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HOUSE BILL NO. 613
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H0613...............................................by AGRICULTURAL AFFAIRS
AQUACULTURE - Adds to existing law to provide for the Idaho Aquaculture
Commission; to provide powers and duties of the commission; to provide for
the deposit and disbursement of funds; to provide for audits and reports;
to provide for assessments; and to provide for refunds.
02/05 House intro - 1st rdg - to printing
02/06 Rpt prt - to Agric Aff
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-seventh Legislature Second Regular Session - 2004
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 613
BY AGRICULTURAL AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO AQUACULTURE; AMENDING TITLE 22, IDAHO CODE, BY THE ADDITION OF A
3 NEW CHAPTER 44, TITLE 22, IDAHO CODE, TO PROVIDE LEGISLATIVE INTENT, TO
4 DEFINE TERMS, TO PROVIDE FOR THE IDAHO AQUACULTURE COMMISSION, TO PROVIDE
5 FOR COMPOSITION OF THE COMMISSION AND APPOINTMENT BY THE GOVERNOR, TO PRO-
6 VIDE REQUIRED QUALIFICATIONS FOR COMMISSION MEMBERS, TO PROVIDE FOR TERMS
7 OF APPOINTMENT, VACANCIES AND REMOVAL OF COMMISSION MEMBERS, TO RESTRICT
8 THE NUMBER OF CONSECUTIVE TERMS A MEMBER MAY SERVE, TO PROVIDE THAT MEM-
9 BERS SHALL SERVE WITHOUT COMPENSATION, TO PROVIDE A PROCESS FOR NOMINA-
10 TIONS FOR INITIAL APPOINTMENTS TO THE COMMISSION, TO PROVIDE FOR NOMINA-
11 TIONS FOR VACANCIES, TO PROVIDE FOR THE ELECTION OF A CHAIR, TO PROVIDE
12 FOR MEETINGS, TO PROVIDE FOR A QUORUM, TO PROVIDE POWERS AND DUTIES OF THE
13 COMMISSION, TO PROVIDE FOR THE DEPOSIT AND DISBURSEMENT OF FUNDS, TO PRO-
14 VIDE FOR STATE AUDITS OF COMMISSION FUNDS, TO PROVIDE FOR ANNUAL REPORTS,
15 TO PROVIDE FOR BIENNIAL AUDITS, TO PROVIDE THAT THE STATE IS NOT LIABLE,
16 TO REQUIRE THAT PRODUCERS AND PROCESSORS BE IN GOOD STANDING TO VOTE, TO
17 PROVIDE FOR ASSESSMENTS AND TO PROVIDE FOR REFUNDS.
18 Be It Enacted by the Legislature of the State of Idaho:
19 SECTION 1. That Title 22, Idaho Code, be, and the same is hereby amended
20 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
21 ter 44, Title 22, Idaho Code, and to read as follows:
22 CHAPTER 44
23 IDAHO AQUACULTURE COMMISSION
24 22-4401. LEGISLATIVE INTENT. It is in the best interest of all the people
25 of the state of Idaho that the abundant natural resources of Idaho be pro-
26 tected, fully developed, and uniformly distributed. The aquaculture industry
27 is one of the agricultural industries that contributes to the economic welfare
28 of the state. It is the purpose of this chapter to promote the public health
29 and welfare of the citizens of the state by providing means for the protec-
30 tion, promotion, study, research, analysis and development of markets relating
31 to the growing and marketing of Idaho aquaculture products and Idaho aquacul-
32 ture byproducts.
33 22-4402. DEFINITIONS. As used in this chapter:
34 (1) "Aquaculture" means the husbandry of fish, aquatic animals and
35 plants, and the processing for sale of the same, both public and private.
36 (2) "Commission" means the Idaho aquaculture commission.
37 (3) "Person" means any individual, partnership, association, corporation,
38 cooperative or other business unit or device.
39 (4) "Processor" means a facility where aquaculture products are delivered
40 for the purpose of processing the product for sale, and shall for the purposes
41 of membership on the commission, include persons owning, operating or other-
1 wise participating in the operation of the facility.
2 (5) "Producer" means the owner or tenant of a facility, hatchery, pond,
3 lake or stream or other water facility where fish or other aquatic animals are
4 raised, held or produced for sale.
5 22-4403. IDAHO AQUACULTURE COMMISSION -- ESTABLISHED -- COMPOSITION --
6 QUALIFICATION OF MEMBERS -- MEETINGS. (1) A commission on Idaho aquaculture,
7 hereinafter referred to in this chapter as "the commission," is hereby estab-
8 lished in the department of self-governing agencies. The commission shall be
9 composed of five (5) members appointed by the governor as follows:
10 (a) Three (3) members shall be from the producer segment of the industry
11 who shall be nominated pursuant to the provisions of subsection (6) of
12 this section;
13 (b) Two (2) members shall be from the processor segment of the industry
14 who shall be nominated pursuant to the provisions of subsection (6) of
15 this section.
16 (2) Members must meet the following qualifications:
17 (a) Be a United States citizen and a resident of the state of Idaho;
18 (b) Be over the age of twenty-five (25) years;
19 (c) Producer members shall be persons who, either individually or as
20 executive officers of a corporative organization, have been actively
21 engaged in the production of an aquaculture product within the state of
22 Idaho with a major portion of their income from aquaculture derived from
23 commercial fisheries;
24 (d) Processor members shall be persons who, either individually or as
25 executive officers of a corporative organization, have been actively
26 engaged as processors within the state of Idaho with a major portion of
27 their income from aquaculture derived from aquaculture processing, sales,
28 handling, packing, shipping, or buying and selling aquaculture products as
29 an agent or broker.
30 (3) Each member of the commission shall be appointed by the governor for
31 a term of three (3) years. Provided however, that the initial appointments in
32 the first year shall be appointments of two (2) years for one (1) producer
33 member, three (3) years for two (2) producer members, two (2) years for one
34 (1) processor member and three (3) years for one (1) processor member. A
35 vacancy shall be filled by appointment for the unexpired term in the same man-
36 ner provided for an appointment to the full term. No member of the commission
37 may be removed by the governor during his or her term of office unless for
38 cause of incapacity, incompetence, neglect of duty, malfeasance in office, or
39 failure to continue to meet the qualifications set forth in subsection (2) of
40 this section.
41 (4) Members shall serve no more than two (2) consecutive terms without
42 the lapse of one (1) full term occurring prior to being eligible for reap-
44 (5) Members shall serve without compensation from the state.
45 (6) Nominations for the initial appointments to the commission under sub-
46 section (1) of this section shall be made in the following manner:
47 (a) At the time of the effective date of this act, the Idaho aquaculture
48 association shall set a date, time and location for a meeting where nomi-
49 nations for membership shall be voted upon in accordance with rules and
50 procedures of the association. No less than two (2) nominees shall be
51 chosen for submission to the governor for each vacancy;
52 (b) At least fourteen (14) days prior to the meeting date, the associa-
53 tion shall send written notification setting forth the date, time and
54 location of such meeting to all producers and processors in the state of
1 Idaho, as determined by the association, regardless of whether a producer
2 or processor is a member of the association;
3 (c) At least fourteen (14) days prior to the meeting date, the associa-
4 tion shall post written notice of the meeting in places of business
5 involved in the aquaculture industry as determined by the association;
6 (d) At least fourteen (14) days prior to the meeting date, the associa-
7 tion shall provide written notice of the meeting to the department of
8 agriculture and, upon receipt, the department shall post the notice on
9 their official website.
10 Nominations as voted upon at the time of the meeting shall be submitted by the
11 association to the governor within fourteen (14) days of the meeting. The gov-
12 ernor shall make initial appointments to the commission within thirty (30)
13 days of receipt of the nominations. Nominations for vacancies shall be made by
14 the Idaho aquaculture association.
15 (7) The commission shall elect a chair from among its members each calen-
16 dar year. After its original organizational meeting, the commission shall meet
17 at the call of the chair or by a consensus of three (3) members of the commis-
18 sion. The commission shall, at a minimum, conduct quarterly meetings of the
19 commission and an annual meeting of all producers and processors. A majority
20 of the members of the commission constitutes a quorum and an official action
21 of the commission may be taken with a majority vote of the quorum.
22 22-4404. POWERS AND DUTIES. (1) The powers and duties of the commission
23 shall include the following:
24 (a) To contract in the name of the commission and be contracted with, to
25 sue and be sued;
26 (b) To appoint, employ, prescribe duties, fix compensation, and at its
27 pleasure discharge, all necessary agents, employees, professional person-
28 nel and other personnel, including experts in aquaculture and the
29 publicizing of products;
30 (c) To keep books, records, and accounts of all its dealings, including
31 minutes of commission meetings;
32 (d) To establish an office or offices, to incur expenses, and to create
33 liabilities as reasonable for the proper administration of the commission;
34 (e) To determine new markets for aquaculture products, to promote the
35 national and international use of aquaculture products, and to conduct
37 (f) To provide and to publicize reliable information relating to the
38 value of aquaculture products determined to be useful and profitable;
39 (g) To conduct research, and to investigate and study problems relative
40 to the industry;
41 (h) To promote and protect the sale of aquaculture products;
42 (i) To cooperate with agencies of this state, other states and the fed-
43 eral government, engaged in similar work to that of the commission and
44 enter into agreements or contracts with such agencies;
45 (j) To adopt, amend and rescind rules in conjunction with the exercise of
46 its powers and duties pursuant to the provisions of this chapter.
47 (2) The commission may also establish dues not to exceed two hundred dol-
48 lars ($200) per year for agencies, associations, suppliers, manufacturers,
49 research institutions, and other supporters of the aquaculture industry, that
50 desire to affiliate with the commission as associate members.
51 22-4405. DEPOSIT AND DISBURSEMENT OF FUNDS -- AUDITS -- REPORTS. (1) The
52 commission may accept assessment receipts, dues, grants, donations and gifts
53 of funds from any source for expenditure for any purpose consistent with this
1 chapter which may be specified as a condition of any grant, donation or gift.
2 All funds received under the provisions of this chapter or as provided by law
3 shall be deposited into one (1) or more separate accounts in the name of the
4 commission in one (1) or more banks or trust companies approved under chapter
5 27, title 67, Idaho Code, as state depositories. The commission shall desig-
6 nate such banks or trust companies. All funds so deposited are hereby continu-
7 ously appropriated for the purpose of carrying out the provisions of this
9 (2) Funds can be withdrawn or paid out of such accounts only upon checks
10 or other orders upon such accounts signed by two (2) officers designated by
11 the commission.
12 (3) The right is reserved to the state of Idaho to audit the funds of the
13 commission at any time.
14 (4) On or before January 15 of each year, the commission shall file with
15 the senate agricultural affairs committee, the house agricultural affairs com-
16 mittee, the legislative services office, the state controller, and the divi-
17 sion of financial management, a report showing the annual income and expenses
18 by standard classification of the commission during the preceding fiscal year.
19 The report shall also include an estimate of income to the commission for the
20 current fiscal year and a projection of anticipated expenses by category for
21 the current fiscal year. The report shall also include a reconciliation
22 between the estimated income and expenses projected and the actual income and
23 expenses of the preceding fiscal year.
24 (5) All moneys received or expended by the commission shall be audited
25 every second year, but shall address every year distinctly, by a certified
26 public accountant designated by the commission, who shall furnish a copy of
27 such audit to the director of legislative services and to the senate agricul-
28 tural affairs committee and the house agricultural affairs committee. The
29 audit shall be completed within ninety (90) days following the close of the
30 fiscal year.
31 22-4406. STATE NOT LIABLE. The state of Idaho is not liable for the acts
32 or omissions of the commission or any member thereof, or any officer, agent or
33 employee thereof.
34 22-4407. PRODUCERS -- PROCESSORS -- VOTING. To be considered in good
35 standing, all producers and processors shall be current in the payment of
36 assessments to the commission as provided for in this chapter. Only producers
37 and processors in good standing shall be allowed to vote on any issue submit-
38 ted to a vote of the producers and processors. Voting privileges shall be lim-
39 ited to one (1) vote per producer and one (1) vote per processor, whether that
40 processor is an individual, partnership or corporation. The commission is
41 authorized to establish by rule additional standards that producers and proc-
42 essors must comply with in order to be considered in good standing.
43 22-4408. ASSESSMENTS. (1) On an annual basis, a one hundred dollar ($100)
44 minimum assessment is hereby imposed on each producer and a two hundred dollar
45 ($200) minimum assessment is hereby imposed on each processor. The minimum
46 annual assessments for the preceding fiscal year shall be remitted to the com-
47 mission by all producers and processors on or before August 1 of each year,
48 beginning in the year 2005. Provided however, in the event that any producer
49 remitted assessments, or had assessments remitted on his behalf, to the com-
50 mission during the preceding fiscal year pursuant to subsection (3) or (4) of
51 this section, amounts so submitted shall be offset against the minimum assess-
52 ment due and owing.
1 (2) From and after the first day of July 2004, there is hereby imposed an
2 assessment of ten cents (10¢) per hundred weight on the production of aquacul-
3 ture products produced or grown in Idaho for purpose of profit. Any producer's
4 total annual assessment shall not exceed one thousand dollars ($1,000).
5 (3) With the exception of the minimum annual assessments, and assessments
6 pursuant to subsection (4) of this section, assessments shall be collected by
7 the processor and deducted from payments to the producer. The producer shall
8 remit all assessments to the commission within fifteen (15) days of the end of
9 each calendar quarter, along with the name, address and dollar amount of each
10 producer's respective assessment. The commission shall maintain records iden-
11 tifying the specific amount of assessment collected from each producer. When
12 assessments totaling one thousand dollars ($1,000) have been submitted on
13 behalf of a producer, the commission shall send verification, in a form to be
14 developed by the commission, to the producer indicating that the maximum
15 assessment has been collected. Processors may rely upon such verification pro-
16 duced by a producer in determining that no further assessment is required to
17 be collected in regard to products of the particular producer. The commission
18 is authorized to establish by rule additional means of verifying that the max-
19 imum assessment has been remitted by or on behalf of a producer.
20 (4) Producers shall be responsible for submitting assessments on aquacul-
21 ture products sold for human consumption, pond stocking, or live aquaculture
22 products sold directly to the public or retailers. Producers shall remit the
23 assessments to the commission by the fifteenth day of the month following the
24 sale, along with a verification of the amount of product so sold.
25 (5) In the event an amount in excess of the maximum assessment for any
26 producer is collected by the commission, the commission shall, within ten (10)
27 business days of discovery of the same, or verification of the same upon
28 notice by a producer, reimburse the producer the excess assessment.
29 22-4409. REFUNDS. Within thirty (30) days following the end of a calendar
30 quarter, a producer or processor that does not support the program established
31 under this chapter, may request in writing that the commission refund all or a
32 portion of assessments remitted to the commission by the producer or proces-
33 sor, or remitted on their behalf. Any producer or processor that fails to
34 request a refund within the thirty (30) day period pursuant to the provisions
35 of this section shall be deemed to have waived their right to do so. Within
36 thirty (30) days of receipt of the written request for refund, the commission
37 shall reimburse the producer or processor the requested refund amount, pro-
38 vided the commission determines from its records that the amount so requested
39 was actually remitted to the commission by the producer or processor, or on
40 their behalf.
STATEMENT OF PURPOSE
The purpose of this legislation is to establish the
Idaho Aquaculture Commission. Aquaculture is a growing
agricultural industry and a large contributor to the economy of
Idaho. As a commission, the industry can be promoted, compete
for available USDA research funds and grants and educate Idahoans
on the excellence of the Idaho Aquaculture Industry. The
Aquaculture Commission will function in the same manner as other
state agriculture commissions. The commission will represent
producers, processors, and related industries.
The current aquaculture association operates on a budget of
$15,000.00 to $16,000.00. Those funds will be dedicated to
operation of the commission. There is no general fund impact.
Name: Bob Corbell, Idaho Grape Growers and Wine Producers
STATEMENT OF PURPOSE/FISCAL NOTE H 613