2004 Legislation
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HOUSE BILL NO. 613 – Aquaculture Comm

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

Bill Text


                                                                        
                                                                        
  ]]]]              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-
                                                                        
                                           2
                                                                        
  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-
 43    pointment.
 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
                                                                        
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  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
 36        advertising;
 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
                                                                        
                                           4
                                                                        
  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
  8    chapter.
  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.
                                                                        
                                           5
                                                                        
  1        (2)  From and after the first day of July 2004, there is hereby imposed an
  2    assessment of ten cents (10ยข) 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 / Fiscal Impact



                       STATEMENT OF PURPOSE
                             RS 13789

          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. 
                          FISCAL IMPACT

     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.

Contact
Name: Bob Corbell, Idaho Grape Growers and Wine Producers
Commission 
Phone: 442-4423




STATEMENT OF PURPOSE/FISCAL NOTE                    H 613