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SENATE BILL NO. 1399
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S1399...............................................by AGRICULTURAL AFFAIRS
POTATO COMMISSION - Amends existing law to further specify the items which
may be examined by an agent or representative of the Potato Commission
which have a bearing on the amount of taxes payable by a grower, dealer or
handler of potatoes; to provide for examination of correct usage of trade
or certification marks; and to expand the powers and duties of the Potato
02/05 Senate intro - 1st rdg - to printing
02/06 Rpt prt - to Agric Aff
02/18 Rpt out - rec d/p - to 2nd rdg
02/19 2nd rdg - to 3rd rdg
02/25 3rd rdg - PASSED - 35-0-0
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Danielson, Darrington, Deide, Dunklin, Frasure, Geddes, Hansen,
Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Parry,
Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stennett,
Sweeney, Thorne, Twiggs, Wheeler, Whitworth
Absent and excused--None
Floor Sponsor - Lee
Title apvd - to House
02/26 House intro - 1st rdg - to Agric Aff
03/03 Rpt out - rec d/p - to 2nd rdg
03/04 2nd rdg - to 3rd rdg
03/06 3rd rdg - PASSED - 66-0-4
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Bivens,
Black(15), Black(23), Boe, Bruneel, Callister, Campbell, Chase,
Crane, Crow, Deal, Denney, Ellsworth, Field(13), Field(20), Gagner,
Geddes, Gould, Hadley, Henbest, Hornbeck, Jaquet, Jones(9),
Jones(22), Judd, Kellogg, Kempton, Kendell, Kjellander, Kunz, Lake,
Linford, Loertscher, Mader, Marley, McKague, Meyer, Miller,
Mortensen, Newcomb, Pischner, Pomeroy, Reynolds, Richman, Ridinger,
Robison, Sali, Schaefer, Stevenson, Stoicheff, Stone, Stubbs, Taylor,
Tilman, Tippets, Trail, Watson, Wheeler, Wood, Zimmermann, Mr Speaker
NAYS -- None
Absent and excused -- Clark, Cuddy, Hansen, Jones(20)
Floor Sponsor - Stevenson
Title apvd - to Senate
03/09 To enrol
03/10 Rpt enrol - Pres signed
03/10 Sp signed
03/11 To Governor
03/11 Governor signed
Session Law Chapter 25
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-fourth Legislature Second Regular Session - 1998
IN THE SENATE
SENATE BILL NO. 1399
BY AGRICULTURAL AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO THE POTATO COMMISSION; AMENDING SECTION 22-1205, IDAHO CODE, TO
3 FURTHER SPECIFY THE ITEMS WHICH MAY BE EXAMINED BY AN AGENT OR REPRESENTA-
4 TIVE OF THE POTATO COMMISSION WHICH HAVE A BEARING ON THE AMOUNT OF TAXES
5 PAYABLE BY A GROWER, DEALER OR HANDLER OF POTATOES, TO PROVIDE FOR EXAMI-
6 NATION OF CORRECT USAGE OF TRADE OR CERTIFICATION MARKS AND TO MAKE A
7 TECHNICAL CORRECTION; AMENDING SECTION 22-1207, IDAHO CODE, TO EXPAND THE
8 POWERS AND DUTIES OF THE COMMISSION AND TO MAKE TECHNICAL CORRECTIONS; AND
9 DECLARING AN EMERGENCY.
10 Be It Enacted by the Legislature of the State of Idaho:
11 SECTION 1. That Section 22-1205, Idaho Code, be, and the same is hereby
12 amended to read as follows:
13 22-1205. ADMINISTRATION AND ENFORCEMENT OF ACT. The administration of
14 this act shall be vested in the Idaho potato commission which shall have power
15 to prescribe and enforce suitable and reasonable rules and regulations
16 for the enforcement of the provisions thereof, and shall administer the
17 taxes levied and imposed by this act. Said commission shall have power to
18 cause its duly authorized agent or representative to enter upon the premises
19 of any grower, dealer and/or handler of potatoes, and to examine or cause to
20 be examined by any such agent or representative any of the following
21 items: any books, papers, records, ledgers, purchase journals,
22 sales journals, electronically and/or magnetically recorded data, computers
23 and computer records or memoranda bearing on the amount of taxes pay-
24 able or the correct usage of any Idaho trade or certification mark,
25 and to secure all other information directly or indirectly
26 concerned in the enforcement of this act.
27 SECTION 2. That Section 22-1207, Idaho Code, be, and the same is hereby
28 amended to read as follows:
29 22-1207. POWERS AND DUTIES OF COMMISSION. The powers and duties of the
30 commission shall include the following:
31 1. To adopt and from time to time alter, rescind, modify and/or amend all
32 proper and necessary rules and orders for the exercise of its powers and the
33 performance of its duties under this act.
34 2. To contract and be contracted with.
35 3. To employ and at its pleasure discharge an advertising manager,
36 agents, advertising agencies and such other help as it deems necessary and to
37 outline their powers and duties and fix their compensation.
38 4. To make in the name of the commission such advertising contracts and
39 other agreements as may be necessary.
40 5. To keep books, records and accounts of all its doings, which books,
41 records and accounts shall be open to inspection by the state controller at
1 all times.
2 6. To purchase or authorize the purchase of all office equipment and sup-
3 plies and to incur all other reasonable and necessary expenses and obligations
4 in connection with and required for the proper carrying out of the provisions
5 of this act.
6 7. To define and describe such grade or grades of potatoes that may be
7 advertised in accordance with the provisions of this act.
8 8. To define and designate the character of the brands, labels, stencils,
9 or other distinctive marks under which said potatoes may be marketed in order
10 to secure the greatest returns to producers and meet the requirements of their
11 advertising campaign.
12 9. To devise and require the application of either a seal, label, brand,
13 package, or any other suitable device that will protect the identity of the
14 original Idaho pack of potatoes as near to the final consumer as possible.
15 10. Whenever and wherever it deems it to be necessary the commission shall
16 use its offices to prevent any substitution of other potatoes for Idaho pota-
17 toes and to prevent the misrepresentation, mislabeling or the misbranding of
18 Idaho potatoes at any and all times at any and all points where they discover
19 the same is being done and to require the disclosure of the growing area of
20 origin upon potato containers by all persons doing business in the state of
22 11. To require all those using any of the Idaho potato trade or cer-
23 tification marks, or handling or packing potatoes grown in Idaho, to execute
24 an agreement in the form prescribed by the commission to ensure compliance
25 with the provisions of this chapter.
26 12. To devise a suitable system for tracking shipments of Idaho potatoes
27 and Idaho potato products to prevent the misrepresentation, mislabeling or the
28 misbranding of Idaho potatoes.
29 13. To prevent the unlicensed use of the Idaho potato trade or cer-
30 tification marks including, but not limited to, the marks "Grown in Idaho,"
31 "Famous Idaho Potatoes" and "Idaho Potatoes."
32 14. To make, conduct or carry on studies and research in connection
33 with the raising, production and marketing of potatoes, including study and
34 research dealing with the industrial and other uses of potatoes and their by-
35 products, and the extension and stabilization of markets for such commodities;
36 to disseminate information with respect to such study and research as a part
37 of the commission's advertising, publicity and sales promotion activities
38 authorized by this act and to assist, aid and educate growers, dealers and
39 handlers in the raising, production and marketing of potatoes.
40 1 2 5 . To require all persons with their principal
41 place of business located in the state of Idaho to pay a one hundred dollar
42 ($100) annual license fee for use of any Idaho potato trade or certification
43 mark and to require all persons with their principal place of business located
44 outside of the state of Idaho to pay a three hundred dollar ($300) annual
45 license fee for use of any Idaho potato trade or certification mark.
46 For the accomplishment of such ends the commission is hereby empowered to
47 employ the necessary persons or contract for the performance of required ser-
48 vices; to cooperate with any organization of growers in this state, whether
49 organized by authority of law or voluntary, engaged in carrying on similar
50 activities and to participate jointly with any such organization, by contract
51 or otherwise, in financing such study and research or paying for the employ-
52 ment of persons or services required or in carrying out projects and programs
53 as herein contemplated; provided, however, expenditures authorized by the com-
54 mission for the purposes herein mentioned shall not exceed an amount equal to
55 twelve and one-half per cent percent (12 1/2%) of
1 the tax collected on potatoes levied and imposed pursuant to section 22-1211,
2 Idaho Code.
3 Provided, further, that none of the powers specified in subsection 1
4 1 4. of this section shall be exercised, and no expenditure
5 of revenue as provided in subsection 1 1 4. of this
6 section shall be authorized except upon the affirmative vote of six (6) or
7 more of the members of the commission.
8 1 3 6 . The commission, in furtherance of its
9 duties under this act and under its rules, shall have the power to administer
10 oaths, certify to official acts and to issue subpoenas for the attendance of
11 witnesses and the production of papers, books, accounts, documents and testi-
12 mony. The commission may, if a witness refuses to attend or testify, or to
13 produce any papers required by such subpoenas, report to the district court in
14 and for the county in which the proceeding is pending, by petition, setting
15 forth that due notice has been given of the time and place of attendance of
16 said witnesses, or the production of said papers, that the witness has been
17 properly summoned, and that the witness has failed and refused to attend or
18 produce the papers required by this subpoena before the commission, or has
19 refused to answer questions propounded to him in the course of said proceed-
20 ings, and ask an order of said court compelling the witness to attend and tes-
21 tify and produce said papers before the commission. The court, upon the peti-
22 tion of the commission, shall enter an order directing the witness to appear
23 before the court at a time and place to be fixed by the court in such order,
24 the time to be not more than ten (10) days from the date of the order, and
25 then and there shall show cause why he had not attended and testified or pro-
26 duced said papers before the commission. A copy of said order shall be served
27 upon said witness. If it shall appear to the court that said subpoena was reg-
28 ularly issued by the commission and regularly served, the court shall there-
29 upon order that said witness appear before the commission at the time and
30 place fixed in said order, and testify or produce the required papers. Upon
31 failure to obey said order, said witness shall be dealt with for contempt of
32 court. Provided that in proceedings before the commission where evidence is
33 sought from witnesses who are not residents of this state, the commission is
34 authorized to obtain subpoenas issued by the clerk of the district court. Sub-
35 poenas so requested shall be issued by the clerk of the district court under
36 the seal of the court, shall state the name of the court and the title of the
37 administrative action, and shall command each person to whom it is directed to
38 attend and give testimony at a time and place therein specified. Subpoenas
39 shall be used only to require attendance of a witness at a deposition or hear-
40 ing. The clerk shall issue a subpoena or a subpoena for the production of doc-
41 umentary evidence, signed and sealed but otherwise in blank, to a party
42 requesting it, who shall fill it in before service.
43 SECTION 3. An emergency existing therefor, which emergency is hereby
44 declared to exist, this act shall be in full force and effect on and after its
45 passage and approval.
STATEMENT OF PURPOSE
This legislation clarifies the powers and duties of the
Idaho Potato Commission ("IPC"). Under IPC's current rules
and administration of its statute, those licensees undergoing
trademark usage audits have been required to provide their
business to IPC's auditors. These records are necessary to
show that only Idaho grown potatoes are sold in Idaho potato
containers. While the current statue arguably covers a broad
array of business records, an out-of-state licensee has
argued that the language is not clear and has refused to
provide the records enumerated in this legislation. This
legislation will clarify the law and prevent litigation.
The legislation also ratifies IPC's current practice of
requiring those handling Idaho potatoes to be licensed by
IPC. This clarification also affirms IPC's prior
interpretation and administration of IPC's stature.
Two new changes are incorporated into this legislation.
first expands the current tracking of shipments of Idaho
potatoes in order to prevent product substitution. This
change will allow IPC to more accurately determine that
out-of-state licensees have enough Idaho potato purchases to
cover Idaho potato sales.
The second change acknowledges IPC's duty to prevent
those who would capitalize on the substantial investment made
by this state from the unlicensed use of IPC's potato or
trade certification marks.
The Idaho Potato Commission is funded through a tax
imposed upon the potato industry. Therefore there is no impact
on the general fund. This legislation will not increase any
expenditure from the Idaho Potato Commission budget. In fact,
because litigation may be avoided, IPC should save money
through passage of this legislation.
CONTACT: Patrick J. Kole
STATEMENT OF PURPOSE/FISCAL NOTE
Bill No S 1399