CHAPTER 5. INDIANA DAIRY INDUSTRY DEVELOPMENT
IC 15-18-5
Chapter 5. Indiana Dairy Industry Development
IC 15-18-5-1
"Board"
Sec. 1. As used in this chapter, "board" refers to the Indiana dairy
industry development board established by section 9 of this chapter.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-2
"Commercial use"
Sec. 2. As used in this chapter, "commercial use" means sale for:
(1) retail consumption;
(2) resale; or
(3) processing for resale.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-3
"Director"
Sec. 3. As used in this chapter, "director" refers to the director of
the Indiana state department of agriculture or the director's designee.
As added by P.L.2-2008, SEC.9. Amended by P.L.120-2008, SEC.86.
IC 15-18-5-4
"Milk"
Sec. 4. As used in this chapter, "milk" means any class of milk
produced by dairy cows in Indiana.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-5
"Person"
Sec. 5. As used in this chapter, "person" means an individual, a
partnership, a limited liability company, a public or private
corporation, a political subdivision (as defined in IC 36-1-2-13), a
cooperative, a society, an association, or a fiduciary.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-6
"Producer"
Sec. 6. As used in this chapter, "producer" means a person
engaged in the production of milk in Indiana for commercial use,
including a producer-processor.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-7
"Producer-processor"
Sec. 7. As used in this chapter, "producer-processor" means a
producer who processes and markets the producer's own milk.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-8
"Qualified program"
Sec. 8. As used in this chapter, "qualified program" means a state
or regional dairy product promotion, research, or nutrition education
program that:
(1) is certified under 7 CFR 1150.153, as amended; and
(2) meets the following requirements:
(A) Conducts activities (as defined in 7 CFR 1150.114, 7
CFR 1150.115, and 7 CFR 1150.116) intended to increase
consumption of milk and dairy products.
(B) Is financed primarily by producers, either individually or
through cooperative associations.
(C) Does not use a private brand or trade name in advertising
and promotion of dairy products unless the national dairy
promotion and research board established under 7 CFR
1150.131 and the United States Secretary of Agriculture
concur that the requirement should not apply.
(D) Certifies to the United States Secretary of Agriculture
that a request from a producer for a refund under the
program will be honored by forwarding the part of the
refund equal to the amount of credit that otherwise would be
applicable to the program under 7 CFR 1150.152(c) to either
the national dairy promotion and research board or a
qualified program designated by the producer.
(E) Does not use program funds to influence governmental
policy or action.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-9
Indiana dairy industry development board created as a body
corporate and politic
Sec. 9. (a) The Indiana dairy industry development board is
established. The board is a public body corporate and politic and,
though it is separate from the state, the exercise by the board of its
powers constitutes an essential governmental function.
(b) The board consists of:
(1) at least nine (9); and
(2) not more than twenty-five (25);
voting members appointed under section 12 of this chapter.
(c) Each voting member of the board must:
(1) be a resident of Indiana;
(2) be at least twenty-one (21) years of age;
(3) have been actually engaged in the production of milk in
Indiana for at least one (1) year; and
(4) derive a substantial part of the member's income from the
production of milk in Indiana.
(d) The board may appoint individuals who hold offices of
importance to the milk industry or have special expertise concerning
the industry to participate in the work of the board as nonvoting
members. Not more than five (5) individuals may be appointed under
this subsection.
(e) The director may participate in the activities of the board as an
ex officio member.
(f) An Indiana dairy farmer selected to serve on the national dairy
board shall be a nonvoting, advisory member of the board.
(g) Fewer than fifty percent (50%) of the board members,
including nonvoting members, may be members of Milk Promotion
Services of Indiana, Inc.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-10
Determination of percentages of milk marketings produced
Sec. 10. (a) Before March 31 of each year, the board shall:
(1) determine:
(A) the percentage of the state's milk marketings produced
by each producer registered with the state board of animal
health or the United States Department of Agriculture; and
(B) the number of representatives, if any, each producer is
entitled to have on the board based on funds retained in
Indiana; and
(2) inform each producer described in subdivision (1)(A) of the
determinations made under subdivision (1).
(b) The board shall make the determinations required under this
section based upon:
(1) year end milk marketing figures from:
(A) the United States Department of Agriculture; or
(B) any other source the board considers reliable; and
(2) the formula prescribed under section 12 of this chapter.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-11
Nominations to board
Sec. 11. (a) Not later than thirty (30) days after receiving a notice
from the board under section 10 of this chapter, a producer or group
of producers entitled to representation on the board may submit
nominations to the board for board members.
(b) A producer or group of producers may submit two (2)
nominations for each board member to which the producer or group
of producers is entitled.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-12
Appointments to board
Sec. 12. (a) The board shall appoint from among the nominations
made under section 11 of this chapter one (1) board member to
represent each:
(1) producer who represents at least three percent (3%) of the
state's participating milk marketings; and
(2) group of producers that:
(A) collectively represents at least three percent (3%) of the
state's participating milk marketings; and
(B) notifies the board that the producers desire to be
considered collectively for purposes of representation on the
board.
(b) In addition to the members appointed under subsection (a), the
board shall appoint one (1) board member to represent a producer or
group of producers described in subsection (a)(2) for each additional
ten percent (10%) of the state's participating milk marketings
exceeding three percent (3%) that the producer or group of producers
represents. Not more than four (4) board members may represent any
producer or group of producers.
(c) The board shall make the appointments required under this
section not later than thirty (30) days after the close of the period for
submission of nominations under section 11 of this chapter.
(d) An appointment made by the board under this section may not
result in a producer or group of producers having two (2) members
on the board at the same time that represent the same share of the
state's participating milk marketings.
(e) If a producer or group of producers entitled to representation
on the board fails to submit a nomination, the board may appoint any
individual who meets the requirements of section 9(c) of this chapter
to represent the producer or group of producers.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-13
Terms of board members
Sec. 13. (a) The term of office of a board member is three (3)
years.
(b) A member continues in office until a successor who meets the
qualifications set forth in section 9(c) of this chapter is elected.
(c) A member may not serve for more than a total of three (3)
terms.
(d) If, upon expiration of the term of a board member, the
producer or group of producers that nominated the member no longer
represents the percentage of the state's milk marketings required
under section 12 of this chapter, a person may not be appointed to
replace the board member.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-14
Traveling expenses
Sec. 14. (a) As used in this section, "maximum daily amount"
refers to the maximum daily amount allowable to employees of the
executive branch of the federal government for subsistence expenses
while away from home in travel status.
(b) Each member of the board who is not a state employee is
entitled to a business per diem determined by the board.
(c) Each member of the board is also entitled to either:
(1) a per diem to cover travel and other expenses incurred in
connection with the member's duties; or
(2) reimbursement for traveling expenses and other expenses
actually incurred in connection with the member's duties;
as determined by the board.
(d) The business per diem allowance may not exceed the
maximum daily amount allowable in the particular location where
the member's duties are being performed. A mileage rate established
by the board may not exceed the standard mileage rates for
personally owned transportation equipment established by the United
States Internal Revenue Service for each mile necessarily traveled
from the member's usual place of residence to the particular location
where the member's duties are being performed.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-15
Vacancies on board
Sec. 15. (a) A member's term of office terminates and the
member's office becomes vacant if the member:
(1) dies;
(2) becomes disabled;
(3) resigns; or
(4) ceases to meet at least one (1) of the qualifications set forth
in section 9(c) of this chapter.
(b) If a board member's office becomes vacant before expiration
of the member's term of office, the board shall:
(1) certify to the producer or group of producers who nominated
the member that the vacancy exists; and
(2) request nominations in accordance with section 11 of this
chapter to fill the vacancy.
(c) The board shall appoint one (1) of the individuals nominated
under subsection (b).
(d) An individual appointed under this section shall serve for the
remainder of the unexpired term.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-16
Duties of the board
Sec. 16. The board shall do the following:
(1) Elect from among the board's members a chairperson, vice
chairperson, secretary, treasurer, and other officers the board
considers necessary.
(2) Employ personnel and contract for services that are
necessary for the proper implementation of this chapter.
(3) Establish accounts in adequately protected financial
institutions to receive, hold, and disburse funds accumulated
under this chapter.
(4) Bond the treasurer and other persons as necessary to ensure
adequate protection of funds received and administered by the
board.
(5) Authorize the expenditure of funds and the contracting of
expenditures to conduct proper activities under this chapter.
(6) Annually establish priorities and prepare and approve a
budget consistent with the estimated resources of the board and
the scope of this chapter.
(7) Provide for an independent audit, provide the results of the
audit to the state board of accounts and the Indiana state
department of agriculture, and make the results of the audit
available to all interested persons.
(8) Procure and evaluate data and information necessary for the
proper implementation of this chapter.
(9) Formulate and execute assessment procedures and methods
of collection.
(10) Establish procedures to annually inform all producers
regarding board members, policy, expenditures, and programs
for the preceding year.
(11) Receive and investigate, or cause to be investigated,
complaints and violations of this chapter and take necessary
action within its authority.
(12) Take any other action necessary for the proper
implementation of this chapter, including the adoption of rules
under IC 4-22-2.
As added by P.L.2-2008, SEC.9. Amended by P.L.120-2008, SEC.87.
IC 15-18-5-17
Meetings of board
Sec. 17. (a) The board shall meet at least once every six (6)
months.
(b) The board shall meet at a date, time, and place fixed by the
board.
(c) The chairperson:
(1) may call a special meeting; and
(2) shall call a special meeting upon the request of at least
twenty-five percent (25%) of the members of the board.
(d) Written notice of the date, time, and place of all meetings shall
be mailed in advance to each board member.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-18
Quorum
Sec. 18. (a) A majority of voting members appointed to the board
constitutes a quorum for the transaction of business.
(b) The affirmative vote of a majority of all members appointed
to the board is necessary for the action of the board.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-19
Review of expenditures
Sec. 19. At each regular meeting, the board shall review all
expenditures made since the board's last regular meeting.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-20
Minutes of meetings and other records
Sec. 20. (a) The board shall keep:
(1) minutes of the board's meetings; and
(2) other books and records that clearly reflect all the acts and
transactions of the board.
(b) The records of the board required to be kept under subsection
(a) shall be open to examination during normal business hours.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-21
Office space; administrative expenses
Sec. 21. (a) The board may contract for the necessary office
space, furniture, stationery, printing, and personnel services useful
or necessary for the administration of this chapter.
(b) The total administrative costs and expenses of the board may
not exceed five percent (5%) of the annual assessments collected
under this chapter.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-22
Liabilities of board; personal liability of members and employees
Sec. 22. (a) Obligations incurred by the board and other liabilities
and claims against the board may be enforced only against the assets
of the board in the same manner as if it were a corporation.
Liabilities for the debts or actions of the board may not arise against:
(1) the state;
(2) a political subdivision (as defined in IC 34-6-2-110); or
(3) a member, officer, employee, or agent of the board in an
individual capacity.
(b) The members and employees of the board may not be held
responsible individually to any person for errors in judgment,
mistakes, or other acts either of commission or omission, as
principal, agent, or employee, except for their own individual acts
that result in the violation of any law.
(c) An employee of the board may not be held responsible
individually for the act or omission of a member of the board.
(d) Any liability of the members of the board is several and not
joint. A member of the board may not be held liable for the default
of another member.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-23
Annual report filed with director
Sec. 23. (a) The board shall file a report with the director before
October 1 of each year.
(b) The report required under subsection (a) must contain the
following information:
(1) The income received from the assessments and penalties
collected under this chapter for the preceding fiscal year.
(2) The expenditure of funds by the board during the year for
the administration of this chapter.
(3) A brief description of all contracts requiring the expenditure
of funds by the board and the action taken by the board on all
contracts.
(4) An explanation of all programs relating to the discovery,
promotion, and development of markets and industries for the
use of dairy products and the direct expense associated with
each program.
(5) The name and address of each member of the board.
(6) A brief description of the rules and orders adopted by the
board.
(c) The report required under subsection (a) shall be available to
the public upon request.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-24
Imposition of assessment on milk
Sec. 24. An assessment of ten cents ($0.10) per hundredweight is
imposed on all milk produced in Indiana for commercial use.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-25
Remittance of assessment to board
Sec. 25. A producer shall remit the assessment required under
section 24 of this chapter to the board:
(1) not later than the last day of the month following the month
in which the milk is commercially used; and
(2) together with a report in a form approved by the board
detailing all assessments collected and remitted under this
chapter.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-26
Assessments; deposit requirement
Sec. 26. The board shall deposit all assessments received under
this chapter in the fund established by the board under section 28 of
this chapter.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-27
Procedures for directing assessment to other entities
Sec. 27. The board shall establish procedures for allowing a
producer to direct the distribution of the producer's assessment to:
(1) the national dairy board; or
(2) a qualified program other than the program chosen by the
board.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-28
Assessment fund; uses
Sec. 28. (a) The board shall establish and administer a fund for
assessments received under this chapter. The fund is not a part of the
state treasury.
(b) The board shall invest the money in the fund not currently
needed to meet the obligations of the fund in the same manner as
other public funds may be invested. Interest that accrues from these
investments shall be deposited in the fund.
(c) The board shall use the money in the fund to implement this
chapter.
(d) The board may not use money in the fund to establish a
program of its own but shall fund an active, ongoing, qualified
program in Indiana as stated in 7 U.S.C. 4505 and the regulations
adopted under that law. A qualified program that receives money
under this subsection may use the money to jointly sponsor projects
with any private or public organization for any of the following:
(1) Advertising and promotion.
(2) Market research.
(3) Nutrition and product research and development.
(4) Nutrition and educational programs.
(5) Any other activity to meet the objectives of this chapter.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-29
Penalties on unpaid assessments
Sec. 29. (a) The board shall add a penalty of one and one-half
percent (1.5%) per month on an unpaid assessment, beginning with
the day following the date the assessment was due. Any remaining
amount due, including an unpaid penalty assessed under this section,
shall be increased at the same rate on the corresponding day of each
succeeding month until paid.
(b) For purposes of this section, an assessment that was
determined at a date later than prescribed by section 25 of this
chapter because of the failure to submit a report to the board when
due shall be considered to have been payable on the date it would
have been due if the report had been timely filed.
(c) The timeliness of a payment to the board shall be based on:
(1) the applicable postmarked date; or
(2) the date actually received by the board;
whichever is earlier.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-30
Court action to collect assessments and fees
Sec. 30. The board may maintain a court action to collect
assessments and late payment fees due under this chapter.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-31
Cumulative nature of remedies
Sec. 31. The remedies provided in this chapter are in addition to
other remedies provided by law or in equity.
As added by P.L.2-2008, SEC.9.
IC 15-18-5-32
Violations
Sec. 32. A person who knowingly or intentionally violates this
chapter commits a Class C misdemeanor.
As added by P.L.2-2008, SEC.9.