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                                 SENATE AMENDED
        PRIOR PRINTER'S NOS. 1933, 2568, 2584         PRINTER'S NO. 2659

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1573 Session of 1997


        INTRODUCED BY BUNT, BELFANTI, WAUGH, B. SMITH, FLEAGLE,
           HENNESSEY, GORDNER, MAJOR, E. Z. TAYLOR, HERMAN, FARGO,
           MILLER, HESS, HERSHEY, COLAIZZO, ITKIN, McGILL, PHILLIPS,
           SCRIMENTI, COY, KREBS, LYNCH, CLARK, KELLER, BAKER,
           ZIMMERMAN, ARMSTRONG, ROSS, BARD, SATHER, HALUSKA, FAIRCHILD,
           TRELLO, STEELMAN, HARHART, CAPPABIANCA, CIVERA, YOUNGBLOOD,
           SAYLOR, WILT, BENNINGHOFF AND ZUG, JUNE 4, 1997

        AS AMENDED ON THIRD CONSIDERATION, IN SENATE, DECEMBER 8, 1997

                                     AN ACT

     1  Amending the act of September 20, 1961 (P.L.1541, No.657),        <--
     2     entitled, as reenacted and amended, "An act providing for the
     3     issuing, administration, enforcement and termination of
     4     marketing programs on agricultural commodities; imposing
     5     powers and duties on the Secretary of Agriculture; providing
     6     for the creation and operation of advisory boards;
     7     prescribing the content of programs; and providing for the
     8     imposition and collection of fees," further providing for the
     9     definition of "agricultural commodity."
    10  AMENDING TITLE 3 (AGRICULTURE) OF THE PENNSYLVANIA CONSOLIDATED   <--
    11     STATUTES, FURTHER DEFINING "GARBAGE" FOR PURPOSES OF DOMESTIC
    12     ANIMALS; PROVIDING FOR PAYMENT OF INDEMNIFICATION AND
    13     DEPOPULATION INCENTIVES FOR AVIAN INFLUENZA; FURTHER
    14     PROVIDING FOR GENERAL TESTING AND INSPECTION OF SCANNING
    15     DEVICES; PROVIDING FOR THE ISSUING, ADMINISTRATION,
    16     ENFORCEMENT AND TERMINATION OF MARKETING PROGRAMS ON
    17     AGRICULTURAL COMMODITIES; IMPOSING POWERS AND DUTIES ON THE
    18     SECRETARY OF AGRICULTURE; PROVIDING FOR THE CREATION AND
    19     OPERATION OF ADVISORY BOARDS; PRESCRIBING THE CONTENT OF
    20     PROGRAMS; PROVIDING FOR THE IMPOSITION AND COLLECTION OF
    21     FEES; AND MAKING A REPEAL.

    22     The General Assembly of the Commonwealth of Pennsylvania
    23  hereby enacts as follows:
    24     Section 1.  Section 2(6) of the act of September 20, 1961      <--


     1  (P.L.1541, No.657), known as the Pennsylvania Agricultural
     2  Commodities Marketing Act of 1968, reenacted and amended July
     3  16, 1968 (P.L.359, No.179), is amended to read:
     4     Section 2.  Definitions.--When used in this act, the
     5  following words and phrases shall have the following meanings,
     6  unless the context indicates otherwise:
     7     * * *
     8     (6)  "Agricultural commodity" means agricultural,
     9  aquacultural, horticultural, viticultural and dairy products,
    10  livestock and the products thereof, ranch raised fur bearing
    11  animals and the products thereof, the products of poultry and
    12  bee raising, forestry and forestry products, and any and all
    13  products raised or produced on farms intended for human
    14  consumption and the processed or manufactured products thereof
    15  intended for human consumption, transported or intended to be
    16  transported in commerce.
    17     * * *
    18     Section 2.  This act shall take effect in 60 days.
    19     SECTION 1.  THE DEFINITION OF "GARBAGE" IN SECTION 2303 OF     <--
    20  TITLE 3 OF THE PENNSYLVANIA CONSOLIDATED STATUTES IS AMENDED TO
    21  READ:
    22  § 2303.  DEFINITIONS.
    23     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
    24  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
    25  CONTEXT CLEARLY INDICATES OTHERWISE:
    26     * * *
    27     ["GARBAGE."  ALL WASTE MATERIAL RESULTING FROM THE HANDLING,
    28  PREPARATION, COOKING OR CONSUMPTION OF FOOD, EXCEPT THAT THE
    29  TERM SHALL NOT INCLUDE WASTE FROM ORDINARY HOUSEHOLD OPERATIONS
    30  WHICH IS FED DIRECTLY TO DOMESTIC ANIMALS ON THE SAME PREMISES
    19970H1573B2659                  - 2 -

     1  WHERE THE HOUSEHOLD IS LOCATED. THE TERM ALSO DOES NOT INCLUDE
     2  ANY WASTE OR RESIDUALS FROM FOOD PROCESSING OPERATIONS.]
     3     "GARBAGE."  ALL WASTE OR RESIDUALS RESULTING FROM THE
     4  HANDLING, PREPARATION, COOKING OR CONSUMPTION OF FOOD DERIVED IN
     5  WHOLE OR IN PART FROM THE MEAT OF ANY ANIMAL, INCLUDING POULTRY
     6  AND FISH, OR OTHER ANIMAL MATERIAL AND OTHER REFUSE OF ANY
     7  CHARACTER THAT HAS BEEN ASSOCIATED WITH THE MEAT OF ANY ANIMAL
     8  OR OTHER ANIMAL MATERIAL. THE TERM DOES NOT INCLUDE WASTE FROM
     9  ORDINARY HOUSEHOLD OPERATIONS THAT IS FED DIRECTLY TO SWINE ON
    10  THE SAME PREMISES WHERE THE HOUSEHOLD IS LOCATED.
    11     * * *
    12     SECTION 2.  SECTIONS 2333 AND 4112(C) OF TITLE 3 ARE SECTION   <--
    13  2333 OF TITLE 3 IS AMENDED TO READ:
    14  § 2333.  RESTRICTION ON PAYMENT OF INDEMNIFICATION AND
    15             DEPOPULATION INCENTIVE.
    16     (A)  GENERALLY.--NOTWITHSTANDING ANY OTHER PROVISION OF LAW,
    17  INDEMNIFICATION UNDER SECTION 2331 (RELATING TO INDEMNIFICATION)
    18  AND DEPOPULATION INCENTIVE UNDER SECTION 2332 (RELATING TO
    19  DEPOPULATION INCENTIVE) SHALL BE PAID ONLY FOR DOMESTIC ANIMALS.
    20     (B)  AVIAN INFLUENZA.--NOTWITHSTANDING ANY OTHER PROVISION OF
    21  LAW, WHETHER A DOMESTIC ANIMAL, DOMESTIC ANIMAL PRODUCT OR OTHER
    22  PROPERTY IS CONDEMNED BY THE DEPARTMENT AND SLAUGHTERED OR
    23  DESTROYED UNDER SECTION 2331 OR VOLUNTARILY SLAUGHTERED OR
    24  DESTROYED BY THE OWNER UNDER SECTION 2332 TO ERADICATE OR
    25  PREVENT THE SPREAD OF AVIAN INFLUENZA, THE AMOUNT PAYABLE BY THE
    26  DEPARTMENT SHALL, IN ALL CASES, BE THE SAME MAXIMUM PERCENTAGE    <--
    27  OF APPRAISED VALUE AS DETERMINED BY THE DEPARTMENT. ALL OTHER     <--
    28  PROVISIONS OF SECTIONS 2331 AND 2332 SHALL APPLY TO ANY PAYMENT
    29  UNDER THIS SUBSECTION.
    30     SECTION 3.  SECTION 4112(C) OF TITLE 3 IS AMENDED AND THE      <--
    19970H1573B2659                  - 3 -

     1  SECTION IS AMENDED BY ADDING A SUBSECTION TO READ:
     2  § 4112.  GENERAL TESTING AND INSPECTIONS.
     3     * * *
     4     (C)  GENERAL TESTING AND INSPECTION OF SCANNING DEVICES.--
     5  NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER TO THE
     6  CONTRARY, WITHIN THE 12-MONTH PERIOD ENDING ON [JUNE 30, 1998]
     7  JUNE 30, 1999, AND EVERY 12-MONTH PERIOD THEREAFTER, THE
     8  DEPARTMENT SHALL TEST AND INSPECT TO ASCERTAIN IF THEY ARE
     9  CORRECT ALL COMMERCIALLY USED UNIVERSAL PRODUCT CODE SCANNING
    10  SYSTEMS AND PRICE LOOK UP DEVICES. A CITY OR COUNTY MAY TEST AND
    11  INSPECT SUCH DEVICES AND SYSTEMS IF SPECIFIED IN ITS MEMORANDUM
    12  OF UNDERSTANDING ENTERED INTO WITH THE DEPARTMENT IN ACCORDANCE
    13  WITH SECTION 4125 (RELATING TO DIVISION OF RESPONSIBILITIES).
    14  SUCH DEVICES AND SYSTEMS SHALL BE EXEMPT FROM THE ANNUAL TESTING
    15  AND INSPECTION REQUIREMENTS OF THIS SUBSECTION IF THE DEVICE OR
    16  SYSTEM IS INSPECTED AT LEAST ANNUALLY ON AN UNANNOUNCED BASIS AS
    17  PART OF A PRIVATE CERTIFICATION PROGRAM WHICH CONFORMS WITH THE
    18  EXAMINATION PROCEDURES FOR PRICE VERIFICATION AS ADOPTED BY THE
    19  NATIONAL CONFERENCE OF WEIGHTS AND MEASURES.
    20     (D)  INTERIM PROCEDURES.--IN ORDER TO FACILITATE THE SPEEDY    <--
    21  IMPLEMENTATION OF SUBSECTION (C), THE DEPARTMENT SHALL
    22  PROMULGATE, ADOPT AND USE GUIDELINES TO PROVIDE FOR THE
    23  CERTIFICATION OF INDIVIDUALS TO TEST AND INSPECT ALL
    24  COMMERCIALLY USED UNIVERSAL PRODUCT CODE SCANNING SYSTEMS AND
    25  PRICE LOOK UP DEVICES. THE GUIDELINES SHALL BE PUBLISHED IN THE
    26  PENNSYLVANIA BULLETIN. THE GUIDELINES SHALL NOT BE SUBJECT TO
    27  REVIEW PURSUANT TO SECTION 205 OF THE ACT OF JULY 31, 1968
    28  (P.L.769, NO.240), REFERRED TO AS THE COMMONWEALTH DOCUMENTS
    29  LAW, AND SECTION 204(B) AND 301(10) OF THE ACT OF OCTOBER 15,
    30  1980 (P.L.950, NO.164), KNOWN AS THE COMMONWEALTH ATTORNEYS ACT,
    19970H1573B2659                  - 4 -

     1  OR THE ACT OF JUNE 25, 1982 (P.L.633, NO.181), KNOWN AS THE
     2  REGULATORY REVIEW ACT, AND SHALL BE EFFECTIVE FOR A PERIOD OF
     3  NOT MORE THAN TWO YEARS. AFTER THE EXPIRATION OF THE TWO-YEAR
     4  PERIOD, THE GUIDELINES SHALL EXPIRE AND SHALL BE REPLACED BY
     5  REGULATIONS WHICH SHALL BE PROMULGATED, ADOPTED AND PUBLISHED AS
     6  PROVIDED BY LAW. NOTHING IN THIS ACT SHALL BE CONSTRUED TO
     7  RELIEVE THE DEPARTMENT OF THE RESPONSIBILITY, PRIOR TO JUNE 30,
     8  1999, TO CONDUCT TESTS AND INSPECTIONS OF ALL COMMERCIALLY USED
     9  UNIVERSAL PRODUCT CODE SCANNING SYSTEMS AND PRICE LOOK UP
    10  DEVICES ON A PERIODIC BASIS AND IN RESPONSE TO COMPLAINTS AND TO
    11  INITIATE APPROPRIATE ENFORCEMENT ACTIONS.
    12     SECTION 3 4.  TITLE 3 IS AMENDED BY ADDING A CHAPTER TO READ:  <--
    13                             CHAPTER 45
    14                 AGRICULTURAL COMMODITIES MARKETING
    15  SEC.
    16  4501.  SHORT TITLE OF CHAPTER.
    17  4502.  DEFINITIONS.
    18  4503.  POWERS AND DUTIES OF SECRETARY.
    19  4504.  COMMODITY MARKETING BOARD.
    20  4505.  PROVISIONS OF MARKETING PROGRAMS.
    21  4506.  EFFECTING MARKETING PROGRAMS.
    22  4507.  TERMINATING MARKETING PROGRAMS.
    23  4508.  MARKETING PROGRAM REVIEW AND AMENDMENTS.
    24  4509.  NOTICE OF ISSUANCE.
    25  4510.  COLLECTION OF FEES.
    26  4511.  RULES AND REGULATIONS FOR ENFORCEMENT.
    27  4512.  ADVANCED DEPOSITS.
    28  4513.  SEVERABILITY.
    29  § 4501.  SHORT TITLE OF CHAPTER.
    30     THIS CHAPTER SHALL BE KNOWN AND MAY BE CITED AS THE
    19970H1573B2659                  - 5 -

     1  AGRICULTURAL COMMODITIES MARKETING ACT.
     2  § 4502.  DEFINITIONS.
     3     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER
     4  SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
     5  CONTEXT CLEARLY INDICATES OTHERWISE:
     6     "AGRICULTURAL COMMODITY."  AGRICULTURAL, AQUACULTURAL,
     7  HORTICULTURAL, VITICULTURAL AND DAIRY PRODUCTS, LIVESTOCK AND
     8  THE PRODUCTS THEREOF, RANCH RAISED FURBEARING ANIMALS AND THE
     9  PRODUCTS THEREOF, THE PRODUCTS OF POULTRY AND BEE RAISING,
    10  FORESTRY AND FORESTRY PRODUCTS, AND ANY AND ALL PRODUCTS RAISED
    11  OR PRODUCED ON FARMS INTENDED FOR HUMAN CONSUMPTION AND THE
    12  PROCESSED OR MANUFACTURED PRODUCTS THEREOF INTENDED FOR HUMAN
    13  CONSUMPTION, TRANSPORTED OR INTENDED TO BE TRANSPORTED IN
    14  COMMERCE.
    15     "COMMODITY MARKETING BOARD" OR "BOARD."  THE PERSONS WHO ARE
    16  APPOINTED BY THE SECRETARY OF AGRICULTURE FROM AMONG PRODUCERS
    17  WHOSE COMMODITIES ARE SUBJECT TO AN ISSUED MARKETING PROGRAM.
    18     "COOPERATIVE ASSOCIATION."  ANY COOPERATIVE MARKETING
    19  ASSOCIATION OF PRODUCERS WHICH THE SECRETARY OF AGRICULTURE
    20  DETERMINES, AFTER APPLICATION BY THE COOPERATIVE ASSOCIATION:
    21         (1)  TO BE QUALIFIED UNDER THE PROVISIONS OF THE CO-
    22     OPERATIVE MARKETING ASSOCIATIONS ACT (42 STAT. 388, 7 U.S.C.
    23     §§ 291 AND 292) AND ORGANIZED AS A COOPERATIVE AGRICULTURAL
    24     ASSOCIATION UNDER THE LAWS OF THIS COMMONWEALTH AND ANY OTHER
    25     STATE; AND
    26         (2)  TO HAVE FULL AUTHORITY IN THE SALE OF AFFECTED
    27     AGRICULTURAL COMMODITY OF ITS MEMBERS AND TO BE ENGAGED IN
    28     MAKING COLLECTIVE SALES OF OR MARKETING THE COMMODITY OR ITS
    29     PRODUCTS FOR ITS MEMBERS.
    30     "MARKETING CONTRACT."  A CONTRACT OR AGREEMENT BETWEEN A
    19970H1573B2659                  - 6 -

     1  COMMODITY MARKETING BOARD AND A PERSON FOR THE PERFORMANCE OF
     2  SERVICES RELATING TO ADVERTISING, MARKETING, PROMOTION, RESEARCH
     3  OR OTHER OBJECTIVES IN FURTHERANCE OF A MARKETING PROGRAM.
     4     "MARKETING PROGRAM."  A PROGRAM ESTABLISHED PURSUANT TO THIS
     5  CHAPTER GOVERNING THE COLLECTION OF FEES AND ADMINISTRATION OF
     6  BUDGETS TO IMPLEMENT PROJECTS TO BENEFIT PRODUCERS IN THIS
     7  COMMONWEALTH DURING ANY SPECIFIED PERIOD OR PERIODS.
     8     "PERSON."  AN INDIVIDUAL, FIRM, CORPORATION, ASSOCIATION OR
     9  ANY OTHER BUSINESS UNIT.
    10     "PRODUCER."  A PERSON ENGAGED WITHIN THIS COMMONWEALTH OR A
    11  PRODUCTION AREA WITHIN THIS COMMONWEALTH IN THE BUSINESS OF
    12  PRODUCING AGRICULTURAL COMMODITIES OR CAUSING AGRICULTURAL
    13  COMMODITIES TO BE PRODUCED.
    14     "SALES AGENT."  ANY PERSON, INCLUDING INDIVIDUALS,
    15  PARTNERSHIPS, CORPORATIONS, COOPERATIVE ASSOCIATIONS AND
    16  UNINCORPORATED COOPERATIVE ASSOCIATIONS, WHO PURCHASES OR
    17  HANDLES OR RECEIVES OR SELLS OR CONTRACTS TO SELL AN AFFECTED
    18  AGRICULTURAL COMMODITY.
    19  § 4503.  POWERS AND DUTIES OF SECRETARY.
    20     (A)  ADMINISTRATION AND ENFORCEMENT OF CHAPTER.--SUBJECT TO
    21  THE PROVISIONS CONTAINED IN THIS CHAPTER, THE SECRETARY SHALL
    22  ADMINISTER AND ENFORCE THE PROVISIONS OF THIS CHAPTER, AND SHALL
    23  HAVE AND SHALL EXERCISE ALL ADMINISTRATIVE POWERS NECESSARY TO
    24  EFFECTUATE THE PURPOSES OF THIS CHAPTER, INCLUDING THE ISSUANCE
    25  OF MARKETING PROGRAMS, THE APPOINTMENT OF MEMBERS TO COMMODITY
    26  MARKETING BOARDS AS PROVIDED IN SECTION 4504 (RELATING TO
    27  COMMODITY MARKETING BOARD) AND THE PROVIDING OF PERSONNEL,
    28  STAFF, LEGAL COUNSEL AND OFFICE FACILITIES REQUIRED FOR THE
    29  ADMINISTRATION AND ENFORCEMENT OF MARKETING PROGRAMS.
    30     (B)  GROUNDS FOR PUBLIC HEARING.--WHENEVER THE SECRETARY HAS
    19970H1573B2659                  - 7 -

     1  REASON TO BELIEVE THAT THE ISSUANCE OF A MARKETING PROGRAM OR
     2  AMENDMENTS TO AN EXISTING MARKETING PROGRAM WILL TEND TO
     3  EFFECTUATE THIS CHAPTER, THE SECRETARY SHALL, EITHER UPON HIS
     4  OWN MOTION OR UPON APPLICATION OF ANY PRODUCER OR ANY
     5  ORGANIZATION OF PRODUCERS, GIVE DUE NOTICE OF AN OPPORTUNITY FOR
     6  A PUBLIC HEARING UPON A PROPOSED MARKETING PROGRAM OR AMENDMENTS
     7  TO AN EXISTING MARKETING PROGRAM.
     8     (C)  PUBLICATION OF NOTICE OF HEARING.--NOTICE OF ANY HEARING
     9  CALLED FOR THIS PURPOSE SHALL BE GIVEN BY THE SECRETARY BY
    10  PUBLISHING A NOTICE OF THE HEARING, FOR A PERIOD OF NOT LESS
    11  THAN FIVE CONSECUTIVE PUBLICATION DAYS, IN A DAILY NEWSPAPER OF
    12  GENERAL CIRCULATION, PUBLISHED IN THE CAPITAL OF THE
    13  COMMONWEALTH AND IN ANY OTHER NEWSPAPER OR NEWSPAPERS AS THE
    14  SECRETARY MAY PRESCRIBE. NO PUBLIC HEARING SHALL BE HELD PRIOR
    15  TO 20 DAYS AFTER THE LAST DAY OF THE PERIOD OF PUBLICATION.
    16     (D)  MAILING TO PRODUCERS.--THE SECRETARY SHALL ALSO MAIL A
    17  COPY OF THE NOTICE OF A HEARING AND A COPY OF THE PROPOSED
    18  MARKETING PROGRAM OR PROPOSED AMENDMENTS TO ALL PRODUCERS WHOSE
    19  NAMES AND ADDRESSES APPEAR UPON LISTS OF SUCH PERSONS WHICH
    20  SHALL BE COMPILED IN THE DEPARTMENT.
    21     (E)  SPECIFICS OF NOTICE.--THE NOTICE OF HEARING SHALL SET
    22  FORTH THE DATE AND PLACE OF THE HEARING, AND THE AREA COVERED BY
    23  THE PROPOSED MARKETING PROGRAM, OR THE PROPOSED AMENDMENTS, AND
    24  A STATEMENT THAT THE SECRETARY WILL RECEIVE AT THE HEARING, IN
    25  ADDITION TO TESTIMONY AND EVIDENCE AS TO THE PROPOSED MARKETING
    26  PROGRAM, TESTIMONY AND EVIDENCE AS TO OTHER NECESSARY AND
    27  RELEVANT MATTERS, INCLUDING RATE OF ASSESSMENT, AND WITH RESPECT
    28  TO THE ACCURACY AND SUFFICIENCY OF LISTS ON FILE WITH THE
    29  SECRETARY, WHICH SHOW THE NAMES AND ADDRESSES OF PRODUCERS AND
    30  THE QUANTITIES OF AGRICULTURAL COMMODITIES PRODUCED BY THE
    19970H1573B2659                  - 8 -

     1  PRODUCERS IN THE MARKETING SEASON NEXT PRECEDING THE HEARING.
     2     (F)  HEARING REQUIREMENTS.--THE HEARING SHALL BE PUBLIC, AND
     3  ALL TESTIMONY SHALL BE RECEIVED UNDER OATH. A FULL AND COMPLETE
     4  RECORD OF ALL PROCEEDINGS AT THE HEARINGS SHALL BE MADE AND
     5  MAINTAINED ON FILE IN THE OFFICE OF THE SECRETARY. AT HEARINGS
     6  THE SECRETARY SHALL RECEIVE, IN ADDITION TO OTHER NECESSARY AND
     7  RELEVANT MATTERS, TESTIMONY AND EVIDENCE REGARDING THE RATE OF
     8  ASSESSMENT AND TESTIMONY AND EVIDENCE WITH RESPECT TO THE
     9  ACCURACY AND SUFFICIENCY OF THE LISTS ON FILE WITH THE
    10  SECRETARY, WHICH SHOW THE NAMES OF THE PRODUCERS AND THE
    11  QUANTITIES OF AGRICULTURAL COMMODITIES PRODUCED BY THE PRODUCERS
    12  IN THE MARKETING SEASON NEXT PRECEDING THE HEARING.
    13     (G)  ISSUANCE OF MARKETING PROGRAM.--AFTER NOTICE AND
    14  HEARING, THE SECRETARY MAY ISSUE A MARKETING PROGRAM IF THE
    15  SECRETARY FINDS AND SETS FORTH IN THE MARKETING PROGRAM THAT THE
    16  PROGRAM WILL TEND TO EFFECTUATE THE PURPOSES OF THIS CHAPTER.
    17  § 4504.  COMMODITY MARKETING BOARD.
    18     (A)  ESTABLISHMENT OF COMMODITY MARKETING BOARD.--
    19         (1)  EACH MARKETING PROGRAM, ISSUED PURSUANT TO THIS
    20     CHAPTER, SHALL PROVIDE FOR THE ESTABLISHMENT OF A COMMODITY
    21     MARKETING BOARD, WHICH SHALL HAVE PRIMARY DECISION MAKING
    22     AUTHORITY RELATIVE TO MARKETING CONTRACTS AND OTHER PROJECTS
    23     IN FURTHERANCE OF THE PROGRAM. THE NUMBER, REPRESENTATION,
    24     QUALIFICATIONS AND TERMS OF BOARD MEMBERS AND THE SCHEDULE OF
    25     REGULAR BOARD MEETINGS AND PROCEDURE FOR CALLING SPECIAL
    26     BOARD MEETINGS SHALL BE ESTABLISHED IN THE ISSUED MARKETING
    27     PROGRAM. NO MARKETING PROGRAM SHALL BE ISSUED TO ESTABLISH A
    28     COMMODITY BOARD OF LESS THAN FIVE MEMBERS, ONE OF WHOM SHALL
    29     BE THE SECRETARY, OR THE SECRETARY'S DESIGNEE. THE OTHER
    30     BOARD MEMBERS SHALL BE APPOINTED BY THE SECRETARY FROM AMONG
    19970H1573B2659                  - 9 -

     1     THE AGRICULTURAL PRODUCERS WHOSE COMMODITIES SHALL BE SUBJECT
     2     TO THE MARKETING PROGRAM. IN MAKING THESE APPOINTMENTS, THE
     3     SECRETARY SHALL CONSIDER NOMINATIONS SUBMITTED BY THE
     4     PRODUCERS. NO DECISION BY THE BOARD SHALL BE EFFECTIVE
     5     UNLESS, PURSUANT TO REGULAR OR SPECIAL MEETINGS, A MAJORITY
     6     OF BOARD MEMBERS WERE PRESENT AND A MAJORITY OF THOSE PRESENT
     7     VOTED IN SUPPORT OF THE DECISION. ALL DECISIONS RENDERED BY
     8     THE BOARD SHALL BE RECORDED IN WRITTEN MINUTES OF THE
     9     MEETING, AND THE RECORDED MINUTES SHALL BE MADE AVAILABLE TO
    10     THE SECRETARY AND TO THE PRODUCERS WHOSE COMMODITIES ARE
    11     SUBJECT TO THE MARKETING PROGRAM.
    12         (2)  IF THE SECRETARY REQUIRES SALES AGENTS TO COLLECT
    13     PRODUCER CHARGES UNDER SECTION 4510(B) (RELATING TO
    14     COLLECTION OF FEES), AN ADDITIONAL MEMBER SHALL BE APPOINTED
    15     TO THE BOARD BY THE SECRETARY. THIS MEMBER SHALL REPRESENT
    16     THESE SALES AGENTS WHO ARE SUBJECT TO THE MARKETING PROGRAM
    17     COLLECTION AGREEMENT. IN MAKING THE APPOINTMENT, THE
    18     SECRETARY SHALL CONSIDER NOMINATIONS BY THE SALES AGENTS.
    19     (B)  BOARD MEMBERS.--NO MEMBER OF A COMMODITY MARKETING BOARD
    20  SHALL RECEIVE A SALARY, BUT EACH SHALL BE ENTITLED TO ACTUAL
    21  EXPENSES INCURRED WHILE ENGAGED IN PERFORMING THE DUTIES
    22  AUTHORIZED BY THIS CHAPTER. ANY MARKETING PROGRAM ESTABLISHED
    23  UNDER THIS CHAPTER MAY AUTHORIZE A PAYMENT NOT TO EXCEED $100
    24  PER DAY, AND EXPENSES FOR EACH DAY IN WHICH A BOARD MEMBER OR
    25  SUBCOMMITTEE MEMBER IS PERFORMING A DUTY NECESSARY TO THE
    26  FUNCTION OF THE BOARD.
    27     (C)  POWERS AND DUTIES OF BOARD.--IN ADMINISTERING THE
    28  MARKETING PROGRAM THE BOARD SHALL HAVE THE FOLLOWING POWERS AND
    29  DUTIES:
    30         (1)  TO DETERMINE ALL MATTERS PERTAINING TO THE MARKETING
    19970H1573B2659                 - 10 -

     1     PROGRAM ISSUED BY THE SECRETARY.
     2         (2)  TO HIRE AND EMPLOY PERSONNEL WHICH THE BOARD DEEMS
     3     NECESSARY FOR THE PROPER ADMINISTRATION OF THE MARKETING
     4     PROGRAM AND TO FIX THE COMPENSATION AND TERMS OF EMPLOYMENT
     5     OF PERSONNEL. THE HIRING, EMPLOYMENT, COMPENSATION AND TERMS
     6     OF EMPLOYMENT OF PERSONNEL UNDER THIS PARAGRAPH SHALL NOT BE
     7     SUBJECT TO THE PROVISIONS OF THE ACT OF APRIL 9, 1929
     8     (P.L.177, NO.175), KNOWN AS THE ADMINISTRATIVE CODE OF 1929.
     9         (3)  TO ADOPT WRITTEN PROCEDURES FOR ACQUIRING AND
    10     DISPOSING OF PROPERTY, AND, SUBJECT TO THESE PROCEDURES, TO
    11     ACQUIRE, OWN, USE, HIRE, LEASE, OPERATE AND DISPOSE OF
    12     PERSONAL PROPERTY, REAL PROPERTY AND INTERESTS IN REAL
    13     PROPERTY.
    14         (4)  TO MAKE AND ENTER INTO ALL CONTRACTS AND AGREEMENTS,
    15     IN ACCORDANCE WITH THE PROVISIONS OF THE LAW, WHICH THE BOARD
    16     DEEMS NECESSARY OR INCIDENTAL TO THE FURTHERANCE OF THE
    17     MARKETING PROGRAM OR PERFORMANCE OF DUTIES AND POWERS UNDER
    18     THIS CHAPTER. MARKETING CONTRACTS AND THE PROCEDURES AND
    19     DECISIONS RELATED TO CONTRACTS SHALL NOT BE SUBJECT TO
    20     COMPETITIVE BIDDING REQUIREMENTS OF ANY OTHER STATUTE OR
    21     OTHER REQUIREMENTS PRESCRIBED IN THE ADMINISTRATIVE CODE OF
    22     1929. THE BOARD SHALL ADOPT WRITTEN PROCUREMENT PROCEDURES
    23     FOR ALL MARKETING CONTRACTS. PROCEDURES SHALL INCLUDE:
    24             (I)  THE METHOD OR METHODS WHICH THE BOARD MAY USE TO
    25         INVITE PROPOSALS FOR MARKETING CONTRACTS AND THE MANNER
    26         OF NOTICE TO BE GIVEN TO PROSPECTIVE CONTRACTING PARTIES.
    27             (II)  THE MINIMUM QUALIFICATIONS OF A PROSPECTIVE
    28         CONTRACTING PARTY NECESSARY FOR CONSIDERATION BY THE
    29         BOARD IN MARKETING CONTRACTS.
    30             (III)  THE MANNER IN WHICH A CONTRACT OFFER IS
    19970H1573B2659                 - 11 -

     1         ACCEPTED AND A MARKETING CONTRACT IS AWARDED BY THE
     2         BOARD. NOTWITHSTANDING ANY OTHER REQUIREMENT OF THIS
     3         SUBSECTION, THE BOARD MAY MAKE SOLE SOURCE PROCUREMENTS
     4         WHEN THERE IS ONLY ONE SOURCE FOR THE REQUIRED SERVICE
     5         AND MAY MAKE EMERGENCY PROCUREMENTS WHEN THE BOARD
     6         DETERMINES IN WRITING THAT THE PROCEDURE IS NECESSARY DUE
     7         TO THE URGENCY OF THE PARTICULAR SITUATION.
     8         (5)  TO RECEIVE, ACCOUNT FOR AND DISBURSE ALL MONEYS
     9     COLLECTED PURSUANT TO THE ISSUED MARKETING PROGRAM.
    10         (6)  TO PREPARE A BUDGET FOR THE ADMINISTRATION,
    11     OPERATING COSTS AND EXPENSES OF THE PROGRAM.
    12         (7)  TO RECEIVE AND REPORT TO THE SECRETARY COMPLAINTS OR
    13     VIOLATIONS OF THE MARKETING PROGRAM AND TO ASSIST AND
    14     COOPERATE WITH THE SECRETARY IN THE ENFORCEMENT THEREOF.
    15         (8)  TO ESTABLISH COMMITTEES OR SUBCOMMITTEES TO CARRY
    16     OUT ASSIGNED DUTIES AND FUNCTIONS, AND TO DESIGNATE BOARD
    17     MEMBERS AND NONBOARD MEMBERS TO SERVE ON SUCH COMMITTEES AND
    18     SUBCOMMITTEES.
    19         (9)  TO COLLECT AND GATHER INFORMATION AND DATA RELEVANT
    20     TO THE PROPER ADMINISTRATION OF THE MARKETING PROGRAM.
    21         (10)  TO CHARGE FEES AND TO ASSIST THE SECRETARY IN THE
    22     IMPOSITION OF FEES AND THE COLLECTION OF FEES AND REVENUES
    23     UNDER THIS CHAPTER.
    24         (11)  TO ISSUE AN ANNUAL REPORT ON THE OPERATION OF THE
    25     PROGRAM.
    26         (12)  TO RECOMMEND AMENDMENTS TO THE MARKETING PROGRAM
    27     AND AMENDMENTS TO THIS ACT AND REGULATIONS ISSUED UNDER THIS
    28     CHAPTER.
    29     (D)  LIMITATION.--NO FINANCIAL OBLIGATION SHALL BE INCURRED
    30  BY ANY BOARD BEYOND THE EXTENT TO WHICH MONEY SHALL HAVE BEEN
    19970H1573B2659                 - 12 -

     1  PROVIDED UNDER THE AUTHORITY OF THIS CHAPTER. NO OBLIGATION OR
     2  LIABILITY OF ANY TYPE INCURRED BY A BOARD CREATED PURSUANT TO
     3  THIS CHAPTER SHALL BE AN OBLIGATION OR LIABILITY OF THE
     4  COMMONWEALTH, AND NO BOARD SHALL HAVE THE POWER TO PLEDGE THE
     5  CREDIT OR TAXING POWER OF THE COMMONWEALTH NOR TO MAKE ITS DEBTS
     6  PAYABLE OUT OF ANY MONEYS EXCEPT THOSE PROVIDED FOR BY THIS
     7  CHAPTER.
     8     (E)  DAIRY INDUSTRY MARKETING PROGRAM.--ANY MARKETING PROGRAM
     9  ISSUED UNDER THIS CHAPTER SPECIFICALLY FOR THE DAIRY INDUSTRY
    10  SHALL PROVIDE FOR THE ESTABLISHMENT OF A BOARD OF 21 MEMBERS,
    11  WHO SHALL INCLUDE THE SECRETARY, OR HIS DESIGNEE, AND 20 PERSONS
    12  APPOINTED BY THE SECRETARY WHO ARE ACTIVE IN THE PRODUCTION OF
    13  MILK, INCLUDING, BUT NOT LIMITED TO, REPRESENTATIVES OF MILK
    14  COOPERATIVES AND FARMING ASSOCIATIONS, PRODUCER-HANDLERS OF MILK
    15  AND INDEPENDENT DAIRY FARMERS. IN ADDITION TO THE POWERS AND
    16  DUTIES CONTAINED IN SUBSECTION (C), THE COMMODITY MARKETING
    17  BOARD OF THE DAIRY PROMOTION PROGRAM SHALL HAVE THE POWER TO
    18  ELECT OR APPOINT FROM THE MEMBERSHIP OF THE BOARD A CHAIRMAN,
    19  VICE CHAIRMAN, SECRETARY AND TREASURER AND TO HOLD SPECIAL
    20  MEETINGS AT THE REQUEST OF THE CHAIRMAN OR UPON REQUEST OF ONE-
    21  THIRD OF THE MEMBERS OF THE BOARD.
    22  § 4505.  PROVISIONS OF MARKETING PROGRAMS.
    23     SUBJECT TO THE LEGISLATIVE RESTRICTIONS AND LIMITATIONS SET
    24  FORTH IN THIS CHAPTER, ANY MARKETING PROGRAM ISSUED BY THE
    25  SECRETARY PURSUANT TO THIS CHAPTER MAY CONTAIN ANY OR ALL OF THE
    26  FOLLOWING PROVISIONS:
    27         (1)  PROVISIONS FOR THE ESTABLISHMENT OF PLANS FOR
    28     ADVERTISING AND SALES PROMOTION TO MAINTAIN PRESENT MARKETS,
    29     OR TO CREATE NEW OR LARGER MARKETS FOR AGRICULTURAL
    30     COMMODITIES GROWN OR PRODUCED IN THIS COMMONWEALTH. PLANS
    19970H1573B2659                 - 13 -

     1     SHALL BE DIRECTED TOWARD INCREASING THE SALE OF SUCH
     2     COMMODITIES WITHOUT REFERENCE TO ANY PARTICULAR FIRM'S OR
     3     INDIVIDUAL'S BRAND OR TRADE NAME. NO ADVERTISING OR SALES
     4     PROMOTION PROGRAM SHALL BE ISSUED BY THE SECRETARY, WHICH
     5     SHALL MAKE USE OF FALSE OR UNWARRANTED CLAIMS ON BEHALF OF
     6     ANY PRODUCT OR DISPARAGE THE QUALITY, VALUE, SALE OR USE OF
     7     ANY OTHER AGRICULTURAL COMMODITY.
     8         (2)  PROVISIONS FOR THE ESTABLISHMENT OF RESEARCH
     9     PROGRAMS DESIGNED TO BENEFIT PRODUCERS, OR FOR AGRICULTURE IN
    10     GENERAL.
    11         (3)  PROVISIONS ESTABLISHING OR PROVIDING AUTHORITY FOR
    12     ESTABLISHING AN INFORMATION AND SERVICE PROGRAM DESIGNED TO
    13     ACQUAINT PRODUCERS AND OTHER INTERESTED PERSONS WITH QUALITY
    14     STANDARDS AND QUALITY IMPROVEMENTS.
    15         (4)  PROVISIONS ALLOWING THE SECRETARY AND THE COMMODITY
    16     MARKETING BOARD TO COOPERATE WITH ANY OTHER STATE OR FEDERAL
    17     AGENCY, OR OTHER ORGANIZATION WHOSE ACTIVITIES MAY BE DEEMED
    18     BENEFICIAL TO THE PURPOSE OF THIS CHAPTER.
    19         (5)  PROVISION MAY BE MADE IN THE PROGRAM TO EXEMPT, OR
    20     ALLOW SUITABLE ADJUSTMENTS OR CREDITS, IN CONNECTION WITH AN
    21     AGRICULTURAL COMMODITY ON WHICH A MANDATORY CHECKOFF FOR
    22     MARKET DEVELOPMENT IS REQUIRED UNDER THE AUTHORITY OF ANY
    23     FEDERAL LAW.
    24  § 4506.  EFFECTING MARKETING PROGRAMS.
    25     (A)  REFERENDUM REQUIRED.--NO MARKETING PROGRAM, OR AMENDMENT
    26  THERETO, SHALL BECOME EFFECTIVE UNLESS AND UNTIL THE SECRETARY
    27  DETERMINES BY A REFERENDUM WHETHER OR NOT THE AFFECTED PRODUCERS
    28  ASSENT TO THE PROPOSED ACTION.
    29     (B)  MAJORITY VOTE.--THE SECRETARY SHALL CONDUCT THE
    30  REFERENDUM AMONG THE AFFECTED PRODUCERS, AND THE AFFECTED
    19970H1573B2659                 - 14 -

     1  PRODUCERS SHALL BE DEEMED TO HAVE ASSENTED TO THE PROPOSED
     2  PROGRAM IF, OF THOSE VOTING, A MAJORITY BY NUMBER AND A MAJORITY
     3  BY VOLUME ASSENT TO THE PROPOSED PROGRAM.
     4     (C)  VOTE OF COOPERATIVE ASSOCIATION.--IN DETERMINING WHETHER
     5  A MARKETING PROGRAM OR AN AMENDMENT TO THE MARKETING PROGRAM HAS
     6  BEEN APPROVED BY PRODUCERS, THE SECRETARY SHALL CONSIDER THE
     7  VOTE OF A COOPERATIVE ASSOCIATION AS THE VOTES OF ITS MEMBERS,
     8  PROVIDING THE COOPERATIVE HAS FIRST NOTIFIED ITS MEMBERS IN
     9  WRITING AT LEAST 30 DAYS IN ADVANCE OF ITS INTENTION TO CAST A
    10  REPRESENTATIVE VOTE. THE NOTICE SHALL INFORM THE PRODUCER OF THE
    11  RIGHT TO CAST A VOTE INDIVIDUALLY AND SHALL INCLUDE THE
    12  FOLLOWING WORDING IN BOLD FACE TYPE: WARNING - IF YOU DO NOT
    13  EXERCISE YOUR RIGHT TO VOTE YOUR COOPERATIVE HAS THE RIGHT TO
    14  VOTE FOR YOU. EACH PRODUCER SHALL RECEIVE A BALLOT FROM THE
    15  SECRETARY. THE BALLOT SHALL CONTAIN THE FOLLOWING WORDING IN
    16  BOLD FACE TYPE: WARNING - IF YOU DO NOT EXERCISE YOUR RIGHT TO
    17  VOTE YOUR COOPERATIVE HAS THE RIGHT TO VOTE FOR YOU. IF THE
    18  PRODUCER VOTES INDIVIDUALLY, THE VOTE SHALL BE DEDUCTED FROM THE
    19  COOPERATIVE REPRESENTATIVE VOTE.
    20     (D)  PROCEDURE.--ANY REFERENDUM REQUIRED UNDER THIS CHAPTER
    21  SHALL BE CONDUCTED IN ACCORDANCE WITH REASONABLE RULES AND
    22  REGULATIONS TO BE ESTABLISHED AND PROMULGATED BY THE SECRETARY.
    23     (E)  PENNSYLVANIA DAIRY PRODUCTS PROMOTION PROGRAM.--THE
    24  SECRETARY MAY ESTABLISH WITHOUT A REFERENDUM A PENNSYLVANIA
    25  DAIRY PRODUCTS PROMOTION PROGRAM, PROVIDED THAT THE PROGRAM IS
    26  FINANCED BY VOLUNTARY CONTRIBUTIONS CREDITED AGAINST ASSESSMENTS
    27  PAYABLE TO THE NATIONAL DAIRY PROMOTION AND RESEARCH BOARD
    28  PURSUANT TO THE DAIRY AND TOBACCO ADJUSTMENT ACT OF 1983 (PUBLIC
    29  LAW 98-180, 97 STAT. 1128). THIS PROGRAM SHALL TERMINATE, UNLESS
    30  CONTINUED BY REFERENDUM AS PROVIDED IN THIS SECTION, NOT LATER
    19970H1573B2659                 - 15 -

     1  THAN SIX MONTHS FOLLOWING THE DISAPPROVAL OF THE FEDERAL DAIRY
     2  PROMOTION PROGRAM BY A MAJORITY OF PRODUCERS VOTING IN A
     3  NATIONWIDE REFERENDUM. THE ESTABLISHMENT, TERMINATION, AMENDMENT
     4  AND MANAGEMENT OF THE PENNSYLVANIA DAIRY PRODUCTS PROMOTION
     5  PROGRAM SHALL, EXCEPT AS PROVIDED IN THIS SUBSECTION, BE
     6  CONDUCTED PURSUANT TO THE PROVISIONS OF THIS CHAPTER.
     7  § 4507.  TERMINATING MARKETING PROGRAMS.
     8     SUBJECT TO APPROVAL OF THE APPROPRIATE COMMODITY MARKETING
     9  BOARD, THE SECRETARY SHALL SUSPEND OR TERMINATE ANY MARKETING
    10  PROGRAM OR ANY PROVISIONS OF ANY MARKETING PROGRAM WHENEVER THE
    11  SECRETARY FINDS THAT THE PROVISIONS OR PROGRAM DOES NOT TEND TO
    12  EFFECTUATE THIS CHAPTER WITHIN THE STANDARDS AND SUBJECT TO THE
    13  LIMITATIONS AND RESTRICTIONS IMPOSED IN THIS CHAPTER. A
    14  SUSPENSION OR TERMINATION SHALL NOT BE EFFECTIVE UNTIL THE
    15  EXPIRATION OF THE CURRENT MARKETING SEASON. IF THE SECRETARY
    16  FINDS THAT THE TERMINATION OF ANY MARKETING PROGRAM IS REQUESTED
    17  IN WRITING BY MORE THAN 33 1/3% OF THE AFFECTED PRODUCERS WHO
    18  PRODUCE FOR MARKET MORE THAN 50% OF THE VOLUME OF AGRICULTURAL
    19  COMMODITIES PRODUCED WITHIN THE DESIGNATED PRODUCTION AREA FOR
    20  MARKET, THE SECRETARY SHALL TERMINATE OR SUSPEND FOR A SPECIFIED
    21  PERIOD THE MARKETING PROGRAM OR PROVISIONS THEREOF. THE
    22  TERMINATION SHALL BE EFFECTIVE ONLY IF ANNOUNCED ON OR BEFORE
    23  THE DATE AS MAY BE SPECIFIED IN THE PROGRAM. IF 10% OF THE
    24  PRODUCERS IN A COMMODITY GROUP OF OVER 2,000 AFFECTED PRODUCERS
    25  OR 15% OF THE PRODUCERS IN A COMMODITY GROUP OF LESS THAN 2,000
    26  AFFECTED PRODUCERS REQUEST IN WRITING THAT A REFERENDUM BE HELD
    27  ON THE QUESTION OF TERMINATING THE PROGRAM, THE SECRETARY MUST
    28  ANNOUNCE AND CONDUCT A REFERENDUM WITHIN A REASONABLE PERIOD OF
    29  TIME, AND IN ANY CASE, WITHIN ONE YEAR OF THE REQUEST, A
    30  MARKETING PROGRAM SHALL BE TERMINATED IF SO VOTED BY A MAJORITY
    19970H1573B2659                 - 16 -

     1  OF THOSE VOTING.
     2  § 4508.  MARKETING PROGRAM REVIEW AND AMENDMENTS.
     3     (A)  REVIEW.--EVERY FIVE YEARS THE SECRETARY SHALL CALL A
     4  REFERENDUM OF AFFECTED PRODUCERS WITHIN EACH AGRICULTURAL
     5  COMMODITY GROUP FOR WHICH A MARKETING PROGRAM EXISTS TO
     6  DETERMINE WHETHER OR NOT A MAJORITY OF THOSE VOTING STILL DESIRE
     7  A MARKETING PROGRAM.
     8     (B)  REFERENDUM ON AMENDMENTS.--THE SECRETARY SHALL CALL FOR
     9  A REFERENDUM ON AMENDMENTS TO A MARKETING PROGRAM WITHIN A
    10  REASONABLE PERIOD OF TIME, UPON THE REQUEST OF THE ADVISORY
    11  BOARD OR WITH WRITTEN REQUEST OF 10% OF THE PRODUCERS IN A
    12  COMMODITY GROUP OF OVER 2,000 AFFECTED PRODUCERS OR 15% OF THE
    13  PRODUCERS IN A COMMODITY GROUP OF LESS THAN 2,000 AFFECTED
    14  PRODUCERS. IN VOTING ON AN AMENDMENT TO THE MARKETING PROGRAM,
    15  THE VOTE SHALL BE ONLY ON THE AMENDMENT, AND SHALL NOT TERMINATE
    16  THE PROGRAM.
    17  § 4509.  NOTICE OF ISSUANCE.
    18     UPON THE ISSUANCE OF ANY MARKETING PROGRAM OR ANY SUSPENSION,
    19  AMENDMENT OR TERMINATION THEREOF, A NOTICE SHALL BE PUBLISHED IN
    20  A NEWSPAPER OF GENERAL CIRCULATION PUBLISHED IN THE CAPITAL OF
    21  THE COMMONWEALTH AND IN SUCH OTHER NEWSPAPERS AS THE SECRETARY
    22  MAY PRESCRIBE. NO PROGRAM OR ANY SUSPENSION, AMENDMENT OR
    23  TERMINATION THEREOF SHALL BECOME EFFECTIVE UNTIL THE TERMINATION
    24  OF A PERIOD OF 20 DAYS FROM THE DATE OF THE PUBLICATION. IT
    25  SHALL ALSO BE THE DUTY OF THE SECRETARY TO MAIL A COPY OF THE
    26  NOTICE OF THE ISSUANCE TO ALL PRODUCERS DIRECTLY AFFECTED BY THE
    27  TERMS OF THE PROGRAM, SUSPENSION, AMENDMENT OR TERMINATION,
    28  WHOSE NAMES AND ADDRESSES MAY BE ON FILE IN THE OFFICE OF THE
    29  SECRETARY, AND TO EVERY PERSON WHO FILES IN THE OFFICE OF THE
    30  SECRETARY A WRITTEN REQUEST FOR NOTICE.
    19970H1573B2659                 - 17 -

     1  § 4510.  COLLECTION OF FEES.
     2     (A)  GENERAL RULE.--ANY MARKETING PROGRAM ISSUED PURSUANT TO
     3  THIS CHAPTER SHALL PROVIDE FOR THE COLLECTION OF FEES TO DEFRAY
     4  THE NECESSARY EXPENSES INCURRED IN THE FORMATION, ISSUANCE,
     5  ADMINISTRATION AND ENFORCEMENT OF THE MARKETING PROGRAM AND
     6  SHALL INCLUDE THE AMOUNT, TIME, METHOD AND CONDITION OF PAYMENT.
     7  FEES TO BE CHARGED SHALL NOT BE IN EXCESS OF THAT WHICH WILL
     8  GENERATE REVENUES OF 5% OF THE GROSS MARKET VALUE OF PRODUCTION
     9  AND MARKETING OF THE COMMODITY SUBJECT TO THE MARKETING PROGRAM.
    10  EACH AND EVERY PRODUCER AFFECTED BY ANY MARKETING PROGRAM ISSUED
    11  UNDER THIS CHAPTER SHALL PAY TO THE SECRETARY AT THE TIME AND IN
    12  THE MANNER AS PRESCRIBED BY THE PROGRAM AS ADOPTED THE CHARGES
    13  PROVIDED BY THIS SUBSECTION.
    14     (B)  COLLECTION BY SALES AGENTS.--FOR THE CONVENIENCE OF
    15  MAKING COLLECTIONS OF ANY PRODUCER CHARGES ESTABLISHED PURSUANT
    16  TO THIS SECTION, THE SECRETARY SHALL HAVE THE AUTHORITY AND MAY,
    17  BY REGULATION, UPON THE REQUEST OF A COMMODITY MARKETING BOARD,
    18  REQUIRE SALES AGENTS TO COLLECT PRODUCER CHARGES UPON THE SALE
    19  OF THE AGRICULTURAL COMMODITY.
    20     (C)  APPROPRIATION.--ANY MONEY COLLECTED BY THE SECRETARY
    21  UNDER THIS ACT IS HEREBY SPECIFICALLY APPROPRIATED TO THE
    22  DEPARTMENT FOR THE ADMINISTRATION OF THE MARKETING PROGRAMS FOR
    23  WHICH THEY WERE COLLECTED. WHEN A MARKETING PROGRAM IS
    24  DISCONTINUED, THE SURPLUS MONEY SHALL BE MADE AVAILABLE FOR THE
    25  ADMINISTRATION OF THIS CHAPTER OR OF FUTURE MARKETING PROGRAMS
    26  INVOLVING THE SAME COMMODITY.
    27     (D)  AUDITING STANDARDS.--EACH BOARD SHALL ADOPT AND PUBLISH
    28  A SET OF AUDITING STANDARDS, CONSISTENT WITH GENERALLY ACCEPTED
    29  AUDITING STANDARDS, AGAINST WHICH THE MONEYS IT COLLECTS
    30  PURSUANT TO THIS CHAPTER AND EXPENDS IN ACCORDANCE WITH THE
    19970H1573B2659                 - 18 -

     1  TERMS OF THIS CHAPTER CAN BE AUDITED. EACH BOARD SHALL ENGAGE AN
     2  OUTSIDE AUDITING FIRM TO CONDUCT ANNUALLY AN AUDIT OF ITS
     3  COLLECTIONS AND EXPENDITURES. AN AUDIT UNDER FEDERAL LAW OR
     4  REGULATION MAY BE ACCEPTED BY THE BOARD AS LONG AS IT MEETS THE
     5  MINIMUM STANDARDS ESTABLISHED UNDER THIS SECTION.
     6  § 4511.  RULES AND REGULATIONS FOR ENFORCEMENT.
     7     THE SECRETARY SHALL, WITH THE ADVICE OF THE COMMODITY
     8  MARKETING BOARD, MAKE AND PROMULGATE RULES AND REGULATIONS AS
     9  MAY BE NECESSARY TO EFFECTUATE THIS CHAPTER AND TO ENFORCE THE
    10  PROVISIONS OF ANY MARKETING PROGRAM, ALL OF WHICH SHALL HAVE THE
    11  FORCE AND EFFECT OF LAW. THE SECRETARY MAY INSTITUTE AN ACTION
    12  AT LAW OR IN EQUITY AND MAY ESTABLISH PENALTIES AS MAY APPEAR
    13  NECESSARY TO ENFORCE COMPLIANCE WITH THIS CHAPTER, OR ANY RULE
    14  OR REGULATION, OR MARKETING PROGRAM COMMITTED TO THE SECRETARY'S
    15  ADMINISTRATION IN ADDITION TO ANY OTHER REMEDY UNDER THIS
    16  CHAPTER.
    17  § 4512.  ADVANCED DEPOSITS.
    18     PRIOR TO THE ISSUANCE OF ANY MARKETING PROGRAM, THE SECRETARY
    19  MAY REQUIRE THE APPLICANT THEREFOR TO DEPOSIT AN AMOUNT AS THE
    20  SECRETARY MAY DEEM NECESSARY TO DEFRAY THE EXPENSE OF PREPARING
    21  AND MAKING THE MARKETING PROGRAM EFFECTIVE. FUNDS SHALL BE
    22  RECEIVED, DEPOSITED AND DISBURSED BY THE SECRETARY IN ACCORDANCE
    23  WITH THE PROVISIONS OF HANDLING FUNDS IN THIS CHAPTER. THE
    24  SECRETARY MAY REIMBURSE THE APPLICANT IN THE AMOUNT OF THE
    25  DEPOSIT FROM ANY FUNDS RECEIVED THROUGH THE ADOPTING OF A
    26  MARKETING PROGRAM PURSUANT TO THIS CHAPTER.
    27  § 4513.  SEVERABILITY.
    28     THE PROVISIONS OF THIS CHAPTER ARE SEVERABLE. IF ANY
    29  PROVISION OF THIS CHAPTER OR ITS APPLICATION TO ANY PERSON OR
    30  CIRCUMSTANCE IS HELD INVALID, THE INVALIDITY SHALL NOT AFFECT
    19970H1573B2659                 - 19 -

     1  OTHER PROVISIONS OR APPLICATIONS OF THIS CHAPTER WHICH CAN BE
     2  GIVEN EFFECT WITHOUT THE INVALID PROVISION OR APPLICATION.
     3     SECTION 4 5. THE ACT OF SEPTEMBER 20, 1961 (P.L.1541,          <--
     4  NO.657), KNOWN AS THE PENNSYLVANIA AGRICULTURAL COMMODITIES
     5  MARKETING ACT OF 1968, IS REPEALED.
     6     SECTION 5.  THIS ACT SHALL TAKE EFFECT IN 60 DAYS.             <--
     7     SECTION 6.  THIS ACT SHALL TAKE EFFECT IMMEDIATELY.            <--
















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