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Regular Session, 2014
HOUSE BILL NO. 1045
BY REPRESENTATIVE LEBAS
AGRICULTURE/RICE: Provides relative to assessments levied by the Louisiana Rice
Promotion Board
AN ACT1
To amend and reenact R.S. 3:3533(B), (C), and (E), 3534(A)(1) and (2), (G), and (H)(1), and2
3537(A) and to repeal R.S. 3:3533(F) and 3534(B) and (I), relative to the Louisiana3
Rice Promotion Board; to provide for the membership of the board; to provide for4
the duties and responsibilities of the board; to provide for the levy of certain5
assessments; to provide for rice producer refunds; to provide for use and transfer of6
funds; to repeal the levy of additional assessments; to repeal authority for referenda7
for assessment purposes; and to provide for related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 3:3533(B), (C), and (E), 3534(A)(1) and (2), (G), and (H)(1), and10
3537(A) are hereby amended and reenacted to read as follows:11
§3533. Creation and organization12
* * *13
B. The board shall be composed of nine eleven members appointed by the14
governor, subject to Senate confirmation. Each member shall be subject to Senate15
confirmation, except the commissioner or his designee. Members shall serve for16
four-year terms which shall begin on the first fifteenth day of July August of 198817
2014 and each four years thereafter. Members shall be appointed in accordance with18
the following provisions: The board shall be composed of the following members:19 HLS 14RS-1539 REENGROSSED
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(1) Six members shall be appointed from a list of twelve persons nominated1
by the Louisiana Rice Council.2
(2) One member shall be appointed from a list of three persons nominated3
by the Louisiana Rice Growers Association.4
(3) One member shall be appointed from a list of three persons nominated5
by the American Rice Growers Cooperative Association.6
(4) One member shall be appointed from a list of three persons nominated7
by the Louisiana Farm Bureau Federation, Inc.8
(5) One member appointed from a list of three persons nominated by the9
Louisiana Independent Rice Producers Association.10
(6) The commissioner of agriculture or his designee.11
C. Not less than thirty days prior to the first fifteenth day of July August in12
1988 2014 and every four years thereafter, the Louisiana Rice Council, the Louisiana13
Rice Growers Association, the American Rice Growers Cooperative Association, and14
the Louisiana Farm Bureau Federation, and the Louisiana Independent Rice15
Producers Association shall each submit the names of their nominees, all of whom16
shall be rice producers, to the governor, who shall appoint the required number of17
board members from each set of nominees. In the event that the governor fails to18
appoint the members of the board in accordance with this Section, the current19
members shall continue to serve until their successors are appointed.20
* * *21
E. The members of the board shall meet and organize immediately after their22
appointment and shall elect a chairman, vice chairman, and secretary-treasurer from23
the membership of the board. The duties of the officers shall be those customarily24
exercised by such officers or specifically designated by the board. The board may25
establish rules and regulations for its own government and the administration of the26
affairs of the board and shall have the following duties, functions, and authorizations27
in addition to and in conjunction with the aforenamed:28 HLS 14RS-1539 REENGROSSED
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(1) To plan and conduct, in such manner as the board may determine,1
referenda among producers for the approval or disapproval of the program in2
accordance with the provisions of this Chapter.3
(2) (1) To make recommendations and to advise the commissioner4
concerning rules and regulations relating to the administration of the collection of5
the assessments.6
(3) (2) To enter into contracts for rice promotion with rice promotion and7
other organizations relating to the production, handling, marketing, and utilization8
of rice, which rice promotion organizations may include nonprofit organizations of9
which members of the board are members.10
(4) (3) To keep minutes, books, and records which will clearly reflect all of11
its meetings, acts and transactions. The minutes, books, and records at all times shall12
be subject to examination by any rice producer on whom an assessment has been13
collected.14
(5) (4) To publicize the actions of the board in the news media serving the15
rice areas of Louisiana.16
(6) (5) To investigate and cause prosecution to be instituted for violation of17
the provisions of this Chapter.18
§3534. Levy of assessment; referendum, collection, and enforcement; records;19
refunds; transfer of funds20
A. Levy of assessment.21
(1) There is hereby levied an assessment at the rate not to exceed of three22
cents per hundredweight, or the equivalent thereof, of dry rough "paddy" rice23
produced in this state and a rate not to exceed of two and seventy one-hundredths24
cents per hundredweight, or the equivalent thereof, on rice produced in this state and25
sold on a "green weight" basis.26
(2) The obligation to pay the assessment shall apply to the producer for all27
rice marketed by him. To facilitate collection, this assessment shall be deducted by28
each miller or handler from the amount paid the producer at the first point of sale29 HLS 14RS-1539 REENGROSSED
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only, whether within or without outside the state.; however, the assessment shall not1
be imposed unless and until the question of its imposition has been submitted to and2
been approved by a majority of the rice producers who vote in referendum as3
provided in Subsection B of this Section.4
* * *5
G. Refunds.6
(1) Any rice producer may request and receive a refund of the amount7
deducted from his share of the proceeds from the sale of his rice provided he makes8
a written application with the commissioner within thirty days from the date of sale9
supported by copies of sales slips signed by the producer and provided further that10
the application is filed before the annual accounting is made and the funds paid to11
the board.12
(2) The refund shall be paid to the producer no later than sixty days after the13
commissioner receives the producer's application for a refund.14
(3) Any repeal of the refund provided in this Subsection shall require two-15
thirds vote of the legislature.16
(2) Provided however, the refund as provided in this Subsection shall not be17
available if a majority of the rice producers who vote in a referendum to be called18
and held by the board after January 1, 1992, vote to abolish the refund provisions of19
this Subsection.20
(3) If a majority of the rice producers who vote in such a referendum vote21
to abolish the refund provisions, such refund provisions shall be null and void and22
shall thereafter have no effect.23
H. Transfer of funds.24
(1) The commissioner of agriculture shall annually monthly pay over to the25
Louisiana Rice Promotion Board the funds collected less the actual cost of26
administering and collecting the assessment levied herein up to but not to exceed two27
percent of the gross amount collected.28
* * *29 HLS 14RS-1539 REENGROSSED
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§3537. Use of funds1
A. After deduction from the proceeds of the assessment, the expenses of2
collection and administration, including costs of referenda, the board shall dedicate3
the balance to rice promotion. The board shall have the discretion as to what4
organizations and agencies to expend monies for such purposes. Use of these funds5
may be applied within or without outside of the state of Louisiana, including6
regional, national, and international applications.7
* * *8
Section 2. R.S. 3:3533(F) and 3534(B) and (I) are hereby repealed in their entirety.9
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
LeBas HB No. 1045
Abstract: Provides for the membership and terms of the La. Rice Promotion Board,
clarifies the duties of the board, provides for certain assessments to be levied and
collected on dry rough "paddy" rice and rice sold on "green weight" basis, provides
for the payment of a refund, provides for the transfer and use of funds, repeals the
levy of additional assessments, and repeals referenda for assessment purposes.
Present law provides for a nine-member La. Rice Promotion Board appointed by the
governor, subject to Senate confirmation. Further provides for four-year terms of office
beginning July 1, 1988, and every four years thereafter. Members are appointed as follows:
(1)Six members appointed from a list of twelve persons nominated by the La. Rice
Council.
(2)One member appointed from a list of three persons nominated by the La. Rice
Growers Assoc.
(3)One member appointed from a list of three persons nominated by the American Rice
Growers Assoc.
(4)One member appointed from a list of three persons nominated by the La. Farm
Bureau Federation, Inc.
Proposed law retains present law but changes the effective date for terms from July 1, 1988,
to Aug. 15, 2014. Proposed law adds one member appointed from a list of three persons
nominated by the La. Independent Rice Producers Assoc. and adds the commissioner or his
designee, who will not be subject to Senate confirmation. Removes the commissioner as an
advisor to the board.
Present law requires the nominating entities to submit their respective list of nominees for
appointment consideration no later than 30 days prior to July 1, 1988, and every four years
thereafter. HLS 14RS-1539 REENGROSSED
HB NO. 1045
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are additions.
Proposed law changes the date for commencement of four-year terms from July 1, 1988, to
Aug. 15, 2014. Adds the La. Independent Rice Producers Assoc. as a nominating entity
required to submit a list of nominees by a certain date.
Present law empowers the La. Rice Promotion Board with the following duties:
(1)To plan and conduct referenda among producers for approval or disapproval of the
program.
(2)To advise the commissioner relative to the administration of the collection of
assessments.
(3)To enter into contracts for rice promotion, which may be with nonprofit
organizations to which members of the board may belong.
(4) To keep minutes, books, and records which reflect all meetings, acts, and
transactions which shall be subject to examination by any assessed rice producer.
(5)To publicize the actions of the board.
(6)To impose penalties for any violation of the provisions of present law.
Proposed law retains present law but removes the authority to plan and conduct referenda.
Present law provides for the levy of an assessment not to exceed 3¢ per hundredweight of
dry rough "paddy" rice and not to exceed 2.70¢ per hundredweight of "green-weight" rice,
which shall apply to all rice marketed by a producer. Further provides for the assessment
to be deducted by the miller or handler at the first point of sale. Additionally provides that
the assessment not be imposed unless approved by referendum vote of a majority of rice
producers.
Proposed law retains present law collection provisions but changes present law assessment
amount from a 0-to-3¢ range to 3¢ per hundredweight on dry rough "paddy" rice and
changes present law assessment amount from a 0-to-2.70¢ range to 2.70¢ per hundredweight
on "green weight" rice and removes present law referendum provision for assessment
purposes.
Present law provides that any rice producer may receive a refund of the amount deducted
from the sale of his rice upon written application with the commissioner within 30 days from
the sale date supported by producer-signed copies of sales slips submitted prior to the
accounting and transfer of funds to the board. Further provides for a referendum vote of
rice producers to abolish the refund provisions which would render such refund null and
void.
Proposed law retains present law provision for an assessment refund subject to written
application with the commissioner within a certain time period but removes present law
referendum requirements to abolish refund provisions.
Proposed law provides that the refund be paid to the producer no later than 60 days after the
commissioner receives the producer's application for a refund. Further requires a two-thirds
vote of the legislature to repeal the refund.
Present law provides for the commissioner to annually pay to the board the funds collected
less administrative costs not to exceed 2% of the gross amount collected.
Proposed law retains present law relative to the transfer of funds to the board but changes
present law fund transfer period from annually to monthly. HLS 14RS-1539 REENGROSSED
HB NO. 1045
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are additions.
Present law authorizes the board to dedicate the balance of funds to rice promotion, less
expenses of collection and administration and costs of referenda. Further provides that the
board determines organizations and agencies to contract for promotion services within or
outside of the state.
Proposed law retains present law provisions relative to the expenditure of funds for rice
promotion and contracted services but removes present law provision for fund allowance to
defray costs of referenda.
Present law provides for the imposition of assessments, effective for five crop years and
extended indefinitely in five-year increments, only by referendum vote of a majority of rice
producers. Further provides for criteria for referendum participation and notification of
results.
Proposed law repeals present law.
Present law provides for additional assessments at a rate not to exceed 2¢ per hundredweight
on dry rough "paddy" rice and such assessment reduced by 10% on "green weight" rice.
Further provides that the additional assessments are subject to all other assessment
requirements including provisions for referenda and extension in five-year increments,
subject to referenda.
Proposed law repeals present law.
(Amends R.S. 3:3533(B), (C), and (E), 3534(A)(1) and (2), (G), and (H)(1), and 3537(A);
Repeals R.S. 3:3533(F) and 3534(B) and (I))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Agriculture, Forestry,
Aquaculture, and Rural Development to the original bill.
1. Made technical changes.
2. Added two members to the nine-member La. Rice Promotion Board beginning
Aug. 15, 2014, and removed the advisor to the board.
3. Required the nominating entities to submit lists of nominees for appointment
consideration not less than 30 days prior to Aug. 15, 2014, and every four years
thereafter.
4. Required the commissioner to pay a refund to the producer no later than 60 days
after receipt of the producer's application for a refund.
5. Required a two-thirds vote of the legislature to repeal the refund.