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Regular Session, 2014
HOUSE BILL NO. 886
BY REPRESENTATIVE MONTOUCET
AGRICULTURE/RICE: Provides relative to assessments levied by the Louisiana Rice
Research Board
AN ACT1
To amend and reenact R.S. 3:3543(B), (C), and (D), 3544(A)(1) and (3), (E), (F)(3) and (4),2
and (H)(1), and 3547(A) and to repeal R.S. 3:3543(E) and 3544(A)(10), (B), and3
(H)(5), relative to the Louisiana Rice Research Board; to provide for the membership4
and duties of the board; to provide for the levy of certain assessments on dry rough5
"paddy" rice; to provide for rice producer refunds; to provide relative to the time6
period for the transfer of funds; to repeal authority for referenda for assessment7
purposes; and to provide for related matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 3:3543(B), (C), and (D), 3544(A)(1) and (3), (E), (F)(3) and (4), and10
(H)(1), and 3547(A) are hereby amended and reenacted to read as follows:11
§3543. Louisiana Rice Research Board; creation and organization12
* * *13
B. The board shall be composed of thirteen fifteen members appointed by14
the governor, subject to Senate confirmation. Each member shall be a rice producer15
and be subject to Senate confirmation, except the commissioner or his designee.16
Members shall serve for four-year terms which shall begin on the first day of July17
in 1988 and each four years thereafter. Members shall be appointed in accordance18
with the following provisions: Members shall serve for four-year terms which shall19 HLS 14RS-1106 REENGROSSED
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begin on the fifteenth day of August in 2014 and each four years thereafter. The1
board shall consist of the following members:2
(1) Six members shall be appointed from a list of ten persons nominated by3
the Louisiana Farm Bureau, Inc.4
(2) Five members shall be appointed from a list of eight persons nominated5
by the Louisiana Rice Growers Association.6
(3) Two members shall be appointed from a list of four persons nominated7
by the American Rice Growers Cooperative Association.8
(4) One member appointed from a list of three persons nominated by the9
Louisiana Independent Rice Growers Association.10
(5) The commissioner of agriculture or his designee.11
C. Not less than thirty days prior to July 1, 1988 August 15, 2014, and every12
four years thereafter, the Louisiana Farm Bureau, Inc., the Louisiana Rice Growers13
Association, and the American Rice Growers Cooperative Association, and the14
Louisiana Independent Rice Producers Association each shall submit the names of15
their nominees, all of whom shall be rice producers, to the governor who shall16
appoint the required number of board members from each set of nominees. In the17
event that the governor fails to appoint the members of the board in accordance with18
this Section, the current members shall continue to serve until their replacements are19
appointed. Board members shall be eligible to succeed themselves on the board if20
they meet the prescribed qualifications and are reappointed by the governor.21
D. 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, whose duties shall be those customarily exercised by24
such officers or specifically designated by the board. The board may establish rules25
and regulations for its own government and the administration of the affairs of the26
board and shall have the following duties, functions, and authorizations in addition27
to and in conjunction with the aforenamed:28 HLS 14RS-1106 REENGROSSED
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(1) To plan and conduct referenda among producers for the approval or1
disapproval of the program in accordance with the provisions of this Chapter.2
(2)(1) To make recommendations and to advise the commissioner3
concerning rules and regulations relating to the administration of the collection of4
the assessments.5
(3)(2) To receive the funds from the state treasury in accordance with the6
provisions of this Chapter.7
(4)(3) To expend funds collected for rice research and to enter into contracts8
with rice research organizations and/or and agencies relating to the production,9
handling, marketing, or utilization of rice for the purposes of research.10
(5)(4) To keep minutes, books, and records which will clearly reflect all of11
its meetings, acts, and transactions. Said The minutes, books, and records shall at12
all times be subject to examination by any rice producer on whom an assessment has13
been collected.14
(6)(5) To publicize the actions of the board in the news media serving the15
rice areas of Louisiana.16
§3544. Levy of assessment; referendum; collection; enforcement; transfer of funds17
A. Levy of assessment.18
(1) There is imposed and levied an assessment at the rate not to exceed of19
three cents per hundredweight, or the equivalent thereof, of dry rough "paddy" rice20
produced in this state.21
* * *22
(3) The obligation to pay the assessment shall apply to the producer for all23
rice marketed by him. To facilitate collection, this assessment is to be deducted by24
each miller or handler from the amount paid the producer at the first point of sale25
only, whether within or without outside the state; however, the assessment shall not26
be imposed unless and until the question of its imposition and the amount thereof has27
been submitted to and been approved by a majority of the rice producers who vote28
in referendum to be called and held by the board within ninety days following the29 HLS 14RS-1106 REENGROSSED
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effective date of this Chapter. If the assessment is approved as provided in this1
Section, the assessment shall become effective July 1, 1973.2
* * *3
E. Refunds.4
(1) Any rice producer may request and receive a refund of the amount5
deducted from his share of the proceeds from the sale of his rice provided he makes6
a written application with the commissioner within thirty days from the date of sale7
supported by copies of weight or settlement sheets by the buyer and provided further8
that the application is filed before the annual accounting is made and the funds paid9
to the board.10
(2) The refund shall be paid to the producer no later than sixty days after the11
commissioner receives the producer's application for a refund.12
(3) Any repeal of the refund provided in this Subsection shall require a two-13
thirds vote of the legislature.14
(2) Provided however, the refund as provided in this Subsection shall not be15
available if a majority of the rice producers who vote in a referendum to be called16
and held by the board after January 1, 1992, vote to abolish the refund provisions of17
this Subsection.18
(3) If a majority of the rice producers who vote in such a referendum vote19
to abolish the refund provisions, such refund provisions shall be null and void and20
shall thereafter have no effect.21
F. Transfer of funds.22
* * *23
(3) The commissioner of agriculture shall annually monthly pay over to the24
Louisiana Rice Research Board the funds collected less the actual cost of25
administering and collecting the assessment levied herein up to but not to exceed two26
percent of the gross amount collected.27
(4) The annual monthly settlement to the Louisiana Rice Research Board28
shall be made as of the first day of July of each year and shall be accompanied by a29 HLS 14RS-1106 REENGROSSED
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complete audit of all funds collected and disbursed, and costs actually incurred in the1
collection and administration of the assessment.2
* * *3
H. Additional assessments.4
(1) In addition to all other assessments levied pursuant to this Section there5
is hereby levied an assessment at a rate not to exceed of two cents per6
hundredweight, or the equivalent thereof, on dry rough "paddy" rice produced in this7
state.8
* * *9
§3547. Use of funds10
A. The board shall dedicate, after deducting for administrative expenses, the11
amounts determined needed for rice research. The board shall have authority to12
contract for services in order to accomplish the purpose for which it is created. Use13
of these funds may be applied within or without outside the State state of Louisiana,14
including regional, national and international applications as long as the research will15
benefit Louisiana rice producers. Such funds may also be used to defray costs or16
referenda.17
* * *18
Section 2. R.S. 3:3543(E) and 3544(A)(10), (B), and (H)(5) are hereby repealed in19
their entirety.20
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)]
Montoucet HB No. 886
Abstract: Provides for the membership and terms of appointment of the La. Rice Research
Board, provides for certain assessments to be levied, imposed, and collected on dry
rough "paddy" rice, provides for the payment of a refund, and repeals referenda for
assessment purposes.
Present law provides for the 13-member La. Rice Research Board to be appointed by the
governor for four-year terms from lists of nominees submitted by the La. Farm Bureau, the
La. Rice Growers Assoc., and the American Rice Growers Cooperative Assoc. HLS 14RS-1106 REENGROSSED
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are additions.
Proposed law retains present law and adds the following two members to the board: (1) one
member appointed from a list of three persons nominated by the La. Independent Rice
Producers Assoc., and (2) the commissioner of agriculture or his designee, who will not be
subject to Senate confirmation. Removes the commissioner as an advisor to the board.
Present law provides for the board's four-year terms of office to begin July 1, 1988.
Proposed law changes the effective date for the four-year terms from July 1, 1988, to
August 15, 2014.
Present law requires 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.
Proposed law changes the date for commencement of four-year terms from July 1, 1988, to
August 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 provides for board members to elect certain officers, establish rules and
regulations, and be empowered with the following duties:
(1)To plan and conduct referenda among producers for the approval or disapproval of
the program.
(2)To receive funds from the state treasury.
(3)To make recommendations to the commissioner concerning rules and regulations
relative to the collection of the assessment.
(4)To expend collected funds for rice research and enter into contracts with certain
organizations for purposes of rice research.
(5)To keep accurate minutes, books, and records reflective of all meetings, acts, and
transactions which are subject to examination by any rice producer.
(6)To publicize board actions in news media serving the rice areas of the state.
Proposed law retains present law provisions for the election of officers, establishment of
rules and regulations and certain duties but removes the present law board duty to plan and
conduct referenda for program purposes.
Present law provides for an assessment to be levied and imposed at a rate not to exceed 3¢
per hundredweight of dry rough "paddy" rice to be collected at the first point of sale. Further
provides that the assessment not be imposed until its imposition and the amount thereof has
been submitted to a majority of rice producers in a referendum vote.
Proposed law retains present law collection provisions but changes the present law
assessment amount from a 0-to-3¢ range to 3¢ per hundredweight on dry rough "paddy" rice
and removes the present law referendum provision for assessment purposes.
Present law provides for an assessment refund pursuant to a written application with the
commissioner within 30 days from the date of the sale and prior to the annual accounting and
transfer of funds to the board. Further provides for a referendum vote of the producers to
abolish the refund provisions which would render such refund null and void.
Proposed law retains the 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. HLS 14RS-1106 REENGROSSED
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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 transfer to the board funds collected
less administrative costs in an amount not to exceed 2% of the gross amount collected.
Further provides that the annual settlement to the board be accompanied by a complete audit
of all funds collected and disbursed.
Proposed law retains present law relative to the transfer of funds to the board with the
accompanying audit but changes the present law fund transfer period from annually to
monthly.
Present law provides for the levy of an additional assessment at a rate not to exceed 2¢ per
hundredweight on dry rough "paddy" rice.
Proposed law changes the present law additional assessment rate from a 0-to-2¢ range to 2¢
per hundredweight.
Present law authorizes the board to determine an amount needed for rice research and to
contract for services to accomplish such need. Further provides for the application of funds
within or outside of the state subject to the benefit of La. rice producers. Additionally allows
use of funds to defray costs or referenda.
Proposed law retains the present law provisions relative to the expenditure of funds for rice
research and contracted services but removes the present law provision for fund allowance
to defray costs or referenda.
Present law allows the assessment on rice to be extended indefinitely in five-year increments
by approval in a referendum vote of rice producers.
Proposed law repeals present law.
Present law provides for the imposition of the assessment only by referendum vote of a
majority of rice producers. Further provides for criteria for participation in a referendum and
for notification of the referendum results.
Proposed law repeals present law.
Present law provides that additional assessments be 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. 3:3543(B), (C), and (D), 3544(A)(1) and (3), (E), (F)(3) and (4), and (H)(1)
and 3547(A); Repeals R.S. 3:3543(E) and 3544(A)(10), (B), and (H)(5))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Agriculture, Forestry,
Aquaculture, and Rural Development to the original bill.
1. Changed the appointing authority of the La. Rice Research Board from the
commissioner of agriculture to the governor.
2. Added two members to the 13-member board beginning Aug. 15, 2014, and
removes the advisor to the board. HLS 14RS-1106 REENGROSSED
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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.