PRINTER'S NO. 2487
No. 1888 Session of 1985
INTRODUCED BY BROUJOS, SIRIANNI, COLE, MORRIS, WASS, SCHEETZ,
JACKSON, FRYER, DALEY, VEON, BORTNER, MOWERY, SAURMAN,
AFFLERBACH, BATTISTO, COY, LLOYD, SHOWERS, A. C. FOSTER, JR.,
McHALE, BURNS, KUKOVICH, DAWIDA, COHEN, PISTELLA, BUSH,
CHADWICK, DeVERTER, FARGO, HERSHEY, HONAMAN, JOHNSON, SEMMEL,
NOYE, E. Z. TAYLOR, BARLEY, SWEET, WAMBACH, GEORGE, JAROLIN
AND WILSON, NOVEMBER 18, 1985
REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,
NOVEMBER 18, 1985
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," changing the name of
9 advisory boards to commodity marketing boards; further
10 providing for powers and duties of said boards; and further
11 providing for powers and duties of the Secretary of
12 Agriculture.
13 The General Assembly of the Commonwealth of Pennsylvania
14 hereby enacts as follows:
15 Section 1. Sections 2(4) and (5), 3(a), 4, 5 and 7 of the
16 act of September 20, 1961 (P.L.1541, No.657), known as the
17 Pennsylvania Agricultural Commodities Marketing Act of 1968,
18 reenacted and amended July 16, 1968 (P.L.359, No.179) and added
19 or amended August 31, 1971 (P.L.425, No.102), are amended and
20 section 2 is amended by adding a clause to read:
1 Section 2. Definitions.--When used in this act, the
2 following words and phrases shall have the following meanings,
3 unless the context indicates otherwise:
4 * * *
5 (4) ["Advisory board"] "Commodity marketing board" or
6 "board" means the persons appointed by the Secretary of
7 Agriculture from nominations [from the, producers of such
8 commodities to assist the secretary in administering a program]
9 submitted by producers of commodities affected by an issued
10 marketing program to administer such issued marketing program.
11 (5) "Marketing [development] program" means a program,
12 [issued by the Secretary of Agriculture] established pursuant to
13 this act, governing the collection of fees and administration of
14 budgets [for the programs] to implement projects to benefit
15 producers in Pennsylvania during any specified period or
16 periods.
17 * * *
18 (9) "Marketing contract" means a contract or agreement
19 between a commodity marketing board and a person for the
20 performance of services relating to advertising, marketing,
21 promotion, research or other objectives in furtherance of a
22 marketing program.
23 Section 3. Powers and Duties of the Secretary; Marketing
24 Programs.--(a) [The Secretary of Agriculture shall administer
25 and enforce the provisions of this act, and shall have and may
26 exercise any or all of the administrative powers conferred upon
27 the head of a department. In order to effectuate this act, the
28 Secretary of Agriculture is hereby authorized to issue, and,
29 only in accordance with the advice and assistance of the
30 advisory board, administer and enforce the provisions of
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1 marketing programs.] Subject to the provisions contained in this
2 act, the secretary shall administer and enforce the provisions
3 of this act, and shall have and shall exercise all
4 administrative powers necessary to effectuate the purposes of
5 this act, including the issuance of marketing programs, the
6 appointment of members to commodity marketing boards as provided
7 in section 4 and the providing of personnel, legal counsel, and
8 office facilities for the administration and enforcement of
9 marketing programs as directed by commodity marketing boards.
10 * * *
11 Section 4. [Advisory] Commodity Marketing Board.--(a) [Any
12 marketing program, issued pursuant to this act, shall provide
13 for the establishment of an advisory board to advise and assist
14 the secretary in the administration of the marketing programs.
15 The members of the board shall be appointed by the secretary
16 from nominations submitted by producers of such agricultural
17 commodities as the order will affect, and shall hold office
18 until the expiration of the term established in the program, or
19 until such appointment or term is terminated by majority action
20 of the board. The number of members of any such board and their
21 term of office shall be set forth in the marketing program, and
22 shall be of such number as is necessary to properly administer
23 such program, but shall be a minimum of five.] Every marketing
24 program, issued pursuant to this act, shall provide for the
25 establishment of a commodity marketing board, which shall have
26 primary decision making authority relative to marketing
27 contracts and other projects in furtherance of such program. The
28 number, representation, qualifications and terms of board
29 members and the schedule of regular board meetings and procedure
30 for calling special board meetings shall be established in the
19850H1888B2487 - 3 -
1 issued marketing program. No marketing program shall be issued
2 to establish a commodity board of less than five members. Board
3 members shall be appointed by the secretary from nominations
4 submitted by the agricultural producers whose commodities shall
5 be subject to the marketing program. No decision by the board
6 shall be effective unless, pursuant to regular or special
7 meetings, a majority of board members were present and a
8 majority of those present voted in support of the decision. All
9 decisions rendered by the board shall be recorded in written
10 minutes of the meeting, and the recorded minutes shall be made
11 available to the secretary and to the producers whose
12 commodities are subject to the marketing program.
13 (b) No member of any such board shall receive a salary, but
14 each shall be entitled to his actual expenses incurred while
15 engaged in performing his duties herein authorized. Any
16 marketing program established under the act may authorize a per
17 diem payment not to exceed [twenty dollars ($20)] one hundred
18 dollars ($100) per day, and expenses for each day in which a
19 board member or subcommittee member is performing a duty
20 necessary to the function of the board. [The secretary may
21 authorize such board to employ necessary personnel, fix their
22 compensation and terms of employment, and to incur such expenses
23 to be paid by the secretary from moneys collected, as provided
24 in this act, as the secretary may deem necessary and proper, to
25 enable such board to perform its duties as are authorized
26 herein. The duties of any such board shall be administrative
27 only and may include the following:
28 (1) Subject to the approval of the secretary, to administer
29 such marketing program.
30 (2) To recommend to the secretary administrative rules and
19850H1888B2487 - 4 -
1 regulations relating to the marketing program.
2 (3) To receive and report to the secretary complaints or
3 violations of the marketing program.
4 (4) To recommend to the secretary amendments to the
5 marketing program.
6 (5) To assist the secretary in assessment of members of the
7 industry in the collection of funds to cover expenses incurred
8 in administration of the agricultural commodity marketing
9 program.
10 (6) To assist the secretary in collection of such necessary
11 information and data as the secretary may deem necessary to the
12 proper administration of this act.
13 (c) Upon approval of the secretary, the board may establish
14 committees or subcommittees to carry out assigned duties and
15 functions, and designate the persons who need not be members of
16 the board to serve upon such committees.]
17 (c) In administering the marketing program the board shall
18 have the following powers and duties:
19 (1) To determine all matters pertaining to the marketing
20 program issued by the secretary.
21 (2) To hire and employ personnel which the board deems
22 necessary for the proper administration of the marketing program
23 and to fix the compensation and terms of employment of such
24 personnel: Provided, That the hiring, employment, compensation
25 and terms of employment of personnel pursuant to this clause
26 shall not be subject to the provisions of the act of April 9,
27 1929 (P.L.177, No.175), known as "The Administrative Code of
28 1929."
29 (3) To acquire, own, use, hire, lease, operate and dispose
30 of personal property, real property and interests in real
19850H1888B2487 - 5 -
1 property.
2 (4) To make and enter into all contracts and agreements, in
3 accordance with the provisions of the law, which the board deems
4 necessary or incidental to the furtherance of the marketing
5 program or performance of duties and powers pursuant to this
6 act: Provided, That marketing contracts and the procedures and
7 decisions related to such contracts shall not be subject to
8 competitive bidding or other requirements prescribed in "The
9 Administrative Code of 1929."
10 (5) To receive, account for and disburse all moneys
11 collected pursuant to the issued marketing program.
12 (6) To prepare a budget for the administration, operating
13 costs and expenses of the program.
14 (7) To receive and report to the secretary complaints or
15 violations of the marketing program and to assist and cooperate
16 with the secretary in the enforcement thereof.
17 (8) To establish committees or subcommittees to carry out
18 assigned duties and functions, and to designate board members
19 and nonboard members to serve on such committees and
20 subcommittees.
21 (9) To collect and gather information and data relevant to
22 the proper administration of the marketing program.
23 (10) To charge fees and to assist the secretary in the
24 imposition of fees and the collection of fees and revenues
25 pursuant to this act.
26 (11) To recommend amendments to the marketing program and
27 amendments to this act and regulations issued pursuant thereto.
28 (d) Any marketing program issued pursuant to this act
29 specifically for the milk industry shall provide for the
30 establishment of a board of eighteen members, who shall include
19850H1888B2487 - 6 -
1 the secretary, or his designee, and seventeen persons appointed
2 by the secretary who are active in the production of milk,
3 including, but not limited to, representatives of milk
4 cooperatives and farming associations, producer-handlers of milk
5 and independent dairy farmers. In addition to the powers and
6 duties contained in subsection (c), the commodity marketing
7 board of the milk marketing program shall have the power to
8 elect or appoint from the membership of the board a chairman,
9 vice-chairman, secretary and treasurer and to hold special
10 meetings at the request of the chairman or upon request of one-
11 third of the members of the board.
12 Section 5. Provisions of Marketing Programs.--Subject to the
13 legislative restrictions and limitations set forth in this act,
14 any marketing program issued by the secretary pursuant to this
15 act may contain any or all of the following provisions:
16 (1) Provisions for the establishment of plans for
17 advertising and sales promotion to maintain present markets, or
18 to create new or larger markets for agricultural commodities
19 grown or produced in the State of Pennsylvania[. The secretary
20 is hereby authorized to prepare, issue, administer and enforce
21 plans for promoting the sale of agricultural commodities]:
22 Provided, That any such plans shall be directed toward
23 increasing the sale of such commodities without reference to any
24 particular firm's or individual's brand or trade name: And
25 provided, That no advertising or sales promotion program shall
26 be issued by the secretary, which shall make use of false or
27 unwarranted claims on behalf of any such product or disparage
28 the quality, value, sale or use of any other agricultural
29 commodity.
30 (2) Provisions for the establishment of research programs
19850H1888B2487 - 7 -
1 designed to benefit producers, or for agriculture in general.
2 (3) Provisions establishing or providing authority for
3 establishing an information and service program designed to
4 acquaint producers and other interested persons with quality
5 standards and quality improvements.
6 (4) Provisions allowing the secretary and the [advisory]
7 commodity marketing board to cooperate with any other state or
8 Federal agency, or other organization whose activities may be
9 deemed beneficial to the purpose of this act.
10 (5) Provision may be made in the program to exempt, or allow
11 suitable adjustments or credits, in connection with an
12 agricultural commodity on which a mandatory checkoff for market
13 development is required under the authority of any Federal law.
14 Section 7. Terminating Marketing Programs.--[The] Subject to
15 approval of the appropriate commodity marketing board, the
16 secretary shall suspend or terminate any marketing program or
17 any provisions of any marketing program whenever he finds that
18 such provisions or program does not tend to effectuate this act
19 within the standards and subject to the limitations and
20 restrictions imposed in this act: Provided, That such suspension
21 or termination shall not be effective until the expiration of
22 the current marketing season. If the secretary finds that the
23 termination of any marketing program is requested, in writing,
24 by more than thirty-three and one third per centum of the
25 affected producers who produce for market more than fifty per
26 centum of the volume of agricultural commodities produced within
27 the designated production area for market, the secretary shall
28 terminate or suspend for a specified period such marketing
29 program or provisions thereof: Provided, That such termination
30 shall be effective only if announced on or before such date as
19850H1888B2487 - 8 -
1 may be specified in such program. If ten per centum of the
2 producers in a commodity group of over two thousand affected
3 producers or fifteen per centum of the producers in a commodity
4 group of less than two thousand affected producers request, in
5 writing, that a referendum be held on the question of
6 terminating the program, the secretary must announce and conduct
7 such a referendum within a reasonable period of time, and in any
8 case, within one year of the request, a marketing program shall
9 be terminated if so voted by a majority of those voting.
10 Section 2. Section 10(a) and (b) of the act is amended to
11 read:
12 Section 10. [Budgeting and] Collection of Fees.--(a) [For
13 the purpose of providing funds to defray the necessary expense
14 incurred by the secretary in the formulation, issuance,
15 administration and enforcement of any marketing program, the
16 secretary shall prepare a necessary budget covering the cost of
17 same. Likewise the board shall prepare a budget for the
18 administration and operation costs and expenses, including
19 advertising and sales promotion, when same is requested in any
20 marketing program executed hereunder, which budget shall be
21 approved by the secretary. Both budgets with the provisions for
22 the collection of such necessary fees, the time and condition of
23 such payment and in no case to exceed five per centum of the
24 gross market value of, such agricultural commodities produced
25 and marketed, shall become a part of any marketing program upon
26 adoption as provided in this act.] Any marketing program issued
27 pursuant to this act shall provide for the collection of fees to
28 defray the necessary expenses incurred in the formation,
29 issuance, administration and enforcement of the marketing
30 program and shall include the amount, time, method and condition
19850H1888B2487 - 9 -
1 of payment. Fees to be charged shall not be in excess of that
2 which will generate revenues of five per centum of the gross
3 market value of production and marketing of the commodity
4 subject to the marketing program. Each and every producer
5 affected by any marketing program issued pursuant to this act
6 shall pay to the secretary at such time and in such manner as
7 prescribed by the program as adopted [an assessment covering the
8 budget] the charges provided by this [section] subsection.
9 (b) For the convenience of making collections of any
10 producers [assessments] charges established pursuant to this
11 section, the secretary may collect such [assessment] charge from
12 the sales agent of the producer.
13 * * *
14 Section 3. Section 11 of the act, amended August 31, 1971
15 (P.L.425, No.102), is amended to read:
16 Section 11. Rules and Regulations for Enforcement.--The
17 secretary shall, with the advice of the [advisory] commodity
18 marketing board, make and promulgate such rules and regulations
19 as may be necessary to effectuate this act and to enforce the
20 provisions of any marketing program, all of which shall have the
21 force and effect of law. The secretary may institute such action
22 at law or in equity and may establish penalties as may appear
23 necessary to enforce compliance with this act, or any rule or
24 regulation, or marketing program committed to his administration
25 in addition to any other remedy under this act.
26 Section 4. This act shall apply to marketing programs
27 existing on this act's effective date upon approval of a
28 majority of members of the advisory boards of such programs.
29 Section 5. This act shall be effective immediately and may
30 be applicable to marketing programs existing on this act's
19850H1888B2487 - 10 -
1 effective date upon approval of a majority of members of the
2 advisory boards of such programs.
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