As Reported by the House Agriculture and Natural Resources Committee

127th General Assembly Regular Session 2007-2008

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 

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A BILL

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

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924.99 and to enact sections 924.20 to 924.30 of

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the Revised Code to establish a grain marketing

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program.

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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	5
924.99 be amended and sections 924.20, 924.21, 924.22, 924.23,	6
924.24, 924.25, 924.26, 924.27, 924.28, 924.29, and 924.30 of the	7
Revised Code be enacted to read as follows:	8

Sec. 924.01.  As used in Chapter 924.sections 924.01 to	9
924.16 and 924.51 to 924.55 of the Revised Code:	10

(A) "Agricultural commodity" means any food, fiber, feed,	11
animal, or plant, or group of foods, fibers, feeds, animals, or	12
plants that the director of agriculture determines to be of the	13
same nature, in either a natural or a processed state.	14
"Agricultural commodity" does not include grain as defined in	15
section 924.20 of the Revised Code.	16

(B) "Distributor" means any person who sells, offers for	17
sale, markets, or distributes an agricultural commodity which he	18
that the person has purchased or acquired directly from a	19
producer, or which hethat the person markets on behalf of a	20
producer.	21

(C) "Handler" means any person who is in the business of	22
packing, grading, selling, offering for sale, or marketing any	23
agricultural commodity in commercial quantities as defined in a	24
marketing program.	25

(D) "Marketing program" means a program whichthat is	26
established by order of the director of agriculture pursuant to	27
this chapter, to improve or expand the market for an agricultural	28
commodity.	29

(E) "Operating committee" means a committee established to	30
administer a marketing program for an agricultural commodity.	31

(F) "Person" means any natural person, partnership,	32
corporation, society, association, or fiduciary.	33

(G) "Processor" means any person who is in the business of	34
grading, packaging, packing, canning, freezing, dehydrating,	35
fermenting, distilling, extracting, preserving, grinding,	36
crushing, juicing, or in any other way preserving or changing the	37
form of any agricultural commodity.	38

(H) "Producer" means any person who is in the business of	39
producing, or causing to be produced, any agricultural commodity	40
for commercial sale, except that when used in reference to nursery	41
stock, "producer" also means a distributor, processor, handler, or	42
retailer of nursery stock.	43

Sec. 924.02.  The director of agriculture, subject to this	44
chaptersections 924.01 to 924.16 and Chapter 119. of the Revised	45
Code, shall do all of the following:	46

(A) Establish procedures by which producers of Ohio	47
agricultural commodities may propose, develop, and operate	48
marketing programs to:	49

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

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

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(3) Improve the methods of distributing such products to	52
consumers;	53

(4) Standardize the quality of such products for specific	54
uses.	55

(B) Adopt and enforce rules to put into effect the intent of	56
sections 924.01 to 924.16 of the Revised Code;	57

(C) Determine the eligibility of producers to participate in	58
referendums and other procedures that may be required to establish	59
marketing programs for agricultural commodities.	60

Sec. 924.08.  The director of agriculture shall monitor the	61
actions of each operating committee to assure that:	62

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

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(B) Each such committee keeps all records whichthat are	64
required for agencies of the state;.	65

(C) All program operations are in accord with:

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(1) The provisions of the marketing program;

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(2) RegulationsRules adopted by the director;

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(3) Chapter 924.Sections 924.01 to 924.16 of the Revised	69
Code.	70

(D) Administrative activities of each committee are	71
coordinated with those of the department of agriculture.	72

Sec. 924.09.  (A) Each operating committee may make	73
assessments upon the marketable agricultural commodity for which	74
the marketing program was established.	75

(B) No operating committee shall levy any assessment:

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(1) That was not approved by the producers affected by the	77
program;	78

(2) That exceeds two cents per bushel of corn,or soybeans,	79
or wheat, or two per cent of the average market price of any other	80
agricultural commodity during the preceding marketing year as	81
defined for the commodity by the United States department of	82
agriculture or, if there is no such definition, by the director of	83
agriculture;	84

(3) Against any producer who is not eligible to vote in a	85
referendum for the marketing program that the operating committee	86
administers.	87

(C) The director of agriculture may require a producer,	88
processor, distributor, or handler of an agricultural commodity	89
for which a marketing program has been established under sections	90
924.01 to 924.16 of the Revised Code to withhold assessments from	91
any amounts that the producer, processor, distributor, or handler	92
owes to producers of the commodity and, notwithstanding division	93
(B)(3) of this section, to remit them to the director. Any	94
processor, distributor, or handler who pays for any producer any	95
assessment that is levied under authority of this section may	96
deduct the amount of the assessment from any moneys that the	97
processor, distributor, or handler owes to the producer.	98

(D) No operating committee shall use any assessments that it	99
levies for any political or legislative purpose, or for	100
preferential treatment of one person to the detriment of any other	101
person affected by the marketing program.	102

(E) The operating committee of each marketing program shall	103
refund to a producer the assessments that it collects from the	104
producer not later than sixty days after receipt of a valid	105
application by the producer for a refund, provided that the	106
producer complies with the procedures for a refund that were	107
included in the program under division (B)(3) of section 924.04 of	108
the Revised Code.	109

In the case of the state beef marketing program, in lieu of	110
giving a refund to a producer, the director of the program's	111
operating committee may forward the refund to the cattlemen's beef	112
promotion and research board pursuant to the "Beef Promotion and	113
Research Act," 99 Stat. 1597 (1985), 7 U.S.C.A. 2901, and	114
amendments thereto, and shall credit that amount to the total	115
amount owed by the producer to the federal beef program. Each	116
application for a refund of assessments levied for a program	117
established after April 10, 1985 shall be made on a form provided	118
by the director of agriculture. Each operating committee for such	119
a program shall ensure that refund forms are available where	120
assessments for its program are withheld.	121

Sec. 924.20.  As used in sections 924.20 to 924.30 of the	122
Revised Code:	123

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

124

(B) "Handler" means a person who is in the business of	125
agricultural commodity handling, as defined in section 926.01 of	126
the Revised Code, of grain.	127

(C) "Producer" means a person who is in the business of	128
producing, or causing to be produced, grain for commercial sale.	129

(D) "Rule" means a rule adopted under section 924.25 of the	130
Revised Code.	131

Sec. 924.21.  There is hereby established a grain marketing	132
program. The program shall be administered in accordance with	133
sections 924.20 to 924.30 of the Revised Code and rules.	134

Sec. 924.22. (A) For the purposes of sections 924.20 to	135
924.30 of the Revised Code, the director of agriculture shall hold	136
an election to determine the membership of a grain marketing	137
program operating committee in accordance with rules. The election	138
shall be for nine members of the operating committee.	139

(B) Not later than one hundred twenty days after the	140
effective date of this section, the director shall accept the	141
names of persons as nominees to serve on the operating committee.	142
In accepting nominations and placing names on the ballot, the	143
director shall follow the procedures established in rules.	144

(C) Not later than one hundred eighty days after the	145
effective date of this section, the director shall hold an	146
election to determine the membership of the operating committee.	147
In the election, eligible producers may cast votes in person at or	148
mail ballots to polling places designated by the director. The	149
director shall establish a three-day period during which eligible	150
producers may vote in person during normal business hours at the	151
designated polling places. The director or another appropriate	152
person shall send a ballot by ordinary first-class mail to an	153
eligible producer who requests one by calling the toll-free	154
telephone number or submitting the ballot request form provided	155
for in division (D) of this section, by calling one of the	156
designated polling places, or by any additional method that the	157
director may provide. A ballot returned by mail is not valid if it	158
is postmarked later than the third day of the election period	159
established by the director.	160

(D) For the purposes of an election of members of the grain	161
marketing program operating committee, the director shall cause a	162
ballot request form to be published at least thirty days before	163
the beginning of the election period established in accordance	164
with division (C) of this section in at least two appropriate	165
periodicals designated by the director and shall make the form	166
available for reproduction to any interested group or association.	167
The director also shall provide a toll-free telephone number that	168
producers may call to request a ballot.	169

(E) Following the election of the initial members of the	170
operating committee, the director shall hold subsequent elections	171
in order to maintain the membership of the operating committee as	172
provided in rules. The elections shall be held in the manner	173
established in this section and rules for the election of initial	174
members.	175

(F) Persons elected to the grain marketing program operating	176
committee shall hold office in accordance with rules.	177

Sec. 924.23. (A) The grain marketing program operating	178
committee shall hold at least one meeting per quarter each year.	179
The members of the operating committee annually shall select	180
officers, including a chairperson and a vice-chairperson.	181

(B) A majority of the members of the operating committee	182
constitutes a quorum. A majority of concurring votes is required	183
to pass a motion or approve any operating committee action.	184

(C) The director of agriculture, or the director's designee,	185
is an ex-officio voting member of the operating committee.	186

(D) Each member of the operating committee, except the	187
director or the director's designee, is entitled to actual and	188
necessary travel and incidental expenses while attending meetings	189
of the committee or while engaged in the performance of official	190
responsibilities as a member of the committee.	191

(E) A member or employee of the operating committee is not	192
civilly liable for any actions taken in good faith as a member or	193
employee, as applicable, of the committee.	194

Sec. 924.24.  (A) The grain marketing program operating	195
committee shall do all of the following:	196

(1) Hire personnel and contract for services that are	197
necessary for the operation of the grain marketing program;	198

(2) Promote the sale of grain for the purpose of maintaining	199
and expanding present markets and creating new and larger	200
intrastate, interstate, and foreign markets for grain, and inform	201
the public of the uses and benefits of grain;	202

(3) Establish requirements and procedures for the collection	203
of assessments that the operating committee is required to levy	204
under section 924.26 of the Revised Code, including the method and	205
frequency of collection;	206

(4) Establish procedures to be used by a person who wishes to	207
file for a refund of the person's assessment that is levied under	208
section 924.26 of the Revised Code;	209

(5) Perform all acts and exercise all powers incidental to,	210
in connection with, or considered reasonably necessary, proper, or	211
advisable to effectuate the purposes of sections 924.20 to 924.30	212
of the Revised Code.	213

(B) The operating committee may do any or all of the	214
following:	215

(1) Conduct, and contract with others to conduct, research,	216
including the study, analysis, dissemination, and accumulation of	217
information obtained from the research or elsewhere, concerning	218
the marketing and distribution of grain, the storage, processing,	219
and transportation of grain, and the production and product	220
development of grain;	221

(2) Provide the wholesale and retail grain trade with	222
information relative to proper methods of handling and selling	223
grain;	224

(3) Conduct, and contract with others to conduct, market	225
surveys and analyses, undertake any other similar activities that	226
it determines are appropriate for the maintenance and expansion of	227
present markets and the creation of new and larger markets for	228
grain, and enter into contracts, in the name of the committee, to	229
render service in formulating and conducting plans and programs	230
and other contracts or agreements that the committee considers	231
necessary for the promotion of the sale of grain;	232

(4) Publish and distribute to producers and others	233
information relating to the grain industry;	234

(5) Propose to the director of agriculture rules that are	235
necessary for the exercise of its powers and the performance of	236
its duties;	237

(6) Establish priorities and prepare and approve a budget	238
consistent with estimated resources and the scope of the grain	239
marketing program;	240

(7) Receive and investigate, or cause to be investigated,	241
complaints concerning and violations of the grain marketing	242
program. The operating committee shall refer any violations to the	243
director for action under section 924.29 of the Revised Code.	244

Sec. 924.25. (A) The director of agriculture shall monitor	245
the activities of the grain marketing program operating committee	246
to ensure all of the following:	247

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

248

(2) The operating committee keeps all records that are	249
required for agencies of the state.	250

(3) The program's operations comply with all of the	251
following:	252

(a) The provisions of the program;

253

(b) Rules;

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

255

(4) Administrative activities of the committee are	256
coordinated with those of the department of agriculture.	257

(B) Not later than ninety days after the effective date of	258
this section, the director shall adopt rules in accordance with	259
Chapter 119. of the Revised Code that are necessary to carry out	260
the purposes of sections 924.20 to 924.30 of the Revised Code. The	261
rules shall include all of the following:	262

(1) Deadlines and nomination procedures for the placement of	263
persons on the ballot for election to the grain marketing program	264
operating committee;	265

(2) The terms of office of members of the operating	266
committee, including the staggering of terms for the initial	267
members;	268

(3) Insofar as possible, requirements providing for the	269
equitable distribution of members on the operating committee by	270
geographic and production areas of the state.	271

Sec. 924.26. (A) The grain marketing program operating	272
committee shall levy on producers and, as provided in division (B)	273
of this section, handlers the following assessments, as	274
applicable:	275

(1) One-half of one per cent of the per-bushel price of wheat	276
at the first point of sale;	277

(2) One-half of one per cent of the per-bushel price of	278
barley at the first point of sale;	279

(3) One-half of one per cent of the per-bushel price of rye	280
at the first point of sale;	281

(4) One-half of one per cent of the per-bushel price of oats	282
at the first point of sale.	283

(B) The director may require a handler to withhold	284
assessments from any amounts that the handler owes to producers	285
and to remit them to the director. A handler who pays for a	286
producer an assessment that is levied under this section may	287
deduct the amount of the assessment from any money that the	288
handler owes to the producer.	289

(C) The operating committee shall deposit all money collected	290
under this section with a bank or savings and loan association as	291
defined in sections 1101.01 and 1151.01 of the Revised Code. All	292
money so collected and deposited shall be used only for defraying	293
the costs of administration of the marketing program and for	294
carrying out sections 924.20 to 924.30 of the Revised Code. The	295
operating committee shall not use any assessments that it levies	296
for any political or legislative purpose or for preferential	297
treatment of one person to the detriment of any other person	298
affected by the grain marketing program.	299

(D) The operating committee shall refund to a producer the	300
assessments that it collects from the producer not later than	301
thirty days after receipt of a valid application by the producer	302
for a refund, provided that the producer complies with the	303
procedures for a refund established by the committee under section	304
924.24 of the Revised Code.	305

An application for a refund shall be made on a form provided	306
by the director. The operating committee shall ensure that refund	307
forms are available where assessments for the grain marketing	308
program are collected.	309

Sec. 924.27. (A) The grain marketing program operating	310
committee shall establish a fiscal year for the grain marketing	311
program. Within sixty days of the end of each fiscal year, the	312
operating committee shall publish an activity and financial report	313
and make the report available to each producer who pays the	314
assessment levied under section 924.26 of the Revised Code or	315
otherwise contributes to the program and to other interested	316
persons.	317

(B) In addition to the reports required by division (A) of	318
this section, the operating committee shall submit to the director	319
of agriculture both of the following:	320

(1) An annual financial statement prepared by a certified	321
public accountant holding a permit issued by the accountancy board	322
under Chapter 4701. of the Revised Code. The operating committee	323
shall file the financial statement with the director not more than	324
sixty days after the end of each fiscal year.	325

(2) A monthly unaudited financial statement.

326

Sec. 924.28. The grain marketing program may be suspended or	327
terminated in the same manner in which other marketing programs	328
are suspended or terminated under sections 924.12 and 924.13 of	329
the Revised Code.	330

Sec. 924.29. The director of agriculture may institute an	331
action at law or in equity that appears necessary to enforce	332
compliance with sections 924.20 to 924.30 of the Revised Code,	333
rules, or the grain marketing program that is established in	334
compliance with those sections and rules.	335

Sec. 924.30. (A) No person shall knowingly fail or refuse to	336
withhold or remit an assessment levied under section 924.26 of the	337
Revised Code.	338

(B) Before instituting an enforcement action for a violation	339
of this section, the director of agriculture shall give the	340
alleged violator an opportunity to present the alleged violator's	341
views to the director as to why the action should not be	342
instituted.	343

Sec. 924.99.  Whoever violates division (A) of section 924.16	344
or of section 924.30 of the Revised Code is guilty of a	345
misdemeanor of the fourth degree.	346

Section 2. That existing sections 924.01, 924.02, 924.08,	347
924.09, and 924.99 of the Revised Code are hereby repealed.	348