|
|
| To amend section 924.01 and to enact sections 924.40 | 1 |
| to 924.45 of the Revised Code to establish | 2 |
| procedures and requirements for the establishment | 3 |
| of marketing agreements for agricultural | 4 |
| commodities. | 5 |
| Section 1. That section 924.01 be amended and sections | 6 |
| 924.40, 924.41, 924.42, 924.43, 924.44, and 924.45 of the Revised | 7 |
| Code be enacted to read as follows: | 8 |
| Sec. 924.01. As used in sections 924.01 to 924.16 and | 9 |
| 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 that the | 18 |
| person has purchased or acquired directly from a producer, or that | 19 |
| the person markets on behalf of a producer. | 20 |
| (C) "Handler" means any person who is in the business of | 21 |
| packing, grading, selling, offering for sale, or marketing any | 22 |
| agricultural commodity in commercial quantities as defined in a | 23 |
| marketing program. | 24 |
| (D) "Marketing program" means a program that is established | 25 |
| by order of the director pursuant to this chapter, to improve or | 26 |
| expand the market for an agricultural commodity. | 27 |
| (E) "Operating committee" means a committee established to | 28 |
| administer a marketing program for an agricultural commodity. | 29 |
| (F) "Person" means any natural person, partnership, | 30 |
| corporation, society, association, or fiduciary. | 31 |
| (G) "Processor" means any person who is in the business of | 32 |
| grading, packaging, packing, canning, freezing, dehydrating, | 33 |
| fermenting, distilling, extracting, preserving, grinding, | 34 |
| crushing, juicing, or in any other way preserving or changing the | 35 |
| form of any agricultural commodity. | 36 |
| (H) "Producer" means any person who is in the business of | 37 |
| producing, or causing to be produced, any agricultural commodity | 38 |
| for commercial sale, except that when used in reference to nursery | 39 |
| stock, "producer" also means a distributor, processor, handler, or | 40 |
| retailer of nursery stock. | 41 |
| Sec. 924.40. (A) For purposes of sections 924.40 to 924.46 | 42 |
| of the Revised Code, the director of agriculture shall adopt rules | 43 |
| in accordance with Chapter 119. of the Revised Code that establish | 44 |
| procedures and requirements that are necessary to administer and | 45 |
| implement a marketing agreement executed under those sections for | 46 |
| an agricultural commodity or a region of the state concerning an | 47 |
| agricultural commodity that is the subject of the marketing | 48 |
| agreement. | 49 |
| (B) For purposes of sections 924.40 to 924.45 of the Revised | 50 |
| Code, the director may do all of the following: | 51 |
| (1) Approve a marketing agreement; | 52 |
| (2) Terminate a marketing agreement executed under those | 53 |
| sections if any of the following applies: | 54 |
| (a) The director finds that the agreement or any terms of the | 55 |
| agreement violate state or federal law. | 56 |
| (b) A producer is engaging in malfeasance, disparagement, or | 57 |
| unfair trade practices. | 58 |
| (c) The number of producers that signed the marketing | 59 |
| agreement becomes fewer than the minimum number of producers that | 60 |
| are necessary for the administration of the marketing agreement to | 61 |
| be financially self-supporting. | 62 |
| (3) Enter and inspect a facility of a producer that signed a | 63 |
| marketing agreement to ensure compliance with the marketing | 64 |
| agreement. The director may delegate that authority to another | 65 |
| person or contract with another person to exercise that authority. | 66 |
| (4) Adopt rules in accordance with Chapter 119. of the | 67 |
| Revised Code that establish civil penalties that the director may | 68 |
| assess against a person that signed a marketing agreement who | 69 |
| violates its terms or who violates sections 924.40 to 924.45 of | 70 |
| the Revised Code and rules adopted under those sections; | 71 |
| (5) Enforce rules under sections 924.40 to 924.45 of the | 72 |
| Revised Code. | 73 |
| Sec. 924.41. A marketing agreement that is executed in | 74 |
| compliance with and pursuant to sections 924.40 to 924.45 of the | 75 |
| Revised Code for the purpose of the voluntary participation of | 76 |
| persons who are signatories to the agreement may provide for the | 77 |
| establishment and regulation of one or more of the following: | 78 |
| (A) Standards of production for an agricultural commodity, | 79 |
| including growing and handling practices, provided that the | 80 |
| standards are equivalent to or more stringent than standards of | 81 |
| production for that agricultural commodity that are established in | 82 |
| the laws of this state or federal law; | 83 |
| (B) Standards for the establishment and use of a logo, | 84 |
| trademark, or brand associated with an agricultural commodity, | 85 |
| provided that the standards do not violate the laws of this state | 86 |
| or federal law; | 87 |
| (C) Collection of fees for services provided pursuant to the | 88 |
| marketing agreement; | 89 |
| (D) Any other topic that the director of agriculture may | 90 |
| allow by rule. | 91 |
| Sec. 924.42. (A) Producers of an agricultural commodity in | 92 |
| this state may present to the director of agriculture a petition | 93 |
| signed by at least two hundred or twenty-five per cent of all the | 94 |
| producers of that agricultural commodity in this state, whichever | 95 |
| is less, requesting the director to approve a marketing agreement | 96 |
| for that agricultural commodity. | 97 |
| (B) A petition submitted under division (A) of this section | 98 |
| shall include all of the following: | 99 |
| (1) A document that creates and identifies a provisional | 100 |
| board of directors for the purpose of facilitating the execution | 101 |
| of the proposed marketing agreement, which shall consist of at | 102 |
| least three, but not more than five producers of the agricultural | 103 |
| commodity that is the subject of the proposed marketing agreement; | 104 |
| (2) A proposed marketing agreement that at a minimum contains | 105 |
| a description of all of the following: | 106 |
| (a) The affected agricultural commodity or the region of the | 107 |
| state concerning the agricultural commodity that is the subject of | 108 |
| the proposed marketing agreement; | 109 |
| (b) Any standards that will be adopted under the proposed | 110 |
| marketing agreement; | 111 |
| (c) Procedures by which the proposed marketing agreement may | 112 |
| be amended; | 113 |
| (d) The length of time that the proposed marketing agreement | 114 |
| will be in effect; | 115 |
| (e) The size and composition of a board of directors that | 116 |
| will be established under the marketing agreement for the purpose | 117 |
| of administering the agreement; | 118 |
| (f) The method by which the members of the board of directors | 119 |
| that will be established under the marketing agreement will be | 120 |
| elected; | 121 |
| (g) The estimated costs to and rate of assessment to be made | 122 |
| on each person who is a signatory to the marketing agreement for | 123 |
| purposes of membership, inspections, or other services provided by | 124 |
| the board of directors under the marketing agreement in | 125 |
| conjunction with the person's participation in the marketing | 126 |
| agreement; | 127 |
| (h) The minimum number of producers that are necessary for | 128 |
| the marketing agreement to be financially self-supporting; | 129 |
| (i) Any other information that the director may require by | 130 |
| rule. | 131 |
| (3) An unbiased and accurate summary of the proposed | 132 |
| marketing agreement. | 133 |
| (C) The petitioners shall include with the petition submitted | 134 |
| under division (A) of this section all of the following: | 135 |
| (1) A current list of producers of the agricultural commodity | 136 |
| or in the region of the state concerning the agricultural | 137 |
| commodity that is the subject of the proposed marketing agreement. | 138 |
| The list may be created from existing records or records that are | 139 |
| available from any reliable source. | 140 |
| (2) An administration fee of five hundred dollars or another | 141 |
| amount that the director determines is necessary to pay the costs | 142 |
| of the director of notifying all known producers of the affected | 143 |
| agricultural commodity or in the region of the state concerning | 144 |
| the agricultural commodity that is the subject of the proposed | 145 |
| marketing agreement and the costs of conducting the public meeting | 146 |
| that is required in section 924.43 of the Revised Code concerning | 147 |
| the proposed marketing agreement; | 148 |
| (3) Information that demonstrates that the producers of the | 149 |
| agricultural commodity or in the region of the state concerning | 150 |
| the agricultural commodity that is the subject of the proposed | 151 |
| marketing agreement have sufficient money to pay the costs of a | 152 |
| board of directors to administer the marketing agreement and to | 153 |
| pay the costs of administration and enforcement of the marketing | 154 |
| agreement. | 155 |
| Sec. 924.43. (A) After receipt of a petition submitted under | 156 |
| division (A) of section 924.42 of the Revised Code, the director | 157 |
| of agriculture shall notify all producers included in the list | 158 |
| provided to the director under division (C)(1) of that section. | 159 |
| The notification shall contain a description of the purpose of the | 160 |
| proposed marketing agreement and provide the date, time, and | 161 |
| location of a public meeting that will be conducted by the | 162 |
| director as required by division (B) of this section. The | 163 |
| notification shall be sent through regular mail and published in | 164 |
| at least one publication specific to the agricultural commodity | 165 |
| that is the subject of the proposed marketing agreement. In | 166 |
| addition, the director may post the notification on the department | 167 |
| of agriculture's web site. | 168 |
| (B) Not later than thirty days after receipt of a petition | 169 |
| submitted under division (A) of section 924.42 of the Revised | 170 |
| Code, the director shall conduct a public meeting concerning the | 171 |
| proposed marketing agreement for an agricultural commodity or for | 172 |
| the region of the state concerning an agricultural commodity. At | 173 |
| the meeting, the director shall allow any interested person to | 174 |
| present information concerning the proposed marketing agreement. | 175 |
| (C) At least a majority of the members of the provisional | 176 |
| board of directors created pursuant to division (B)(1) of section | 177 |
| 924.42 of the Revised Code shall attend the public meeting | 178 |
| conducted by the director pursuant to division (B) of this | 179 |
| section. The provisional board shall consider all of the | 180 |
| information presented at the public meeting before drafting a | 181 |
| marketing agreement that will be submitted to the director for | 182 |
| approval. Not later than thirty days after the public meeting, the | 183 |
| provisional board shall submit to the director for approval a | 184 |
| marketing agreement that complies with section 924.44 of the | 185 |
| Revised Code for an agricultural commodity or for a region of the | 186 |
| state concerning an agricultural commodity. | 187 |
| (D)(1) Not later than thirty days after receipt of a | 188 |
| marketing agreement, the director shall consider all of the | 189 |
| information presented at the public meeting conducted under | 190 |
| division (B) of this section before approving or denying the | 191 |
| marketing agreement. The director may approve a marketing | 192 |
| agreement only if all of the following apply: | 193 |
| (a) The director is unable to discover a substantially | 194 |
| similar marketing agreement existing for the agricultural | 195 |
| commodity or for the region of the state concerning the | 196 |
| agricultural commodity that is the subject of the marketing | 197 |
| agreement. | 198 |
| (b) The marketing agreement complies with section 924.44 of | 199 |
| the Revised Code. | 200 |
| (c) The marketing agreement complies with the laws of this | 201 |
| state and federal law. | 202 |
| (d) The director determines that the producers of the | 203 |
| agricultural commodity or the region of the state concerning the | 204 |
| agricultural commodity that is the subject of the marketing | 205 |
| agreement have sufficient money to pay the costs of a board of | 206 |
| directors to administer the marketing agreement and to pay the | 207 |
| costs of administration and enforcement of the marketing agreement | 208 |
| pursuant to the information submitted under division (C)(3) of | 209 |
| section 924.42 of the Revised Code. | 210 |
| (2) The director shall send notice to the provisional board | 211 |
| of directors created pursuant to division (B)(1) of section 924.42 | 212 |
| of the Revised Code of the director's decision to approve or deny | 213 |
| the marketing agreement. If the director approves the marketing | 214 |
| agreement, the notice shall indicate the date by which producers | 215 |
| will be required to sign the marketing agreement, which shall be | 216 |
| sixty days after the date on which the director approved the | 217 |
| marketing agreement. | 218 |
| (3) If the provisional board of directors created pursuant to | 219 |
| division (B)(1) of section 924.42 of the Revised Code receives | 220 |
| notice from the director approving the marketing agreement, the | 221 |
| board shall notify all known producers of the agricultural | 222 |
| commodity or all known producers in the region in which the | 223 |
| agricultural commodity is produced that is the subject of the | 224 |
| approved marketing agreement. The notice shall include the date by | 225 |
| which producers must sign the marketing agreement. | 226 |
| (4) Following the date by which producers desiring to be | 227 |
| signatories to the marketing agreement are required to sign the | 228 |
| agreement, the director shall determine if there is a sufficient | 229 |
| number of producers that signed the marketing agreement for the | 230 |
| administration of the marketing agreement to be financially | 231 |
| self-supporting plus an additional twenty per cent of that number. | 232 |
| If the director determines that at least the minimum number of | 233 |
| required producers have signed the marketing agreement, the | 234 |
| director shall sign the marketing agreement and the marketing | 235 |
| agreement shall be effective on the date on which the director | 236 |
| signs it. | 237 |
| Sec. 924.44. A marketing agreement submitted by a | 238 |
| provisional board of directors under section 924.43 of the Revised | 239 |
| Code at a minimum shall contain terms that establish all of the | 240 |
| following: | 241 |
| (A) The identification of the agricultural commodity or of | 242 |
| the region of the state concerning the agricultural commodity that | 243 |
| is the subject of the marketing agreement; | 244 |
| (B) Standards, if any, of production for the agricultural | 245 |
| commodity or of marketing that will apply to each producer that | 246 |
| signs the marketing agreement; | 247 |
| (C) Standards for the use of a logo, trademark, or brand | 248 |
| associated with the agricultural commodity; | 249 |
| (D) The length of time that the marketing agreement will be | 250 |
| in effect, whether the marketing agreement may be renewed, and, if | 251 |
| so, procedures for renewal; | 252 |
| (E) Procedures by which the marketing agreement may be | 253 |
| amended. The procedures shall require the approval of the director | 254 |
| of agriculture and of at least a majority of the producers that | 255 |
| are signatories to the marketing agreement in order for an | 256 |
| amendment to be effective. | 257 |
| (F) The size and composition of a board of directors that | 258 |
| will administer the marketing agreement; | 259 |
| (G) Procedures for the election of members of the board of | 260 |
| directors; | 261 |
| (H) The lengths of terms of members of the board of directors | 262 |
| and conditions, if any, for reelection; | 263 |
| (I) Procedures for the removal of a member of the board of | 264 |
| directors for misfeasance, malfeasance, or nonfeasance; | 265 |
| (J) The costs to and rate of assessment to be made on each | 266 |
| person who is a signatory to the marketing agreement for purposes | 267 |
| of membership, inspections, or other services provided by the | 268 |
| board of directors under the marketing agreement in conjunction | 269 |
| with the person's participation in the marketing agreement; | 270 |
| (K) Procedures by which producers of the agricultural | 271 |
| commodity may become signatories to the marketing agreement after | 272 |
| the agreement takes effect; | 273 |
| (L) Procedures by which producers who are signatories to the | 274 |
| marketing agreement may be removed from the marketing agreement; | 275 |
| (M) Procedures by which producers that are signatories to the | 276 |
| marketing agreement may terminate the marketing agreement; | 277 |
| (N) Any other procedures or requirements that the director of | 278 |
| agriculture requires by rule. | 279 |
| Sec. 924.45. (A)(1) After a marketing agreement takes | 280 |
| effect, a board of directors that will administer the marketing | 281 |
| agreement shall be established in accordance with the terms of the | 282 |
| marketing agreement. Except for the director of agriculture or the | 283 |
| director's designee who shall serve as an ex officio member of the | 284 |
| board of directors, members of the board shall be selected only | 285 |
| from individuals who are producers that signed the marketing | 286 |
| agreement. | 287 |
| (2) The provisional board of directors created pursuant to | 288 |
| division (B)(1) of section 924.42 of the Revised Code shall verify | 289 |
| that the board of directors is established in accordance with the | 290 |
| terms of the marketing agreement. If the provisional board of | 291 |
| directors determines that the board of directors was not | 292 |
| established in accordance with the terms of the marketing | 293 |
| agreement, the provisional board shall notify the director who | 294 |
| shall take appropriate actions to ensure that the board of | 295 |
| directors is established in accordance with the terms of the | 296 |
| marketing agreement. If the provisional board of directors | 297 |
| determines that the board of directors was established in | 298 |
| accordance with the terms of the marketing agreement, the | 299 |
| provisional board shall cease to exist. | 300 |
| (B) A board of directors that is established to administer a | 301 |
| marketing agreement shall do all of the following: | 302 |
| (1) Establish priorities of the board that are consistent | 303 |
| with the estimated financial resources that will be generated | 304 |
| under the terms of the marketing agreement and with the scope of | 305 |
| the marketing agreement; | 306 |
| (2) Prepare a budget that is consistent with the estimated | 307 |
| financial resources that will be generated under the terms of the | 308 |
| marketing agreement and with the scope of the marketing agreement; | 309 |
| (3) Deposit all money collected pursuant to the marketing | 310 |
| agreement with a bank as defined in section 1101.01 of the Revised | 311 |
| Code or with a savings and loan association as defined in section | 312 |
| 1151.01 of the Revised Code. The board shall use the money only to | 313 |
| pay the costs of the board in administering the marketing | 314 |
| agreement and of the activities authorized under the marketing | 315 |
| agreement and under sections 924.40 to 924.45 of the Revised Code. | 316 |
| (4) Establish a fiscal year for purposes of marketing | 317 |
| activities performed under the terms of the marketing agreement; | 318 |
| (5) Publish an activity and financial report not later than | 319 |
| sixty days after the end of a fiscal year. The board shall make | 320 |
| the report available to each producer that signed the marketing | 321 |
| agreement and to other interested parties. | 322 |
| (6) Provide annually to the director of agriculture and to | 323 |
| each producer that signed the marketing agreement a financial | 324 |
| statement that is prepared by a person who holds a current | 325 |
| certificate as a certified public accountant issued under Chapter | 326 |
| 4701. of the Revised Code. The board shall provide the financial | 327 |
| statement to the director not later than sixty days after the end | 328 |
| of a fiscal year. | 329 |
| (7) Reimburse the department of agriculture for actual | 330 |
| administrative costs incurred by the department in the | 331 |
| administration of sections 924.40 to 924.45 of the Revised Code. | 332 |
| However, the amount reimbursed in a fiscal year shall not exceed | 333 |
| ten per cent of the total amount of money collected in that fiscal | 334 |
| year by the board of directors under the authority of the | 335 |
| marketing agreement. | 336 |
| (8) Perform all other acts and exercise all other powers that | 337 |
| are reasonably necessary, proper, or advisable to effectuate the | 338 |
| purposes of sections 924.40 to 924.45 of the Revised Code. | 339 |
| (C) A board of directors that is established to administer a | 340 |
| marketing agreement may do all of the following: | 341 |
| (1) Propose to the director rules that are necessary for the | 342 |
| board to perform its duties under the requirements of the | 343 |
| marketing agreement and under sections 924.40 to 924.45 of the | 344 |
| Revised Code; | 345 |
| (2) Hire personnel and contract for services that are | 346 |
| necessary for the implementation and administration of the | 347 |
| marketing agreement; | 348 |
| (3) Receive and investigate, or cause to be investigated, a | 349 |
| complaint concerning an alleged violation of a term of the | 350 |
| marketing agreement. If the board determines that such a violation | 351 |
| has occurred, the board shall refer the matter to the director for | 352 |
| enforcement. | 353 |
| (4) Amend the marketing agreement in accordance with the | 354 |
| terms of the marketing agreement and with sections 924.40 to | 355 |
| 924.45 of the Revised Code; | 356 |
| (5) Terminate the marketing agreement with the approval of a | 357 |
| majority of the participating producers that are signatories to | 358 |
| the marketing agreement. If the marketing agreement is terminated, | 359 |
| the board shall distribute any remaining unobligated money | 360 |
| collected under the authority of the marketing agreement to each | 361 |
| participating producer in the same proportion that the producer | 362 |
| paid assessments under the marketing agreement. | 363 |
| Section 2. That existing section 924.01 of the Revised Code | 364 |
| is hereby repealed. | 365 |