agricultural commodity must be indicated on the refund request form,and the refund shall be paid to each interested person's interestaccording to that person's interest.
As added by P.L.2-2008, SEC.6.