Bill Summary for H 816 (2013-2014)

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Summary date: 

May 14 2013
S.L. 2013-311

Bill Information:

View NCGA Bill Details2013-2014 Session
House Bill 816 (Public) Filed Wednesday, April 10, 2013
A BILL TO BE ENTITLED AN ACT TO AUTHORIZE TOBACCO GROWERS TO ASSESS THEMSELVES TO PROMOTE THE INTERESTS OF TOBACCO GROWERS.
Intro. by Langdon.

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Bill summary

House committee substitute to the 1st edition makes the following changes. Deletes the provisions of the 1st edition and replaces them with the following.

Enacts new Article 50D, Tobacco Growers Assessment Act, in GS Chapter 106. Allows the Tobacco Growers Association of North Carolina Inc. (Association) to conduct a referendum among tobacco growers as to whether to levy an assessment on tobacco sold in the state. Caps the amount of the proposed assessment at $0.15 for each hundred pounds of tobacco. Allows the Association to increase the assessment amount, if the Association sets a lower amount than that approved by referendum, by no more than $0.01, without having to conduct a referendum. Prohibits collecting the assessment unless more than two-thirds of the votes cast are in favor of the assessment. Requires a tobacco buyer to collect the assessment when buying by deducting the assessment from the price paid to the producer. Allows the buyer to keep the assessments until the total amount due to the Department of Agriculture and Consumer Services (Department) is at least $25, or until the end of the calendar quarter, whichever comes first. Provides for record keeping. Allows the Association to bring an action to recover any unpaid assessments, plus the reasonable costs incurred in the action.

Requires the Department to remit funds collected to the Association at least once a month. Requires the Association to use the funds to promote the interests of tobacco growers. Allows a tobacco grower to request a refund of the assessment within 30 days from the last date on which the grower paid the assessment; requires the Association to mail a refund within 30 days of receiving a properly documented refund request. Upon a petition by at least 10% of the tobacco growers in the state known to the Association, the Association must conduct a referendum on continuing the referendum. If a majority of the votes are against continuation, or if the referendum is not conducted within six months, the assessment expires at the end of the six-month period. If a majority of the votes cast are in favor of continuing, then no subsequent referendum is to be held for at least three years.

Allows the Association to conduct a referendum at any time after the effective date of the act.