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| Home > Statutes > Usa-Arizona |
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USA Statutes : arizona
Title : Agriculture
Chapter : MARKETING OF AGRICULTURAL PRODUCTS
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3-401 Definitions
In this article, unless the context otherwise requires:
1. "Affected commodity" means the specific citrus, fruit or vegetable regulated
pursuant to article 2 or 4 of this chapter and subject to the marketing agreement or
order or the proposed marketing agreement or order.
2. "Affected person" means a producer or shipper of an affected commodity.
3. "Assistant director" means the assistant director of the office of commodities
development and promotion of the ARIZONA department of agriculture.
4. "Marketing agreement" or "agreement" means an agreement developed by producers
or shippers of the affected commodity and entered into by the assistant director pursuant
to this article.
5. "Marketing commission" or "commission" means the marketing commission
established under section 3-413.
6. "Marketing committee" or "committee" means a marketing committee established by
a marketing agreement according to section 3-426.
7. "Marketing order" or "order" means an order developed by producers or shippers
of the affected commodity and issued by the assistant director pursuant to this article.
8. "Person" means any individual, firm, corporation, trust, association or
partnership.
9. "Producer" means a person who has a financial interest in producing or causing
citrus, fruit or vegetable commodities to be produced for market in commercial
quantities.
10. "Shipper" means a person that engages in shipping, transporting, selling or
marketing citrus, fruits or vegetables under his own registered trademark or label or a
person who first markets the fruits or vegetables for the producer.
11. "Supervisor" means the supervisor of standardization of the ARIZONA department
of agriculture.
12. "Volume" means cartons or the equivalent weight of ARIZONA grown products
marketed in the preceding marketing season.
13. "Written assent" means a signed statement of an affected person consenting to
the terms of a marketing order.
3-402 Policy or purpose
Marketing agricultural products of this state is in the public interest. The policy
and purpose of this article are to promote the general welfare of this state by enabling
and encouraging fresh fruit and vegetable producers and shippers to help
themselves. This state will benefit by ensuring the availability of high quality fruit
and vegetables and in establishing orderly, equitable, efficient and unhampered
marketing, grading and standardizing of the commodities as well as providing for
research, promotion and educational programs involving fresh fruit and vegetables.
3-403 Exemptions
This article shall not apply to article 2.1, 4.2 or 4.3 of this chapter.
3-404 Marketing order and marketing agreementprograms
A. A marketing order or marketing agreement applies to all producers and shippers
included under the terms of the order or agreement.
B. A marketing order or marketing agreement may:
1. Provide for establishing standards for the quality, condition, size or maturity
of a commodity marketed in or shipped outside this state. Standards shall not be less
than the standards provided by articles 2 and 4 of this chapter and rules adopted
pursuant to those articles.
2. Provide for plans to conduct programs for advertising and sales promotion.
3. Provide for research studies to improve production, distribution and marketing.
4. Provide for educational programs designed to inform producers and shippers about
quality improvement or about practices, procedures and methods used in production,
processing and marketing.
5. Provide for research and educational programs concerning health, food,
nutritional, therapeutic and dietetic qualities or for developing new food products or
new uses for agricultural products.
6. Provide programs to control and eradicate insects, disease and parasites.
7. Provide for establishing and regulating the use of an official brand, trade name
or label.
8. Provide programs to gather and disseminate weather data to producers.
9. Provide for developing and funding programs, jointly or cooperatively, with
public or private organizations including funding marketing information services.
10. Authorize persons to participate in hearings regarding agricultural chemicals
that are used by the affected commodity.
3-405 Contents of a marketing order
A. A marketing order shall:
1. Describe the territory of this state to be regulated by the marketing order.
2. State the type of marketing order program.
3. Establish a marketing commission and prescribe the number of commission members.
4. State the maximum rate of assessments in amounts sufficient to cover all
expenses of the marketing order if assessments are required.
5. State whether the marketing order applies to producers or shippers, or both. If
the marketing order applies to shippers only, shippers shall pay any assessments owing
and shall not charge producers any assessments for the marketing order. If the marketing
order applies to both producers and shippers, the shippers shall not charge producers any
assessments that the shipper is required to pay pursuant to the marketing order.
6. Apply uniformly to all persons of the same category.
7. State whether the costs of the hearing, referendum or written assent procedures
shall be reimbursed by any assessments received if the marketing order is approved.
8. State the amount of time an inspector may hold a lot found to be in violation of
the marketing order and specify the time period allowed to recondition a product pursuant
to section 3-420.
B. The marketing order may apply to more than one commodity and may include any
other relevant information.
3-406 Initiation of the marketing orderprocess
A. To initiate or substantially change a marketing order, an affected person shall
file a petition with the department signed by ten per cent of producers or shippers, or
both producers and shippers, of the affected commodity that is the subject of the
proposed marketing order. The petition shall state:
1. The affected commodity to be regulated by the marketing order.
2. A description of the territory of this state to be regulated by the proposed
marketing order.
3. The category of persons to be regulated by the marketing order.
4. A draft of the proposed marketing order.
5. The proposed method of voting.
6. Any other relevant information.
B. Within thirty days after receiving the petition, the department shall initiate
developing a department list and shall prepare a budget to handle the petition. The
department shall require a deposit from the petitioners to cover the costs of the hearing
and referendum or written assent procedures. The deposit may be reimbursed by any
assessments received if the marketing order is approved.
3-407 Official department list
A. The department shall compile a list for the purposes of notice and referendum or
written assent procedures. The list shall include the names and addresses of all
affected persons and the quantity of the affected commodity produced or shipped by the
affected person in the two years preceding the notice or for a lesser time if the
affected person has not produced or shipped the affected commodity for the preceding two
years.
B. In compiling the list, the department may use records required to be kept by
shippers and records reported to citrus, fruit and vegetable standardization by producers
and shippers pursuant to articles 2 and 4 of this chapter and rules adopted pursuant to
those articles. The department may also notify known affected persons and may request
them to respond within fifteen days after the notice with any additional necessary
information.
C. Information compiled by the department concerning individual totals of the
affected commodity produced or shipped are confidential and are not subject to public
disclosure.
D. The list is conclusive in determining whether a marketing order has been
approved by referendum or written assent, but an affected person who is not on the
department list may register with the department and vote in a referendum or file a
written assent if the person submits satisfactory evidence to the department to verify
that the affected person is qualified to vote.
3-408 Public meeting; notice
A. A public meeting on the petition shall be held within sixty days after the
department receives the petition.
B. Notice shall be sent to all affected persons on the department list and
interested parties five to thirty days before the date of the public meeting. The notice
shall state the time, date and place of the public meeting, the territory and commodity
affected by the proposed marketing order and that the department will receive evidence
and testimony concerning the department list and the proposed marketing order.
C. The assistant director, or his designee, shall conduct the public meeting and
shall receive evidence and testimony concerning the proposed marketing order, the
accuracy of the department list and the preferred method of voting on the proposed
marketing order. The assistant director or designee may receive evidence and testimony
regarding the period of time required for filing written assents and any other relevant
matters.
D. The department may hold more than one public meeting if the affected commodity
is grown in more than one area of this state.
3-409 Findings of assistant director
A. Based on testimony received at the public meeting, the assistant director may
recommend to the petitioners that the proposed marketing order be modified. If the
petitioners make any substantial changes to the proposed marketing order after the public
meetings, there shall be at least one additional public meeting to receive evidence and
testimony regarding the revised marketing order. If the petitioners make only technical
changes to the proposed marketing order, no additional public meeting is required.
B. The assistant director shall approve the marketing order if he finds:
1. The same marketing agreement or marketing order program is not in effect for the
affected commodity in the territory described by the proposed marketing order.
2. The marketing order complies with this article.
3. The costs of administering the proposed marketing order are met by the proposed
assessment, if an assessment is necessary.
C. The assistant director shall issue a decision to be mailed to all persons
appearing at the public meeting within twenty days after the conclusion of all public
meetings. The decision shall state the findings of the assistant director, the method of
voting on the proposed marketing order and a summary of the evidence and testimony
presented at the public meetings.
3-410 Election procedures
A. For an election conducted by referendum, each affected person entitled to vote
on the department list shall receive a ballot. The ballot shall state or be accompanied
by the text of the proposed marketing order, the date the ballot must be received by the
department and the address to which the ballot shall be returned. The return date shall
be between fifteen and thirty days after it is sent by the department.
B. For an election conducted by written assents, each written assent shall specify
that the written assent is being filed for the proposed marketing order, shall be dated
and signed and shall clearly state the name, representative capacity and address of the
person filing the written assent.
C. Each person entitled to vote shall have one vote. If the proposed marketing
order program regulates both producers and shippers, a person who is both a producer and
shipper is entitled to one vote for each category.
D. If both producers and shippers are to be regulated under the marketing order,
voting shall be conducted independently for each category. The marketing order must be
separately approved by each category to be effecitve for the category.
E. Within ten days after the date for returning ballots for a referendum or within
ten days after the close of the period for filing written assents, the department shall
certify the election results. The department may not disclose how a particular person
voted but shall disclose who voted and the total number of votes cast favoring the
marketing order and the total number of votes cast opposing the marketing order.
F. If approved, the marketing order is effective a minimum of five days after the
notice is mailed to every affected person and to every person who requests notification.
3-411 Adoption of a marketing order
A. If an election is conducted by a referendum, the marketing order shall be
adopted or substantially changed if either:
1. Forty per cent of persons by volume or by number entitled to vote cast ballots
and at least sixty-five per cent by number and fifty-one per cent by volume assent to the
proposal.
2. Forty per cent of persons by volume or by number entitled to vote cast ballots
and at least fifty-one per cent by number and sixty-five per cent by volume assent to the
proposal.
B. If an election is conducted by filing written assents, the marketing order shall
be adopted or substantially changed if at least sixty-five per cent by number and
fifty-one per cent by volume file a written assent to the proposed marketing order or at
least fifty-one per cent by number and sixty-five per cent by volume file a written
assent to the proposed marketing order.
3-412 Terminating a marketing order
A. The marketing order expires on the fifth anniversary of its effective date
unless specified otherwise in the marketing order, terminated previously or reapproved.
B. If the marketing order has been substantially changed and the substantial change
was submitted for approval to those persons regulated by the marketing order during the
existing term of the marketing order, the marketing order's term is deemed reapproved
from the date of the approval of the substantial change.
C. During the last year the marketing order is effective, the department shall
develop a list pursuant to section 3-407 and hold a public meeting pursuant to section
3-408 and an election pursuant to section 3-410. If the marketing order is reapproved,
the new term begins on the expiration of the existing term.
D. If at least forty per cent of the persons regulated by a marketing order, by
volume and by number, present a petition to terminate the marketing order to the
department and the signatures have been collected within ninety days, the department
shall hold a public meeting pursuant to section 3-408 and depending on the testimony
presented at the public meeting may submit the marketing order for an election pursuant
to section 3-410 within sixty days after the filing of the petition. The petition shall
state the text of the marketing order, the proposed method of voting and any other
pertinent information.
E. If a marketing commission, by a two-thirds vote of its membership, determines
that it is no longer in the best interest of the persons regulated by the marketing order
to continue the marketing order, the department shall submit the marketing order to an
election pursuant to section 3-410 within thirty days after the marketing commission's
vote.
F. If a marketing commission does not meet for three consecutive marketing seasons,
the assistant director may call a public meeting pursuant to section 3-408 to determine
whether an election on termination is necessary.
G. If an election is conducted by referendum, the marketing order shall be
terminated if a majority of the persons regulated by the marketing order by number and
volume votes to terminate the marketing order.
H. If an election is conducted by written assent, the marketing order shall be
terminated if a majority of the persons regulated by the marketing order by number and
volume files a written assent to terminate the marketing order with the department.
I. The department shall certify the election results. The department may not
disclose how a particular person voted but shall disclose who voted and the total number
of votes cast in favor of the marketing order and the total number of votes cast opposing
the marketing order.
J. If the department certifies that the marketing order shall be terminated
pursuant to the results of the referendum or written assent, the marketing order
terminates five days after the notice is mailed to every person regulated by the
marketing order and persons who request notification.
K. A marketing order shall not be submitted for termination until one year after an
election.
3-413 Marketing commission; appointment;term
A. A marketing commission is composed of three to nine members with rotating terms
of three years. Two-thirds of the members shall be appointed collectively by the
director, supervisor and assistant director, from nominations of affected persons or
representative commodity associations and one-third shall be selected by the other
members of the marketing commission.
B. Members shall be selected to represent areas of this state that produce the
affected commodity on the basis of the volume of total production in this state for the
affected commodity.
C. A marketing commission shall be composed of persons who are regulated by the
marketing order and shall include both producers and shippers if the marketing order
regulates both categories.
D. Commission members are not eligible to receive compensation but are eligible for
reimbursement of expenses pursuant to title 38, chapter 4, article 2.
3-414 Powers and duties of a marketingcommission or marketing committee
A. A marketing commission or marketing committee shall:
1. Collect, receive and disburse any monies to be used to administer a marketing
order or marketing agreement.
2. Annually elect a chairman, secretary and treasurer from among its members.
3. Meet at least twice annually or at additional times called by the chairman or
when requested by a quorum of the marketing commission or marketing committee.
4. Keep a permanent record of its proceedings and make these records available for
public inspection for any lawful purpose.
5. Provide for an annual audit of any of its accounts by a certified public
accountant and make an annual financial statement available to any affected person and
the auditor general on request.
6. Prescribe any assessments to be assessed within the limits prescribed in this
article, the marketing order or the marketing agreement.
B. A marketing commission shall:
1. Prepare for the regulated commodity an annual report of its activities, receipts
and expenditures. A copy of the annual report shall be available to any interested
person on request.
2. Organize and administer any election called under this article or the marketing
order.
C. A marketing commission or marketing committee may:
1. Sue and be sued as a marketing commission or marketing committee, without
individual liability, for acts of the marketing commission or marketing committee within
the scope of the powers and duties conferred on it by this article, the marketing order
or the marketing agreement.
2. Enter into contracts to carry out the purposes of this article, the marketing
order or the marketing agreement.
3. Appoint committees or subcommittees of the marketing commission or marketing
committee, ex officio marketing commission or marketing committee members or advisory
groups composed of representatives from organizations, institutions or businesses related
to or interested in the regulated commodity.
4. Employ or retain and fix the compensation of a qualified person or qualified
entity to manage the marketing order or marketing agreement, on behalf of the marketing
commission or marketing committee, and other personnel that are necessary to carry out
the provisions of this article, the order or the agreement.
5. Cooperate with any local, state or nationwide organization or agency engaged in
work or activities similar or related to those of the commission or the committee and
enter into contracts with the organizations or agencies for carrying on joint programs.
6. Make grants to research agencies to finance appropriate studies, or to purchase
or acquire equipment and facilities consistent with the marketing order or marketing
agreement.
7. Act jointly and in cooperation with this state or any other state or the federal
government and spend monies to administer any program deemed by the commission or
committee to be beneficial to the affected commodity.
8. Accept grants, donations, contributions, gifts, property or services or other
assistance for public or private sources.
9. Adopt rules pursuant to title 41, chapter 6 necessary to promptly and
effectively administer this article.
10. Refer to persons regulated under a marketing order for an advisory vote the
question of setting assessments or establishing or continuing any program authorized by
the order.
11. Investigate and prosecute in the name of this state any legal action to enforce
the collection or ensure payment of the authorized assessments.
12. Gather data or any other information the commission or committee deems necessary
to administer and enforce the order or agreement.
13. Receive complaints of violations of the order or agreement and refer the
complaints to the proper authorities.
3-415 Administrative services;reimbursement
A. The marketing commission or marketing committee may employ staff, to serve at
the pleasure of the commission or committee, and may prescribe the terms and conditions
of employment of employees as necessary to perform the functions prescribed by this
article, the marketing order or marketing agreement. The commission or committee may
provide, at a rate or amount determined by the commission or committee, compensation,
vehicles and vehicle expense, health care benefits, life insurance, retirement and any
other cost or expense associated with employment. Reimbursement for travel and
subsistence expenses for commission or committee employees shall be in the amount
prescribed by title 38, chapter 4, article 2. All employees of the commission or
committee are exempt from title 38, chapter 4, articles 1 and 4 and chapter 5, article 2
and title 41, chapter 4, articles 5 and 6 and are not under the jurisdiction of the
department of administration.
B. The commission or committee may also enter into an interagency agreement
pursuant to title 11, chapter 7, article 3 with the department to provide necessary
administrative services to the commission or committee including:
1. Providing secretarial and other services necessary for the commission or
committee to carry out its activities.
2. Establishing separate operating accounts for the commission or committee.
3. Providing necessary financial and accounting services to the commission or
committee including the issuance of checks, payment of bills approved by the commission
or committee, annual audits, expenditure and receipt reports whether monthly or annually,
preparation of annual budget and any other activities requested by the commission or
committee.
4. Receiving mail and other communication for the commission or committee.
5. Receiving monies authorized under this article for deposit, pursuant to sections
35-146 and 35-147, in the appropriate funds.
6. Accepting donated monies on behalf of the commission or committee to be credited
to the account of the commission or committee.
7. Providing space for the meetings of the commission or committee.
8. Providing any other administrative services that the commission or committee
requests or finds necessary.
C. If the department performs any function under this article, it acts as the agent
of the marketing commission or marketing committee and has no authority or control over
the commission or committee or the commission's or committee's employees or assets. The
commission or committee shall reimburse the department for any administrative services
the department provides from the monies received under the marketing order or marketing
agreement in an amount agreed on by the commission or committee and the director. Any
services provided by citrus, fruit and vegetable standardization or the department in the
normal scope of services are not subject to reimbursement from a marketing commission or
marketing committee.
3-416 Indemnification of marketing commissionor marketing committee members
Each member or employee of a marketing commission or marketing committee is
indemnified by the commission or committee against reasonable costs and expenses,
including attorney fees, incurred by him in connection with any action, suit or
proceeding to which he may be a party by reason of being or having been a member or
employee of the commission or committee, except in relation to matters as to which he is
adjudged in such action, suit or proceeding to have acted in bad faith as a commission or
committee member or employee. The right of indemnification is in addition to other
rights to which the member or employee is entitled as a matter of law.
3-417 Assessments; collection; budget
A. The annual assessment rate shall not exceed five per cent of the annual gross
sales dollar value of the affected commodity determined by the preceding marketing
season. Not more than two per cent of the annual gross sales dollar value of the
affected commodity may be used to pay costs associated with administering the marketing
order. Assessment rates may be set on a per carton or equivalent basis.
B. Each marketing order shall state a method of collection:
1. For the initial year, an advance deposit of not more than ten per cent of the
total assessments owing may be collected from affected persons based on the preceding
marketing season.
2. If the marketing order affects producers only or if the marketing order affects
both producers and shippers, the shipper shall withhold the assessments owed by the
producer pursuant to the marketing order. The shipper is a trustee of the assessments
until they are paid to the marketing commission. If the marketing order affects
producers only, a producer is responsible for paying the assessments unless the
assessments are withheld for payment by the shipper.
C. Each affected person shall keep a complete and accurate record of all of the
affected commodity sold by the affected person. The records shall contain the
information required to be kept for the citrus, fruit and vegetable revolving fund
pursuant to articles 2 and 4 of this chapter and rules adopted pursuant to those
articles.
D. Except for the first year of operation, on or before July 1 of each year, the
marketing commission or marketing committee shall set an assessment according to the
maximum rate of assessment established by this article, the marketing order or marketing
agreement. Before establishing the assessment rate, the commission or committee shall
establish an annual budget. The budget is effective on approval of the commission or
committee.
E. Title 41, chapter 6 does not apply to setting and collecting the assessment
under this section, but the commission or committee shall provide fifteen days' advance
notice of the meeting at which the assessment will be adopted and the amount of the
proposed assessment. The commission or committee shall receive public testimony at the
meeting regarding the assessment.
3-418 Failure to pay assessment; penalty;hearing; violation; classification
A. A person who is required to pay assessments pursuant to this article, a
marketing order or a marketing agreement and who fails to pay the assessments within
sixty days after the billing shall be assessed a penalty of ten per cent of the amount of
the total assessments owing and two per cent interest per month on the unpaid balance.
The attorney general may collect assessments, penalties and interest on the request of
the marketing commission or marketing committee.
B. The person who fails to pay the required assessments may request a hearing
before the marketing commission or marketing committee acting as an administrative law
judge pursuant to title 41, chapter 6, article 10 to dispute or determine the amount of
the assessments, penalty or interest imposed. The commission or committee shall hold a
hearing if requested. The commission or committee, after the hearing, shall enter its
order determining the amount of any assessments, penalty or interest. The person shall
pay the assessments, penalty and interest assessed within ten days after the notice of
the commission's or committee's decision.
C. A person who knowingly fails to pay or remit any monies due or collected as
required in this article and the marketing order is guilty of a class 2 misdemeanor. 3-419 Deposit of assessments; use ontermination
A. Monies collected pursuant to sections 3-417 and 3-424 shall be deposited in the
marketing commission's or marketing committee's accounts to be administered and disbursed
by the commission or committee for the purposes prescribed in this article. Monies
collected pursuant to a marketing order or marketing agreement may not be used for any
purpose other than the order or agreement.
B. The monies in a marketing commission or marketing committee account may be
invested pursuant to section 35-313. Interest earned on these monies shall be credited
to the marketing commission or marketing committee account.
C. If monies are unexpended at the end of a fiscal period, the marketing commission
or marketing committee shall carry the monies forward to the next fiscal period.
D. If the marketing order or marketing agreement is terminated and the expenses are
paid, monies shall be returned to the affected persons pro rata unless the amounts are
too small to be practicable or may be expended by the marketing commission or marketing
committee on any program consistent with the marketing order or marketing agreement.
E. No specific legislative appropriation is necessary to operate a marketing
commission or marketing committee.
3-420 Inspection and enforcement
A. An inspector, discharging his duties, may enter every facility during operating
hours or commercial vehicles in this state where an affected commodity is produced,
stored, packed, delivered for shipment, being transported or offered for sale and inspect
representative samples of the affected commodity to determine compliance with a marketing
order or marketing agreement.
B. If an inspector believes a marketing order or marketing agreement has been
violated in terms of quality, condition, size, maturity or pack, the inspector may hold
the lot pursuant to the time specified in the marketing order or marketing agreement.
C. If the lot does not comply with the marketing order or marketing agreement, the
department shall tag the lot and notify the person in possession. The owner of the lot
may recondition the lot within the time specified in the marketing order or marketing
agreement, and if compliance is achieved, the lot shall be released by the department.
D. If the owner does not recondition and bring the lot into compliance within the
time prescribed in the marketing order or marketing agreement, the inspector, after
receiving written consent of the owner may divert the lot to other lawful purposes or
destroy the lot.
E. If the owner refuses to give consent to the inspector to divert or destroy the
lot and the owner does not recondition and bring the lot into compliance within the time
prescribed in the marketing order or marketing agreement, the inspector may attach a
notice of disposal to the lot that is not in compliance with the marketing order or
marketing agreement and deliver a copy of the notice of disposal to the owner.
F. The notice of disposal requires the owner to properly dispose of the lot by:
1. Diverting it to another lawful purpose, such as contributing it to a nonprofit
charitable organization.
2. Selling it, as long as it is not sold in regular channels of trade, such as for
processing.
3. Destroying it.
3-421 Violations; civil penalties; hearing;court action
A. A person who violates a marketing order or marketing agreement three times
during a marketing season is subject to a civil penalty of at least fifty dollars but not
more than five hundred dollars for the first offense and a civil penalty of at least one
hundred dollars but not more than one thousand dollars for subsequent offenses. A person
who intentionally violates a marketing order is subject to a civil penalty of at least
one thousand dollars but not more than ten thousand dollars. Each day of violation is a
separate offense. A person who knowingly furnishes a false report is subject to a civil
penalty of five hundred dollars.
B. For civil actions, an administrative hearing may be obtained pursuant to title
41, chapter 6, article 10.
C. The director, marketing commission or marketing committee may apply to the
superior court for a temporary restraining order or injunction if there are three or more
violations of a marketing order, marketing agreement or this article or any rules adopted
pursuant to this article during a marketing season. If the director, marketing
commission or marketing committee is successful in the court action, the defendant may be
required to pay the costs of prosecution. A court action may be brought in the county
where the defendant resides or where the act or omission occurred or in the county of the
state capital.
D. An action for penalties must be commenced within three years after the
violation. The suspension, substantial change or termination of any marketing order or
marketing agreement does not suspend or terminate any causes of action that have accrued
under it.
3-422 Records and reports
A. The department may require affected persons to maintain records about their
operation and furnish the records on request to the marketing commission, marketing
committee or department to ensure compliance with a marketing order or marketing
agreement.
B. The marketing commission, marketing committee or hearing officer may hold a
hearing in which persons may be required to testify under oath.
C. All information concerning the businesses of individual producers and shippers,
including cartons or equivalent marketed, and the dollar value of gross annual sales is
not a public record and shall not be disclosed except by court order or to a person who
presents a release signed by the producer or shipper.
D. All results of elections for a marketing order, marketing agreements, contracts
entered into by a marketing commission or marketing committee and annual reports are
public records.
3-423 Payment of costs of hearing on amarketing order
If an affected person requests a hearing on a marketing order pursuant to title 41,
chapter 6, article 10, the affected person shall pay all costs of the hearing.
3-424 Initiation of the marketing agreementprocess; contents
A. Two or more persons who produce or ship the affected commodity shall file an
application with the assistant director together with a filing fee of five hundred
dollars to cover the costs of the public meeting. If the public meeting costs less than
five hundred dollars, the difference shall be refunded to the applicants. The
application shall state:
1. The affected commodity to be regulated by the marketing agreement.
2. A description of the territory of this state to be regulated by the marketing
agreement.
3. The category of persons to be regulated by the marketing agreement.
4. A draft of the proposed marketing agreement.
5. Any other relevant information.
B. A marketing agreement shall:
1. Describe the territory of this state to be regulated by the marketing agreement
and the persons to be regulated by the marketing agreement.
2. State the type of marketing agreement program.
3. Specify the number of marketing committee members if a marketing committee is to
be established.
4. Provide for the rate of assessments in amounts sufficient to cover all expenses
of the marketing agreement if assessments are required and specify a method of collecting
assessments.
5. State whether the marketing agreement applies to producers or shippers, or
both. If the marketing agreement applies to shippers only, shippers shall pay any
assessments owing and shall not charge producers any assessments for the marketing
agreement. If the marketing agreement applies to both producers and shippers, the
shippers shall not charge producers any assessments that the shipper is required to pay
pursuant to the marketing agreement.
6. Apply uniformly to all persons of the same category.
7. State whether the costs of the filing fee will be reimbursed by any assessments
received pursuant to the marketing agreement.
8. State the amount of time an inspector may hold a lot found to be in violation of
the marketing agreement and specify the time period allowed to recondition the product
pursuant to section 3-420.
C. The marketing agreement may apply to more than one commodity and may state any
other relevant information.
3-425 Public meeting; notice; findings
A. At least five days but not more than twenty days after the application is filed
with the department, the assistant director, or his designee, shall hold a public
meeting. A notice shall be sent to all persons that may be affected by the proposed
marketing agreement that states the time, date and place of the public hearing and that
the department will receive evidence and testimony concerning the proposed marketing
agreement. An official department list of affected persons does not have to be prepared.
B. At the public meeting, the assistant director, or his designee, shall receive
evidence and testimony concerning the proposed marketing agreement. The assistant
director may hold more than one hearing if the affected commodity is grown in more than
one area of this state.
C. The assistant director shall approve the marketing agreement if he finds:
1. The same marketing agreement or marketing order program is not in effect for the
affected commodity in the territory described by the proposed marketing agreement.
2. The marketing agreement complies with this article.
3. The signatories of the marketing agreement have sufficient monies to defray
expenses of formation, administration and enforcement of the marketing agreement.
4. The marketing agreement is signed by all participants.
3-426 Marketing committee
If a marketing committee is established by the marketing agreement, the marketing
committee shall be composed of three to nine signatories of the marketing agreement who
are elected by all of the signatories of the marketing agreement.
3-427 Application of marketing order provisionsto marketing agreements
A. The voting requirements and termination provisions prescribed for marketing
orders by this article do not apply to marketing agreements.
B. Sections 3-417, 3-418, subsections A and B and 3-419 apply to marketing
agreements only if an assessment is made under the agreement.
C. Sections 3-420 and 3-421 apply to marketing agreements.
3-428 Approval of a marketing agreement;amendments; term
A. A marketing agreement applies only to producers and shippers who sign the
marketing agreement and is effective on the approval of the assistant
director. Additional signatories may be added with the approval of the assistant
director. If signatories withdraw, the assistant director may review and terminate the
marketing agreement if not enough signatories remain to defray expenses of the marketing
agreement.
B. A marketing agreement may be amended at any time with the approval of the
assistant director and all of the signatories.
C. A marketing agreement is binding on signatories for a period specified in the
marketing agreement, but not longer than twelve months. The marketing agreement may be
renewed for an additional three terms without the requirement of a public meeting
provided in section 3-425.
3-429 Application of administrative proceduresact
Title 41, chapter 6, article 10 applies to administrative procedures prescribed by
this article.
3-441 Definitions
In this article, unless the context otherwise requires:
1. "Bulk Lot" means citrus fruit that is not contained in a box, carton, crate or
lug but may be contained in a bin or a similar container and is set apart from citrus
fruit that is packaged in containers authorized pursuant to this article or rules adopted
pursuant to this article.
2. "By-products" means any product from citrus fruit commercially processed or
manufactured for resale.
3. "Citrus" or "citrus fruit" means the fruit of any orange, lemon, lime,
grapefruit, tangerine, cumquat or other citrus tree which produces edible citrus fruit
suitable for human consumption.
4. "Commission merchant" means a person who receives on consignment or solicits
from the producer any citrus fruit for sale on commission on behalf of the producer or
accepts any citrus fruit in trust from the producer for the purpose of
resale. Commission merchant does not include a shipper.
5. "Containers" or "packages" means any container used for packing, shipping or
selling citrus fruit.
6. "Dealer" means a person that sells, markets or distributes citrus fruit that the
person purchased from a producer or markets as an agent, broker or commission merchant,
except at retail. Dealer does not include a shipper.
7. "Lot" means a unit of identical or similar items that are grouped or
consolidated in one or more containers for packaging or transporting or a cluster of
identical or similar items that are included in the same shipping order, bill of lading
or other itemized transport order.
8. "Packer" means a person, other than a producer, shipper or dealer, engaged in
the business of packing any citrus fruit.
9. "Person" includes an individual, firm, association, partnership, trust or
corporation.
10. "Producer" means a person engaged in this state in the business of producing or
causing citrus fruit to be produced for market in commercial quantities.
11. "Shipper" means a person who ships, transports, sells or markets citrus fruit
under the person's registered trademark or label or a person who first markets the citrus
fruit on behalf of the producer. Shipper does not include a commission merchant.
12. "Supervisor" means the supervisor of standardization employed pursuant to
section 3-483.
3-442 Purpose and scope of article
A. Producing quality citrus fruit in this state is in the public interest. To
enhance the potential for domestic and international marketing of citrus fruit from this
state, it is the policy and purpose of this article to enable and encourage producers and
shippers to develop uniform grades and standards for citrus fruit and to allow
inspections of citrus fruit produced or sold in this state. This article is vital to
enhance and maintain domestic and international markets for citrus fruit grown in this
state by protecting against exporting, importing and selling substandard citrus fruit and
by ensuring that inferior produce does not compete with quality citrus fruit produced in
this state.
B. All citrus fruit, when being packed or placed in a container, after packing,
when delivered for shipment, loaded, shipped, being transported, offered for sale or sold
in a container or in bulk, including citrus fruit offered for sale in bulk by the grower
to dealers for resale in bulk at retail or otherwise, shall conform to this article and
rules adopted pursuant to this article.
3-443 Supervisors; inspectors
A. This article and the rules adopted pursuant to this article shall be enforced by
the supervisor of standardization. The supervisor, in addition to the powers conferred
upon him by this article, shall have the powers provided by article 4 of this chapter.
B. The supervisor shall instruct the inspectors with regard to the inspection of
citrus fruit and the method of determining the maturity and condition of the citrus
fruit, as provided by rules adopted pursuant to this article.
C. Citrus, fruit and vegetable standardization and the office of commodities
development and promotion shall cooperate in establishing and administering marketing
orders and marketing agreements.
3-444 Inspection powers and enforcementprocedures; warning notice; disposal notice; civil penalty
A. Inspectors may enter any facility, during operating hours, or a commercial
vehicle in this state where fresh citrus fruit is produced, stored, packed or delivered
for shipment, is transported or is offered for sale and inspect representative samples of
the fresh citrus fruit and containers in order to determine compliance with this article
and rules adopted pursuant to this article.
B. If all or part of a lot, including containers, fails to comply with this article
or rules adopted pursuant to this article, the inspector may affix a warning notice to
all or part of the lot stating the reason why it is held. No person, other than an
inspector, may detach, alter or destroy the affixed warning notice except by the
authorization of the inspector, the supervisor, the supervisor's designee, the director
or a court order.
C. The inspector shall issue a notice of noncompliance to the person in possession
of the lot or part of the lot that states:
1. A description of the lot or part of the lot.
2. The specific section of law on which the noncompliance is alleged.
3. The place where the lot or part of the lot is held.
4. The specific method of inspection, including the sample size.
5. The defect that caused the violation.
6. The percentage of defective product in the sample.
7. The lot or part of the lot is subject to disposal if it is not reconditioned and
brought into compliance within the time prescribed according to rules adopted pursuant to
this article.
D. If the person who is served with the notice of noncompliance does not own the
lot, the person shall notify the inspector in writing of the name and address of the
owner. If the person knowingly conceals the name or address of the owner, the person is
liable for any loss to the lot that the owner sustains.
E. If the lot is reconditioned and brought into compliance within the prescribed
time period and the lot otherwise complies with this article and rules adopted pursuant
to this article, the inspector shall remove the warning notice, issue a notice of
compliance to the person in possession and release the lot for sale.
F. If the owner does not recondition and bring the lot into compliance within the
prescribed time period, the inspector, after receiving the written consent of the owner,
may divert the lot, or part of the lot, to other lawful purposes or destroy the lot or
part of the lot.
G. If the owner refuses to give consent to the inspector to divert or destroy the
lot, or part of the lot, and the owner does not recondition and bring the lot into
compliance within the prescribed time period, the inspector may attach a disposal notice
to the lot or part of the lot that violates this article or rules adopted pursuant to
this article and deliver a copy of the disposal notice to the owner. The disposal notice
requires the owner to properly dispose of the lot or part of the lot by:
1. Diverting it to another lawful purpose, such as contributing it to a nonprofit
charitable organization.
2. Selling it, other than in regular channels of trade, such as for processing.
3. Destroying it.
H. A person who violates the terms of a disposal notice is subject to a civil
penalty of at least twenty-five dollars for each carton but not more than one thousand
dollars.
3-445 Rule making; definition
A. The supervisor pursuant to section 3-527.02 may recommend to the director for
adoption rules not in conflict with this article as the supervisor deems necessary to
carry out the provisions of this article.
B. Upon recommendation of the supervisor, the director shall prescribe:
1. Standards and grades for citrus fruit produced in this state and a standard for
citrus fruit without specific standards pursuant to section 3-446. In establishing the
specific standards, the supervisor shall consider factors that apply to the product
including maturity, color, shape, size, firmness, freedom from decay, diseases,
mechanical and plant pest injury and any other factors that indicate quality and
condition.
2. The size, dimensions, labeling and markings of containers that are to be used to
pack citrus fruit and the packing arrangements of the commodity in the container.
3. A permit system for experimental containers, experimental products and
experimental packs including an application, permit number, quantity allowed by the
permit, duration of the permit and record keeping and renewal provisions.
4. Sampling rules for lots and containers of citrus fruit to reasonably produce a
fair representation of the entire lot or container sampled.
5. The time period allowed to recondition citrus fruit pursuant to section 3-444.
6. Appropriate reporting and record keeping requirements for shippers including:
(a) Reporting totals for each citrus variety shipped.
(b) A requirement for records to be retained for the preceding two years on the
amount of each citrus variety sold by the shipper for each producer for purposes of
reporting under article 1 of this chapter.
(c) A requirement for records to be retained for the preceding year on the
percentage ownership interest of each producer for each citrus variety sold by the
shipper.
7. Appropriate reporting and record keeping requirements for commission merchants.
C. For purposes of this section, "year" has the same meaning prescribed in section
3-450.
3-446 Adopting new or revised standards
A. Twenty-five per cent of the producers or shippers of a citrus fruit may petition
the supervisor to adopt a standard.
B. Twenty-five per cent of the producers or shippers of a citrus fruit for which a
standard has been established by rule may petition the supervisor to modify the standard.
C. Within thirty days after receiving a valid petition under subsection A or B of
this section, the supervisor, after notifying all other known producers and shippers of
the citrus fruit, shall hold a public meeting to receive comment on the proposed new
standard. Within fifteen days after the meeting the supervisor shall either deny the
petition in writing stating the reasons for denial or initiate rule making proceedings.
D. This section does not apply to any commodity that is exempt from standardization
under section 3-450.
3-447 Citrus, fruit and vegetable revolvingfund; administration
A. The citrus, fruit and vegetable revolving fund is established consisting of
revenues from assessments and other monies designated for deposit in the fund in this
article and article 4 of this chapter in order to provide the necessary monies to enforce
this article and article 4 of this chapter. The fund shall be used solely for the
purpose of administering the provisions of this article and article 4 of this
chapter. Monies in the fund may be invested pursuant to section 35-313 and all interest
earned on these monies shall be credited to the fund. Monies in the fund are exempt from
the provisions of section 35-190 relating to lapsing of appropriations.
B. The department shall make a detailed accounting on or before November 1 of each
year of all monies paid into and disbursed from the citrus, fruit and vegetable revolving
fund during the preceding fiscal year and transmit the report to the citrus, fruit and
vegetable advisory council on or before December 1.
C. Any monies remaining unexpended in the fund on June 30 each year shall be
carried forward to the following year, and the supervisor shall take that amount into
account in computing the assessments for that year.
3-448 Assessments; procedures; failure to pay;penalty and interest; hearing
A. In order to provide the necessary monies to enforce this article and article 4
of this chapter, the supervisor shall assess a charge against each shipper in an amount
of not more than one and one-fourth cents per standard carton, or the equivalent weight,
of each kind of fruit and vegetable, including citrus, shipped and regulated under this
article and article 4 of this chapter. For bulk shipments of citrus used for by-products
with destinations both inside and outside this state a charge is assessed of not more
than two dollars for each lot.
B. All monies collected from the assessments under this section shall be paid to
the citrus, fruit and vegetable revolving fund.
C. The supervisor, pursuant to section 3-527.02, shall set the amount of the
charges under this section annually with the approval of the director, but not in amounts
greater than necessary to provide revenues to defray all of the proper expenses of
carrying out the provisions of this article and article 4 of this chapter. The
supervisor may establish assessments for each commodity based on the time that is
necessary to inspect the commodity.
D. Before the supervisor may set or the director may approve an increase in the
assessment, the supervisor shall provide thirty days' advance notice of a public hearing
and the amount of the proposed assessment to all shippers who are licensed under sections
3-449 and 3-492 and to any other interested party. The supervisor shall receive
testimony at the hearing regarding the proposed increase in the assessment. Title 41,
chapter 6 does not apply to setting or collecting assessments under this section.
E. The supervisor shall compute the amount of assessments within the limits of this
section and may bill the assessments twice monthly. Each shipper shall pay the charges
to the supervisor within sixty days after the billing date.
F. A shipper who fails to pay the required assessment within sixty days after the
billing date is subject to a penalty of ten per cent of the amount of the total
assessment plus interest at a rate of two per cent per month on the unpaid balance.
G. A shipper may request a hearing before the supervisor to protest the amount of
assessment, penalty or interest imposed. If requested, the supervisor shall hold the
hearing. After the hearing the supervisor shall enter an order determining the amount of
the fee, penalty and interest. The shipper shall pay that amount within ten days after
notice of the supervisor's determination unless the decision is appealed to the
director. The shipper may appeal the decision of the supervisor to the director. If the
supervisor's decision is appealed, the director shall review the record of the hearing
and affirm, modify or reverse the supervisor's decision.
H. For the purposes of this section, in addition to the definition of shipper
contained in section 3-441, "shipper" shall also include shipper as defined in section
3-481.
3-449.02 Denial or revocation of license
A. In determining whether to refuse to issue a license, the supervisor shall
consider:
1. The facts and circumstances surrounding a prior denial or revocation in any
state and the date of the prior denial or revocation.
2. The financial condition of the applicant as of the date of the application.
3. Any outstanding judgments against the applicant.
4. Previous violations of this article and rules adopted pursuant to this article
by any person who is an officer, director, member or trustee of the applicant.
5. Fraudulent, misleading or incomplete statements in the application.
6. Any other facts the supervisor considers necessary to determine the
qualifications of the applicant.
B. The supervisor may revoke a license if the licensee commits any of the
following acts:
1. Fails or refuses within a reasonable time to render a true account of sale, to
make a proper settlement of the account or to pay for citrus fruit, fruit or vegetables
received.
2. Fails or refuses to pay assessment fees, penalties or interest due and owing
under this article and rules adopted pursuant to this article for a period of four
months.
3. Knowingly makes false or misleading statements as to the condition of any
citrus fruit, fruit or vegetable.
4. Makes fraudulent charges or returns for handling or selling any citrus fruit,
fruit or vegetable or for rendering any service in connection with handling or selling
any citrus fruit, fruit or vegetables.
5. Makes fraudulent or misleading statements to obtain a license.
6. Reconsigns a consignment to receive, collect or charge more than one
commission without the consent of the consignor.
7. Any violation of section 3-466.
C. A person whose license has been denied or revoked may request a hearing
pursuant to title 41, chapter 6, article 10.
3-449.03 Record keeping; confidentiality; inspection
A. A shipper shall keep records on the amount of each citrus variety the shipper
sells for each producer for a period of two years. The shipper shall report the records
for purposes of marketing orders.
B. Individual totals of commodities produced or shipped are not subject to public
disclosure and are strictly confidential. If a shipper presents a signed and notarized
release to the supervisor or the supervisor's agent, a person may receive individual
totals of commodities shipped by the shipper.
C. Records of shippers are subject to inspection during business hours by the
supervisor or the supervisor's designee.
D. The supervisor or designee may investigate any records of any transaction of a
commission merchant for possible violations of this article.
E. Every person licensed under this article shall keep an accurate and complete
record which shall record the amount and character of all citrus fruit received from any
person for payment or sale, the date of receiving the shipment, the name of the
consignee, the condition of the shipment if it arrives in other than good condition in
the city or town in which it is to be sold by the licensee and the date when the shipment
is sold, together with the price for which the shipment sold.
F. The records of a licensee pertaining to the receipt, packing, loading, shipment
and sale of citrus fruit affected by this article shall at all times be open to
inspection upon demand by any consignor as to an entry concerning citrus fruit received
by the licensee from the consignor.
3-449.04 Appeals from inspections
A. If the owner, or the owner's agent, of all or part of a lot disagrees with the
decision of an inspector as to whether the lot or part of the lot conforms to the
standards adopted pursuant to this article, the owner or agent may request that the
supervisor or the supervisor's designee, other than the inspector, review the testing
procedures used by the inspector. When reviewing the procedures, the supervisor or
designee shall consider the accuracy of the test instruments, the inspection methods,
including the sample size, the defect determination, the percentage of the defective
product and any other relevant information.
B. The supervisor or designee shall conduct the review within eight hours of the
request.
C. If the supervisor or designee determines that the inspector used improper
testing procedures, a new inspection shall be ordered of the lot or part of the lot
within four hours after completing the review in order to determine compliance. The
determination after the reinspection is final.
D. The person who requests the review shall pay a fee of twenty-five dollars for
the review. All monies collected under this subsection shall be deposited in the citrus,
fruit and vegetable revolving fund.
3-449.05 Agricultural theft prevention
A. If an inspector or peace officer has probable cause to believe that at least
fifty pounds of citrus fruit are in unlawful possession, the inspector or peace officer
shall request proof of ownership from the person in possession.
B. If an inspector has probable cause to believe that at least fifty pounds of
citrus fruit are in unlawful possession in a vehicle, the inspector may request a peace
officer to stop the vehicle for inspection and request proof of ownership from the person
in possession.
C. Except as provided in subsection D, for purposes of this section, proof of
ownership includes all of the following:
1. The name, address and telephone number of the seller.
2. The name, address and telephone number of the buyer, or consignee if not sold.
3. The common or generic name and quantity of the citrus fruit.
4. The date of the transaction and the date the transportation began.
D. A bill of lading, a bill of sale, data obtainable by electronic transmission or
a similar type of document is considered proof of ownership for purposes of this section.
E. The buyer and seller shall retain a copy of the documents showing proof of
ownership for sixty days after delivery.
F. An inspector or peace officer may seize and hold a citrus fruit if after
requesting or inspecting the offered proof of ownership the inspector or peace officer
reasonably believes that the person is in unlawful possession of citrus fruit.
G. If an investigation reveals the lawful owner of the citrus fruit that has been
seized pursuant to this section, the citrus fruit shall be released to the owner or the
owner's agent. If a seized citrus fruit remains unclaimed after a reasonable period of
time, the supervisor may donate the citrus fruit to a nonprofit charitable
organization. If the citrus fruit does not comply with the standards prescribed pursuant
to this article, the supervisor may destroy it.
H. This section does not apply to:
1. Citrus fruit that is transported from the farm where it is produced to a
commercial packing plant in this state for processing or packing.
2. Citrus fruit that is transported and accompanied by a valid disposal order
issued by an inspector to comply with this article or rules adopted pursuant to this
article.
3-449 Annual licensing; fee;application
A. No person shall transact business as a citrus fruit dealer, packer or shipper
without first obtaining a license as provided in this article. The license expires on
August 1 of each year and is renewable annually. The license fee shall be determined
according to the annual gross sales based on the dealer's or shipper's previous fiscal
year as follows:
1. If the annual gross sales are five hundred thousand dollars or more, the annual
fee is four hundred fifty dollars.
2. If the annual gross sales are between two hundred thousand dollars and five
hundred thousand dollars, the annual fee is three hundred dollars.
3. If the annual gross sales are two hundred thousand dollars or less, the annual
fee is one hundred fifty dollars.
4. If the person was not in business the previous fiscal year, the annual fee is
one hundred fifty dollars.
B. The application for a packer license shall be filed with the supervisor and be
accompanied by an annual license fee of one hundred fifty dollars.
C. If a person engages in business in more than one category as a dealer, shipper
or packer, the license designation shall be based on the category in which most of the
licensee's business is conducted.
D. The license fees collected by the supervisor shall be paid into the citrus,
fruit and vegetable revolving fund.
E. The application for a dealer, shipper or packer license shall contain the
following information:
1. The full name of the person applying for the license.
2. Whether the applicant is an individual, partnership, firm, corporation,
association, trust or cooperative association and the full name of each member of the
partnership or firm, the full name of each officer and director of the association or
corporation or the full name of each trustee.
3. The principal business address of the applicant in this state and elsewhere and
the address where the applicant conducts the described business.
4. The name of the statutory agent in this state for service of legal notice.
5. The category of license for which the applicant is applying.
6. A statement of the facts, signed under penalty of perjury, entitling the
applicant to a license under the applicable category and stating whether the applicant
has ever had any license to handle citrus, fruit or vegetables in any state denied,
suspended or revoked.
7. If the applicant acts as a commission merchant, a schedule of commissions and
charges for services, which may not be altered during the term of the license except by
written agreement between the parties involved.
F. The supervisor shall issue to the applicant a license to conduct the business
described for a period of one year unless it is revoked for cause.
G. An applicant who tenders a renewal application for a license that is received by
the supervisor after August 15 shall pay a penalty of twenty-five dollars. An applicant
who tenders a renewal application for a license that is received after September 1 shall
pay a penalty of fifty dollars. All penalties shall be deposited in the citrus, fruit
and vegetable revolving fund. 3-450 Exemption from citrus fruitstandardization; definitions
A. The supervisor shall exempt any citrus fruit commodity from all rules
established pursuant to section 3-445, subsection B, paragraphs 1 through 5 and shall
exempt the collection of assessments for the commodity subject to this article if the
exemption is supported by at least fifty-one per cent of the producers who produce at
least fifty-one per cent of the total quantity of that particular citrus fruit commodity
that was marketed during the preceding year and all of the other requirements of this
section have been met. For the purposes of this subsection, "quantity" means the
percentage of ownership interest a producer has in the marketed cartons.
B. To initiate the exemption process, a producer or shipper shall present to the
supervisor a petition signed by producers, under penalty of perjury, who represent at
least one-third of the cartons of the commodity produced in the previous year. The
petition shall be submitted on a form prescribed and furnished by the supervisor. On
receiving the petition, the supervisor shall negotiate with the petitioner a fee for the
estimated costs of the notification, balloting and certification process under this
section. The petitioner is responsible for all costs associated with this process and
shall pay to the supervisor at least one-half of the fee before proceeding with the
petition process.
C. Within ten days after receiving the fee payment under subsection B of this
section, the supervisor shall send a notice and a ballot to each shipper of the commodity
by certified mail, return receipt requested. The notice shall include a statement that
the shipper shall notify each producer the shipper represents of the exemption petition
and of the producer's right to support or oppose the exemption.
D. Within sixty days after receiving the notice from the supervisor, each shipper
shall return the ballot to the supervisor, filed under penalty of perjury, containing the
following information:
1. The name of each producer of the particular commodity that the shipper deals
with.
2. The total number of cartons produced in the preceding year by each producer
based on the percentage of ownership.
3. The vote of each producer based on the percentage of ownership of cartons.
E. If a shipper fails to return the ballot as prescribed by subsection D of this
section, the supervisor may audit the shipper to ensure compliance with section 3-449.03.
F. Within ninety days after receiving the ballots issued under this section, the
supervisor shall review the ballots and determine the results. On payment of the full
amount of the costs of the petition process as determined under subsection B of this
section, the supervisor shall certify and issue the results of the ballots. If the
supervisor certifies that the ballots meet the requirements of this section, the
supervisor shall provide public notice of the date the exemption becomes effective, which
shall be within ninety days after the supervisor certifies and issues the results of the
balloting.
G. Information provided by shippers to the supervisor for purposes of this section
is confidential and is not a public record, and the supervisor shall not disclose the
information for any purpose except for the purpose of an appeal under subsection H of
this section.
H. The petitioner and any producer or shipper of the commodity for which exemption
is being sought has the right to appeal to the director on any of the following issues:
1. The validity of the petition submitted under subsection B of this section.
2. The notice requirements of this section.
3. The sufficiency of the submitted ballots.
4. The costs of the petition process.
I. All monies collected by the supervisor pursuant to this section shall be
deposited in the citrus, fruit and vegetable revolving fund established by section 3-447.
J. The procedures prescribed by this section also apply for producers and shippers
to rescind an exemption that was previously granted under this section. The rescission
becomes effective on July 1 of a year as determined by the supervisor. No rescission may
take effect until the exemption has been in effect for at least two years.
K. For the purposes of this section:
1. "Producer" means a single legal entity that has a percentage ownership interest
in the marketed commodity.
2. "Year" means July 1 through June 30. 3-458 Interstate shipments; requirements;out-of-state inspection certificates; irregular containers
A. It is unlawful for a person, firm, company, organization or corporation to
import from another state for sale, to transport for delivery or to deliver for sale or
to sell within this state a load or lot of citrus fruit unless it conforms to the grades
and standards of maturity, condition and pack established pursuant to this article and
rules adopted pursuant to this article.
B. The supervisor shall examine each load or lot of citrus fruit entering the state
to ascertain whether the fruit conforms to the established standards.
C. Citrus fruit grown in states which enforce grading standards equivalent to those
established in this state may be permitted to enter this state when accompanied by an
inspection certificate issued by the state or county enforcement authority in which the
citrus fruit were grown disclosing that the load or lot conforms to the legally
established standards in that state. The certificates shall be surrendered to the
supervisor.
D. Citrus fruit which enter the state in carload lots shall be accompanied by an
inspection certificate which shall be surrendered to the supervisor by the receiver
thereof. All shipments coming into the state by truck or other conveyance shall be
inspected at the point of regular inspection by the supervisor and the certificates shall
there be taken up by the supervisor, and when coming in by railroad shall be inspected
and the certificate taken up by the inspector at the point of destination.
E. When a motor vehicle is detained and its contents are found not to conform to
the standards established pursuant to this article, the supervisor, his duly authorized
inspectors shall refuse entry of the citrus fruit into the state, but any load or lot of
citrus fruit while in transit and consigned to a destination not within the state shall
be exempt from these requirements when complying with the state quarantine requirements.
F. Citrus fruit may be offered for sale, sold or transported in, into or through
this state in irregular containers, other than standard packages, when the irregular
containers are so marked as to clearly indicate that they are not standard packages
prescribed pursuant to this article.
3-459 Rejection of shipment by carriers
A. A person may decline to ship, transport or accept for shipment any citrus fruit
when notified by an inspector that the fruit is found to be in violation of this article
or rules adopted pursuant to this article.
B. The person may reserve the right in the receipt, bill of lading or other writing
to reject for shipment and to return to the owner citrus fruit which upon inspection of a
representative sample are found to violate this article or rules adopted pursuant to this
article.
3-460 Bulk transfers
No provision of this article shall be construed:
1. To prevent a grower of citrus fruit from selling or delivering the fruit
unpacked and unmarked, as a part of the crop in bulk, to a packer for grading, packing or
storage.
2. To prevent a grower or packer from manufacturing the fruit into a by-product.
3. To prevent a packer or grower from selling the fruit unpacked or unmarked to a
person actually engaged in the operation of a commercial by-products factory for the sole
purpose of being used in the manufacture of a by-product for resale.
3-461 Unlawful packing or sale of fruit
A. It is unlawful to pack or cause to be packed, to sell or offer for sale, to
deliver for shipment, load, ship or transport for shipment, whether in domestic,
interstate or foreign commerce, citrus fruit which does not conform to this article.
B. It is unlawful to prepare, deliver for shipment, load, ship, transport, offer
for sale or sell for shipment from the state, in interstate or foreign commerce, or for
domestic sale, a deceptive pack, load, arrangement or display of citrus fruit, or to
mislabel a container or display of fruit.
3-462 False pack or labeling; reuse ofcontainers
A. No container of citrus fruit shall bear grade or other designations that are
false or misleading, nor shall it contain any deceptive pack, deceptive arrangement or
deceptive display.
B. Subsection A shall be construed to prohibit the repeated use of a container of
citrus fruits bearing any markings required by this article, or any designations of
brands, quality or grade, unless all markings which do not properly and accurately apply
to the products repacked or replaced therein shall first be completely removed, erased or
obliterated.
C. Nothing in this article shall be construed to conflict with any law of this
state, or federal laws or regulations regarding net weight markings on containers.
3-463 Mixing of inferior fruitprohibited
It is unlawful to mix or blend a lot of citrus fruit which fails to conform to the
requirements of this article with another lot which does conform, thereby reducing the
percentage of inferior fruit in the lot.
3-464 Wrongful performance of duty; improperinfluence; classification
A. An inspector is guilty of a class 1 misdemeanor who:
1. Knowingly makes a wrong or improper inspection of citrus fruit.
2. Knowingly and improperly certifies that the grade, quality or condition of the
citrus fruit does or does not conform to standards established by this article.
3. Knowingly fails to request the proper authorities to bring an action to
prosecute violators of this article or rules adopted pursuant to this article.
4. Knowingly accepts money or other consideration directly or indirectly for an
improper performance of his duty.
B. A person who knowingly and improperly influences an inspector in the performance
of his duty is guilty of a class 1 misdemeanor.
3-465 Venue of criminal actions
Criminal actions arising under this article may be commenced and prosecuted in the
county in which the act or violation occurs.
3-466 Civil penalty; hearing
A. A person is subject to a civil penalty of not more than five hundred dollars, if
the person does either of the following:
1. Acts as a dealer, shipper or packer without a valid license.
2. Knowingly falsifies or causes to be falsified information in a record intended
to show proof of ownership.
B. A person shall be subject to a civil penalty of not more than three hundred
dollars, if the person does any of the following:
1. Makes a written or oral false, deceptive or misleading representation or
assertion concerning the quality, size, maturity or condition of citrus fruit.
2. Alters, removes or destroys a warning notice from a lot or part of a lot to
which it was affixed except on written authorization of an inspector, the supervisor or
the director or by court order.
3. Alters a notice of noncompliance, notice of compliance or notice of disposal
that is issued by an inspector.
4. Refuses to submit any container or lot of citrus fruit governed pursuant to this
article to an inspection of a representative sample or to refuse to stop and permit
inspection of a representative sample of any commercial vehicle containing citrus fruit
governed pursuant to this article.
C. A commission merchant is subject to a civil penalty of not more than five
hundred dollars, if the commission merchant does any of the following:
1. Knowingly makes a false or misleading statement as to the condition of any
citrus fruit.
2. Makes a fraudulent charge or return for handling or selling citrus fruit or for
rendering any service in connection with handling or selling citrus fruit.
3. Reconsigns a consignment to receive, collect or charge more than one commission
without the consent of the consignor.
4. Sells citrus fruit at less than market price to a person with whom the
consignment merchant has a direct or indirect financial connection.
5. Makes a sale and directly or indirectly receives a portion of the purchase price
other than the commission specified in the contract.
D. A person who is charged with violating this article or rules adopted pursuant to
this article may request a hearing pursuant to title 41, chapter 6, article 10.
E. Civil penalties collected pursuant to this section shall be deposited in the
citrus, fruit and vegetable revolving fund. 3-468.01 ARIZONA citrus research council; appointment; term
A. The ARIZONA citrus research council is established consisting of seven producers
appointed by the governor. The members shall be appointed as follows:
1. Three producers from district one, including Yuma county.
2. Two producers from district two, including Maricopa, Pima and Pinal counties.
3. Two producers appointed at large.
B. The governor may consult with any recognized organization in this state that
represents citrus producers in appointing members to the council.
C. The term of office of each council member is for three years beginning January 1
and ending December 31 of the appropriate year. Members are limited to two consecutive
terms of office, except that a member who is appointed to fill a vacancy may serve two
consecutive terms plus the unexpired term that fills the vacancy. A member who completes
a second three-year term is ineligible for reappointment for one year. On the expiration
of a term of a member or in the event of a vacancy, the governor shall appoint a
successor.
D. The office of a member is deemed vacant and the governor shall appoint a person
to fill the remainder of the term under any of the following circumstances:
1. The member is no longer a producer.
2. The member is unable to perform the duties of the office.
3. The absence of the member from four consecutive council meetings if the absences
have not been excused by the council.
E. Members of the council are not eligible to receive compensation but are eligible
for reimbursement of expenses pursuant to title 38, chapter 4, article 2. 3-468.02 Powers and duties of the council
A. The council shall:
1. Receive and disburse monies to be used in administering this article.
2. Annually elect a chairman, secretary and treasurer from among its members.
3. Meet at least once each calendar quarter or at such times as called by the
chairman or when requested by four or more members of the council. A quorum consists of
four or more members of the council of which at least one member shall be from district
one and one member from district two.
4. Keep a permanent record of its proceedings and make these records available for
public inspection for any lawful purpose.
5. Prepare for the governor and the citrus industry an annual report of its
activities, receipts and expenditures. A copy of the annual report shall be available to
any interested citrus producer and the general public on request.
6. Organize and administer any referendum called under subsection C, paragraph 11
of this section.
7. Prescribe fees to be assessed within the limits prescribed in section 3-468.04.
B. The council may authorize or contract for:
1. Research, development and survey programs concerning varietal development.
2. Programs for citrus pest eradication.
3. Programs concerning production, harvesting, handling and hauling from field to
market.
4. Any other programs, excluding sales or marketing, that the council deems to be
appropriate for the purposes of this article.
C. The council may:
1. Disseminate reliable information, including the results of research studies,
surveys and information obtained as a result of research.
2. Sue and be sued as a council, without individual liability, for acts of the
council within the scope of the powers and duties conferred on it by this article.
3. Enter into contracts to carry out the purposes of this article, including
contracts for research and development of citrus.
4. Appoint advisory groups composed of representatives from organizations,
institutions, or businesses related to or interested in the welfare of the citrus
industry.
5. Make grants to research agencies for financing appropriate studies, or for
purchase or acquisition of equipment and facilities consistent with this article.
6. Employ or retain and fix the compensation of a qualified person or a qualified
entity to manage on behalf of the council and other personnel that are necessary to carry
out the provisions of this article.
7. Cooperate with any local, state or nationwide organization or agency engaged in
work or activities similar or related to those of the council and enter into contracts
with such organizations or agencies for carrying on joint programs.
8. Act jointly and in cooperation with this state or any other state or the federal
government, and spend monies to administer any program deemed by the council to be
beneficial to the citrus industry of this state.
9. Adopt rules necessary to promptly and effectively administer this article.
10. Accept grants, donations, contributions, gifts, property or services or other
assistance from public or private sources to further the objectives of this article.
11. Refer to the citrus producers in this state for an advisory vote the question of
setting fees or establishing or continuing any program authorized by this article.
12. Investigate and prosecute in the name of this state any action or suit to
enforce the collection or ensure payment of the authorized fees.
13. Provide for an annual audit of its accounts by a qualified public accounting
firm and, if an audit or financial statement is prepared, shall make the audit or
financial statement available to the general public and the auditor general on request.
3-468.03 Administrative services; reimbursement
A. The council may employ staff, to serve at the pleasure of the council, and may
prescribe the terms and conditions of employment of employees as necessary to perform the
functions prescribed by this article. The employees of the council are exempt from title
38, chapter 4 and chapter 5, article 2 and title 41, chapter 4, articles 5 and 6. The
council may also enter into an interagency agreement pursuant to title 11, chapter 7,
article 3 with the department to provide the necessary administrative services to the
council including:
1. Providing secretarial and other services necessary for the council to carry out
its activities.
2. Establishing separate operating accounts for the council.
3. Providing necessary financial and accounting services to the council including
the issuance of checks, payment of bills approved by the council, annual audits, monthly
or annual expenditure and receipt reports, preparation of an annual budget and any other
financial activities requested by the council according to and under the provisions of
state law.
4. Receiving mail and other communications for the council.
5. Receiving monies authorized under this article for deposit, pursuant to sections
35-146 and 35-147, in the appropriate funds.
6. Accepting donated monies on behalf of the council to be credited to the account
of the council.
7. Providing space for the meetings of the council.
8. Assisting in the adoption of rules proposed by the council.
9. Providing any other administrative services which the council requests or finds
necessary.
B. If the department performs any function under this article, it acts as the agent
of the council and has no authority or control over the council or the council's
employees or assets.
C. The council shall reimburse the department for administrative services from the
monies received under this article in an amount agreed on by the council and the
department. Monies received by the department shall be deposited, pursuant to sections
35-146 and 35-147, in the appropriate fund as required by section 3-108.
D. Department employees under contract to the council under provisions of an
interagency agreement pursuant to title 11, chapter 7, article 3 remain under the direct
supervision of the department unless otherwise agreed to by the council and the
department. 3-468.04 Fees; collection; budget
A. On or before July 1 of each calendar year, the council shall assess a fee of not
more than one and one-half cents per standard carton of citrus produced. For the
purposes of this subsection, "standard carton" means a container or package prescribed
for each kind of citrus fruit pursuant to article 2 of this chapter and rules adopted
under that article.
B. Each grower-shipper, shipper and handler shall keep a complete and accurate
record of all citrus handled by such entities and the producer. These records shall
contain such information as required to be kept for the citrus, fruit and vegetable
revolving fund pursuant to articles 2 and 4 of this chapter and rules adopted pursuant to
those articles.
C. Assessments shall be collected from the grower-shipper, shipper or handler first
marketing the citrus being assessed. The grower-shipper, shipper or handler is a trustee
of the monies until they are paid to the council pursuant to subsection B and according
to procedures established pursuant to articles 2 and 4 of this chapter and rules adopted
pursuant to those articles. A citrus producer is responsible for paying the fee unless
the fee is withheld for payment by the grower-shipper, shipper or handler first marketing
the citrus.
D. Before establishing the annual fee, the council shall establish a budget. The
budget is effective on approval of the council.
E. Title 41, chapter 6 does not apply to setting and collecting the fee under this
section, but the council shall provide thirty days' advance notice of the meeting at
which any fee will be increased and the amount of the proposed fee. The council shall
receive public testimony at the meeting regarding the fee. 3-468.05 Failure to pay fee; penalty; hearing; violation; classification
A. A person who is required to pay fees pursuant to section 3-468.04 and who fails
to pay the fee within the time required by section 3-468.04 shall be assessed a penalty
of ten per cent of the amount of the total fee and two per cent interest per month on the
unpaid balance. The penalty and interest shall be paid to the council. The person may
request a hearing before the council to dispute or determine the amount of any fee,
penalty or interest imposed.
B. The council shall hold a hearing if requested. After the hearing the council
shall enter its order determining the amount of any fee, penalty or interest. The person
shall pay the fee, penalty and interest assessed within ten days after notice of the
council's decision.
C. A person who knowingly fails to pay or remit any monies due or collected as
required in this article is guilty of a class 2 misdemeanor.
3-468.06 Deposit of fees; use on termination
A. Monies collected pursuant to this article shall be deposited in the council's
accounts that are administered by the department as the council's agent and disbursed as
approved by the council for the purposes prescribed in this article.
B. If the council is terminated, any monies in the council's accounts shall be
expended to meet existing legal obligations of the council. The council shall expend any
remaining monies on any program consistent with this article.
C. On notice from the council, the state treasurer shall invest and divest monies
in the account as provided by section 35-313, and monies earned from investment shall be
credited to the account. 3-468.07 Indemnification of council members
Each member of the council is indemnified by the council against reasonable costs
and expenses, including attorney fees, incurred by him in connection with any action,
suit or proceedings to which he may be a party by reason of his being or having been a
member of the council, except in relation to matters as to which he is adjudged in such
action, suit or proceeding to have acted in bad faith as a council member. The right of
indemnification is in addition to other rights to which the member is entitled as a
matter of law.
3-468.08 Termination of council
A. The council may be terminated as provided in this section. The council shall
conduct a referendum among the state's producers if either of the following occurs:
1. The council, by a two-thirds vote of its membership, determines that it is no
longer in the best interest of the citrus industry of this state to continue the
existence of the council and its programs.
2. On receipt by the council of a petition calling for a referendum signed by ten
per cent or more of the state's contributing producers, which shall be signed not more
than six months before its presentation to the council.
B. The ballot for the referendum shall be in such form as to record a "yes" or "no"
answer to the question: "Shall the existence of the ARIZONA citrus research council and
its programs, as authorized in state statute, be continued?" If the majority or more of
those producers voting votes in favor of discontinuing and terminating the council and
its programs, the council shall recommend to the legislature that the council be
terminated. If less than a majority of the producers who voted in the referendum favors
termination of the council, no subsequent referendum may be conducted for at least two
years. The council shall pay the expenses necessary to carry out the referendum.
3-468 Definitions
In this article, unless the context otherwise requires:
1. "Citrus" means varieties of the genus citrus commercially produced in this state
for the fresh market but does not include commercially produced by-products or products
manufactured for resale.
2. "Council" means the ARIZONA citrus research council.
3. "Department" means the ARIZONA department of agriculture.
4. "Grower-shipper" means a person who is engaged in this state in the business of
packing, shipping, transporting or selling citrus of which he is a grower, producer or
owner.
5. "Handler" means a person who engages in marketing citrus on behalf of a grower,
whether as a grower-shipper, owner, agent, employee, broker, dealer, consignor or
commission merchant or otherwise.
6. "Producer" means a person engaged in this state in the business of commercially
producing or causing citrus to be commercially produced.
3-481 Definitions
In this article, unless the context otherwise requires:
1. "Associate director" means the associate director of the division.
2. "Bulk lot" means fresh fruit or vegetables that are not contained in a box,
carton, crate or lug but may be contained in a bin or a similar container and are set
apart from fresh fruit and vegetables that are packaged in containers authorized pursuant
to this article or rules adopted pursuant to this article.
3. "By-products" means a product commercially processed or manufactured for resale
from fruits or vegetables or their juices.
4. "Commission merchant" means a person who receives on consignment or solicits
from the producer any fruit or vegetable for sale on commission on behalf of the producer
or who accepts any fruit or vegetable in trust from the producer for the purpose of
resale. Commission merchant does not include a shipper.
5. "Container" means a box, carton or lug that is used for packing, shipping or
selling fruit or vegetables that are authorized by this article or rules adopted pursuant
to this article.
6. "Dealer" means a person that sells, markets or distributes fruit or vegetables
that the person purchased from a producer or markets as an agent, broker or commission
merchant, except at retail. Dealer does not include a shipper.
7. "Division" means the plant services division of the ARIZONA department of
agriculture.
8. "Lot" means a unit of identical or similar items that are produced by one person
and that are grouped or consolidated in one or more containers for packaging or
transporting or a cluster of identical or similar items that are produced by one person
and that are included in the same shipping order, bill of lading or other itemized
transport order.
9. "Packer" means a person, other than a producer, shipper or dealer, engaged in
the business of harvesting or packing fruit or vegetables.
10. "Person" includes an individual, firm, association, partnership, trust or
corporation.
11. "Producer" means a person engaged in this state in the business of producing or
causing fruit or vegetables to be produced for market in commercial quantities.
12. "Shipper" means a person who ships, transports, sells or markets fruit or
vegetables under the person's registered trademark or label or a person who first markets
the fruit or vegetables on behalf of the producer. Shipper does not include a commission
merchant.
13. "Supervisor" means the supervisor of standardization employed pursuant to
section 3-483.
3-483 Supervisor of standardization;qualifications
A. There is established the office of supervisor of standardization.
B. The supervisor, who shall enforce this article and rules adopted pursuant to
this article, shall be employed by the director, who shall also supervise and direct the
supervisor. Before employing the supervisor, the director shall consult with the citrus,
fruit and vegetable advisory council. If the supervisor dies, resigns or is discharged,
the director shall employ a successor as soon as practicable.
C. The supervisor shall be knowledgeable in personnel management, budgets and
program administration as well as experienced in the inspection of fruit and vegetables
and in commercial packing practices.
3-484 Deputies and clerks; compensation;expenses
A. The compensation of the supervisor shall be as determined pursuant to section
38-611. The supervisor shall, with the approval of the director, fix the duties of each
deputy and clerk. Compensation of the deputies and clerks shall be as determined
pursuant to section 38-611.
B. The compensation of the supervisor and all expenses properly incurred in the
enforcement of this article, including but not limited to compensation, travel and
subsistence expenses and office expenses, shall be paid from the citrus, fruit and
vegetable revolving fund provided for in section 3-447.
3-485 Relationship of standardization andmarketing order programs
A. Citrus, fruit and vegetable standardization and the office of commodities
development and promotion shall cooperate in establishing and administering marketing
orders and marketing agreements.
B. The supervisor may perform inspections and collect assessments and other monies
on behalf of a marketing commission or marketing committee authorized under section
3-414. Any monies collected shall be disbursed through the commission or committee.
3-486 Inspection powers and enforcementprocedures; warning notice; disposal notice; civil penalty
A. Inspectors may enter any facility, during operating hours, or a commercial
vehicle in this state where fresh fruit or vegetables are produced, stored, packed or
delivered for shipment, are transported or are offered for sale and inspect
representative samples of the fresh fruit or vegetables and containers in order to
determine compliance with this article and rules adopted pursuant to this article.
B. If all or part of a lot, including containers, fails to comply with this article
or rules adopted pursuant to this article, the inspector may affix a warning notice to
all or part of the lot stating the reason why it is held. No person, other than an
inspector, may detach, alter or destroy the affixed warning notice except by the
authorization of the inspector, the supervisor, the supervisor's designee, the director
or a court order.
C. The inspector shall issue a notice of noncompliance to the person in possession
of the lot or part of the lot that states:
1. A description of the lot or part of the lot.
2. The specific section of law on which the noncompliance is alleged.
3. The place where the lot or part of the lot is held.
4. The specific method of inspection, including the sample size.
5. The defect that caused the violation.
6. The percentage of defective product in the sample.
7. The lot or part of the lot is subject to disposal if it is not reconditioned and
brought into compliance within the time prescribed according to rules adopted pursuant to
this article.
D. If the person who is served with the notice of noncompliance does not own the
lot, the person shall notify the inspector in writing of the name and address of the
owner. If the person knowingly conceals the name or address of the owner, the person is
liable for any loss to the lot that the owner sustains.
E. If the lot is reconditioned and brought into compliance within the prescribed
time period and the lot otherwise complies with this article and rules adopted pursuant
to this article, the inspector shall remove the warning notice, issue a notice of
compliance to the person in possession and release the lot for sale.
F. If the owner does not recondition and bring the lot into compliance within the
prescribed time period, the inspector, after receiving the written consent of the owner,
may divert the lot, or part of the lot, to other lawful purposes or destroy the lot or
part of the lot.
G. If the owner refuses to give consent to the inspector to divert or destroy the
lot, or part of the lot, and the owner does not recondition and bring the lot into
compliance within the prescribed time period, the inspector may attach a disposal notice
to the lot or part of the lot that violates this article or rules adopted pursuant to
this article and deliver a copy of the disposal notice to the owner. The disposal notice
requires the owner to properly dispose of the lot or part of the lot by:
1. Diverting it to another lawful purpose, such as contributing it to a nonprofit
charitable organization.
2. Selling it, other than in regular channels of trade, such as for processing.
3. Destroying it.
H. A person who violates the terms of a disposal notice is subject to a civil
penalty of at least twenty-five dollars for each carton but not more than one thousand
dollars.
3-487 Rule making; definition
A. The supervisor pursuant to section 3-527.02 may recommend to the director for
adoption rules not in conflict with this article, as the supervisor deems necessary to
carry out the provisions of this article.
B. Upon recommendation of the supervisor, the director shall prescribe:
1. Standards and grades for fruit and vegetables produced in this state and a
standard for fruit and vegetables without specific standards. In establishing the
specific standards, the supervisor shall consider factors that apply to the product
including maturity, color, shape, size, firmness, freedom from decay, diseases,
mechanical and plant pest injury and any other factors that indicate quality and
condition.
2. The size, dimensions, labeling and markings of containers that are to be used to
pack fruit or vegetables and the packing arrangements of the commodity in the container.
3. A permit system for experimental containers, experimental products and
experimental packs including an application, permit number, quantity allowed by the
permit, duration of the permit and record keeping and renewal provisions.
4. Sampling rules for lots and containers of fruit and vegetables to reasonably
produce a fair representation of the entire lot or container sampled.
5. The time period allowed to recondition fruit or vegetables pursuant to section
3-486.
6. Appropriate reporting and record keeping requirements for shippers including:
(a) Reporting totals for each commodity shipped.
(b) A requirement for records to be retained for the preceding two years on the
amount of each commodity sold by the shipper for each producer for purposes of reporting
under article 1 of this chapter.
(c) A requirement for records to be retained for the preceding year on the
percentage ownership interest of each producer for each commodity sold by the shipper.
7. Appropriate reporting and record keeping requirements for commission merchants.
C. For purposes of this section, "year" has the same meaning prescribed in section
3-491.
3-488 Confidentiality of records; inspection ofrecords
A. Individual totals of commodities produced or shipped are not subject to public
disclosure and are strictly confidential. If a shipper presents a signed and notarized
release to the supervisor or the supervisor's agent, a person may receive individual
totals of commodities shipped by the shipper.
B. Records of shippers are subject to inspection during business hours by the
supervisor or the supervisor's designee. The supervisor or designee may investigate any
records of any transaction of a commission merchant for possible violations of this
article.
3-489 Requests for inspection by unlicensed orunregistered persons; fees
A. A person who is not licensed under article 2 of this chapter or this article and
who requests inspection of citrus, fruit, vegetables or nuts shall pay a fee to the
citrus, fruit and vegetable revolving fund. The supervisor shall set the amount of the
fee by rule and shall assess and collect the fee for inspection service performed by the
supervisor or the supervisor's employees. The fee shall be an amount reasonably
necessary to cover the costs of inspection and processing of the necessary
documentation. Before setting the fee, the supervisor shall consult with the citrus,
fruit and vegetable advisory council.
B. The fee is due and payable on completing the inspection. If the fee is not
paid, the supervisor may refuse to perform any further inspection services.
C. The supervisor may prescribe a different scale of fees for different locations
and different commodities based on the amount of time necessary to inspect the
commodities. The supervisor may assess a charge for traveling expenses pursuant to title
38, chapter 4, article 2.
D. This section does not apply to any inspection services performed pursuant to
article 1 of this chapter.
3-490 Agricultural theft prevention
A. If an inspector or peace officer has probable cause to believe that at least
fifty pounds of fruit or vegetables that are regulated pursuant to this article are in
unlawful possession, the inspector or peace officer shall request proof of ownership from
the person in possession.
B. If an inspector has probable cause to believe that at least fifty pounds of any
fruit or vegetables that are regulated pursuant to this article are in unlawful
possession in a vehicle, the inspector may request a peace officer to stop the vehicle
for inspection and request proof of ownership from the person in possession.
C. Except as provided in subsection D, for purposes of this section, proof of
ownership includes all of the following:
1. The name, address and telephone number of the seller.
2. The name, address and telephone number of the buyer, or consignee if not sold.
3. The common or generic name and quantity of the fruit or vegetable.
4. The date of the transaction and the date the transportation began.
D. A bill of lading, a bill of sale, data obtainable by electronic transmission or
a similar type of document is considered proof of ownership for purposes of this section.
E. The buyer and seller shall retain a copy of the documents showing proof of
ownership for sixty days after delivery.
F. An inspector or peace officer may seize and hold a fruit or vegetable if after
requesting or inspecting the offered proof of ownership the inspector or peace officer
reasonably believes that the person is in unlawful possession of a fruit or vegetable
regulated under this article.
G. If an investigation reveals the lawful owner of the fruit or vegetable that has
been seized pursuant to this section, the fruit or vegetable shall be released to the
owner or the owner's agent. If a seized fruit or vegetable remains unclaimed after a
reasonable period of time, the supervisor may donate the fruit or vegetable to a
nonprofit charitable organization. If the fruit or vegetable does not comply with the
standards prescribed pursuant to this article, the supervisor may destroy it.
H. This section does not apply to:
1. Fruit or vegetables that are transported from the farm where they are produced
to a commercial packing plant in this state for processing or packing.
2. Fruit or vegetables that are transported and accompanied by a valid disposal
order issued by an inspector to comply with this article or rules adopted pursuant to
this article.
3-491 Exemption from fruit or vegetablestandardization; definitions
A. The supervisor shall exempt any fruit or vegetable commodity from all rules
established pursuant to section 3-487, subsection B, paragraphs 1 through 5 and shall
exempt the collection of assessments for the commodity subject to this article if the
exemption is supported by at least fifty-one per cent of the producers who produce at
least fifty-one per cent of the total quantity of that particular fruit or vegetable
commodity that was marketed during the preceding year and all of the other requirements
of this section have been met. For the purposes of this subsection, "quantity" means the
percentage of ownership interest a producer has in the marketed cartons.
B. To initiate the exemption process, a producer or shipper shall present to the
supervisor a petition signed by producers, under penalty of perjury, who represent at
least one-third of the cartons of the commodity produced in the previous year. The
petition shall be submitted on a form prescribed and furnished by the supervisor. On
receiving the petition, the supervisor shall negotiate with the petitioner a fee for the
estimated costs of the notification, balloting and certification process under this
section. The petitioner is responsible for all costs associated with this process and
shall pay to the supervisor at least one-half of the fee before proceeding with the
petition process.
C. Within ten days after receiving the fee payment under subsection B of this
section, the supervisor shall send a notice and a ballot to each shipper of the commodity
by certified mail, return receipt requested. The notice shall include a statement that
the shipper shall notify each producer the shipper represents of the exemption petition
and of the producer's right to support or oppose the exemption.
D. Within sixty days after receiving the notice from the supervisor, each shipper
shall return the ballot to the supervisor, filed under penalty of perjury, containing the
following information:
1. The name of each producer of the particular commodity that the shipper deals
with.
2. The total number of cartons produced in the preceding year by each producer
based on the percentage of ownership.
3. The vote of each producer based on the percentage of ownership of cartons.
E. If a shipper fails to return the ballot as prescribed by subsection D of this
section, the supervisor may audit the shipper to ensure compliance with this article.
F. Within ninety days after receiving the ballots issued under this section, the
supervisor shall review the ballots and determine the results. On payment of the full
amount of the costs of the petition process as determined under subsection B of this
section, the supervisor shall certify and issue the results of the ballots. If the
supervisor certifies that the ballots meet the requirements of this section, the
supervisor shall provide public notice of the date the exemption becomes effective, which
shall be within ninety days after the supervisor certifies and issues the results of the
balloting.
G. Information provided by shippers to the supervisor for purposes of this section
is confidential and is not a public record, and the supervisor shall not disclose the
information for any purpose except for the purpose of an appeal under subsection H of
this section.
H. The petitioner and any producer or shipper of the commodity for which exemption
is being sought has the right to appeal to the director on any of the following issues:
1. The validity of the petition submitted under subsection B of this section.
2. The notice requirements of this section.
3. The sufficiency of the submitted ballots.
4. The costs of the petition process.
I. All monies collected by the supervisor pursuant to this section shall be
deposited in the citrus, fruit and vegetable revolving fund established by section 3-447.
J. The procedures prescribed by this section also apply for producers and shippers
to rescind an exemption that was previously granted under this section. The rescission
becomes effective on July 1 of a year as determined by the supervisor. No rescission may
take effect until the exemption has been in effect for at least two years.
K. For the purposes of this section:
1. "Producer" means a single legal entity that has a percentage ownership interest
in the marketed commodity.
2. "Year" means July 1 through June 30. 3-492 Licensing dealers, shippers and packers;application; fee
A. No person shall act as a dealer or shipper without first obtaining a license as
provided in this article. Application for the license shall be filed with the supervisor
and accompanied by a license fee determined according to the annual gross sales based on
the dealer's or shipper's previous fiscal year as follows:
1. If the annual gross sales are five hundred thousand dollars or more, the annual
fee is five hundred dollars.
2. If the annual gross sales are between two hundred thousand dollars and five
hundred thousand dollars, the annual fee is three hundred fifty dollars.
3. If the annual gross sales are two hundred thousand dollars or less, the annual
fee is two hundred dollars.
4. If the person was not in business the previous fiscal year, the annual fee is
two hundred dollars.
B. A person may not act as a packer without first obtaining a license as provided
in this article. The application for a packer license shall be filed with the supervisor
and accompanied by an annual license fee of two hundred dollars.
C. If a person engages in business in more than one category as a dealer, shipper
or packer, the license designation shall be based on the category in which most of the
licensee's business is conducted.
D. The monies received as license fees under this section shall be paid into the
citrus, fruit and vegetable revolving fund. The license shall expire on September 1 of
each year and is renewable annually.
E. The application for a dealer, shipper or packer license shall contain the
following information:
1. The full name of the person applying for the license.
2. Whether the applicant is an individual, partnership, firm, corporation,
association, trust or cooperative association and the full name of each member of the
partnership or firm, the full name of each officer and director of the association or
corporation or the full name of each trustee.
3. The principal business address of the applicant in this state and elsewhere and
the address where the applicant conducts the described business.
4. The name of the statutory agent in this state for service of legal notice.
5. The category of license for which the applicant is applying.
6. A statement of the facts, signed under penalty of perjury, entitling the
applicant to a license under the applicable category and stating whether the applicant
has ever had any license to handle citrus, fruit or vegetables in any state denied,
suspended or revoked.
7. If the applicant acts as a commission merchant, a schedule of commissions and
charges for services, which may not be altered during the term of the license except by
written agreement between the parties involved.
F. The supervisor shall issue to the applicant a license to conduct the business
described for a period of one year unless it is revoked for cause.
G. An applicant who tenders a renewal application for a license that is received by
the supervisor after September 15 shall pay a penalty of twenty-five dollars. An
applicant who tenders a renewal application for a license that is received after October
1 shall pay a penalty of fifty dollars. All penalties shall be deposited in the citrus,
fruit and vegetable revolving fund.
3-494 Denial or revocation of license
A. In determining whether to refuse to issue a license, the supervisor shall
consider:
1. The facts and circumstances surrounding a prior denial or revocation in any
state and the date of the prior denial or revocation.
2. The financial condition of the applicant as of the date of the application.
3. Any outstanding judgments against the applicant.
4. Previous violations of this article and rules adopted pursuant to this article
by any person who is an officer, director, member or trustee of the applicant.
5. Fraudulent, misleading or incomplete statements in the application.
6. Any other facts the supervisor considers necessary to determine the
qualifications of the applicant.
B. The supervisor may revoke a license if the licensee commits any of the
following acts:
1. Failing or refusing within a reasonable time to render a true account of sale,
to make a proper settlement of the account or to pay for citrus fruit, fruit or
vegetables received.
2. Failing or refusing to pay assessment fees, penalties or interest due and
owing under this article and rules adopted pursuant to this article for a period of
four months.
3. Knowingly making false or misleading statements as to the condition of any
citrus fruit, fruit or vegetable.
4. Making fraudulent charges or returns for handling or selling any citrus fruit,
fruit or vegetable or for rendering any service in connection with handling or selling
any citrus fruit, fruit or vegetables.
5. Making fraudulent or misleading statements to obtain a license.
6. Reconsigning a consignment to receive, collect or charge more than one
commission without the consent of the consignor.
7. Any violation of section 3-521.
C. A person whose license has been denied or revoked may request a hearing
pursuant to title 41, chapter 6, article 10.
3-496 List of licensees; display oflicense
A. The supervisor may publish a pamphlet containing a list of all licensed dealers,
shippers and packers and the rules pertaining to the enforcement of this article.
B. Each licensed dealer, shipper and packer shall keep the license in his office or
at his principal place of business.
3-497 Adopting new or revised standards
A. Ten or ten per cent of the producers or shippers of a fruit or vegetable,
whichever is less, may petition the supervisor to adopt a standard.
B. Ten or ten per cent, whichever is less, of the producers or shippers of a fruit
or vegetable for which a standard has been established by rule may petition the
supervisor to modify the standard.
C. Within thirty days after receiving a valid petition, the supervisor, after
notifying all other known producers and shippers of the fruit or vegetable, shall hold a
public meeting to receive comment on the proposed new standard. Within fifteen days
after the meeting the supervisor shall either deny the petition in writing stating the
reasons for denial or initiate rule making proceedings.
D. This section does not apply to any commodity that is exempt from standardization
under section 3-491.
3-498 Appeals from inspection
A. If the owner, or the owner's agent, of all or part of a lot disagrees with the
decision of an inspector as to whether the lot or part of the lot conforms to the
standards and other rules adopted pursuant to this article, the owner or agent may
request that the supervisor or the supervisor's designee, other than the inspector,
review the testing procedures used by the inspector. When reviewing the procedures, the
supervisor or designee shall consider the accuracy of the test instruments, the
inspection methods, including the sample size, the defect determination, the percentage
of the defective product and any other relevant information.
B. The supervisor or designee shall conduct the review within eight hours of the
request. If the supervisor or designee determines that the inspector used improper
testing procedures, a new inspection shall be ordered of the lot or part of the lot
within four hours after completing the review in order to determine compliance. The
determination after the reinspection is final.
C. The person who requests the review shall pay a fee of twenty-five dollars for
the review. All monies collected under this subsection shall be deposited in the citrus,
fruit and vegetable revolving fund.
3-499 Shipping point and terminal marketinspections; fees; ARIZONA federal-state inspection fund
A. The department may:
1. Conduct shipping point and terminal market inspections of fresh fruit,
vegetables and other products pursuant to one or more cooperative agreements with the
United States department of agriculture.
2. Establish and collect inspection fees for work performed under any such
agreement. The fees shall be reasonable and adequate to cover the cost of the services
performed.
3. Prepare, furnish and retain program reports as prescribed by the cooperative
agreement.
B. The ARIZONA federal-state inspection fund is established consisting of revenues
from fees and expenses collected pursuant to this section. The director shall administer
the fund. On notice from the director, the state treasurer shall invest and divest
monies in the fund as provided by section 35-313, and monies earned from investment shall
be credited to the fund. Monies in the fund are exempt from the provisions of section
35-190 relating to lapsing of appropriations.
C. Monies in the fund are continuously appropriated to the department and may be
used only for conducting work under, and related expenses prescribed by, the cooperative
agreement. The department shall maintain a complete accounting of all receipts and
disbursements from the fund. The fund is subject to such periodic independent audits as
prescribed by the cooperative agreement.
3-518 Exempt transactions
This article shall not prevent:
1. A producer of fruit or vegetables in the state from selling or delivering his
products unpacked and unmarked in bulk to a packer in this state for grading, packing or
storage.
2. A producer or packer from manufacturing the products into a by-product.
3. A producer from selling the products unpacked or unmarked to a person engaged in
the operation of a commercial by-products factory for the purpose of being used in the
manufacture of a by-product for resale.
3-519 Rejection by carriers
A. A person may decline to ship, transport or accept for shipment any fruit or
vegetable within the meaning of this article when notified by an inspector that the
products delivered for shipment violate this article or rules adopted pursuant to this
article.
B. The person may reserve the right in a receipt, bill of lading or other writing
to reject for shipment and return to the owner all fruit or vegetables which, upon
inspection of a representative sample, are found to violate this article or rules adopted
pursuant to this article.
3-520 Wrongful performance of duty byinspector; improper influence; classification
A. An inspector is guilty of a class 1 misdemeanor who:
1. Knowingly makes a wrong or improper inspection of a fruit or vegetable product.
2. Knowingly and improperly certifies that the grade, quality or condition of a
fruit or vegetable product does or does not conform to the standards established under
this article.
3. Knowingly fails to request the proper authorities to bring an action to
prosecute violators of this article or rules adopted pursuant to this article.
4. Knowingly accepts money or other consideration directly or indirectly for an
improper performance of his duty.
B. Any person who knowingly and improperly influences an inspector in the
performance of his duty is guilty of a class 1 misdemeanor.
3-521 Civil penalties; hearing
A. A person is subject to a civil penalty of not more than five hundred dollars, if
the person does either of the following:
1. Acts as a dealer, shipper or packer without a valid license.
2. Knowingly falsifies or causes to be falsified information in a record intended
to show proof of ownership.
B. A person shall be subject to a civil penalty of not more than three hundred
dollars, if the person does any of the following:
1. Makes a written or oral false, deceptive or misleading representation or
assertion concerning the quality, size, maturity or condition of fruit or vegetables.
2. Alters, removes or destroys a warning notice from a lot or part of a lot to
which it was affixed except on written authorization of an inspector, the supervisor or
the director or by court order.
3. Alters a notice of noncompliance, notice of compliance or notice of disposal
that is issued by an inspector.
4. Refuses to submit any container or lot of fruit or vegetables governed by this
article to an inspection of a representative sample or refuses to stop and permit
inspection of a representative sample of any commercial vehicle containing fruit and
vegetables governed by this article.
C. A commission merchant is subject to a civil penalty of not more than five
hundred dollars, if the commission merchant does any of the following:
1. Knowingly makes a false or misleading statement as to the condition of any fruit
or vegetable.
2. Makes a fraudulent charge or return for handling or selling a fruit or vegetable
or for rendering any service in connection with handling or selling a fruit or vegetable.
3. Reconsigns a consignment to receive, collect or charge more than one commission
without the consent of the consignor.
4. Sells a fruit or vegetable at less than market price to a person with whom the
consignment merchant has a direct or indirect financial connection.
5. Makes a sale and directly or indirectly receives a portion of the purchase price
other than the commission specified in the contract.
D. A person who is charged with violating this article or rules adopted pursuant to
this article may request a hearing before an administrative law judge pursuant to title
41, chapter 6, article 10. The decision of the administrative law judge is subject to
review by the director as provided by title 41, chapter 6, article 10.
E. Civil penalties collected pursuant to this section shall be deposited in the
citrus, fruit and vegetable revolving fund.
3-523 Venue of criminal actions
Criminal actions arising under this article may be commenced and prosecuted in the
county in which the act or violation occurs.
3-526.01 ARIZONA iceberg lettuce research council; appointment; term
A. The ARIZONA iceberg lettuce research council is established consisting of seven
producers appointed by the governor. The members shall be appointed as follows:
1. Four producers from district one, including Yuma and La Paz counties.
2. One producer from district two, including the remainder of the iceberg lettuce
producing areas in this state.
3. Two producers appointed at large.
B. The governor may consult with any recognized vegetable grower and shipper
organizations in this state in appointing members to the council.
C. The term of office of each council member is for three years beginning January 1
and ending December 31 of the appropriate year. Members are limited to two consecutive
terms of office, except that a member who is appointed to fill a vacancy may serve two
consecutive terms plus the unexpired term that fills the vacancy. A member who completes
a second three-year term is ineligible for reappointment for one year. On the expiration
of a term of a member or in the event of a vacancy, the governor shall appoint a
successor.
D. The office of a member is deemed vacant and the governor shall appoint a person
to fill the remainder of the term under any of the following circumstances:
1. The member is no longer a producer.
2. The member is unable to perform the duties of the office.
3. The absence of the member from four consecutive council meetings if the absences
have not been excused by the council.
E. Members of the council are not eligible to receive compensation but are eligible
for reimbursement of expenses pursuant to title 38, chapter 4, article 2.
3-526.02 Powers and duties of the council
A. The council shall:
1. Receive and disburse monies to be used in administering this article.
2. Annually elect a chairman, secretary and treasurer from among its members.
3. Meet at least once each calendar quarter or at such times as called by the
chairman or when requested by four or more members of the council. A quorum consists of
four or more members of the council.
4. Keep a permanent record of its proceedings and make these records available for
public inspection for any lawful purpose.
5. Prepare for the governor and the iceberg lettuce industry an annual report of
its activities, receipts and expenditures. A copy of the annual report shall be
available to any interested iceberg lettuce producer and the general public on request.
6. Organize and administer any referendum called under subsection C, paragraph 11
of this section.
7. Prescribe fees to be assessed within the limits prescribed in section 3-526.04.
B. The council may authorize or contract for:
1. Research, development and survey programs concerning varietal development.
2. Programs for lettuce pest eradication.
3. Programs concerning production, harvesting, handling and hauling from field to
market.
4. Any other programs, excluding sales or marketing, that the council deems to be
appropriate for the purposes of this article.
C. The council may:
1. Disseminate reliable information, including the results of research studies,
surveys and information obtained as a result of research.
2. Sue and be sued as a council, without individual liability, for acts of the
council within the scope of the powers and duties conferred on it by this article.
3. Enter into contracts to carry out the purposes of this article, including
contracts for research and development of iceberg lettuce.
4. Appoint advisory groups composed of representatives from organizations,
institutions or businesses related to or interested in the welfare of the iceberg lettuce
industry.
5. Make grants to research agencies for financing appropriate studies, or for
purchase or acquisition of equipment and facilities consistent with this article.
6. Employ or retain and fix the compensation of a qualified person or a qualified
entity to manage the affairs of the council on behalf of the council and other personnel
that are necessary to carry out the provisions of this article.
7. Cooperate with any local, state or nationwide organization or agency engaged in
work or activities similar or related to those of the council and enter into contracts
with such organizations or agencies for carrying on joint programs.
8. Act jointly and in cooperation with this state or any other state or the federal
government, and spend monies to administer any program deemed by the council to be
beneficial to the iceberg lettuce industry of this state.
9. Adopt rules necessary to promptly and effectively administer this article.
10. Accept grants, donations, contributions, gifts, property or services or other
assistance from public or private sources to further the objectives of this article.
11. Refer to the iceberg lettuce producers in this state for an advisory vote the
question of setting fees or establishing or continuing any program authorized by this
article.
12. Investigate and prosecute in the name of this state any action or suit to
enforce the collection or ensure payment of the authorized fees.
13. Provide for an annual audit of its accounts by a qualified public accounting
firm and, if an audit or financial statement is prepared, shall make the audit or
financial statement available to the general public and the auditor general on request.
3-526.03 Administrative services; reimbursement
A. The council may employ staff, to serve at the pleasure of the council, and may
prescribe the terms and conditions of employment of employees as necessary to perform the
functions prescribed by this article. The employees of the council are exempt from title
38, chapter 4 and chapter 5, article 2 and title 41, chapter 4, articles 5 and 6. The
council may also enter into an interagency agreement pursuant to title 11, chapter 7,
article 3 with the department to provide the necessary administrative services to the
council including:
1. Providing secretarial and other services necessary for the council to carry out
its activities.
2. Establishing separate operating accounts for the council.
3. Providing necessary financial and accounting services to the council including
the issuance of checks, payment of bills approved by the council, annual audits, monthly
or annual expenditure and receipt reports, preparation of an annual budget and any other
financial activities requested by the council according to and under the provisions of
state law.
4. Receiving mail and other communications for the council.
5. Receiving monies authorized under this article for deposit, pursuant to sections
35-146 and 35-147, in the appropriate funds.
6. Accepting donated monies on behalf of the council to be credited to the account
of the council.
7. Providing space for the meetings of the council.
8. Assisting in the adoption of rules proposed by the council.
9. Providing any other administrative services which the council requests or finds
necessary.
B. If the department performs any function under this article, it acts as the agent
of the council and has no authority or control over the council or the council's
employees or assets.
C. The council shall reimburse the department for administrative services from the
monies received under this article in an amount agreed on by the council. Monies
received by the department shall be deposited, pursuant to sections 35-146 and 35-147, in
the appropriate fund as required by section 3-108.
D. Department employees under contract to the council under provisions of an
interagency agreement pursuant to title 11, chapter 7, article 3 shall remain under the
direct supervision of the department unless otherwise agreed to by the council and
department. 3-526.04 Fees; collection; budget
A. On or before July 1 of each calendar year, the council shall assess a fee of not
more than one-half cent per carton of packed iceberg lettuce or bulk bins assessed
according to forty-five pounds of equivalent weight of iceberg lettuce prepared for
market or an equivalent basis.
B. Each grower-shipper, shipper and handler shall keep a complete and accurate
record of all iceberg lettuce handled by such entities and the producer. These records
shall contain such information as required to be kept for the citrus, fruit and vegetable
revolving fund pursuant to articles 2 and 4 of this chapter and rules adopted pursuant to
those articles.
C. Assessments shall be collected from the grower-shipper, shipper or handler first
marketing the iceberg lettuce being assessed. The grower-shipper, shipper or handler is a
trustee of the monies until they are paid to the council at the time and in the manner
prescribed by the council. An iceberg lettuce producer is responsible for paying the fee
unless the fee is withheld for payment by the grower-shipper, shipper or handler first
marketing the iceberg lettuce.
D. Before establishing the annual fee, the council shall establish a budget. The
budget is effective on approval of the council.
E. Title 41, chapter 6 does not apply to setting and collecting the fee under this
section, but the council shall provide thirty days' advance notice of the meeting at
which any fee will be increased and the amount of the proposed fee. The council shall
receive public testimony at the meeting regarding the fee.
3-526.05 Failure to pay fee; penalty; hearing; violation; classification
A. A person who is required to pay fees pursuant to section 3-526.04 and who fails
to pay the fee within the time required by the council shall be assessed a penalty of ten
per cent of the amount of the total fee and two per cent interest per month on the unpaid
balance. The penalty and interest shall be paid to the council. The person may request
a hearing before the council to dispute or determine the amount of fee, penalty or
interest imposed.
B. The council shall hold a hearing if requested. The council shall, following the
hearing, enter its order determining the amount of any fee, penalty or interest. The
person shall pay the fee, penalty and interest assessed within ten days of notice of the
council's decision.
C. A person who knowingly fails to pay or remit any monies due or collected as
required in this article is guilty of a class 2 misdemeanor.
3-526.06 Deposit of fees; use on termination
A. Monies collected pursuant to section 3-526.04 shall be deposited in the
council's accounts that are administered by the department as the council's agent and
disbursed as approved by the council for the purposes prescribed in this article.
B. If the council is terminated, any monies in the council's accounts shall be
expended to meet existing legal obligations of the council. The council shall expend any
remaining monies on any program consistent with this article.
C. The monies in the account may be invested pursuant to section 35-313. Interest
earned on these monies shall be credited to the account.
3-526.07 Indemnification of council members
Each member of the council is indemnified by the council against reasonable costs
and expenses, including attorney fees, incurred by him in connection with any action,
suit or proceedings to which he may be a party by reason of his being or having been a
member of the council, except in relation to matters as to which he is adjudged in such
action, suit or proceeding to have acted in bad faith as a council member. The right of
indemnification is in addition to other rights to which the member is entitled as a
matter of law.
3-526.08 Termination of council
A. The council may be terminated as provided in this section. The council shall
conduct a referendum among the state's producers if either of the following occurs:
1. If the council, by a two-thirds vote of its membership, determines that it is no
longer in the best interest of the iceberg lettuce industry of this state to continue the
existence of the council and its programs.
2. On receipt by the council of a petition calling for a referendum signed by ten
per cent or more of the state's contributing producers, which shall be signed not more
than six months before its presentation to the council.
B. The ballot for the referendum shall be in such form as to record a "Yes" or "No"
answer to the question: "Shall the existence of the ARIZONA iceberg lettuce research
council and its programs, as authorized in state statute, be continued?" If the majority
or more of those producers voting votes in favor of discontinuing and terminating the
council and its programs, the council shall recommend to the legislature that the council
be terminated. If less than a majority of the producers who voted in the referendum
favors termination of the council, no subsequent referendum may be conducted for at least
two years. The council shall pay the expenses necessary to carry out the referendum.
3-526 Definitions
In this article, unless the context otherwise requires:
1. "Council" means the ARIZONA iceberg lettuce research council.
2. "Grower-shipper" means a person who is engaged in this state in the business of
packing, shipping, transporting or selling iceberg lettuce of which he is a grower,
producer or owner.
3. "Handler" means a person who engages in marketing iceberg lettuce on behalf of a
grower, whether as a grower-shipper, owner, agent, employee, broker, dealer, consignor or
commission merchant or otherwise.
4. "Iceberg lettuce" means varieties of lettuce produced in this state of the types
which are distinguished as "crisphead" in the publication entitled "lettuce production in
the United States, agricultural handbook no. 221", August 1974 revision, issued by the
agricultural research service of the United States department of agriculture. Iceberg
lettuce does not include the types of lettuce distinguished in such publication by the
terms "butterhead", "cos or romaine" and "looseleaf".
5. "Producer" means a person engaged in this state in the business of producing or
causing to be produced iceberg lettuce.
3-527.01 Citrus, fruit and vegetable advisory council; membership; terms; vacancy; compensation
A. The citrus, fruit and vegetable advisory council is established consisting of
members appointed by the governor as follows:
1. Two citrus producers, one from Yuma or La Paz county and one from Maricopa,
Pinal or Pima county.
2. One apple, grape or tree fruit producer.
3. One iceberg lettuce producer from Yuma county.
4. Three fruit or vegetable producers, excluding producers exclusively engaged in
growing citrus, apples, grapes or tree fruit, including one fruit or vegetable producer
from Maricopa, Pinal or Pima county and one from Yuma or La Paz county.
B. The governor may consult with any recognized citrus, fruit and vegetable growers
and shipper organizations in this state in making appointments to the council.
C. The term of office of each council member is three years and shall begin on
January 1 and end on December 31 of the appropriate year. On the expiration of a term of
a member or in the event of a vacancy, a successor shall be appointed by the governor.
D. The office of any member is deemed vacant and the governor shall appoint a
person to fill the remainder of the term under any of the following circumstances:
1. The member is no longer a producer.
2. The member is unable to perform the duties on the council.
3. The member has become a resident of another state.
4. The absence of the member from four consecutive council meetings if the absences
have not been excused by the council.
E. Members of the council are not eligible to receive compensation but are eligible
for reimbursement of expenses pursuant to title 38, chapter 4, article 2. 3-527.02 Powers and duties of the council
A. The council shall:
1. Annually elect a chairman and vice-chairman from among its members.
2. Meet at least once each calendar quarter and at such additional times as called
by the chairman or if requested by four or more members of the council.
3. Keep a permanent record of its proceedings and make these records available for
public inspection for any lawful purpose.
B. The council shall be advisory to the supervisor of standardization and the
director on all matters pertaining to articles 2 and 4 of this chapter including the
following:
1. Review all statutes and rules relating to articles 2 and 4 of this chapter.
2. Make recommendations concerning inspection services, inspection procedures and
training concerning articles 2 and 4 of this chapter.
3. Make recommendations concerning amendments to existing statutes relating to
articles 2 and 4 of this chapter.
4. Review all proposed changes in statutes relating to articles 2 and 4 of this
chapter which the department recommends to the legislature.
5. Make recommendations concerning additions, modifications or repeals of rules
relating to articles 2 and 4 of this chapter.
6. Review all additions, modifications or repeals of rules relating to articles 2
and 4 of this chapter proposed to be adopted by the director.
7. Make recommendations concerning the annual budget and fees necessary to provide
procedures and services relating to articles 2 and 4 of this chapter.
8. Review procedures and make recommendations regarding enforcement actions under
article 2 or 4 of this chapter.
9. Recommend any other items that the council deems to be appropriate for
furthering the purposes of article 2 or 4 of this chapter.
C. If the council makes any recommendations pursuant to subsection B, the
supervisor of standardization or the director, as appropriate, shall accept the
recommendations if they are found to be practicable and in the interests of the citrus,
fruit and vegetable industry. The supervisor or director, as appropriate, shall provide
the council with a written statement of the actions taken on the recommendations of the
council within twenty working days.
D. Recommendations made pursuant to subsection B, paragraph 2 shall not include
actions relating to individual inspection personnel.
3-527.03 Administrative services; reimbursement
A. The department shall provide the necessary administrative services to the
council in furtherance of its activities including:
1. Providing secretarial and other services necessary for the council to carry out
its activities.
2. Receiving mail and other communications for the council.
3. Providing space for the meetings of the council.
4. Providing any other administrative services which the council requests or finds
necessary, including financial and accounting services and assistance in developing
proposed rules for submission to the director.
B. The council shall reimburse the department for administrative services from the
monies received under article 2 or 4 of this chapter in an amount agreed on by the
council and department.
3-527.04 Indemnification of council members
Each member of the council is indemnified by the council against reasonable costs
and expenses, including attorney fees, incurred by him in connection with any action,
suit or proceedings to which he may be a party by reason of his being or having been a
member of the council, except in relation to matters as to which he is adjudged in such
action, suit or proceeding to have been acting in bad faith as a council member. The
right of indemnification is in addition to other rights to which such member is entitled
as a matter of law.
3-527 Definitions
In this article, unless the context otherwise requires:
1. "Council" means the citrus, fruit and vegetable advisory council.
2. "Director" means the director of the ARIZONA department of agriculture.
3-561 Definitions
In this article, unless the context otherwise requires:
1. "Producer" includes owners, proprietors or tenants of agricultural lands,
orchards, farms and gardens whereon food products are grown, raised or prepared for
market.
2. "Food products" include every product of the soil in its natural or manufactured
state, and swine, fowls, eggs and milk and the products thereof.
3-562 Restrictions on sales by food producersprohibited
A. The producers of food products on agricultural lands, farms and gardens shall
never under any pretext be denied or restricted the right to sell and dispose of their
products, except in the manner and to the extent provided in this article, and subject to
inspection by lawful authority when the inspection is uniform as to the same product and
without cost to the producer.
B. The right to sell and dispose of food products shall extend to the producer in
person, members of his family, his agents and all persons in his service, when the
products are sold or disposed of on his behalf and for his benefit.
3-563 Tax, license or fee against producersprohibited
A. No tax, license or fee shall be imposed, levied upon, demanded or collected from
a producer for a sale of a food product as defined in this article, and no penalty or
punishment shall be imposed on account of the sale, except for violation of laws
providing for inspection.
B. A municipal ordinance which seeks to impose or subject a producer to a tax,
license or fee shall be void, except that all such products in common with similar
products offered for sale by persons not the producers thereof shall be subject to
inspection. A municipal ordinance providing for inspection shall not be valid unless it
applies in the same manner and terms to other persons offering similar products for sale.
3-581 Definitions
In this article, unless the context otherwise requires:
1. "Council" means the ARIZONA grain research and promotion council.
2. "First buyer" means a person, partnership, corporation or cooperative that
purchases grain from a producer in the first instance or a public or private lienholder,
secured party or pledgee, or assignee of the lienholder, secured party or pledgee, who
gains title to the grain from the grower as a result of exercising any legal rights by
the lienholder, secured party, pledgee or assignee regardless of when the lien, security
interest or pledge was created. First buyer also includes a public or private person who
acquires a lien or security interest or receives a pledge of the grain after the grain is
harvested.
3. "Grain" means the seed of barley and wheat of all classes produced for use as
food, feed or seed or produced for any industrial or commercial use.
4. "Marketing year" means a one year period from February 1 through January 31 of
the following calendar year.
5. "Producer" means a person, partnership, corporation or cooperative in this state
that produces and sells grain in commercial channels. In the case of a partnership, each
partner who regularly receives a portion of the gross receipts directly from the buyer is
considered a producer.
3-582 ARIZONA grain research and promotioncouncil; appointment; term
A. An ARIZONA grain research and promotion council is established which is composed
of nine producers appointed by the governor. To be qualified for appointment to council
membership a person must be a resident of and producer in this state.
B. The term of office of council members is three years, expiring on January
31. The qualifications of members as provided for in this section must continue during
their term of office or their office will be declared vacant. The governor shall appoint
a person when a vacancy occurs to serve for the remainder of the unexpired term.
C. Members of the council shall serve without compensation but are entitled to
reimbursement for subsistence and travel as provided by law for other state officers.
3-584 Powers and duties of the council
A. The council shall:
1. Meet at least once during each calendar quarter and more frequently on the call
of the chairman, vice-chairman or any three members of the council.
2. Annually elect a chairman from among its members.
3. Elect a secretary and a treasurer from among its members.
4. Establish an executive committee, consisting of the chairman, secretary and
treasurer. The executive committee shall act pursuant to direction received from the
full council, or if the situation arises, the executive committee shall act and then
bring the subject and its action before the full council at the next regular meeting of
the council for review and ratification.
5. Establish fees to be assessed within the limits prescribed in section 3-587.
B. Programs and projects authorized under this article may include:
1. Cooperation in state, regional, national or international activities with public
or private organizations or individuals to assist in developing and expanding markets and
reducing the cost of marketing grain and grain products.
2. Participation in research projects and programs to assist in reducing fresh
water consumption, developing new grain varieties, improved production and handling
methods, research and design of new or improved harvesting and handling equipment.
3. Any program or project that the council determines appropriate to provide
education, publicity or other assistance to facilitate further development of the ARIZONA
grain industry.
C. The council may:
1. Adopt administrative rules necessary to promptly and effectively administer this
article.
2. Appoint subordinate officers and employees of the council, prescribe their
duties and fix their compensation.
3. Accept donations of monies, property, services or other assistance from public
or private sources for the purpose of furthering the objectives of this article.
4. Investigate and prosecute in the name of this state any action or suit to
enforce the collection or ensure payment of the fees authorized and sue and be sued in
the name of the council.
5. Make grants to research agencies for financing appropriate studies, research
projects and programs to assist in reducing fresh water consumption, developing new grain
varieties, improved production and handling methods and research and design of new or
improved harvesting and handling equipment. 3-585 Indemnification of councilmembers
Each member of the council is indemnified by the council against reasonable costs
and expenses, including attorney fees, incurred by him in connection with any action,
suit or proceedings to which he may be a party by reason of his being or having been a
member of the council, except in relation to matters as to which he is adjudged in such
action, suit or proceeding to have been acting in bad faith as a council member. The
right of indemnification is in addition to other rights to which such member is entitled
as a matter of law.
3-586 Records of the council
The council shall maintain all records for three years. The records of the council
are public records available for inspection for any lawful purpose. The council shall
adopt reasonable rules concerning the time or place of the inspection or the manner in
which the information is made available.
3-587 Budget and fees; report
A. Before each marketing year begins, the council shall submit a proposed budget
sufficient to carry out the purposes of this article. The budget is effective on
approval by the council.
B. To provide monies to carry out the purposes of this article, the council shall
assess a fee of up to five cents per hundred weight of grain sold through commercial
channels.
C. The first purchaser shall collect and remit the fees to the council pursuant to
the forms, procedures and periodic reports or returns as the council prescribes. The
first purchaser shall remit the fees to the council on or before the tenth day of the
month following collection of the fee or as prescribed by the council.
D. Paying the fee is the primary responsibility of the producer, except the
liability is discharged if the fee is collected or withheld by the first purchaser.
E. The council shall prepare an annual report on its programs and activities and
submit it to the governor.
3-588 Administrative services;reimbursement
A. The department shall provide through an intergovernmental agreement necessary
administrative services to the council in conducting its activities including:
1. Providing secretarial and other services necessary for the council to carry out
its activities.
2. Establishing separate operating accounts for the council.
3. Providing necessary financial and accounting services to the council including
issuing checks, paying bills approved by the council, preparing annual audits,
expenditure and receipt reports whether monthly or annually and any other activities
requested by the council.
4. Receiving mail and other communications for the council.
5. Receiving monies authorized under this article for deposit, pursuant to sections
35-146 and 35-147, in the appropriate funds.
6. Accepting donated monies on behalf of the council to be credited to the account
of the council.
7. Providing meeting facilities for the council.
8. Providing for producer elections as provided in this article.
9. Providing any other administrative services which the council requests or finds
necessary.
B. The council shall reimburse the department for all of the administrative
services rendered for the benefit of the council from the monies received under this
article in an amount agreed on by the council and department. Monies received by the
department shall be deposited, pursuant to sections 35-146 and 35-147, in the
administrative support fund established by section 3-108.
3-589 Pledge or mortgage of grain; deduction offee
A. If a pledge or mortgage of grain is given as security for a loan under the
federal price support program, the fee is deductible from the proceeds of the loan at the
time the loan is made or is deductible thereafter by agencies of the federal
government. Producer's note and loan agreements pertaining to farm storage, warehouse
storage and delivery instructions issued by a federal agency to the grower are deemed to
constitute proof of payment of the research and promotional fee on the grain listed.
B. Supplemental or alternate forms which may be proposed by the commodity credit
corporation and which contain the necessary information as required by this article may
be used.
C. If the grain described in subsection A remains in farm storage for the duration
of the pledge or mortgage, the promotional fee paid at the time the loan was made is
deemed a complete satisfaction of the promotional fee liability.
D. In connection with the collection of the grain council fee on commodity credit
corporation grain loans disbursed and purchase agreement settlements made,
undercollections or overcollections of the grain promotional fee amounting to fewer than
three dollars as a result of errors do not require collection of the underpayment or
refunds of the overpayment by the commodity credit corporation, and their responsibility
in such cases is waived.
3-590 ARIZONA grain research fund
A. The ARIZONA grain research fund is established for the purpose of administering
this article. The council shall administer the fund. The fund consists of fees collected
pursuant to this article. On notice from the council, the state treasurer shall invest
and divest monies in the fund as provided by section 35-313, and monies earned from
investment shall be credited to the fund. Monies in the fund are exempt from the
provisions of section 35-190 relating to lapsing of appropriations.
B. If the council is terminated, any monies remaining in the fund after terminating
this article shall be expended to meet existing legal obligations of the council. The
council shall expend any surplus remaining for market research or other lawful purposes
under this article.
3-591 Failure to make report
If a person subject to the fee required by this article fails to make a report and
remittance as required, the council shall determine the amount of the fee according to
its best information and judgment, which amount so fixed is prima facie correct. The
person failing to make the report shall pay the fee within ten days after notice of the
amount of the fee so fixed and computed by the council, together with a penalty of five
per cent of the amount of the fee. The person may dispute the fee as fixed by the
council and request a hearing to determine the amount of the fee and penalty to be
imposed. No payment may be made until the council enters its order determining the
amount of payment, but the person shall pay the fee and any penalties assessed within ten
days of notice of the decision.
3-592 Refund of fees
A producer may by the use of forms provided by the council, and on presentation of
such proof as the council may require, have the fee refunded. A request for refund must
be received in the office of the council within sixty days following the payment of the
fee. The council shall make refunds within thirty days of the request for refund if the
fee sought to be refunded has been received. The council shall adopt such rules as are
necessary to further ensure that the fees are refunded promptly.
3-593 Association of producers
A. Any activity including meetings undertaken pursuant to this article and intended
to benefit the producers, handlers or processors of grain is not intended to be illegal
or in restraint of trade.
B. The council may, so as not to duplicate activities or services, work closely
with the other private associations or public agencies which have expertise and interest
in growing and marketing grain.
3-594 Petition and election to terminatecouncil
On petition of at least one hundred twenty-three producers, the council shall
conduct an election within sixty days of receipt of the petitions to determine whether
the council should recommend to the legislature that the council and its programs be
discontinued and terminated. The petition of producers shall include a certification
statement that the signatures are those of producers of grain. The ballot for an
election shall be in such form as to record a yes or no answer to the question: "Shall
the ARIZONA grain research and promotion council recommend to the legislature that the
council and its programs be discontinued and terminated?" If a majority of those
producers voting votes yes, the council shall recommend to the legislature that the
council be terminated.
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