HB180INTRODUCED Page 0 350WEE-1 By Representatives Fidler, Marques, Sorrells, Clouse, Mooney, Travis, Rehm, Standridge, Sells, Forte, Givens, Holk-Jones, Lee, Hammett, Shirey, Gidley, Paramore, Baker, Crawford RFD: Agriculture and Forestry First Read: 22-Mar-23 1 2 3 4 5 6 7 350WEE-1 03/21/2023 ZAK (L)cr 2023-782 Page 1 SYNOPSIS: Under existing law, an organization certified by the Alabama Department of Agriculture and Industries to conduct a referendum on levying an assessment to promote a commodity must follow certain requirements for how notice must be given for the referendum. Existing law specifies the amount of time an assessment on the sale of nuts, bulbs, fruits, or vegetables is effective before another referendum is required. Under existing law, the Commissioner of Agriculture and Industries may deduct a percentage of the sums remitted to him or her for distribution pursuant to the assessment charged on the sale of nuts, bulbs, fruits, and vegetables. This bill would revise the requirements for how notice must be given for a referendum on an assessment regarding nuts, bulbs, fruits, and vegetables in general and regarding peanuts specifically. This bill would change the length of time an assessment on the sale of nuts, bulbs, fruits, and vegetables is in effect before a referendum is needed. This bill would change the percentage the Commissioner of Agriculture and Industries may deduct from the sum of the assessment on the sale of nuts, 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 HB180 INTRODUCEDHB180 INTRODUCED Page 2 bulbs, fruits, and vegetables for administrative costs. Existing law also provides for the length of time between audits of the books and accounts of an organization certified to conduct a referendum regarding an assessment on sheep and goat sales. This bill would change the length of time between audits of the books and accounts of an organization certified to conduct a referendum regarding an assessment on the sale of sheep and goats. This bill would also make nonsubstantive, technical revisions to update the existing code language to current style. A BILL TO BE ENTITLED AN ACT Relating to Agriculture, to amend Sections 2-8-126, 2-8-128, 2-8-131, 2-8-133, 2-8-134, 2-8-135, and 2-8-323, Code of Alabama 1975, to revise the requirements for giving notice of a referendum on an assessment to be used to promote peanuts specifically as well as other nuts, bulbs, fruits, and vegetables; to revise the time an assessment on the sale of nuts, bulbs, fruits, or vegetables is effective between referendums; to revise the percentage the Commissioner of Agriculture and Industries may deduct from the sum of the assessment on nuts, bulbs, fruit, and vegetables; to revise 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 HB180 INTRODUCEDHB180 INTRODUCED Page 3 the length of time between audits of an organization certified to conduct a referendum regarding an assessment on the sale of sheep and goats; and to make nonsubstantive, technical revisions to update the existing code language to current style. BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: Section 1. Sections 2-8-126, 2-8-128, 2-8-131, 2-8-133, 2-8-134, 2-8-135, and 2-8-323, Code of Alabama 1975, are amended to read as follows: "§2-8-126 When a referendum has been authorized as provided in Section 2-8-125, the certified organization shall, before calling and announcing such the referendum, fix, determine , and publicly announce, at least 30 days before the date determined upon for such the referendum, the date, hours , and polling places for voting in such the referendum, the amount and basis of the assessment proposed to be collected, the means by which such the assessment shall be collected if authorized by the growers , and the general purposes to which said the amount so collected shall be applied. Such noticeNotice shall be published by the certified association through the medium of an established farm publication, and written notice thereof shall be given to each county extension chairman in the area covered by the referendum. Provided, however, any referendum called under the provisions of this article for the assessment of peanuts, notice shall also be published once a week in a newspaper in the county in which USDA inspection and buying points for peanuts are located for 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 HB180 INTRODUCEDHB180 INTRODUCED Page 4 three successive weeks next preceding the referendum. No annual assessment levied under the provisions of this article shall exceed three fourths of one percent of the value of the year's production of such agricultural commodity grown by any farmer, producer , or grower included in the group to which such the referendum is submitted." "§2-8-128 Any referendum conducted under the provisions of this article may be held either on an area or statewide basis, as may be determined by the certified organization before the referendum is called. The referendum , either on an area or statewide basis, may be participated in by all producers engaged in the production of the agricultural commodity on a commercial basis who shall be are subject to any assessments levied under this article and who produced the agricultural commodity in any of the three crop years immediately preceding the referendum. In the referendum, individuals eligible for participation shall vote upon the question of whether or not there shall be levied an annual assessment for a period of three five years in the amount set forth in the call for the referendum on the agricultural product covered by the referendum." "§2-8-131 The hours, voting places , and rules and regulations for any referendum authorized in this article with respect to any of the agricultural commodities herein referred to and the area in which such the referendum shall be held shall be established and determined by the organization of the 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 HB180 INTRODUCEDHB180 INTRODUCED Page 5 commercial growers and producers of such agricultural commodity duly certified by the State Board of Agriculture and Industries as provided in this article. The said referendum date, area, hours, voting places , and rules and regulations with respect to the holding of such the referendum shall be published in accordance with Section 2-8-126 by such organization conducting the same through the medium of the public press in the State of Alabama at least 30 days before the holding of such referendum, and direct written notice thereof shall likewise be given to farm organizations within the State of Alabama and to each county agent in any county in which such agricultural product is grown . Such notice Notice shall likewise contain a statement of the amount of annual assessment proposed to be levied, which shall not exceed the amount specified in Section 2-8-126, and shall likewise state the method by which such the assessment shall be collected and how the proceeds thereof shall be administered and the purposes to which the same shall be applied, which purposes shall be in keeping with the provisions of this article." "§2-8-133 (a)In the event a majority of the producers eligible for participation in a referendum conducted under the provisions of this article and voting therein , shall vote in favor of the assessment, then the assessment shall be collected annually for three five years, as set forth in the call for the referendum, and the collection of the assessment shall be under such method, rules, and regulations as may be determined by the organization conducting the referendum. The 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 HB180 INTRODUCEDHB180 INTRODUCED Page 6 assessment collected shall be paid into the treasury of the organization conducting the referendum, to be used together with other funds from other sources, including donations from individuals, concerns, or corporations or other entities and grants from state or governmental agencies, for the purpose of promoting and stimulating encouraging, by research, education, advertising, and other methods, the increased use and sale, domestic and foreign, of the agricultural commodity covered by the referendum. (b) Upon the request of the duly certified organization of producers of any agricultural products referred to in this article, the Commissioner of Agriculture and Industries shall notify, by registered or certified mail, all persons , firms, and corporations engaged in the business of purchasing any such agricultural products in this state that on and after the date specified in the letter the assessments shall be deducted by the purchaser or his or her agent or representative from the purchase price of any such agricultural products. The assessment deducted shall, on or before the twentieth day of the month following the deduction, shall be remitted by the purchaser to the Commissioner of Agriculture and Industries, who shall thereupon , by the end of the month, shall pay the amount of the assessments to the duly certified organization entitled thereto. The books and records of all the purchasers of agricultural products shall be open at all times during regular business hours be open for inspection by the Commissioner of Agriculture and Industries or his or her duly authorized agents. The Commissioner of Agriculture and 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 HB180 INTRODUCEDHB180 INTRODUCED Page 7 Industries shall be entitled to deduct five three percent of all sums remitted to him or her under this section to defray the expense incident to the administration of this article. All amounts deducted shall be paid into the State Treasury and be credited to the account of the Agricultural Fund." "§2-8-134 In the event a referendum conducted as provided in this article shall not be supported by a majority of those eligible for participation therein and voting therein, then the organization conducting the referendum shall have full power and authority to may call another referendum for the purposes set forth in this article no earlier than 90 days after the preceding referendum , whether the referendum was conducted before or after April 17, 2002 , on the question of an annual assessment for three five years." "§2-8-135 In the event a referendum conducted as provided in this article is carried by the vote of a majority of the eligible producers participating therein and assessments in pursuance thereof are levied annually for three five years as set forth in the call for the referendum, then the organization conducting the referendum shall, in its discretion, have full power and authority to may call and conduct, during the third fifth year of the period, another referendum in which the producers of such agricultural commodity shall vote upon the question of whether or not assessments shall be continued for the next ensuing three five years. The certified organization shall have the full power and authority to may hold subsequent 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 HB180 INTRODUCEDHB180 INTRODUCED Page 8 referendums it deems necessary to alter or modify the terms of the existing assessment. Intermediary referendums shall comply with the terms and conditions of the original request. In the event the intermediary referendum fails to receive a favorable vote, the previously approved assessment shall remain in force, and subsequent referendums shall be conducted as provided in this article. However, if the intermediary referendum receives an affirmative vote, no subsequent referendum may be conducted until the passage of one year." "§2-8-323 (a) A certified association receiving and disbursing funds, following the close of its fiscal year every two five years, shall cause an audit of its books and accounts for the two five-year period to be conducted by a certified public accountant, disclosing receipts, disbursements, expenditures, and other related information, and a copy of the auditor's report shall be forwarded to the board for inspection and review. The Department of Examiners of Public Accounts may audit, review, and investigate the receipts and disbursements of the funds in the same manner that those duties are performed for examination and audits of agencies and departments of the state. (b) Any examination or audit required by this section shall be open to public inspection. (c) Within 90 days following the close of a certified association's fiscal year, if it has received any funds from assessments levied and collected pursuant to this article, the association shall forward a copy of a financial statement to 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 HB180 INTRODUCEDHB180 INTRODUCED Page 9 the state board showing the amount received and collected and the amount spent for each project and item. The statement shall be available for public inspection." Section 2. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law. 225 226 227 228 229 230