1998 Legislation
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SENATE BILL NO. 1399 – Potato Comm, powers/duties


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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
         Effective: 03/11/98

Bill Text


 ||||              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

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
21    Idaho.
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 / Fiscal Impact


                            STATEMENT OF PURPOSE
                                 RS 07643C3
    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.
                                FISCAL NOTE
    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
                               (208) 334-2350
    Bill No S 1399