As Passed by the Senate

127th General Assembly Regular Session 2007-2008

Sub. H. B. No. 217

Representative Reinhard 

Cosponsors: Representatives Adams, Aslanides, Evans, Fessler, Latta, McGregor, J., Schlichter, Seitz, Setzer, Stebelton, Webster, Zehringer, Core, Goodwin, Huffman, Hite, Luckie, Domenick, Blessing, Bolon, Book, Brown, Bubp, Chandler, Collier, Combs, Daniels, Dodd, Dyer, Garrison, Gerberry, Goyal, Hagan, R., Harwood, Hughes, Letson, Mallory, Okey, Otterman, Raussen, Schneider, Widener 

Senators Schuring, Amstutz, Buehrer, Faber, Grendell, Harris, Kearney, Morano, Mumper, Niehaus, Roberts, Seitz, Fedor, Wilson 

---

A BILL

To amend sections 924.01, 924.02, 924.08, 924.09, and

1

924.99 and to enact sections 924.20 to 924.30 and

2

3717.53 of the Revised Code to establish a grain

3

marketing program, to provide that the Director

4

of Agriculture has exclusive authority to regulate

5

the provision of food nutrition information at

6

food service operations, and to provide incentives

7

for bioproducts innovation in the Ohio polymer

8

industry.

9

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 924.01, 924.02, 924.08, 924.09, and	10
924.99 be amended and sections 924.20, 924.21, 924.22, 924.23,	11
924.24, 924.25, 924.26, 924.27, 924.28, 924.29, 924.30, and	12
3717.53 of the Revised Code be enacted to read as follows:	13

Sec. 924.01.  As used in Chapter 924.sections 924.01 to	14
924.16 and 924.51 to 924.55 of the Revised Code:	15

(A) "Agricultural commodity" means any food, fiber, feed,	16
animal, or plant, or group of foods, fibers, feeds, animals, or	17
plants that the director of agriculture determines to be of the	18
same nature, in either a natural or a processed state.	19
"Agricultural commodity" does not include grain as defined in	20
section 924.20 of the Revised Code.	21

(B) "Distributor" means any person who sells, offers for	22
sale, markets, or distributes an agricultural commodity which he	23
that the person has purchased or acquired directly from a	24
producer, or which hethat the person markets on behalf of a	25
producer.	26

(C) "Handler" means any person who is in the business of	27
packing, grading, selling, offering for sale, or marketing any	28
agricultural commodity in commercial quantities as defined in a	29
marketing program.	30

(D) "Marketing program" means a program whichthat is	31
established by order of the director of agriculture pursuant to	32
this chapter, to improve or expand the market for an agricultural	33
commodity.	34

(E) "Operating committee" means a committee established to	35
administer a marketing program for an agricultural commodity.	36

(F) "Person" means any natural person, partnership,	37
corporation, society, association, or fiduciary.	38

(G) "Processor" means any person who is in the business of	39
grading, packaging, packing, canning, freezing, dehydrating,	40
fermenting, distilling, extracting, preserving, grinding,	41
crushing, juicing, or in any other way preserving or changing the	42
form of any agricultural commodity.	43

(H) "Producer" means any person who is in the business of	44
producing, or causing to be produced, any agricultural commodity	45
for commercial sale, except that when used in reference to nursery	46
stock, "producer" also means a distributor, processor, handler, or	47
retailer of nursery stock.	48

Sec. 924.02.  The director of agriculture, subject to this	49
chaptersections 924.01 to 924.16 and Chapter 119. of the Revised	50
Code, shall do all of the following:	51

(A) Establish procedures by which producers of Ohio	52
agricultural commodities may propose, develop, and operate	53
marketing programs to:	54

(1) Promote the sale and use of their products;

55

(2) Develop new uses and markets for such products;

56

(3) Improve the methods of distributing such products to	57
consumers;	58

(4) Standardize the quality of such products for specific	59
uses.	60

(B) Adopt and enforce rules to put into effect the intent of	61
sections 924.01 to 924.16 of the Revised Code;	62

(C) Determine the eligibility of producers to participate in	63
referendums and other procedures that may be required to establish	64
marketing programs for agricultural commodities.	65

Sec. 924.08.  The director of agriculture shall monitor the	66
actions of each operating committee to assure that:	67

(A) Each marketing program is self-supporting;.

68

(B) Each such committee keeps all records whichthat are	69
required for agencies of the state;.	70

(C) All program operations are in accord with:

71

(1) The provisions of the marketing program;

72

(2) RegulationsRules adopted by the director;

73

(3) Chapter 924.Sections 924.01 to 924.16 of the Revised	74
Code.	75

(D) Administrative activities of each committee are	76
coordinated with those of the department of agriculture.	77

Sec. 924.09.  (A) Each operating committee may make	78
assessments upon the marketable agricultural commodity for which	79
the marketing program was established.	80

(B) No operating committee shall levy any assessment:

81

(1) That was not approved by the producers affected by the	82
program;	83

(2) That exceeds two cents per bushel of corn,or soybeans,	84
or wheat, or two per cent of the average market price of any other	85
agricultural commodity during the preceding marketing year as	86
defined for the commodity by the United States department of	87
agriculture or, if there is no such definition, by the director of	88
agriculture;	89

(3) Against any producer who is not eligible to vote in a	90
referendum for the marketing program that the operating committee	91
administers.	92

(C) The director of agriculture may require a producer,	93
processor, distributor, or handler of an agricultural commodity	94
for which a marketing program has been established under sections	95
924.01 to 924.16 of the Revised Code to withhold assessments from	96
any amounts that the producer, processor, distributor, or handler	97
owes to producers of the commodity and, notwithstanding division	98
(B)(3) of this section, to remit them to the director. Any	99
processor, distributor, or handler who pays for any producer any	100
assessment that is levied under authority of this section may	101
deduct the amount of the assessment from any moneys that the	102
processor, distributor, or handler owes to the producer.	103

(D) No operating committee shall use any assessments that it	104
levies for any political or legislative purpose, or for	105
preferential treatment of one person to the detriment of any other	106
person affected by the marketing program.	107

(E) The operating committee of each marketing program shall	108
refund to a producer the assessments that it collects from the	109
producer not later than sixty days after receipt of a valid	110
application by the producer for a refund, provided that the	111
producer complies with the procedures for a refund that were	112
included in the program under division (B)(3) of section 924.04 of	113
the Revised Code.	114

In the case of the state beef marketing program, in lieu of	115
giving a refund to a producer, the director of the program's	116
operating committee may forward the refund to the cattlemen's beef	117
promotion and research board pursuant to the "Beef Promotion and	118
Research Act," 99 Stat. 1597 (1985), 7 U.S.C.A. 2901, and	119
amendments thereto, and shall credit that amount to the total	120
amount owed by the producer to the federal beef program. Each	121
application for a refund of assessments levied for a program	122
established after April 10, 1985 shall be made on a form provided	123
by the director of agriculture. Each operating committee for such	124
a program shall ensure that refund forms are available where	125
assessments for its program are withheld.	126

Sec. 924.20.  As used in sections 924.20 to 924.30 of the	127
Revised Code:	128

(A) "Grain" means wheat, barley, rye, or oats.

129

(B) "Handler" means a person who is in the business of	130
agricultural commodity handling, as defined in section 926.01 of	131
the Revised Code, of grain.	132

(C) "Producer" means a person who is in the business of	133
producing, or causing to be produced, grain for commercial sale.	134

(D) "Rule" means a rule adopted under section 924.25 of the	135
Revised Code.	136

Sec. 924.21.  There is hereby established a grain marketing	137
program. The program shall be administered in accordance with	138
sections 924.20 to 924.30 of the Revised Code and rules.	139

Sec. 924.22. (A) For the purposes of sections 924.20 to	140
924.30 of the Revised Code, the director of agriculture shall hold	141
an election to determine the membership of a grain marketing	142
program operating committee in accordance with rules. The election	143
shall be for nine members of the operating committee.	144

(B) Not later than one hundred twenty days after the	145
effective date of this section, the director shall accept the	146
names of persons as nominees to serve on the operating committee.	147
In accepting nominations and placing names on the ballot, the	148
director shall follow the procedures established in rules.	149

(C) Not later than one hundred eighty days after the	150
effective date of this section, the director shall hold an	151
election to determine the membership of the operating committee.	152
In the election, eligible producers may cast votes in person at or	153
mail ballots to polling places designated by the director. The	154
director shall establish a three-day period during which eligible	155
producers may vote in person during normal business hours at the	156
designated polling places. The director or another appropriate	157
person shall send a ballot by ordinary first-class mail to an	158
eligible producer who requests one by calling the toll-free	159
telephone number or submitting the ballot request form provided	160
for in division (D) of this section, by calling one of the	161
designated polling places, or by any additional method that the	162
director may provide. A ballot returned by mail is not valid if it	163
is postmarked later than the third day of the election period	164
established by the director.	165

(D) For the purposes of an election of members of the grain	166
marketing program operating committee, the director shall cause a	167
ballot request form to be published at least thirty days before	168
the beginning of the election period established in accordance	169
with division (C) of this section in at least two appropriate	170
periodicals designated by the director and shall make the form	171
available for reproduction to any interested group or association.	172
The director also shall provide a toll-free telephone number that	173
producers may call to request a ballot.	174

(E) Following the election of the initial members of the	175
operating committee, the director shall hold subsequent elections	176
in order to maintain the membership of the operating committee as	177
provided in rules. The elections shall be held in the manner	178
established in this section and rules for the election of initial	179
members.	180

(F) Persons elected to the grain marketing program operating	181
committee shall hold office in accordance with rules.	182

Sec. 924.23. (A) The grain marketing program operating	183
committee shall hold at least one meeting per quarter each year.	184
The members of the operating committee annually shall select	185
officers, including a chairperson and a vice-chairperson.	186

(B) A majority of the members of the operating committee	187
constitutes a quorum. A majority of concurring votes is required	188
to pass a motion or approve any operating committee action.	189

(C) The director of agriculture, or the director's designee,	190
is an ex-officio voting member of the operating committee.	191

(D) Each member of the operating committee, except the	192
director or the director's designee, is entitled to actual and	193
necessary travel and incidental expenses while attending meetings	194
of the committee or while engaged in the performance of official	195
responsibilities as a member of the committee.	196

(E) A member or employee of the operating committee is not	197
civilly liable for any actions taken in good faith as a member or	198
employee, as applicable, of the committee.	199

Sec. 924.24.  (A) The grain marketing program operating	200
committee shall do all of the following:	201

(1) Hire personnel and contract for services that are	202
necessary for the operation of the grain marketing program;	203

(2) Promote the sale of grain for the purpose of maintaining	204
and expanding present markets and creating new and larger	205
intrastate, interstate, and foreign markets for grain, and inform	206
the public of the uses and benefits of grain;	207

(3) Establish requirements and procedures for the collection	208
of assessments that the operating committee is required to levy	209
under section 924.26 of the Revised Code, including the method and	210
frequency of collection;	211

(4) Establish procedures to be used by a person who wishes to	212
file for a refund of the person's assessment that is levied under	213
section 924.26 of the Revised Code;	214

(5) Perform all acts and exercise all powers incidental to,	215
in connection with, or considered reasonably necessary, proper, or	216
advisable to effectuate the purposes of sections 924.20 to 924.30	217
of the Revised Code.	218

(B) The operating committee may do any or all of the	219
following:	220

(1) Conduct, and contract with others to conduct, research,	221
including the study, analysis, dissemination, and accumulation of	222
information obtained from the research or elsewhere, concerning	223
the marketing and distribution of grain, the storage, processing,	224
and transportation of grain, and the production and product	225
development of grain;	226

(2) Provide the wholesale and retail grain trade with	227
information relative to proper methods of handling and selling	228
grain;	229

(3) Conduct, and contract with others to conduct, market	230
surveys and analyses, undertake any other similar activities that	231
it determines are appropriate for the maintenance and expansion of	232
present markets and the creation of new and larger markets for	233
grain, and enter into contracts, in the name of the committee, to	234
render service in formulating and conducting plans and programs	235
and other contracts or agreements that the committee considers	236
necessary for the promotion of the sale of grain;	237

(4) Publish and distribute to producers and others	238
information relating to the grain industry;	239

(5) Propose to the director of agriculture rules that are	240
necessary for the exercise of its powers and the performance of	241
its duties;	242

(6) Establish priorities and prepare and approve a budget	243
consistent with estimated resources and the scope of the grain	244
marketing program;	245

(7) Receive and investigate, or cause to be investigated,	246
complaints concerning and violations of the grain marketing	247
program. The operating committee shall refer any violations to the	248
director for action under section 924.29 of the Revised Code.	249

Sec. 924.25. (A) The director of agriculture shall monitor	250
the activities of the grain marketing program operating committee	251
to ensure all of the following:	252

(1) The grain marketing program is self-supporting.

253

(2) The operating committee keeps all records that are	254
required for agencies of the state.	255

(3) The program's operations comply with all of the	256
following:	257

(a) The provisions of the program;

258

(b) Rules;

259

(c) Sections 924.20 to 924.30 of the Revised Code.

260

(4) Administrative activities of the committee are	261
coordinated with those of the department of agriculture.	262

(B) Not later than ninety days after the effective date of	263
this section, the director shall adopt rules in accordance with	264
Chapter 119. of the Revised Code that are necessary to carry out	265
the purposes of sections 924.20 to 924.30 of the Revised Code. The	266
rules shall include all of the following:	267

(1) Deadlines and nomination procedures for the placement of	268
persons on the ballot for election to the grain marketing program	269
operating committee;	270

(2) The terms of office of members of the operating	271
committee, including the staggering of terms for the initial	272
members;	273

(3) Insofar as possible, requirements providing for the	274
equitable distribution of members on the operating committee by	275
geographic and production areas of the state.	276

Sec. 924.26. (A) The grain marketing program operating	277
committee shall levy on producers and, as provided in division (B)	278
of this section, handlers the following assessments, as	279
applicable:	280

(1) One-half of one per cent of the per-bushel price of wheat	281
at the first point of sale;	282

(2) One-half of one per cent of the per-bushel price of	283
barley at the first point of sale;	284

(3) One-half of one per cent of the per-bushel price of rye	285
at the first point of sale;	286

(4) One-half of one per cent of the per-bushel price of oats	287
at the first point of sale.	288

(B) The director may require a handler to withhold	289
assessments from any amounts that the handler owes to producers	290
and to remit them to the director. A handler who pays for a	291
producer an assessment that is levied under this section may	292
deduct the amount of the assessment from any money that the	293
handler owes to the producer.	294

(C) The operating committee shall deposit all money collected	295
under this section with a bank or savings and loan association as	296
defined in sections 1101.01 and 1151.01 of the Revised Code. All	297
money so collected and deposited shall be used only for defraying	298
the costs of administration of the marketing program and for	299
carrying out sections 924.20 to 924.30 of the Revised Code. The	300
operating committee shall not use any assessments that it levies	301
for any political or legislative purpose or for preferential	302
treatment of one person to the detriment of any other person	303
affected by the grain marketing program.	304

(D) The operating committee shall refund to a producer the	305
assessments that it collects from the producer not later than	306
thirty days after receipt of a valid application by the producer	307
for a refund, provided that the producer complies with the	308
procedures for a refund established by the committee under section	309
924.24 of the Revised Code.	310

An application for a refund shall be made on a form provided	311
by the director. The operating committee shall ensure that refund	312
forms are available where assessments for the grain marketing	313
program are collected.	314

Sec. 924.27. (A) The grain marketing program operating	315
committee shall establish a fiscal year for the grain marketing	316
program. Within sixty days of the end of each fiscal year, the	317
operating committee shall publish an activity and financial report	318
and make the report available to each producer who pays the	319
assessment levied under section 924.26 of the Revised Code or	320
otherwise contributes to the program and to other interested	321
persons.	322

(B) In addition to the reports required by division (A) of	323
this section, the operating committee shall submit to the director	324
of agriculture both of the following:	325

(1) An annual financial statement prepared by a certified	326
public accountant holding a permit issued by the accountancy board	327
under Chapter 4701. of the Revised Code. The operating committee	328
shall file the financial statement with the director not more than	329
sixty days after the end of each fiscal year.	330

(2) A monthly unaudited financial statement.

331

Sec. 924.28. The grain marketing program may be suspended or	332
terminated in the same manner in which other marketing programs	333
are suspended or terminated under sections 924.12 and 924.13 of	334
the Revised Code.	335

Sec. 924.29. The director of agriculture may institute an	336
action at law or in equity that appears necessary to enforce	337
compliance with sections 924.20 to 924.30 of the Revised Code,	338
rules, or the grain marketing program that is established in	339
compliance with those sections and rules.	340

Sec. 924.30. (A) No person shall knowingly fail or refuse to	341
withhold or remit an assessment levied under section 924.26 of the	342
Revised Code.	343

(B) Before instituting an enforcement action for a violation	344
of this section, the director of agriculture shall give the	345
alleged violator an opportunity to present the alleged violator's	346
views to the director as to why the action should not be	347
instituted.	348

Sec. 924.99.  Whoever violates division (A) of section 924.16	349
or of section 924.30 of the Revised Code is guilty of a	350
misdemeanor of the fourth degree.	351

Sec. 3717.53. (A) As used in this section:

352

(1) "Food nutrition information" includes the caloric, fat,	353
carbohydrate, cholesterol, fiber, sugar, potassium, protein,	354
vitamin, mineral, and sodium content of food.	355

(2) "Political subdivision" and "local legislation" have the	356
same meanings as in section 905.501 of the Revised Code.	357

(B) The director of agriculture has sole and exclusive	358
authority in this state to regulate the provision of food	359
nutrition information at food service operations. The director may	360
adopt rules for that purpose in accordance with Chapter 119. of	361
the Revised Code, including rules that establish a schedule of	362
civil penalties for violations of this section and rules adopted	363
under it. Subject to the approval of the joint committee on agency	364
rule review, portions of the rules may be adopted by referencing	365
all or any part of any federal regulations pertaining to the	366
provision of food nutrition information.	367

The regulation of the provision of food nutrition information	368
at food service operations is a matter of general statewide	369
interest that requires statewide regulation, and rules adopted	370
under this section constitute a comprehensive plan with respect to	371
all aspects of the regulation of the provision of food nutrition	372
information at food service operations in this state. Rules	373
adopted under this section shall be applied uniformly throughout	374
this state.	375

(C) No political subdivision shall enact, adopt, or continue	376
in effect local legislation relating to the provision of food	377
nutrition information at food service operations.	378

Section 2. That existing sections 924.01, 924.02, 924.08,	379
924.09, and 924.99 of the Revised Code are hereby repealed.	380

Section 3. In fiscal year 2009, up to $200,000 from a	381
non-General Revenue Fund source to be determined by the Director	382
of Development, shall be used for the Ohio BioProducts	383
Innovation Center to conduct a material flow study, which shall	384
examine biobased resources in Ohio and the flow of materials	385
through the chain of harvesting, refining, and production of a	386
commercialized product; and up to $350,000 from a non-General	387
Revenue Fund source to be determined by the Director of	388
Development shall be used for the Ohio BioProducts Innovation	389
Center to conduct a techno-economic analysis to determine the	390
economic feasibility of using bioderived chemicals over	391
petroleum-derived or other types of chemicals in the polymer	392
industry.	393

Section 4. The sections of law contained in Sections 3 and 4	394
of this act, and the items of which they are composed, are not	395
subject to the referendum. Therefore, under Ohio Constitution,	396
Article II, Section 1d and section 1.471 of the Revised Code,	397
the sections of law contained in Sections 3 and 4 of this act and	398
the items of which they are composed go into immediate effect	399
when this act becomes law.	400