CHAPTER 5. INDIANA DAIRY INDUSTRY DEVELOPMENT
IC 15-18-5
Chapter 5. Indiana Dairy Industry Development
IC 15-18-5-1
"Board"
Sec. 1. As used in this chapter, "board" refers to the Indiana dairyindustry development board established by section 9 of this chapter.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-2
"Commercial use"
Sec. 2. As used in this chapter, "commercial use" means sale for:
(1) retail consumption;
(2) resale; or
(3) processing for resale.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-3
"Director"
Sec. 3. As used in this chapter, "director" refers to the director ofthe Indiana state department of agriculture or the director's designee.
As added by P.L.2-2008, SEC.9. Amended by P.L.120-2008, SEC.86.
IC 15-18-5-4
"Milk"
Sec. 4. As used in this chapter, "milk" means any class of milkproduced by dairy cows in Indiana.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-5
"Person"
Sec. 5. As used in this chapter, "person" means an individual, apartnership, a limited liability company, a public or privatecorporation, a political subdivision (as defined in IC 36-1-2-13), acooperative, a society, an association, or a fiduciary.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-6
"Producer"
Sec. 6. As used in this chapter, "producer" means a personengaged in the production of milk in Indiana for commercial use,including a producer-processor.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-7
"Producer-processor"
Sec. 7. As used in this chapter, "producer-processor" means aproducer who processes and markets the producer's own milk.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-8
"Qualified program"
Sec. 8. As used in this chapter, "qualified program" means a stateor regional dairy product promotion, research, or nutrition educationprogram 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, 7CFR 1150.115, and 7 CFR 1150.116) intended to increaseconsumption of milk and dairy products.
(B) Is financed primarily by producers, either individually orthrough cooperative associations.
(C) Does not use a private brand or trade name in advertisingand promotion of dairy products unless the national dairypromotion and research board established under 7 CFR1150.131 and the United States Secretary of Agricultureconcur that the requirement should not apply.
(D) Certifies to the United States Secretary of Agriculturethat a request from a producer for a refund under theprogram will be honored by forwarding the part of therefund equal to the amount of credit that otherwise would beapplicable to the program under 7 CFR 1150.152(c) to eitherthe national dairy promotion and research board or aqualified program designated by the producer.
(E) Does not use program funds to influence governmentalpolicy or action.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-9
Indiana dairy industry development board created as a bodycorporate and politic
Sec. 9. (a) The Indiana dairy industry development board isestablished. The board is a public body corporate and politic and,though it is separate from the state, the exercise by the board of itspowers constitutes an essential governmental function.
(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 inIndiana for at least one (1) year; and
(4) derive a substantial part of the member's income from theproduction of milk in Indiana.
(d) The board may appoint individuals who hold offices ofimportance to the milk industry or have special expertise concerningthe industry to participate in the work of the board as nonvotingmembers. Not more than five (5) individuals may be appointed under
this subsection.
(e) The director may participate in the activities of the board as anex officio member.
(f) An Indiana dairy farmer selected to serve on the national dairyboard shall be a nonvoting, advisory member of the board.
(g) Fewer than fifty percent (50%) of the board members,including nonvoting members, may be members of Milk PromotionServices of Indiana, Inc.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-10
Determination of percentages of milk marketings produced
Sec. 10. (a) Before March 31 of each year, the board shall:
(1) determine:
(A) the percentage of the state's milk marketings producedby each producer registered with the state board of animalhealth or the United States Department of Agriculture; and
(B) the number of representatives, if any, each producer isentitled to have on the board based on funds retained inIndiana; and
(2) inform each producer described in subdivision (1)(A) of thedeterminations made under subdivision (1).
(b) The board shall make the determinations required under thissection based upon:
(1) year end milk marketing figures from:
(A) the United States Department of Agriculture; or
(B) any other source the board considers reliable; and
(2) the formula prescribed under section 12 of this chapter.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-11
Nominations to board
Sec. 11. (a) Not later than thirty (30) days after receiving a noticefrom the board under section 10 of this chapter, a producer or groupof producers entitled to representation on the board may submitnominations to the board for board members.
(b) A producer or group of producers may submit two (2)nominations for each board member to which the producer or groupof producers is entitled.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-12
Appointments to board
Sec. 12. (a) The board shall appoint from among the nominationsmade under section 11 of this chapter one (1) board member torepresent each:
(1) producer who represents at least three percent (3%) of thestate's participating milk marketings; and
(2) group of producers that:
(A) collectively represents at least three percent (3%) of the
state's participating milk marketings; and
(B) notifies the board that the producers desire to beconsidered collectively for purposes of representation on theboard.
(b) In addition to the members appointed under subsection (a), theboard shall appoint one (1) board member to represent a producer orgroup of producers described in subsection (a)(2) for each additionalten percent (10%) of the state's participating milk marketingsexceeding three percent (3%) that the producer or group of producersrepresents. Not more than four (4) board members may represent anyproducer or group of producers.
(c) The board shall make the appointments required under thissection not later than thirty (30) days after the close of the period forsubmission of nominations under section 11 of this chapter.
(d) An appointment made by the board under this section may notresult in a producer or group of producers having two (2) memberson the board at the same time that represent the same share of thestate's participating milk marketings.
(e) If a producer or group of producers entitled to representationon the board fails to submit a nomination, the board may appoint anyindividual who meets the requirements of section 9(c) of this chapterto represent the producer or group of producers.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-13
Terms of board members
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 thequalifications 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, theproducer or group of producers that nominated the member no longerrepresents the percentage of the state's milk marketings requiredunder section 12 of this chapter, a person may not be appointed toreplace the board member.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-14
Traveling expenses
Sec. 14. (a) As used in this section, "maximum daily amount"refers to the maximum daily amount allowable to employees of theexecutive branch of the federal government for subsistence expenseswhile away from home in travel status.
(b) Each member of the board who is not a state employee isentitled to a business per diem determined by the board.
(c) Each member of the board is also entitled to either:
(1) a per diem to cover travel and other expenses incurred inconnection with the member's duties; or (2) reimbursement for traveling expenses and other expensesactually incurred in connection with the member's duties;
as determined by the board.
(d) The business per diem allowance may not exceed themaximum daily amount allowable in the particular location wherethe member's duties are being performed. A mileage rate establishedby the board may not exceed the standard mileage rates forpersonally owned transportation equipment established by the UnitedStates Internal Revenue Service for each mile necessarily traveledfrom the member's usual place of residence to the particular locationwhere the member's duties are being performed.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-15
Vacancies on board
Sec. 15. (a) A member's term of office terminates and themember's office becomes vacant if the member:
(1) dies;
(2) becomes disabled;
(3) resigns; or
(4) ceases to meet at least one (1) of the qualifications set forthin section 9(c) of this chapter.
(b) If a board member's office becomes vacant before expirationof the member's term of office, the board shall:
(1) certify to the producer or group of producers who nominatedthe member that the vacancy exists; and
(2) request nominations in accordance with section 11 of thischapter to fill the vacancy.
(c) The board shall appoint one (1) of the individuals nominatedunder subsection (b).
(d) An individual appointed under this section shall serve for theremainder of the unexpired term.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-16
Duties of the board
Sec. 16. The board shall do the following:
(1) Elect from among the board's members a chairperson, vicechairperson, secretary, treasurer, and other officers the boardconsiders necessary.
(2) Employ personnel and contract for services that arenecessary for the proper implementation of this chapter.
(3) Establish accounts in adequately protected financialinstitutions to receive, hold, and disburse funds accumulatedunder this chapter.
(4) Bond the treasurer and other persons as necessary to ensureadequate protection of funds received and administered by theboard.
(5) Authorize the expenditure of funds and the contracting ofexpenditures to conduct proper activities under this chapter. (6) Annually establish priorities and prepare and approve abudget consistent with the estimated resources of the board andthe scope of this chapter.
(7) Provide for an independent audit, provide the results of theaudit to the state board of accounts and the Indiana statedepartment of agriculture, and make the results of the auditavailable to all interested persons.
(8) Procure and evaluate data and information necessary for theproper implementation of this chapter.
(9) Formulate and execute assessment procedures and methodsof collection.
(10) Establish procedures to annually inform all producersregarding board members, policy, expenditures, and programsfor the preceding year.
(11) Receive and investigate, or cause to be investigated,complaints and violations of this chapter and take necessaryaction within its authority.
(12) Take any other action necessary for the properimplementation of this chapter, including the adoption of rulesunder IC 4-22-2.
As added by P.L.2-2008, SEC.9. Amended by P.L.120-2008, SEC.87.
IC 15-18-5-17
Meetings of board
Sec. 17. (a) The board shall meet at least once every six (6)months.
(b) The board shall meet at a date, time, and place fixed by theboard.
(c) The chairperson:
(1) may call a special meeting; and
(2) shall call a special meeting upon the request of at leasttwenty-five percent (25%) of the members of the board.
(d) Written notice of the date, time, and place of all meetings shallbe mailed in advance to each board member.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-18
Quorum
Sec. 18. (a) A majority of voting members appointed to the boardconstitutes a quorum for the transaction of business.
(b) The affirmative vote of a majority of all members appointedto the board is necessary for the action of the board.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-19
Review of expenditures
Sec. 19. At each regular meeting, the board shall review allexpenditures made since the board's last regular meeting.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-20
Minutes of meetings and other records
Sec. 20. (a) The board shall keep:
(1) minutes of the board's meetings; and
(2) other books and records that clearly reflect all the acts andtransactions of the board.
(b) The records of the board required to be kept under subsection(a) shall be open to examination during normal business hours.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-21
Office space; administrative expenses
Sec. 21. (a) The board may contract for the necessary officespace, furniture, stationery, printing, and personnel services usefulor necessary for the administration of this chapter.
(b) The total administrative costs and expenses of the board maynot exceed five percent (5%) of the annual assessments collectedunder this chapter.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-22
Liabilities of board; personal liability of members and employees
Sec. 22. (a) Obligations incurred by the board and other liabilitiesand claims against the board may be enforced only against the assetsof the board in the same manner as if it were a corporation.Liabilities for the debts or actions of the board may not arise against:
(1) the state;
(2) a political subdivision (as defined in IC 34-6-2-110); or
(3) a member, officer, employee, or agent of the board in anindividual capacity.
(b) The members and employees of the board may not be heldresponsible individually to any person for errors in judgment,mistakes, or other acts either of commission or omission, asprincipal, agent, or employee, except for their own individual actsthat result in the violation of any law.
(c) An employee of the board may not be held responsibleindividually for the act or omission of a member of the board.
(d) Any liability of the members of the board is several and notjoint. A member of the board may not be held liable for the defaultof another member.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-23
Annual report filed with director
Sec. 23. (a) The board shall file a report with the director beforeOctober 1 of each year.
(b) The report required under subsection (a) must contain thefollowing information:
(1) The income received from the assessments and penaltiescollected under this chapter for the preceding fiscal year. (2) The expenditure of funds by the board during the year forthe administration of this chapter.
(3) A brief description of all contracts requiring the expenditureof funds by the board and the action taken by the board on allcontracts.
(4) An explanation of all programs relating to the discovery,promotion, and development of markets and industries for theuse of dairy products and the direct expense associated witheach program.
(5) The name and address of each member of the board.
(6) A brief description of the rules and orders adopted by theboard.
(c) The report required under subsection (a) shall be available tothe public upon request.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-24
Imposition of assessment on milk
Sec. 24. An assessment of ten cents ($0.10) per hundredweight isimposed on all milk produced in Indiana for commercial use.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-25
Remittance of assessment to board
Sec. 25. A producer shall remit the assessment required undersection 24 of this chapter to the board:
(1) not later than the last day of the month following the monthin which the milk is commercially used; and
(2) together with a report in a form approved by the boarddetailing all assessments collected and remitted under thischapter.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-26
Assessments; deposit requirement
Sec. 26. The board shall deposit all assessments received underthis chapter in the fund established by the board under section 28 ofthis chapter.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-27
Procedures for directing assessment to other entities
Sec. 27. The board shall establish procedures for allowing aproducer to direct the distribution of the producer's assessment to:
(1) the national dairy board; or
(2) a qualified program other than the program chosen by theboard.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-28 Assessment fund; uses
Sec. 28. (a) The board shall establish and administer a fund forassessments received under this chapter. The fund is not a part of thestate treasury.
(b) The board shall invest the money in the fund not currentlyneeded to meet the obligations of the fund in the same manner asother public funds may be invested. Interest that accrues from theseinvestments shall be deposited in the fund.
(c) The board shall use the money in the fund to implement thischapter.
(d) The board may not use money in the fund to establish aprogram of its own but shall fund an active, ongoing, qualifiedprogram in Indiana as stated in 7 U.S.C. 4505 and the regulationsadopted under that law. A qualified program that receives moneyunder this subsection may use the money to jointly sponsor projectswith any private or public organization for any of the following:
(1) Advertising and promotion.
(2) Market research.
(3) Nutrition and product research and development.
(4) Nutrition and educational programs.
(5) Any other activity to meet the objectives of this chapter.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-29
Penalties on unpaid assessments
Sec. 29. (a) The board shall add a penalty of one and one-halfpercent (1.5%) per month on an unpaid assessment, beginning withthe day following the date the assessment was due. Any remainingamount due, including an unpaid penalty assessed under this section,shall be increased at the same rate on the corresponding day of eachsucceeding month until paid.
(b) For purposes of this section, an assessment that wasdetermined at a date later than prescribed by section 25 of thischapter because of the failure to submit a report to the board whendue shall be considered to have been payable on the date it wouldhave been due if the report had been timely filed.
(c) The timeliness of a payment to the board shall be based on:
(1) the applicable postmarked date; or
(2) the date actually received by the board;
whichever is earlier.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-30
Court action to collect assessments and fees
Sec. 30. The board may maintain a court action to collectassessments and late payment fees due under this chapter.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-31
Cumulative nature of remedies Sec. 31. The remedies provided in this chapter are in addition toother remedies provided by law or in equity.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-32
Violations
Sec. 32. A person who knowingly or intentionally violates thischapter commits a Class C misdemeanor.
As added by P.L.2-2008, SEC.9.