Florida 2022 2022 Regular Session

Florida Senate Bill S1002 Analysis / Analysis

Filed 01/12/2022

                    The Florida Senate 
BILL ANALYSIS AND FISCAL IMPACT STATEMENT 
(This document is based on the provisions contained in the legislation as of the latest date listed below.) 
Prepared By: The Professional Staff of the Committee on Agriculture  
 
BILL: SB 1002 
INTRODUCER:  Senator Burgess 
SUBJECT:  Florida Citrus 
DATE: January 12, 2022 
 
 ANALYST STAFF DIRECTOR  REFERENCE  	ACTION 
1. Fink Becker AG Pre-meeting 
2.     CA  
3.     RC  
 
I. Summary: 
SB 1002 creates the "Citrus Recovery Act." Specifically, the bill:  
 Increases the membership of the Florida Citrus Commission (commission) from nine 
members to eleven; 
  Increases the number of citrus districts from three to six and revises the counties that 
comprise each district;  
 Requires certain entities to provide reports on citrus production research to the commission at 
specified intervals and upon request of the commission;  
 Requires that new varieties of citrus fruit produced from research or studies funded by state 
funds be made exclusively available for licensing and purchase to certain Florida producers 
for a specified timeframe; 
 Requires producers who receive such exclusivity to retain the exclusivity for a specified 
timeframe and providing pricing requirements for such arrangements; and 
 Requires moneys in the Florida Citrus Advertising Trust Fund to be expended for the 
activities authorized by s. 601.13, F.S. 
II. Present Situation: 
The Florida Citrus Commission acts as the head of the Department of Citrus. The commission is 
composed of nine representatives of the citrus industry who are citizens of the state and have at 
least five years of experience as citrus growers, packers or processors.
1
 Additionally, during the 
five years immediately prior to appointment, each member must have derived a major portion of 
his/her income from activities listed above or been the owner of, member of, officer of, or paid 
employee of a corporation, firm, or partnership which has derived the major portion of its income 
from the growing, growing and shipping, or growing and processing of citrus fruit. 
 
                                                
1
 Fla. Stat. Ann. § 601.04(1)(a)  
REVISED:   BILL: SB 1002   	Page 2 
 
Members of the commission are appointed by the governor for three year terms.
2
 Appointments 
are made by February 1 preceding the commencement of the term and must be confirmed by the  
Senate in the following legislative session. Four members are appointed each year. Members serve 
until their respective successors are appointed and qualified. The regular terms begin on  
June 1 and end on May 31 of the third year after appointment. Effective July 1, 2011, the terms  
of all members of the commission appointed on or before May 1, 2011, were terminated and the  
Governor appointed members in accordance with the provisions of chapter 601, F.S. 
When appointments are made, the Governor publicly announces the actual classification and 
district that each appointee represents. A majority of the members of the commission constitutes a 
quorum for the transaction of business and for carrying out the duties of the commission. Prior to 
beginning their duties as members of the commission, each member must take and subscribe to 
the oath of office as prescribed in s. 5, Art. 11 of the State Constitution. 
 
The commission must elect a chair and vice chair and such other officers as it deems necessary.
3
  
The chair, with the concurrence of the commission, may appoint such advisory committees or 
councils composed of industry representatives as he/she deems appropriate. In appointing such 
committees or councils, the chair must set forth areas of committee or council concern that are 
consistent with the statutory powers and duties of the commission and the department. 
 
Current law provides legislative intent that the commission be redistricted every five years.  
Redistricting is based on the total boxes produced from each of the three districts during that five-
year period. Under current law, Citrus District One is composed of Levy, Alachua, Brevard, 
Putnam, St. Johns, St. Lucie, Flagler, Indian River, Marion, Seminole, Orange, Okeechobee, Polk, 
Volusia, and Osceola Counties.
4
  Citrus District Two is composed of Hardee, DeSoto, Highlands, 
and Glades Counties.
5
 Finally, Citrus District Three is composed of Charlotte, Citrus, Collier, 
Hernando, Hendry, Hillsborough, Lake, Lee, Manatee, Monroe, Martin, Pasco, Palm Beach, 
Pinellas, Sarasota, Sumter, Broward, and Miami-Dade Counties.
6
 
 
III. Effect of Proposed Changes: 
Section 1 titles this Act the “Citrus Recovery Act”. 
 
Section 2 amends s. 601.04, F.S., to revise the qualifications and terms of members of the 
Florida Citrus Commission (commission).  It provides that the commission shall be composed of 
eleven members, an increase from nine, who are appointed by the Governor.  These members 
must be a resident of this state, rather than a citizen, as previously required. 
 
The bill increases from six to seven the number of members that shall be classified as grower 
members. These grower members may not be disqualified as a member if, individually, or as  
the owner of, a member of, an officer of, or a stockholder of a corporation, firm, or partnership 
                                                
2
 Fla. Stat. Ann. § 601.04(2)(b)  
3
 Fla. Stat. Ann. § 601.04(3)(a) 
4
 Fla. Stat. Ann. § 601.09(1)(a) 
5
 Fla. Stat. Ann. § 601.09(1)(b) 
6
 Fla. Stat. Ann. § 601.09(1)(c)   BILL: SB 1002   	Page 3 
 
primarily engaged in citrus  growing which processes, packs, and markets its own fruit and 
whose business is primarily not purchasing and handling fruit  grown by others. 
 
One grower member shall be appointed from each of the citrus districts designated in s. 601.09, 
F.S. Each such member must be a grower with a citrus producing area between 250 and 5,000 
acres. Current law provides that a member must reside in the district from which they were 
appointed but the bill specifies that a member must reside or grow citrus in the district. One 
additional grower member shall be a grower with a citrus producing area of more than 5,001 
acres who resides and grows citrus in the state.   
 
The bill requires that three members of the commission shall be classified as processor members 
instead of grower-handler members. These three members shall 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 that one member shall be classified as a packer member and shall 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 as defined in s. 601.03, F.S. The member shall reside in the 
Indian River production area as defined in s. 601.091, F.S. 
 
Members shall be appointed to terms of 3 years each, except that, to establish staggered terms of 
members from each citrus district, the terms of members appointed before July 1, 2022, shall be 
shortened as follows: 
 The terms of two grower members and one processor member shall expire June 30, 2022 
2012, and their successors shall be appointed to terms beginning July 1, 2022, and expiring 
May 31, 2025. 
 The terms of two grower members and two processor members shall expire June 30, 2023, 
and their successors her or his successor shall be appointed to terms beginning July 1, 2023, 
and expiring May 31, 2026. 
 The terms of three grower members and one packer member shall expire June 30, 2024, and 
their successors shall be appointed to terms beginning July 1, 2024, and ending May 31, 
2027. 
 
Section 3 increases the number of Citrus districts from three to six 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. 
 
Section 4 adds requirements relating to citrus research administered by the Department of Citrus 
(department).  BILL: SB 1002   	Page 4 
 
 
It requires that an entity that expends funds received from the State Treasury on citrus production 
research conducted pursuant to chapter 573, F.S., as recommended by the Citrus Research and 
Development Foundation, Inc., or conducted through contract with the department shall deliver a 
report that includes all of the following information to the commission biannually and at the 
request of the commission: 
 Project plans selected for funding; 
 The financial status of the 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. 
 
It also requires that before being released for sale to the general public, any new variety of citrus 
fruit which is developed as a result of any research or study accomplished using funds from the 
State Treasury must be made available: 
 For licensing and purchase for a period of 90 days exclusively to any Florida not-for-profit 
corporation that is a producer engaged, excluding engagement in agricultural commodities 
other than citrus, in citrus rootstock or scion breeding, research, or licensing, by agreement 
with a state land grant university, the department, the Department of Agriculture and 
Consumer Services, or the United States Department of Agriculture. If a producer exercises 
such exclusive availability, the producer must retain the exclusivity for 8 years after the date 
of execution. 
 At the 5-year rolling average cost of citrus bud or grafting material available to Florida 
producers, including a development incentive that does not exceed 10 percent of the 5-year 
average. 
 
Section 5 reenacts section 600.051(1), F.S., which grants the department the power to enter into, 
administer, and enforce marketing agreements with handlers and distributors engaged in any one 
or more of the citrus districts established in and by s. 601.09, F.S. 
 
Section 6 reenacts s. 601.10, F.S., to state that the department shall have and shall exercise the 
power to have any nonpublished reports or data related to studies or research conducted, caused 
to be conducted, or funded by the department under s. 601.13, F.S. confidential and exempt from 
s. 119.07(1), F.S. and s. 24(a), Art. 1 of the State Constitution. 
 
Section 7 reenacts s. 601.15(7)(b), F.S., to require moneys in the Florida Citrus Advertising 
Trust Fund to be expended for the activities authorized by s. 601.13, F.S. and for the cost of 
those general overhead, research and development, maintenance, salaries, professional fees, 
enforcement costs, and other such expenses that are not related to advertising, merchandising, 
public relations, trade luncheons, publicity, and other associated activities. The cost of general 
overhead, maintenance, salaries, professional fees, enforcement costs, and other such expenses 
that are related to advertising, merchandising, public relations, trade luncheons, publicity, and 
associated activities shall be paid from the balance of the Florida Citrus Advertising Trust Fund. 
 
 Section 8 provides an effective date of July 1, 2022.  BILL: SB 1002   	Page 5 
 
IV. Constitutional Issues: 
A. Municipality/County Mandates Restrictions: 
None. 
B. Public Records/Open Meetings Issues: 
None. 
C. Trust Funds Restrictions: 
None. 
D. State Tax or Fee Increases: 
None. 
E. Other Constitutional Issues: 
None. 
V. Fiscal Impact Statement: 
A. Tax/Fee Issues: 
None. 
B. Private Sector Impact: 
None. 
C. Government Sector Impact: 
None. 
VI. Technical Deficiencies: 
None. 
VII. Related Issues: 
None. 
VIII. Statutes Affected: 
This bill substantially amends the following sections of the Florida Statutes:  601.04, 601.09, 
601.10, 601.13 
This bill creates the following sections of the Florida Statutes: 600.051(1), 601.15(7)(b)    BILL: SB 1002   	Page 6 
 
IX. Additional Information: 
A. Committee Substitute – Statement of Changes: 
(Summarizing differences between the Committee Substitute and the prior version of the bill.) 
None. 
B. Amendments: 
None. 
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.