Florida 2022 2022 Regular Session

Florida House Bill H1097 Analysis / Analysis

Filed 02/02/2022

                    This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives. 
STORAGE NAME: h1097c.SAC 
DATE: 2/2/2022 
 
HOUSE OF REPRESENTATIVES STAFF ANALYSIS  
 
BILL #: CS/HB 1097    Florida Citrus 
SPONSOR(S): State Affairs Committee, Burton 
TIED BILLS:   IDEN./SIM. BILLS: SB 1002 
 
REFERENCE 	ACTION ANALYST STAFF DIRECTOR or 
BUDGET/POLICY CHIEF 
1) Environment, Agriculture & Flooding 
Subcommittee 
14 Y, 0 N Mamontoff Moore 
2) State Affairs Committee 	21 Y, 0 N, As CS Mamontoff Williamson 
SUMMARY ANALYSIS 
The Department of Citrus (department) is an executive agency of Florida government charged with the 
marketing, research, and regulation of the Florida citrus industry. The department is governed by the Florida 
Citrus Commission (commission), a nine-member board appointed by the Governor to represent citrus 
growers, processors, and packers. The commission serves in the capacity of a board of directors and agency 
head for the department and oversees and guides the activities of the department. Each member of the 
commission must be a resident of the state who is and has been actively engaged in the growing, growing and 
shipping, or growing and processing of citrus fruit in the state for at least five years. 
 
The bill revises the membership and qualifications of the commission. It increases the number of members on 
the commission from nine to 11 by increasing the number of grower members from six to seven and adding an 
additional member who must be classified as a packer member. The bill requires one grower member to be 
appointed from each of the designated citrus districts.  
 
The bill increases the number of citrus districts from three to six and redistributes the counties that make up 
each district.   
 
The bill requires certain entities that expend funds received from the State Treasury on certain citrus 
production research to deliver a biannual report to the commission. In addition, the bill requires any new variety 
of citrus fruit developed as a result of any research or study accomplished using funds from the State Treasury 
as well as any technology that enhances citrus fruit marketability to be made exclusively available to the 
department or its designee for a specified timeframe. 
 
The bill does not appear to have a fiscal impact on the state or local governments. 
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DATE: 2/2/2022 
  
FULL ANALYSIS 
I.  SUBSTANTIVE ANALYSIS 
 
A. EFFECT OF PROPOSED CHANGES: 
 
Background 
 
Department of Citrus 
The Department of Citrus (department) is an executive agency of Florida government charged with the 
marketing, research, and regulation of the Florida citrus industry. Its activities are funded by a tax paid 
by growers on each box of citrus that moves through commercial channels. Florida’s citrus industry 
employs more than 45,000 people, provides an annual economic impact of $8.6 billion to the state, and 
contributes hundreds of millions of dollars in tax revenues that help support Florida’s schools, roads, 
and health care services.
1
 The department also has extensive regulatory responsibilities, covering 
every aspect of the citrus industry, including research, production, maturity standards, licensing, 
transportation, labeling, packing, and processing.
2
  
 
Florida Citrus Commission 
The department is governed by the Florida Citrus Commission (commission), a nine-member board 
appointed by the Governor to represent citrus growers, processors, and packers.
3
 The commission 
serves in the capacity of a board of directors and agency head for the department and oversees and 
guides the activities of the department.
4
 Each member of the commission must be a resident of the 
state who is and has been actively engaged in the growing, growing and shipping, or growing and 
processing of citrus fruit in the state for at least five years. In addition, during the five years immediately 
prior to appointment, each member must have derived a major portion of her or his income from such 
growing, growing and shipping, or growing and processing or been the owner of, a member of, an 
officer of, or a paid employee of a corporation, firm, or partnership that has derived the major portion of 
its income from such activities.
5
  
 
Six members of the commission must be classified as grower members. Grower members must be 
primarily engaged in the growing of citrus fruit as an individual owner, as the owner of or stockholder of 
a corporation, or as a member of a firm or partnership primarily engaged in citrus growing.
6
 Three 
members of the commission must be classified as grower-handler members. Grower-handler members 
must be primarily engaged as owners, or as paid officers or employees, of a corporation, firm, 
partnership, or other business unit engaged in handling citrus fruit. One grower-handler member must 
be primarily engaged in the fresh fruit business. The two other grower-handler members must be 
primarily engaged in the processing of citrus fruits.
7
 
 
Three commission members must be appointed from each of the three statutorily designated citrus 
districts. Members appointed from the same citrus district must serve staggered terms, and each 
member must reside in the district from which she or he was appointed.
8
 Members are appointed to 
terms of three years.
9
  
 
Citrus Districts 
                                                
1
 Florida Department of Citrus, https://www.floridacitrus.org/grower/about/florida-department-of-citrus (last visited Jan. 18, 
2022). 
2
 Id. 
3
 Section 601.04, F.S.; Florida Department of Citrus, Florida Citrus Commission, 
https://www.floridacitrus.org/grower/about/florida-citrus-commission/ (last visited Jan. 21, 2022). 
4
 Id. 
5
 Section 601.04(1), F.S. 
6
 Section 601.04(1)(b), F.S. 
7
 Id.  
8
 Section 601.04(2), F.S. 
9
 Id.  STORAGE NAME: h1097c.SAC 	PAGE: 3 
DATE: 2/2/2022 
  
The state is divided into three citrus districts composed of the following counties:
10
  
 Citrus District One: Levy, Alachua, Brevard, Putnam, St. Johns, St. Lucie, Flagler, Indian River, 
Marion, Seminole, Orange, Okeechobee, Polk, Volusia, and Osceola Counties.  
 Citrus District Two: Hardee, DeSoto, Highlands, and Glades Counties.  
 Citrus District Three: Charlotte, Citrus, Collier, Hernando, Hendry, Hillsborough, Lake, Lee, 
Manatee, Monroe, Martin, Pasco, Palm Beach, Pinellas, Sarasota, Sumter, Broward, and 
Miami-Dade Counties.  
 
The statutory legislative intent related to citrus districts specifies that citrus districts should be reviewed 
and, if necessary to maintain substantially equal volumes of citrus production within each district, 
redistricted every five years.
11
 
 
Citrus Research  
Current law requires the department to conduct, or cause to be conducted, a thorough and 
comprehensive study of citrus fruit and juice with respect to the quality and maturity of the fruit and the 
nutritional and other value of such fruit and juice.
12
 Additionally, the department must provide suitable 
facilities and equipment of every kind whatsoever proper and necessary in connection with all such 
work.
13
  
 
Effect of the Bill 
 
Commission 
The bill revises the membership and qualifications of the commission. Specifically, the bill increases the 
number of members on the commission from nine to 11 by increasing the number of grower members 
from six to seven and adding an additional member who must be classified as a packer member.  
 
The bill requires one grower member to be appointed from each of the designated citrus districts. Each 
grower member must reside or grow citrus in the district from which she or he was appointed. The bill 
requires one grower member to be a grower with a citrus producing area of more than 5,001 acres who 
resides and grows citrus in the state.   
 
The bill renames the “grower-handler” members as “processor” members and requires them to be 
engaged as owners, or as paid officers or employees, of a corporation, firm, partnership, or other 
business unit engaged in canning, concentrating, or otherwise processing citrus fruit for market other 
than for shipment in fresh fruit form.  
 
The bill requires the newly added packer member to be engaged as an owner, or as a paid officer or 
employee, of a corporation, firm, partnership, or other business unit that operates as a packinghouse.
14
 
This member must reside in the Indian River Production area of the state. 
 
The bill specifies that members are appointed to terms of three years, except that, to establish 
staggered terms of members from each citrus district, the terms of the members appointed before July 
1, 2022, must be as follows: 
 The terms of two grower members and one packer member must expire June 30, 2022, and 
their successors must be appointed to terms beginning July 1, 2022, and expiring May 31, 
2025.  
 The terms of two grower members and one processor member must expire June 30, 2023, and 
their successors must be appointed to terms beginning July 1, 2023, and expiring May 31, 
2026. 
                                                
10
 Section 601.09, F.S. 
11
 Section 601.09(2), F.S. 
12
 Section 601.13(2)(a), F.S. 
13
 Id.  
14
 Section 601.03(29), F.S., defines the term “packinghouse” to mean any building, structure, or place where citrus fruit is 
packed or otherwise prepared for market or shipment in fresh form.  STORAGE NAME: h1097c.SAC 	PAGE: 4 
DATE: 2/2/2022 
  
 The terms of two grower members and one processor member must expire June 30, 2024, and 
their successors must be appointed to terms beginning July 1, 2024, and ending May 31, 2027.  
 
The bill requires one grower member and one processor member to be appointed on or after July 1, 
2022, with terms ending May 31, 2025. 
 
Citrus Districts 
The bill increases the number of citrus districts from three to six and redistributes the counties as 
follows:  
 Citrus District One: Collier, Hendry, and Lee Counties. 
 Citrus District Two: Charlotte and DeSoto Counties. 
 Citrus District Three: Glades, Highlands, and Okeechobee Counties. 
 Citrus District Four: Hardee, Hillsborough, Manatee, Pinellas, and Sarasota Counties. 
 Citrus District Five: Citrus, Hernando, Levy, Osceola, Pasco, Polk, and Sumter Counties.  
 Citrus District Six: Alachua, Brevard, Broward, Flagler, Indian River, Lake, Marion, Martin, 
Miami-Dade, Monroe, Orange, Palm Beach, Putnam, St. Johns, Seminole, St. Lucie, and 
Volusia Counties.  
 
Citrus Research  
The bill requires an entity that solicits research proposals and awards funding for those proposals 
expending funds received from the State Treasury on citrus production research conducted pursuant to 
ch. 573, F.S., as recommended by the Citrus Research and Development Foundation, Inc., or 
conducted through contract with the department, to deliver a biannual report to the commission that 
includes all of the following information:  
 Project plans selected for funding; 
 The financial status of projects; 
 Current findings of the funded research; 
 Availability of citrus products or application of growers’ practices found through funded research; 
and 
 The status of the commercialization process of such products or practices.  
 
Before being released for sale to the general public, the bill requires any new variety of citrus fruit 
developed as a result of any research or study accomplished using any percentage of funds from the 
State Treasury as well as any technology that enhances the marketability of new or current citrus fruit 
varieties to be made available as a first option for licensing and commercialization for a period of 90 
days, under commercially reasonable terms, exclusively to the department or its designee. If the 
department or its designee exercises such exclusive license, the commission may retain the exclusivity 
for up to eight years after the date of execution.   
 
B. SECTION DIRECTORY: 
 Section 1.  Provides a short title.  
 
Section 2.  Amends s. 601.04, F.S., relating to the Florida Citrus Commission.  
 
Section 3.  Amends s. 601.09, F.S., relating to citrus districts.  
 
Section 4.  Amends s. 601.13, F.S., relating to citrus research.  
 
Section 5.  Amends s. 601.992, F.S., relating to the collection of dues on behalf of certain nonprofit 
corporations engaged in market news and grower education.  
 
Section 6.  Reenacts s. 601.051, F.S., relating to marketing agreements. 
 
Section 7. Reenacts s. 601.15, F.S., relating to citrus advertising campaigns. 
 
 Section 8.  Provides an effective date of July 1, 2022.   STORAGE NAME: h1097c.SAC 	PAGE: 5 
DATE: 2/2/2022 
  
II.  FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT 
 
A. FISCAL IMPACT ON STATE GOVERNMENT: 
 
1. Revenues: 
None.  
 
2. Expenditures: 
None. 
 
B. FISCAL IMPACT ON LOCAL GOVERNMENTS: 
 
1. Revenues: 
None.  
 
2. Expenditures: 
None.  
 
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR: 
None.  
 
D. FISCAL COMMENTS: 
None.  
III.  COMMENTS 
 
A. CONSTITUTIONAL ISSUES: 
 
 1. Applicability of Municipality/County Mandates Provision: 
Not applicable. This bill does not appear to require counties or municipalities to spend funds or take 
action requiring the expenditure of funds; reduce the authority that counties or municipalities have to 
raise revenue in the aggregate; or reduce the percentage of state tax shared with counties or 
municipalities.  
 
 2. Other: 
None.  
 
B. RULE-MAKING AUTHORITY: 
None.  
 
C. DRAFTING ISSUES OR OTHER COMMENTS: 
 
None. 
IV.  AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES 
On February 1, 2022, the State Affairs Committee adopted a strike-all amendment and reported the bill 
favorably as a committee substitute. The amendment: 
 Removed the requirement that grower members must have a citrus producing area between 250 
and 5,000 acres.  
 Revised the staggered terms of commission members. 
 Revised the types of entities that must deliver a report to the commission. 
 Revised provisions related to exclusive licensing of new citrus fruit varieties.  STORAGE NAME: h1097c.SAC 	PAGE: 6 
DATE: 2/2/2022 
  
 Added a provision to the bill that revises eligibility requirements of not-for-profit corporation on 
whose behalf the commission or the department may collect certain financial payments.  
 
This analysis is drafted to the committee substitute as approved by the State Affairs Committee.