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Regular Session, 2010
SENATE BILL NO. 147
BY SENATOR THOMPSON
AGRICULTURAL COMMODITIES. Provides relative to changes in the Agricultural
Commodity Dealer and Warehouse Law. (gov sig)
AN ACT1
To amend and reenact R.S. 3:3402(4) and (9), 3403(C), 3405((B)(2), the introductory2
paragraph of 3407(A), 3410(D), 3410.2(D)(4), the introductory paragraph of3
3410.2(F), 3411(B), 3414.3(L), 3414.4(B), 3419(D) and 3422(D) and to repeal4
Subpart B of Part V of Chapter 6 of Title 3 of the Louisiana Revised Statutes of5
1950, comprised of R.S. 3:691 through 695, Subpart C of Part V of Chapter 6 of6
Title 3 of the Louisiana Revised Statutes of 1950, comprised of R.S. 3:697 through7
699, 3405(B)(1), 3409(I), 3414.3(E), 3415(B) and Chapter 21-A of Title 3 of the8
Louisiana Revised Statutes of 1950, comprised of R.S. 3:3501 through 3526, relative9
to agricultural commodities; to provide for changes in the Agricultural Commodity10
Dealer and Warehouse Law; to provide relative to the definition of grain; to provide11
relative to seizure of facilities; to repeal grain dealer license exams; to provide12
relative to moisture measuring devices and to repeal obsolete provisions related13
thereto; to repeal certain certification requirements related to grain sampling; to14
repeal certain licensure requirements concerning weighmasters; to repeal certain15
policies for sampling and grading grain; to repeal provision requiring design16
approval for scale tickets; to repeal the Louisiana Commodities Marketing Law; to17 SB NO. 147
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provide for technical corrections; and to provide for related matters.1
Be it enacted by the Legislature of Louisiana:2
Section 1. R.S. 3:3402(4) and (9), 3403(C), 3405((B)(2), the introductory paragraph3
of 3407(A), 3410(D), 3410.2(D)(4), the introductory paragraph of 3410.2(F), 3411(B),4
3414.3(L), 3414.4(B), 3419(D) and 3422(D) are hereby amended and reenacted to read as5
follows:6
§3402. Definitions7
As used in this Chapter, the following terms shall have the meanings ascribed8
below:9
* * *10
(4) "Commissioner" means the Louisiana commissioner of agriculture and11
forestry.12
* * *13
(9) "Grain" means rice, corn, wheat, oats, rye, soybeans, barley, and grain14
sorghum.15
* * *16
§3403. Louisiana Agricultural Commodities Commission; creation; membership;17
terms; panels of nominees; filling of vacancies; oaths of office; per18
diem; quorum; domicile; meetings; successor to State Warehouse19
Commission20
* * *21
C. The tenth member shall be the commissioner of agriculture and forestry,22
who shall serve ex officio, but with all of the powers, rights, duties, and privileges23
as appointed members, including the right to vote on all matters before the24
commission.25
* * *26
§3405. Powers and duties of the commission27
* * *28
B. The commission may:29 SB NO. 147
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* * *1
(2) Establish reasonable guidelines for and require the submission of2
inventory reports and position papers.3
* * *4
§3407. Seizure by commission5
A. The commissioner, with the prior approval of the commission, shall may6
institute legal proceedings by petition in the district court for the district in which the7
licensee is located for an order authorizing the commissioner to effect a seizure of8
the facilities of the licensee and to act as receiver thereof whenever any of the9
following conditions occur:10
* * *11
§3410. Bond required as a condition of warehouse license, time of filing; amount12
of bond, minimum and maximum; approval; notice of cancellation;13
changes in licensed capacity; insurance; alternate security; failure to14
maintain bond and insurance in full force and effect15
* * *16
D. In any case, the net amount of the bond shall not be not less than17
twenty-five thousand dollars and not more than five hundred thousand dollars.18
* * *19
§3410.2. Grain and Cotton Indemnity Fund; creation; assessment; rules and20
regulations; suspension of assessment; eligibility for reimbursement;21
availability of money; prorated claims; reimbursement for22
administrative expenses; failure to pay; subrogation23
* * *24
D. The commission shall adopt rules and regulations, in accordance with the25
Administrative Procedure Act, necessary for the efficient administration of the Grain26
and Cotton Indemnity Fund. Such rules shall include:27
* * *28
(4) Establish The establishment of civil penalties for violations of this29 SB NO. 147
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Section.1
* * *2
F. A person producer shall be eligible to receive indemnity payments from3
the Grain and Cotton Indemnity Fund if:4
* * *5
§3411. License to buy or sell agricultural commodities; posting requirements for6
grain dealers; duration of license; bond required as a condition of a7
grain dealer license, time of filing, amount of bond, notice of8
cancellation, alternate security; failure to maintain bond and stock9
insurance10
* * *11
B. Each applicant for a grain dealer license shall file the application12
described in R.S. 3:3408 and either demonstrate its competency to engage in the13
business of buying and/or selling agricultural commodities or satisfactorily complete14
any examination that may be required by the commission prior to licensure.15
* * *16
§3414.3. Grain sampling and grading17
* * *18
L. No grain dealer shall sell grain in bulk within this state for livestock and19
poultry feed without a statement of the specified grade. The grades shall be20
determined as provided in this Section. The department shall inspect, classify, and21
grade all grain subject to this Subsection. The department may charge a fee for22
inspecting, classifying, and grading grain. The fee shall be fixed by the commission23
by rule and shall be based on the actual cost of providing the service. The provisions24
of this Subsection shall not apply to grain sold for export nor to inbound grain25
intended for export shipment.26
* * *27
§3414.4. Prompt payment for cotton; suit on bond; private action; attorney fees28
* * *29 SB NO. 147
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B. Any producer from whom cotton was purchased or contracted to be1
purchased and to whom money is due for cotton sold for future delivery as a result2
of the nonperformance of the cotton merchant or cotton agent shall have recourse on3
the bond or alternate security required to be furnished by this Chapter to the extent4
of the loss suffered by the farmer producer, but such recovery against the bonding5
company or alternate security shall not exceed the amount of the bond or the6
alternate security. Limitation of liability as to the bonding company or alternate7
security shall not restrict suits against the cotton merchant or cotton agent for losses8
incurred in excess of the amount of the bond or alternate security. Suit may be9
brought in any parish where the crop or any part thereof was grown or any other10
venue authorized by law. One or more recoveries upon such bond or alternate11
security shall not vitiate same, but no recovery nor the aggregate of multiple12
recoveries upon such bond or alternate security shall ever exceed the full amount13
thereof. Upon suits being filed in excess of the amount of the bond or alternate14
security, the commission may require a new bond or other security in an amount15
sufficient to secure the aggregate amount of such suits, and if such additional16
security is not given within thirty days of demand therefor, the commission may17
cancel the license of the cotton merchant. In the case of the insolvency of a cotton18
merchant, any cotton producer or cotton landowner having contracts for future19
delivery shall be entitled to participate in the bond or alternate security funds to the20
extent of his pro rata losses under his contract.21
* * *22
§3419. Records required23
* * *24
D. Each warehouse, cotton merchant, and grain dealer shall permit any25
officer or authorized representative of the commission to enter all locations listed on26
the application of such warehouse, cotton merchant, or grain dealer and inspect,27
examine, and/or audit all contents, facilities, equipment, records, books, and accounts28
relating thereto. Such inspection, examination, and/or audit may be made on any29 SB NO. 147
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business day, during normal working hours. The warehouse, cotton merchant, or1
grain dealer shall provide the necessary assistance required for any inspection,2
examination, and/or audit made in accordance with this Chapter or the rules and3
regulations adopted pursuant hereto.4
* * *5
§3422. Commission authorized to charge regulatory fees6
* * *7
D. Every moisture measuring device used or held for use at any8
commercial facility which receives, holds, dries, stores, mills, processes or9
otherwise deals in agricultural commodities in this state, when such use or10
intended use is for the purpose of determining discounts or other price11
variances in connection with the purchase or sale of such commodity, shall be12
registered with the Louisiana Department of Agriculture and Forestry. The13
commission shall register and inspect all moisture meters or other devices used to14
measure moisture in agricultural commodities on an annual basis. The commission15
may establish by rule and regulation a fee for the registration and inspection of16
moisture meters or other such devices not to exceed twenty dollars for registration17
and forty dollars for inspection.18
Section 2. Subpart B of Part V of Chapter 6 of Title 3 of the Louisiana Revised19
Statutes of 1950, comprised of R.S. 3:691 through 695, Subpart C of Part V of Chapter 6 of20
Title 3 of the Louisiana Revised Statutes of 1950, comprised of R.S. 3:697 through 699,21
3405(B)(1), 3409(I), 3414.3(E), 3415(B) and Chapter 21-A of Title 3 of the Louisiana22
Revised Statutes of 1950, comprised of R.S. 3:3501 through 3526 are hereby repealed in23
their entirety. 24
Section 3. This Act shall become effective upon signature by the governor or, if not25
signed by the governor, upon expiration of the time for bills to become law without signature26
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If27
vetoed by the governor and subsequently approved by the legislature, this Act shall become28
effective on the day following such approval.29 SB NO. 147
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Curry Johnson.
DIGEST
Present law (R.S. 3:3402) defines grain as corn, wheat, oats, rye, soybeans, barley, and grain
sorghum within the Agricultural Commodity Dealer and Warehouse Law.
Proposed law adds rice to the definition of grain.
Present law (R.S. 3:3407) requires the commissioner, with the prior approval of the
commission, to institute legal proceedings for an order authorizing the commissioner to
effect a seizure of the facilities of a licensee in certain circumstances.
Proposed law retains present law but makes this seizure permissive.
Proposed law deletes provision prohibiting grain dealers from selling grain in bulk within
this state for livestock and poultry feed without a statement of the specified grade.
Present law (R.S. 3:692(A)) requires that every moisture measuring device used or held for
use at any commercial facility which receives, holds, dries, stores, mills, processes or
otherwise deals in agricultural commodities in this state, when such use or intended use is
for the purpose of determining discounts or other price variances in connection with the
purchase or sale of such commodity, be registered with the department.
Proposed law (R.S. 3:3422(D)) retains present law but moves the provision.
Present law (R.S. 3:692) requires inspections to be made at least twice annually of all
moisture measuring devices registered with the department.
Proposed law repeals present law.
Present law (R.S. 3:693) provides that a moisture measuring device shall be deemed
defective whenever an inspector determines after inspection and testing that:
(1) The moisture measuring device varies in tolerance in excess of ½ of 1 % with the
testing device used by the inspector; or
(2) The commercial facility does not have available the latest charts for the type of
moisture measuring device being used; or
(3)The facility does not have available accurate and proper scales and thermometers for
use in conjunction with the type of moisture measuring device being used.
Requires that a defective measuring device which cannot be immediately corrected be sealed
and tagged. Requires an owner or user who continues to use a defective device to keep a
record of every commercial sample for which a moisture reading is taken with the defective
device. Further requires an adjustment in figuring any discount or price variance for the
commodity affected. Prohibits use for more than 30 days from the date it is determined to
be defective. Requires notice to be posted that the device has been determined to be out of
tolerance. Further requires moisture measuring devices which have been registered and
inspected and have not been found defective to bear an official tag or sticker from the
department, placed on the devices by the inspector that is readily visible, bearing the date
of inspection and the name of the inspector.
Proposed law repeals present law. SB NO. 147
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Present law (R.S. 3:694) provides that when any commodity is purchased for which moisture
measurement is customary or required and the seller is subject to discount according to the
moisture content, this moisture content shall be determined only by a moisture measuring
device which has been registered with the department. Provides that any person or facility
which uses or authorizes the use of any moisture measuring device which has not been
registered with the department, except as otherwise may be excluded herein, shall be guilty
of a misdemeanor.
Proposed law repeals present law.
Present law (R.S. 3:695) provides for the following penalties:
(1)Any person who shall hinder or obstruct any inspector in testing, inspecting, tagging
or sealing any moisture measuring device shall be guilty of a misdemeanor and shall
be fined not less than $100 nor more than $500, or confined in the parish jail for not
more than 90 days, or both.
(2)Failure to register a moisture measuring device, use of an unregistered device or use
of a defective device shall subject the owner or user thereof to a fine of $200 a day
for each day of violation.
(3)Falsification, transference or alteration in any manner of an official tag or sticker on
a moisture measuring device by any person other than an inspector of the department
shall be a misdemeanor and shall carry a penalty of not less than $100 nor more than
$500, or confinement in the parish jail for not more than 90 days, or both.
Proposed law repeals present law.
Present law (R.S. 3:698) provides that under any contract for the purchase or sale of rice in
Louisiana wherein the price established for such rice is based upon U.S.D.A. grades, and
samples are drawn by qualified personnel of the department submitted to the U.S.D.A. for
grading, the same shall be deemed official samples and the grade applying thereto shall be
recognized as an official grade to the same extent as grades applying to samples drawn and
submitted by personnel of the U.S.D.A.
Proposed law repeals present law.
Present law (R.S. 3:699) requires all personnel within the department authorized to draw
samples of rice to be trained and certified as qualified to draw such samples. Requires the
commissioner to establish procedures for annual certification thereof, and no one will be
allowed to draw rice samples unless he has received the necessary certification. Authorizes
the commissioner to establish by regulation uniform procedures for sampling rice and
identifying the lots from which samples are drawn. Such procedures shall be in substantial
conformance with the procedures used by the U.S.D.A. Allows the commissioner to set
reasonable fees to cover administration cost.
Proposed law repeals present law.
Present law (R.S. 3:3405(1)) allows the La. Agricultural Commodities Commission to
establish minimum scores necessary to satisfactorily pass any examination required by the
commission and administer such examinations at times and places to be determined by the
commission.
Proposed law repeals present law.
Present law (R.S. 3:3409(I)) prohibits issuance of warehouse licenses unless the warehouse
staff includes a weighmaster licensed by the weights and measures division of the
department, provided that the commission may waive the requirement for a licensed SB NO. 147
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weighmaster for any warehouse which does not normally weigh or certify agricultural
commodities or other farm products stored therein. Authorizes the commission to waive the
requirement for licensure of the weighmaster by the weights and measures division of the
department for any warehouse which employs a weighmaster licensed by the U.S.D.A.
Proposed law repeals present law.
Present law (R.S. 3:3414.3(E)) requires each grain dealer who issues grades for grain to
adopt a policy for sampling and grading grain. Further requires each grain dealer to post the
policy in a prominent place in the area in which grain is delivered.
Proposed law repeals present law.
Present law (R.S. 3:3415(B)) requires the design of each scale ticket to be approved by the
La. Agricultural Commodities Commission.
Proposed law repeals present law.
Present law (R.S. 3:3503) provides for the La. Commodities Marketing Law with the
following purposes:
(1) Enable producers of this state, with the aid of the state, more effectively to market
their commodities.
(2) Establish orderly marketing of commodities.
(3) Provide for uniform grading and proper preparation of commodities for market.
(4) Provide methods and means for the maintenance of present markets, or for the
development of new or larger markets, for commodities which are grown within this
state or for the prevention, modification, or elimination of trade barriers which
obstruct the free flow of such commodities to market.
(5) Eliminate or reduce economic waste in the marketing commodities.
(6) Restore and maintain adequate purchasing power for the producers of this state.
Proposed law repeals present law.
Present law (R.S. 3:3505) provides that the suspension, amendment, or termination of any
marketing order or marketing agreement does not suspend or terminate any cause of action
which has accrued under it, but such cause of action shall survive and exist the same as if
such marketing order or agreement had not been suspended, amended, or terminated.
Proposed law repeals present law.
Present law (R.S. 3:3507) provides that La. Commodities Marketing Law does not apply to
any order, rule, or regulation which is issued by the La. Public Service Commission or the
Interstate Commerce Commission with respect to the operation of common carriers. Present
law further provides that the law is not applicable to any retailer of any commodity except
to the extent that such retailer also engages in the production, processing, or distribution of
any commodity and also is not applicable to producers who sell directly to retail stores but
shall be applicable if these producers sell through the distribution warehouses of these retail
stores.
Proposed law repeals present law.
Present law (R.S. 3:3508) authorizes the commissioner to issue, administer, and enforce the SB NO. 147
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provisions of any marketing order which regulates producer marketing or the handling of
any commodity within this state. Present law further authorizes the commissioner to do the
following:
(1) Confer and cooperate with the legally constituted authorities of other states and of
the U.S., for the purpose of obtaining uniformity in the administration of federal and
state marketing regulations, licenses, or orders.
(2) Conduct joint hearings and issue joint or concurrent marketing orders.
(3) Exercise any administrative authority to effect such uniformity of administration and
regulation of such commodities.
Proposed law repeals present law.
Present law (R.S. 3:3509) authorizes the commissioner to issue marketing orders which
regulate producer marketing, the processing, distributing, or handling in any manner of any
commodity by any and all persons that are engaged in such producer marketing, processing,
distributing, or handling of such commodity within this state. Present law further authorizes
the commissioner to issue marketing orders which regulate the handling, processing,
preparation for marketing, or marketing any commodity which is produced in this state under
such orders. Authorizes the commissioner to issue a marketing order, applicable to the
marketing, within this state, of any commodity, which contains like terms, provisions,
methods, and procedures as any license or order that regulates the marketing of such
commodity in interstate or foreign commerce which is issued by the secretary of agriculture
of the U.S.
Proposed law repeals present law.
Present law (R.S. 3:3509) requires any marketing order which is issued by the commissioner
to designate the geographic boundaries which it encompasses such as, parish, districts, or
the state. Present law further authorizes the commissioner to enter into marketing
agreements with processors, distributors, producers, and others that are engaged in the
handling of any commodity, which regulate the preparation for market and handling of such
commodity.
Proposed law repeals present law.
Present law (R.S. 3:3510) requires the commissioner to give notice of not less than 30 days
for a public hearing upon a proposed marketing order or amendments to such existing market
order. Present law further requires the commissioner to notify all handlers to file with the
commissioner within 15 days from the last date of such notice. Requires the commissioner
to prepare a list of the names and addresses of the producers and the volume of such
commodity which was produced or marketed by all such producers and a list of the names
and addresses of such handlers and the volume of such commodity which was handled by
handlers, that are directly affected by the provisions of proposed marketing order.
Proposed law repeals present law.
Present law (R.S. 3:3512) requires marketing orders to establish an advisory board to assist
the commissioner in the administration of any marketing order. Provides for the members
of such board to be appointed by the commissioner, while the number of members of such
board to be determined by the commodity group represented. Provides for a per diem of $25
spent in actual attendance at, or traveling to and from, meetings of the board or on special
assignment for the board. Present law authorizes the board to do all of the following:
(1) Enter into contracts or agreements. SB NO. 147
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(2) Employ necessary personnel, including attorneys engaged in the private practice of
the law, and fix their compensation and terms of employment.
(3) Incur such expenses, to be paid by the commissioner from monies collected, as the
commissioner may deem necessary and proper to enable the advisory board properly
to perform its duties.
(4) Administer the marketing order subject to the approval of the commissioner.
(5) Recommend to the commissioner administrative rules and regulations which relate
to the marketing order.
(6)Receive and report to the commissioner complaints of violations of the marketing
order.
(7) Recommend to the commissioner amendments to the marketing order.
(8) Assist the commissioner in the assessment of members and in collection of funds to
cover administrative expenses.
(9)Assist the commissioner in the collection of necessary data.
Present law (R.S. 3:3513) provides that any marketing order which is issued by the
commissioner may contain the following:
(1) Provisions for any grade, size, or quality of a commodity, which may be marketed
by producers, or processed, distributed, or otherwise handled within this state.
(2) Provisions for allotting grade, size, or quality of a commodity.
(3) Provisions for the establishment of plans for advertising and sales promotion to
maintain present markets or to create new or larger markets.
(4)Provisions which relate to the prohibition of unfair trade practices.
(5)Provisions for carrying on research studies in the production, processing, or
distribution of any commodity and for the expenditure of monies for such purposes.
(6)Provisions for research studies concerning the health, food, nutritional, therapeutic,
dietetic, or such qualities of other food products, for the development of new food
products, or for the development of new uses for agricultural products.
(7)Provisions which establish an educational program which is designed to acquaint
producers, handlers, consumers, or other interested persons with quality
improvement and nutritional values, including sanitation practices, procedures, or
methods.
(8)Provisions which establish the permissive use of any official board brand, trade name
or label, or other distinctive designation of grade, quality, or condition, for any
commodity, whether as such commodity is produced or is delivered by producers to
handlers, or as handled or otherwise prepared for market.
(9)Provisions to detect, control, prevent damage by, or to eradicate insects, predators,
diseases, or parasites with respect to any commodity or group of commodities.
Proposed law repeals present law.
Present law (R.S. 3:3514) requires each marketing order to provide for the levying and SB NO. 147
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collection of assessments in sufficient amounts to defray the necessary expenses which are
incurred by the commissioner in the formulation, issuance, administration, and enforcement
of the marketing order. Requires the commissioner to adopt rules and regulations with
respect to the assessment and collection of funds. Provides that the amount of the
assessment for necessary expenses shall not, however, exceed the following:
(1)In the case of producers, 2 ½% of the gross dollar volume of sales of the commodity
which is affected by such marketing order.
(2)In the case of processors, distributors, or other handlers, 2 ½% of the gross dollar
volume of purchases of the commodity which is affected by the marketing order
from producers or of the gross dollar volume of sales of the commodity which is
affected by the marketing order and handled by all such processors, distributors, or
other handlers regulated by such marketing order.
(3)Any assessment rate which is established for assessment to defray the expenses of
advertising and sales promotion plans shall not exceed 4% of the gross dollar volume
of sales by all producers or by all processors, distributors, or other handlers of such
commodity which is regulated by such marketing order.
Proposed law repeals present law.
Present law (R.S. 3:3519) provides that the commissioner shall suspend or terminate any
marketing order, if he finds, after a public hearing that such marketing order is contrary to,
or does not tend to effectuate the declared purposes or provisions of this law.
Proposed law repeals present law.
Present law (R.S. 3:3521-3522) authorizes the commissioner to adopt rules and to facilitate
the administration and enforcement of marketing orders and agreements. Provides that such
rules and regulations may include, but shall not be limited to, any of the following:
(1) Methods for the purpose of explaining the provisions of such marketing order or
agreement.
(2)Prescribing forms and procedures to be followed by producers and handlers that are
directly affected by such marketing order or agreement.
(3) Providing information to producers and handlers that are subject to such marketing
order or agreement.
(4) Other procedural and explanatory provisions to enable such producers and handlers
better to understand the program and their obligations under it and thereby assist in
obtaining cooperation and compliance.
Proposed law repeals present law.
Present law (R.S. 3:3523) authorizes the commissioner to issue and make effective seasonal
marketing regulations if all of the following requirements are complied with:
(1)The marketing order or agreement concerned provides for the issuance of such
seasonal marketing regulations and sets forth the limits within which such seasonal
marketing regulations may be made effective by the commissioner.
(2)The commissioner finds that such seasonal marketing regulations are reasonable and
proper and a practical means of carrying out the marketing provisions which are
authorized in such marketing order or agreement. SB NO. 147
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Proposed law repeals present law.
Present law (R.S. 3:3524) provides that the commissioner may require processors or
distributors, that are subject to the provisions of any marketing order, to maintain books and
records which reflect their operations under such marketing order, and to furnish him with
such information as may be requested by him which relate to operations under such
marketing order, and to permit the inspection by the commissioner of such portions of such
books and records as relate to operations under such marketing order.
Proposed law repeals present law.
Present law (R.S. 3:3525) provides that any person that violates a marketing order, or that
violates any rule, or regulation which is issued by the commissioner for such marketing
order, is liable for a civil penalty in an amount not to exceed a sum of $100 for each and
every violation.
Proposed law repeals present law.
Present law (R.S. 3:3526) provides that any authorized inspector, in the discharge of his
duties, if he has reason to believe that a lot or any commodity subject to a marketing order
is not in compliance with the requirements of such marketing order or agreement may hold
such lot for a reasonable period of time sufficient for an authorized inspection whether such
lot complies with such marketing requirements, but in any event not to exceed 24 hours in
the case of perishables or 72 hours in the case of nonperishables.
Proposed law repeals present law.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 3:3402(4) and (9), 3403(C), 3405((B)(2), 3407(A)(intro para), 3410(D)
3410.2(D)(4), 3410.2(F)(intro para), 3411(B), 3413.3(L), 3414.4(B), 3419(D) and 3422(D);
Repeals R.S. 3:691-695, 697-699, 3405(B)(1), 3409(I), 3414.3(E), 3415(B) and R.S. 3:3501-
3526)