Bill Text: AZ HB2312 | 2011 | Fiftieth Legislature 1st Regular | Engrossed
Bill Title: Structural pest management; regulation.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2011-04-27 - Governor Signed [HB2312 Detail]
Download: Arizona-2011-HB2312-Engrossed.html
|
Conference Engrossed |
|
State of Arizona House of Representatives Fiftieth Legislature First Regular Session 2011
|
|
HOUSE BILL 2312 |
|
|
|
|
AN ACT
Amending sections 3-108, 3‑214.01, 3‑218, 3‑233, 3‑234, 3‑266, 3‑269, 3‑344, 3‑345, 3‑350, 3‑354, 3‑415, 3‑417, 3‑447, 3‑448, 3‑449, 3‑449.04, 3‑450, 3‑466, 3‑468.04, 3‑468.06, 3‑484, 3‑489, 3‑491, 3‑492, 3‑498, 3‑521, 3‑526.04, 3‑526.06, 3‑584, 3‑590, 3‑592, 3‑710, 3‑716, 3‑717, 3‑911, 3‑913, 3‑1294, 3‑1350, 3‑1372, 3‑1377, 3‑1402, 3‑1403, 3‑1721, 3‑2602, 3‑2604, 3‑2607, 3‑2913 and 5‑113, Arizona Revised Statutes; Amending sections 3-108, 3‑214.01, 3‑218, 3‑233, 3‑234, 3‑266, 3‑269, 3‑344, 3‑345, 3‑350, 3‑354, 3‑415, 3‑417, 3‑447, 3‑448, 3‑449, 3‑449.04, 3‑450, 3‑466, 3‑468.04, 3‑468.06, 3‑484, 3‑489, 3‑491, 3‑492, 3‑498, 3‑521, 3‑526.04, 3‑526.06, 3‑584, 3‑590, 3‑592, 3‑710, 3‑716, 3‑717, 3‑911, 3‑913, 3‑1294, 3‑1350, 3‑1372, 3‑1377, 3‑1402, 3‑1403, 3‑1721, 3‑2602, 3‑2604, 3‑2607, 3‑2913 and 5‑113, Arizona Revised Statutes, as amended by this act; relating to agricultural trust funds.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 3-108, Arizona Revised Statutes, is amended to read:
3-108. Administrative support fund; use; exemption
A. A department of agriculture administrative support fund is established. All monies collected pursuant to any interagency agreement with the department pursuant to section 3‑554, subsection A, section 3‑588, subsection A and section 3-1084, subsection A shall be deposited, pursuant to sections 35‑146 and 35‑147, in the fund.
B. All monies collected pursuant to any interagency agreement with the department in accordance with section 3‑468.03, subsection A and section 3‑526.03, subsection A shall be deposited in the administrative support fund or deposited in the citrus, fruit and vegetable revolving trust fund established by section 3‑447 pursuant to the terms of the interagency agreement. Deposits in the administrative support fund shall be made pursuant to sections 35‑146 and 35‑147.
C. Monies in the fund are continuously appropriated and exempt from the provisions of section 35‑190 relating to lapsing of appropriations.
Sec. 2. Section 3-214.01, Arizona Revised Statutes, is amended to read:
3-214.01. Dangerous plants, pests and diseases trust fund
A. A dangerous plants, pests and diseases trust fund is established for the exclusive purpose of implementing, continuing and supporting the agricultural program established by this article. All monies collected under the provisions of this article except civil penalties assessed pursuant to section 3‑204, 3‑205, 3‑205.02 or 3‑215.01 shall be deposited, pursuant to sections 35‑146 and 35‑147, in the dangerous plants, pests and diseases trust fund.
B. The director shall administer the trust fund as trustee. The state treasurer shall accept, SEPARATELY ACCOUNT FOR and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 And which shall not be commingled with any other monies in the state treasury except for investment purposes. On notice from the director, the state treasurer shall invest and divest monies in the any trust fund monies deposited in the state treasury as provided by section SECTIONS 35-313 AND 35-314.03, and monies earned from investment shall be credited to the trust fund.
C. The beneficiary of the trust is the agricultural program established by this article. All monies in the dangerous plants, pests and diseases trust fund are to be used by the department subject to legislative appropriation exclusively to carry out the provisions of this article, including salaries, fees and office, administrative, bonding and travel expenses incurred.
D. The unexpended and unencumbered balance of monies, if any, remaining in the dangerous plants, pests and diseases trust fund at the end of each fiscal year shall not revert to the state general fund. END_STATUTE
Sec. 3. Section 3-218, Arizona Revised Statutes, is amended to read:
3-218. Citrus budwood certification; fee
A. The director may direct a state citrus budwood certification program. Under the program, inspectors may:
1. Monitor the fumigation of blocks of citrus trees.
2. Monitor the transplanting of seedlings from the seed bed.
3. Monitor the cutting of budwood from mother blocks or other certified blocks within a twenty-four hour period.
4. Tag certified citrus trees with certified tags.
5. Map blocks in a certified nursery.
6. Audit records that are kept by the nursery and by private inspection associations.
B. The director may assess a fee of not more than ten cents per budwood to cover the costs of implementing the citrus budwood certification program. The director shall establish the amount of the fee by rule pursuant to a cooperative agreement among the department, private inspection associations and the university of Arizona, Yuma Mesa agricultural center. The director shall deposit, pursuant to sections 35‑146 and 35‑147, revenues collected from the fee in the dangerous plants, pests and diseases trust fund established by section 3‑214.01.
Sec. 4. Section 3-233, Arizona Revised Statutes, is amended to read:
3-233. Powers and duties; fees; penalty
A. For the purpose of carrying out this article, the director may:
1. In order to have access to seeds and the records pertaining to seeds subject to this article and the rules adopted under this article, enter upon:
(a) Any established plant, warehouse or place of business during customary business hours.
(b) Any truck or other conveyance operated on land, on water or in the air on probable cause or reasonable suspicion to believe that a violation of this article has occurred.
2. Issue and enforce a written cease and desist order to the owner or custodian of any lot of agricultural, vegetable or ornamental plant seed which that the director finds is in violation of this article, as provided in section 3‑238, and any lot or lots of seed sold, or transported for sale, which that do not meet all requirements of the plant variety protection act (P.L. 91‑577; 84 Stat. 1542; 7 United States Code sections 2321 through 2582).
3. Provide through the state agricultural laboratory for seed testing facilities, employ qualified persons and incur expenses necessary to comply with this article.
4. Through the state agricultural laboratory:
(a) Provide for making purity, germination, noxious weed, tetrazolium and pathology tests of seeds for farmers and dealers on request pursuant to rules prescribed by the director governing such testing.
(b) Collect charges for the tests as prescribed by the director.
5. Cooperate with the United States department of agriculture and other agencies in seed law enforcement.
6. Revoke, suspend, restrict, deny or choose not to renew a license issued under this article or fix periods and terms of probation for a license holder after a hearing at which the license holder is found by a preponderance of the evidence to have violated this article or any of the rules adopted under this article.
7. Establish by rule fees that are sufficient to cover the costs of interstate and international exportation inspection activities under section 3‑232, subsection A, paragraph 1, but annually not more than one dollar fifty cents per acre. Monies received under this paragraph shall be deposited in the seed law trust fund pursuant to section 3‑234.
B. For the purposes of this article, the director, after an opportunity for a hearing, shall establish and collect the following fees:
1. For a seed dealer's license, not more than fifty dollars per year.
2. For a labeler's license, not more than five hundred dollars per year.
C. The director shall assess a license holder who does not submit the annual license renewal fees to the department by July 1 a penalty of ten per cent of the amount of the license fee per month for not more than three months. Penalties collected under this subsection shall be deposited in the seed law trust fund pursuant to section 3‑234.
Sec. 5. Section 3-234, Arizona Revised Statutes, is amended to read:
3-234. Seed law trust fund
A. A seed law trust fund is established for the exclusive purpose of implementing, continuing and supporting the agricultural program established by this article. All monies collected pursuant to section 3‑233 shall be deposited, pursuant to sections 35‑146 and 35‑147, in the seed law trust fund.
B. The director shall administer the trust fund as trustee. The state treasurer shall accept, Separately account for and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 AND WHICH SHALL NOT BE COMMINGLED WITH ANY OTHER MONIES IN THE STATE TREASURY EXCEPT FOR INVESTMENT PURPOSES. On notice from the director, the state treasurer shall invest and divest monies in the any trust fund monies deposited in the state treasury as provided by section SECTIONS 35-313 AND 35-314.03, and monies earned from investment shall be credited to the trust fund. surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year, do not revert to the state general fund.
C. The BENEFICIARY of the trust is the agricultural program established by this article. All monies in the seed law trust fund are subject to legislative appropriation to the department to be spent as directed by the director to carry out the provisions of this article.
Sec. 6. Section 3-266, Arizona Revised Statutes, is amended to read:
3-266. Annual reports and publications; membership in professional organizations
A. The director may provide for publishing at such times and in such form as he the director deems proper information concerning the sale of fertilizer materials together with such data on their production and use as he the director considers advisable, and a report of the monies received and expended, but the information concerning production and use of fertilizer materials shall not disclose the operations of any one person. Reports of chemists' findings based on official samples of each brand of fertilizer material sampled and analyzed during the year as compared to the guaranteed chemical analysis for each such fertilizer material shall be published annually as promptly as possible after January 1 each year.
B. The director may authorize employees of the division to join and subscribe to any state, district, regional or national organizations or publications relating to sale and distribution or control of sale and distribution of fertilizer materials, and attend state, district, regional and national meetings relating to sale and distribution or control of sale and distribution of fertilizer materials.
C. Expenses authorized by this section shall be paid from and limited by the fertilizer materials trust fund.
Sec. 7. Section 3-269, Arizona Revised Statutes, is amended to read:
3-269. Fertilizer materials trust fund
A. The fertilizer materials trust fund is established for the exclusive purpose of implementing, continuing and supporting the agricultural program established by this article. Except as provided in section 3‑272, subsection B, paragraph 2, all monies collected under the provisions of this article shall be deposited, pursuant to sections 35‑146 and 35‑147, in the trust fund.
B. The director shall administer the trust fund as trustee. The state treasurer shall accept, SEPARATELY ACCOUNT FOR and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 AND which SHALL NOT BE COMMINGLED WITH any OTHER MONIES IN THE STATE TREASURY EXCEPT FOR INVESTMENT PURPOSES. On notice from the director, the state treasurer shall invest and divest monies in the any trust fund monies deposited in the state treasury as provided by section SECTIONS 35-313 AND 35-314.03, and monies earned from the investment shall be credited to the trust fund.
C. The beneficiary of the trust is the agricultural program established by this article. The trust fund shall be used solely for the purpose of administering the provisions purposes of this article upon on the order of the director.
D. The fertilizer materials trust fund shall be exempt from the provisions of section 35‑190 relating to lapsing appropriations. Surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year, do not revert to the state general fund.
Sec. 8. Section 3-344, Arizona Revised Statutes, is amended to read:
3-344. Advisory committee; membership; appointment; duties; uniformity of labeling and standards of pesticides
A. The director may appoint an advisory committee as needed to assist and advise the director and associate director in adopting technical rules. The director shall designate the chairman. Meetings of the committee shall be held upon call of the associate director or director. Members of the committee shall serve without compensation, but shall be entitled to reimbursement for expenses of travel and subsistence incurred in the performance of their duties, which shall be paid from and limited by the pesticide trust fund.
B. In order to avoid confusion endangering the public health, which would result from diverse requirements, particularly as to the labeling and coloring of pesticides, and to avoid increased costs to the public due to the necessity of complying with such diverse requirements in the manufacture and sale of such pesticides, it is desirable that there should be uniformity between the requirements of the several states and the federal government relating to such pesticides. To this end, the director may after a hearing adopt rules applicable to and in conformity with primary standards established by this article as have been or may be prescribed by federal agencies with respect to pesticides.
Sec. 9. Section 3-345, Arizona Revised Statutes, is amended to read:
3-345. Publications; membership in professional organizations
A. The department may publish, at such times and in such forms as the director deems proper, information concerning the production and use of pesticides and reports of chemists' findings based on official samples taken of pesticides sold within the state as compared with guaranteed analysis analyses registered under section 3‑351.
B. The director may authorize employees of the department to:
1. Join and subscribe to any state, district, regional or national organizations or publications relating to and dealing with pesticides.
2. Attend state, district, regional and national meetings relating to pesticides that in the director's discretion may be necessary or for the best interests of those affected by this article.
C. Expenses authorized by this section shall be paid from and limited by the pesticide trust fund.
Sec. 10. Section 3-350, Arizona Revised Statutes, is amended to read:
3-350. Pesticide trust fund
A. The pesticide trust fund is established for the exclusive purpose of implementing, continuing and supporting the agricultural program established by this article. Except as provided in section 3‑351, subsection D, paragraph 2, all monies collected under the provisions of this article shall be deposited, pursuant to sections 35‑146 and 35‑147, in the trust fund.
B. The director shall administer the trust fund as trustee. The state treasurer shall accept, SEPARATELY ACCOUNT FOR and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 AND WHICH SHALL NOT be COMMINGLED WITH ANY OTHER MONIES IN THE STATE TREASURY EXCEPT FOR INVESTMENT PURPOSES. On notice from the director, the state treasurer shall invest and divest monies in the any trust fund monies deposited in the state treasury as provided by section SECTIONS 35-313 AND 35-314.03, and monies earned from investment shall be credited to the trust fund.
C. The beneficiary of the trust is the agricultural program established by this article. The trust fund shall be used solely for the purpose of administering the provisions purposes of this article upon on the order of the director.
D. The pesticide trust fund shall be exempt from the provisions of section 35‑190 relating to lapsing appropriations. Surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year, do not revert to the state general fund.
Sec. 11. Section 3-354, Arizona Revised Statutes, is amended to read:
3-354. Cease and desist orders; condemnation and destruction or sale of noncomplying pesticides or devices
A. When the director finds from investigation that any pesticide or device being distributed or delivered for transportation or transported in intrastate commerce or between points within the state through any point outside this state does not meet the requirements of this article as follows, the director may take the action prescribed by subsection B of this section:
1. In the case of a pesticide:
(a) If it is adulterated or misbranded.
(b) If it has not been registered, if necessary, under section 3‑351.
(c) If it fails to bear on its label the information required by law.
(d) If it is a white powder pesticide and is not colored as required under this article.
2. In the case of a device, if it is misbranded.
B. Upon the discovery of any of the facts set forth in subsection A of this section:
1. The director may serve the person violating this article with a cease and desist order requiring the person, on receiving the notice, to immediately cease and desist the violation. The order shall be served by any method of service authorized by the Arizona rules of civil procedure.
2. The department may issue and serve a written cease and desist order on the owner or custodian of any pesticide or device found to be in violation of this article. The pesticide or device shall not be sold, used or removed until this article has been complied with and the pesticide or device has been released in writing by the director or the violation has been otherwise disposed of as provided in this article by a court of competent jurisdiction.
3. If the director discovers any pesticide or device that is in violation of this article, and the owner or custodian is not available for service of the order, the director may attach the order to the pesticide or device and the pesticide or device shall not be sold, used or removed until this article has been complied with and the pesticide or device has been released in writing by the director or the violation has been otherwise disposed of as provided in this article by a court of competent jurisdiction.
C. After a cease and desist order is served on any person, either that person or the director may file an action in the superior court in the county in which a violation of this article is alleged to have occurred for an adjudication of the alleged violation. The court may issue temporary or permanent injunctions, mandatory or restraining, and intermediate orders it deems necessary or advisable. The court may order condemnation of any pesticide or device that does not meet the requirements of this article. The action shall be tried de novo.
D. If the article is condemned, it shall be disposed of, after entry of decree, by destruction or sale as the court directs, and the proceeds, if the article is sold, less legal costs, shall be paid into the pesticide trust fund. On payment of costs and execution and delivery of a good and sufficient bond conditioned so that the article shall not be disposed of unlawfully, the court may direct that the article be delivered to the owner of the article for relabeling or reprocessing as the case may be.
E. When a decree of condemnation is entered against the article, court costs, fees and storage and other proper expenses shall be awarded against the person, if any, intervening as claimant of the article.
Sec. 12. Section 3-415, Arizona Revised Statutes, is amended to read:
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 trust funds for the exclusive purpose of implementing, continuing and supporting the respective marketing order or marketing agreement. The commission or committee shall administer the trust fund as trustee. The state treasurer shall accept, SEPARATELY ACCOUNT FOR and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 AND WHICH SHALL NOT BE COMMINGLED WITH ANY OTHER MONIES IN THE STATE TREASURY EXCEPT FOR INVESTMENT PURPOSES. On notice from the commission or committee, the state treasurer shall invest and divest any trust fund monies deposited in the state treasury as provided by sECTIONS 35-313 AND 35-314.03, and monies earned from investment shall be credited to the trust fund. The beneficiary of the trust is the agricultural program established by the marketing order or marketing agreement. The trust fund shall be used solely for those purposes on the order of the commission or committee. Surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year or at the termination of the marketing order or agreement, do not revert to the state general fund.
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.
Sec. 13. Section 3-417, Arizona Revised Statutes, is amended to read:
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 trust 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.
Sec. 14. Section 3-447, Arizona Revised Statutes, is amended to read:
3-447. Citrus, fruit and vegetable trust fund; administration
A. The citrus, fruit and vegetable revolving trust fund is established consisting for the exclusive purpose of implementing, continuing and supporting the agricultural program established by this article and article 4 of this chapter. The trust fund consists of revenues from assessments and other monies designated for deposit in the trust fund in by 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 trust fund shall be used solely for the purpose of administering and enforcing the provisions of this article and article 4 of this chapter.
B. Monies in the fund may be invested The director shall administer the trust fund as trustee. The state treasurer shall accept, SEPARATELY ACCOUNT FOR and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 AND WHICH SHALL NOT BE COMMINGLED WITH ANY OTHER MONIES IN THE STATE TREASURY EXCEPT FOR INVESTMENT PURPOSES. On notice from the director, the state treasurer shall invest any trust fund monies deposited in the state treasury pursuant to section SECTIONS 35-313 AND 35-314.03, and all interest earned on these monies shall be credited to the trust fund.
C. The beneficiaries of the trust are the agricultural programs established by this article and article 4 of this chapter.
D. Monies in the trust fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations. Surplus monies, including any unexpended and unencumbered balance at the end of the FISCAL year, do not revert to the state general fund.
B. E. 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 trust fund during the preceding fiscal year and transmit the report to the citrus, fruit and vegetable advisory council on or before December 1.
C. F. Any monies remaining unexpended in the trust 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.
Sec. 15. Section 3-448, Arizona Revised Statutes, is amended to read:
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 trust 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.
Sec. 16. Section 3-449, Arizona Revised Statutes, is amended to read:
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 trust 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 trust fund.
Sec. 17. Section 3-449.04, Arizona Revised Statutes, is amended to read:
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 trust fund.
Sec. 18. Section 3-450, Arizona Revised Statutes, is amended to read:
3-450. Exemption from citrus fruit standardization; 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 trust 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.
Sec. 19. Section 3-466, Arizona Revised Statutes, is amended to read:
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 trust fund.
Sec. 20. Section 3-468.04, Arizona Revised Statutes, is amended to read:
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 trust 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.
Sec. 21. Section 3-468.06, Arizona Revised Statutes, is amended to read:
3-468.06. Arizona citrus trust fund
A. The Arizona citrus trust fund is established for the exclusive purpose of implementing, continuing and supporting the agricultural program established by this article. 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 trust fund.
B. The council shall administer the trust fund as trustee. The state treasurer shall accept, SEPARATELY ACCOUNT FOR and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 AND WHICH SHALL NOT BE COMMINGLED WITH ANY OTHER MONIES IN THE STATE TREASURY EXCEPT FOR INVESTMENT PURPOSES. On notice from the council, the state treasurer shall invest and divest any trust fund monies deposited in the state treasury as provided by sectionS 35-313 AND 35‑314.03, and monies earned from the investment shall be credited to the trust fund.
C. The beneficiary of the trust is the agricultural program established by this article. Monies in the trust fund shall be disbursed as approved by the council exclusively for the purposes prescribed in this article.
D. Surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year, do not revert to the state general fund.
B. E. If the council is terminated, any monies in the council's accounts trust fund 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.
Sec. 22. Section 3-484, Arizona Revised Statutes, is amended to read:
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, shall 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 trust fund provided for in section 3‑447.
Sec. 23. Section 3-489, Arizona Revised Statutes, is amended to read:
3-489. Requests for inspection by unlicensed or unregistered 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 trust 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.
Sec. 24. Section 3-491, Arizona Revised Statutes, is amended to read:
3-491. Exemption from fruit or vegetable standardization; 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 trust 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.
Sec. 25. Section 3-492, Arizona Revised Statutes, is amended to read:
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 trust 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 trust fund.
Sec. 26. Section 3-498, Arizona Revised Statutes, is amended to read:
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 trust fund.
Sec. 27. Section 3-521, Arizona Revised Statutes, is amended to read:
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 trust fund.
Sec. 28. Section 3-526.04, Arizona Revised Statutes, is amended to read:
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 trust 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.
Sec. 29. Section 3-526.06, Arizona Revised Statutes, is amended to read:
3-526.06. Iceberg lettuce trust fund
A. The iceberg lettuce trust fund is established for the exclusive purpose of implementing, continuing and supporting the agricultural program established by this article. 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 trust fund.
B. The council shall administer the trust fund as trustee. The state treasurer shall accept, SEPARATELY ACCOUNT FOR and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35‑310 AND WHICH SHALL NOT BE COMMINGLED WITH ANY OTHER MONIES IN THE STATE TREASURY EXCEPT FOR INVESTMENT PURPOSES. On notice from the council, the state treasurer shall invest and divest any trust fund monies deposited in the state treasury as provided by sectionS 35-313 AND 35‑314.03, and monies earned from the investment shall be credited to the trust fund.
C. The beneficiary of the trust is the agricultural program established by this article. Monies in the trust fund shall be disbursed as approved by the council exclusively for the purposes prescribed in this article.
D. Surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year, do not revert to the state general fund.
B. E. If the council is terminated, any monies in the council's accounts trust fund 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.
Sec. 30. Section 3-584, Arizona Revised Statutes, is amended to read:
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 to be held in trust in, and subject to the terms and conditions prescribed for, the Arizona grain research trust fund established by section 3-590.
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. All donations of monies shall be held in trust in, and subject to the terms and conditions prescribed for, the Arizona grain research trust fund established by section 3-590.
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.
Sec. 31. Section 3-590, Arizona Revised Statutes, is amended to read:
3-590. Arizona grain research trust fund
A. The Arizona grain research trust fund is established for the exclusive purpose of administering implementing, continuing and supporting the agricultural program established by this article. The council shall administer the trust fund as trustee. The trust fund consists of fees collected pursuant to this article.
B. the beneficiary of the trust is the agricultural program established by this article. the trust fund shall be used exclusively for the purposes of this article on the order of the council.
C. the state treasurer shall accept, separately account for and hold in trust monies deposited in the state treasury, which are considered to be trust monies as defined by section 35-310 and which shall not be commingled with any other monies in the state treasury except for investment purposes. On notice from the council, the state treasurer shall invest and divest monies in the trust fund monies deposited in the state treasury as provided by section sections 35‑313 and 35-314.03, and monies earned from investment shall be credited to the trust fund.
D. Monies in the trust fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations. surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year, do not revert to the state general fund.
B. e. If the council is terminated, any monies remaining in the trust 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.
Sec. 32. Section 3-592, Arizona Revised Statutes, is amended to read:
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 by the first buyer or the first purchaser. The council shall direct the state treasurer, as trustee, to 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.
Sec. 33. Section 3-710, Arizona Revised Statutes, is amended to read:
3-710. Powers and duties; preemption
A. The department may acquire and distribute to persons interested useful information relative to the preparation for market, handling, purchasing, transportation, storage and marketing of eggs and egg products, including the demonstration of how to classify eggs and egg products in accordance with the uniform standards and grades prescribed pursuant to this chapter.
B. The department may issue in booklet form copies of this article containing complete descriptive terms as to shell, aircell, white, yolk and germ, and may make changes in definitions of terms and grades as they are made and promulgated by the United States department of agriculture.
C. Upon On request of the United States government, and others, the director may negotiate and sign cooperative agreements to do inspection and grading services and charge and receive payment for the reasonable cost thereof. The funds monies received for such services shall be deposited, pursuant to sections 35‑146 and 35‑147, in the state egg inspection trust fund.
D. When the production of papers, books and records relating to any matter under investigation is deemed advisable, the director may apply to the superior court in any county for an order requiring the production of the papers, books and records. If the court is satisfied that the papers, books and records are pertinent to the matter under investigation, their production shall be ordered.
E. A complaint filed with the department charging a noncompliance with or violation of any provision of this article shall be in writing and signed by the complainant.
F. The supervisor and inspectors shall enforce the provisions of this article in conformity with rules adopted by the director. The refusal of an officer authorized under this article to carry out the orders and directions of the director in the enforcement of this article or prosecutions thereunder is neglect of duty. The director shall make and enforce such rules as he deems necessary to carry out the provisions of this article.
G. An inspector may enter and inspect any place or conveyance within the state over which he has supervision where eggs are produced, candled, incubated, stored, packed, delivered for shipment, loaded, shipped, transported or sold, and may inspect all invoices, eggs and the cases and containers thereof and equipment found in the places or conveyances, and may take for inspection representative samples of the invoices, eggs and cases or containers for the purpose of determining whether or not any provision of this article has been violated.
H. An inspector may, while enforcing the provisions of this article, may seize and hold as evidence an advertisement, sign, placard, invoice, case or container of eggs or egg products or all or any part of any pack, load, lot consignment or shipment of eggs or egg products packed, stored, delivered for shipment, loaded, shipped, transported or sold in violation of any provisions of this article.
I. The department may prescribe minimum standards for egg processing plants and sanitary standards for the processing of shell eggs. The department shall establish these standards by rule. Chemicals used in egg processing plants, sanitizers used in egg processing, egg soaps, egg oil and other substances used in processing shell eggs are subject to the approval of the director.
J. The director shall adopt rules for poultry husbandry and the production of eggs sold in this state. This subsection does not apply to egg producers operating or controlling the operation of one or more egg ranches each having fewer than twenty thousand egg-laying hens producing eggs.
K. Consistency of poultry husbandry practices for the production of eggs is a statewide matter. The regulation of poultry husbandry practices related to the production of eggs is not subject to further regulation by a county, city, town or other political subdivision of this state.
Sec. 34. Section 3-716, Arizona Revised Statutes, is amended to read:
3-716. Inspection fees; report and payment by dealers; exception; penalty; collection
A. An inspection fee of not more than three mills per dozen on shell eggs and three mills per pound on egg products shall be paid by a dealer, producer‑dealer, manufacturer or producer on all eggs and egg products regardless of origin, sold to a retailer, hotel, hospital, bakery, restaurant, other eating place or consumer for human consumption within this state. Inspection fees on eggs used for the purpose of breaking, freezing or drying shall be paid by the manufacturer, dealer or distributor if sold or offered for sale to retailers or consumers for human consumption within this state.
B. If it appears that the revenue derived from inspection fees is more than is required for the administration of this article, the director may decrease the inspection fee and at any time thereafter may increase or decrease the inspection fee, but at no time shall it exceed an amount of three mills per dozen on shell eggs or three mills per pound on egg products.
C. All manufacturers, dealers, producer‑dealers and producers shall file:
1. A quarterly report with the department showing the name and address of the manufacturer, dealer, producer‑dealer or producer.
2. The number of dozen of eggs or pounds of egg products sold or delivered for the period to retail stores, hotels, hospitals, bakeries, restaurants, other eating places or consumers for human consumption within this state.
D. The report shall be accompanied by check or money order covering the inspection fee total of a value equal to the inspection fee in force at that time on all eggs or egg products shown on such report within thirty days following the close of quarterly report periods.
E. The records shall be retained for a period of one year and shall be open at all times to the inspection of the department.
F. Notwithstanding the requirements of this section, twenty‑five cases per year of nest run eggs as provided in section 3‑715 may be sold by any person to retailers or consumers without being subject to the report and inspection fee as provided by this section.
G. In addition to the inspection fees prescribed by this section, a penalty of ten per cent shall be added for the delinquent filing of any report or the delinquent payment of any inspection fee, and if the report and payment are not made within ten days after notification of delinquency, the penalty shall be twenty‑five per cent of the inspection fee. Persons filing a false report shall be penalized fifty per cent of the amount due for inspection fees. The penalties prescribed by this section shall be deposited, pursuant to sections 35‑146 and 35‑147, in the state egg inspection trust fund.
H. Such inspection fees and penalties shall be collected by civil action filed by the county attorney. END_STATUTE
Sec. 35. Section 3-717, Arizona Revised Statutes, is amended to read:
3-717. State egg inspection trust fund
A. All fees provided by this article shall be paid to the department which that shall issue a receipt for such fees. It shall report to the department of administration the total amount received from all sources and The department shall deposit, pursuant to sections 35‑146 and 35‑147, the full amount in a special fund known as the state egg inspection trust fund. The trust fund is established for the exclusive purpose of implementing, continuing and supporting the agricultural program established by this article.
B. The director shall administer the trust fund as trustee. The state treasurer shall accept, SEPARATELY ACCOUNT FOR and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 AND WHICH SHALL NOT BE COMMINGLED WITH ANY OTHER MONIES IN THE STATE TREASURY EXCEPT FOR INVESTMENT PURPOSES. On notice from the director, the state treasurer shall invest and divest monies in the any trust fund monies deposited in the state treasury pursuant to section SECTIONS 35-313 AND 35-314.03, and monies earned from investment shall be credited to the trust fund.
C. The beneficiary of the trust is the agricultural program established by this article. The trust fund shall be used exclusively for the purposes of this article on the order of the director.
D. Monies deposited in the state egg inspection trust fund:
1. Shall be subject to the provisions of section 35‑143.01.
2. are exempt from the provisions of section 35‑190 relating to lapsing of appropriations. Surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year, do not revert to the state general fund.
Sec. 36. Section 3-911, Arizona Revised Statutes, is amended to read:
3-911. Conservation and public education
A. The department may conserve the highly safeguarded native plants including the use, and encouraging the use, of all methods and procedures that are necessary to bring the highly safeguarded native plants to the point where they are no longer in need of federal protection as endangered or threatened plants or state protection as highly safeguarded native plants. These methods and procedures include all activities associated with scientific resource management such as research, census, law enforcement, habitat protection and maintenance, propagation and transplantation.
B. The department shall encourage commercial businesses engaged in land development or other activities conducted on private land to salvage protected native plants to the greatest extent feasible.
C. The department may produce, and collect reasonable fees for, seminars, courses, pamphlets and other educational programs and publications concerning the effect, intent and interpretation of this chapter, the identification, nature or condition of protected native plants and the feasibility and techniques for their conservation and salvage for presentation and dissemination to:
1. State agencies and political subdivisions, including state and local law enforcement agencies and counties or municipalities which have enacted or consider enacting ordinances preserving protected native plants.
2. Real estate and other commercial businesses engaged in land development and other activities conducted on private land.
3. Landowners and the public at large.
4. Persons or entities that are convicted of violating this chapter or rules and ordinances adopted pursuant to this chapter and that are ordered by the court to attend educational classes or programs as part of their sentences.
D. Notwithstanding section 35‑148, subsection A, the director shall deposit any monies received under this section in the trust fund established under by section 3‑913.
Sec. 37. Section 3-913, Arizona Revised Statutes, is amended to read:
3-913. Fiscal provisions; fees; Arizona protected native plant trust fund
A. The department shall collect nonrefundable fees for issuing permits, tags, seals and receipts under this article, except for scientific purposes, from landowners moving protected plants from one of their properties to another, or from the independent owner of residential property of ten acres or less if no such plants are to be offered for sale.
B. The director shall establish the amount of the fee by rule to reasonably reflect the cost to the department for administering this chapter or to reflect the value of the service, permit, tag, seal or receipt, including at least the following amounts:
1. For cereus giganteus (saguaro), at least three dollars for each plant.
2. For native plants which that the director determines to be useful for revegetation and which that cannot be salvaged economically at a higher fee, at least twenty‑five cents per plant.
3. For all other native plants, at least two dollars for each plant.
4. For all receipts for live harvest restricted native plants cut or removed for wood, at least one dollar per cord.
5. For a permit for the by‑products or fiber of harvest restricted native plants, at least one dollar per ton.
C. The Arizona protected native plant trust fund is established for the exclusive purpose of implementing, continuing and supporting the program established by this chapter. All fees and other monies collected under this chapter except civil penalties assessed pursuant to section 3‑933 or 3‑934 shall be deposited, pursuant to sections 35‑146 and 35‑147, in the trust fund. The monies deposited constitute a separate and permanent fund for use by the director, subject to legislative appropriation, to administer and enforce this chapter. The director shall administer the trust fund as trustee. The state treasurer shall accept, SEPARATELY ACCOUNT FOR and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 AND WHICH SHALL NOT BE COMMINGLED WITH ANY OTHER MONIES IN THE STATE TREASURY EXCEPT FOR INVESTMENT PURPOSES. On notice from the director, the state treasurer shall invest and divest monies in the any trust fund monies deposited in the state treasury as provided by section SECTIONS 35-313 AND 35-314.03 and monies earned from investment shall be credited to the trust fund. The beneficiary of the trust is the program established by this chapter. The trust fund shall be used exclusively for the purposes of this chapter on the order of the director. Surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year, do not revert to the state general fund.
Sec. 38. Section 3-1294, Arizona Revised Statutes, is amended to read:
3-1294. Improperly maintaining a stallion or jack; classification; seizure and sale; expenses for care
A. A person who maintains a stallion or jack with reckless disregard for the safety or health of other persons or property or livestock of another is guilty of a class 2 misdemeanor.
B. In addition, the appropriate court, on affidavit by the livestock officer, may issue an order to seize and impound the stallion or jack until remedial action has been taken by the owner, agent or person in charge of the stallion or jack. If no remedial action has been taken after twenty days, the livestock officer shall sell the stallion or jack to the highest bidder for cash at public auction. Immediately after the sale is made, or after release to the owner who pays the hauling charges and expenses of feeding and caring for the livestock, the livestock officer shall remit the proceeds to the agency together with an itemized statement of the expense of the seizure and sale, which shall be paid as other claims. The amount received by the agency shall be deposited, pursuant to sections 35‑146 and 35‑147, in the livestock custody trust fund established by section 3‑1377 and retained until final determination by the court of all actions arising from the seizure of the stallion or jack.
Sec. 39. Section 3-1350, Arizona Revised Statutes, is amended to read:
3-1350. Registry of equine rescue facilities; fees
A. The department shall establish and maintain a registry of equine rescue facilities and a public list of registered equine rescue facilities at department offices and on the department's official website.
B. To be registered under this section an equine rescue facility must:
1. Be incorporated as a nonprofit corporation in this state.
2. Meet minimum standards prescribed by the department for:
(a) The physical condition of the facility.
(b) Equine care and treatment at the facility.
C. The term of registration is one year from the initial date of registration, renewable annually.
D. For initial registration or annual renewal of registration, a person representing the facility must file with the department:
1. A letter from a licensed veterinarian, dated within fifteen days of filing, certifying that the facility meets the standards prescribed by the department for the physical condition of the facility and for the care of equines at the facility.
2. Documents demonstrating the facility's current status as a nonprofit corporation in good standing in this state.
E. The registry shall include the documents filed for registration or renewal of registration under subsection D of this section or a link to the facility's website where the documents are displayed.
F. The director may:
1. Assess and collect fees for registering and renewing the registration of equine rescue facilities under this section. Revenues from the fees shall be deposited in the livestock custody trust fund established by section 3-1377.
2. Adopt rules to implement this section.
Sec. 40. Section 3-1372, Arizona Revised Statutes, is amended to read:
3-1372. Keeping livestock following seizure; expenses; use of livestock in criminal prosecution; sale of forfeited livestock; nonliability of state
A. A livestock officer who has seized livestock, as provided by this article, shall safely keep and care for it while it is under the department's custody and control, during which time any person may inspect the livestock.
B. The expense of seizing, feeding and caring for livestock shall be paid from any fund available to the division for that purpose. The division shall recover its expenses as provided by this article.
C. At any time before the hearing on the ownership of the livestock, the county attorney of the county in which the livestock is seized may take charge of and keep the livestock at the expense of the state when the livestock is of evidentiary value in any criminal prosecution arising from the seizure.
D. If livestock is forfeited to this state and ordered to be sold, as provided by this article, the department shall cause notice to be posted in three public places in the precinct where the livestock is held stating that the livestock will be sold at public auction for cash to the highest bidder. The notice shall be posted for at least five days before the sale. The notice shall state the location where the livestock will be sold. Proceeds from the sale shall be transmitted to the department to be deposited in the livestock custody trust fund established by section 3‑1377, and upon on final determination of all actions arising from the seizure of the livestock the department shall pay the proceeds, less the hauling charges and expense of feeding and caring for such livestock, to the persons entitled thereto under the judgment of the court.
E. The director may contract with any person to handle, feed and care for livestock taken into custody under this section. This state is not liable for the injury or death of any person or livestock or damage to property due to performance of the contract.
Sec. 41. Section 3-1377, Arizona Revised Statutes, is amended to read:
3-1377. Sale of seized stock; disposition of proceeds; livestock custody trust fund
A. Livestock officers shall execute an order of sale made pursuant to this article and deliver a bill of sale to the purchaser, describing the livestock sold and the amount it sold for, and forward to the division a duplicate of the bill of sale. Upon On delivery of the bill of sale, title to the livestock shall pass to the purchaser.
B. Immediately after the sale is made, or after release to the owner who pays the hauling charges and expenses of feed and care of such livestock, livestock officers shall remit the proceeds of the sale to the department, together with an itemized statement of the expense of the seizure and sale, which shall be paid as other claims.
C. The amount received by the department pursuant to this section and sections 3‑1294, 3-1350, 3‑1372, 3‑1402, 3‑1403 and 3‑1721 shall be deposited, pursuant to sections 35‑146 and 35‑147, in a special fund designated the livestock custody trust fund, which is established for the exclusive purpose of implementing, continuing and supporting the agricultural program established by this chapter. the director shall administer the fund as trustee. The state treasurer shall accept, sEPARATELY ACCOUNT FOR and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 AND WHICH SHALL NOT BE COMMINGLED WITH ANY OTHER MONIES IN THE STATE TREASURY EXCEPT FOR INVESTMENT PURPOSES. On notice from the department director, the state treasurer shall invest and divest monies in the any trust fund monies deposited in the state treasury as provided by section SECTIONS 35-313 AND 35-314.03, and monies earned from investment shall be credited to the trust fund. The beneficiaries of the trust are the agricultural programs established by this chapter. The trust fund shall be used exclusively for the purposes of this chapter on the order of the director. The trust fund is exempt from the provisions of section 35‑190 relating to lapsing of appropriations. Surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year, do not revert to the state general fund.
D. The livestock custody fund is subject to legislative appropriation for use by the department for the enforcement of any of the provisions of this title.
Sec. 42. Section 3-1402, Arizona Revised Statutes, is amended to read:
3-1402. Holding and sale of stray animals; repossession before and after sale; nonliability of state
A. Any person who finds a stray animal may attempt to locate and, if located, notify the owner where the animal may be found. If the owner is unknown or cannot be located, or the person elects not to locate or notify the owner, the person shall notify the department and the department shall follow procedures pursuant to this section.
B. A livestock officer or inspector who finds or is notified of a stray animal shall attempt to locate the owner and, if located, notify the owner where the animal may be found. If the owner does not take immediate possession of the animal, or if the owner or claimant is unknown or cannot be located, the livestock officer or inspector shall hold the stray animal for at least seven days, but shall hold the stray animal up to fourteen days at the request of any person or organization, and sell it at public auction to the highest bidder for cash, after giving at least five days' notice of the sale.
C. The department shall cause notice to be posted in three public places in the justice precinct where the stray animal is held stating:
1. That the stray animal will be sold at public auction for cash to the highest bidder.
2. The location where the stray animal will be held and the location where the animal will be sold.
D. The owner of a stray animal may take possession of the animal at any time prior to sale by proving ownership and paying the inspection fee and all expenses incurred in keeping and caring for the animal.
E. If the owner of the stray does not claim the animal before the day of sale, or if the owner is unknown or cannot be located, the livestock officer or inspector shall sell the animal pursuant to the notice, and shall deliver an invoice of sale or a livestock inspection certificate to the purchaser. The owner of an animal sold may take possession of it at any time before the purchaser sells it by paying to the purchaser the purchase price paid at the sale, together with the expense of keeping and caring for the animal from the date of sale to the time the owner takes possession of the animal.
F. Livestock that is received at auction markets without proper documentation but with no evidence of criminal intent by the shipper may be sold, but the director shall impound the proceeds of the sale in the livestock custody trust fund established by section 3‑1377. On presentation of proper documentation of ownership, the director shall pay the proceeds, less any charges incurred, to the person who is entitled to the proceeds.
G. The director may contract with any person to handle, feed and care for stray animals taken into custody under this section. This state is not liable for the injury or death of any person or stray animal or damage to property due to performance of the contract.
Sec. 43. Section 3-1403, Arizona Revised Statutes, is amended to read:
3-1403. Report by livestock officer or inspector; preliminary disposition of proceeds of sale
A. Upon On making the sale as provided by section 3‑1402, the livestock officer or inspector shall notify the division of the name of the purchaser, the time and place of sale, the amount for which the animal was sold and a description of the animal showing the marks and brands, if any, or other identifying marks and shall pay to the department the net proceeds realized at the sale.
B. The department shall place the amount realized from the sale of stray animals in the livestock custody trust fund established by section 3‑1377.
Sec. 44. Section 3-1721, Arizona Revised Statutes, is amended to read:
3-1721. Petition of seizure; notice of seizure; lien for expenses; forced sale; disposition of proceeds; nonliability of state; neglect or cruel treatment of equine; civil penalty; legal representation
A. Any person or peace officer who believes that an equine is in poor physical condition because of neglect or cruel treatment may petition upon on affidavit a justice of the peace of the precinct or a city magistrate of the city in which the equine is found for an order authorizing the department to take possession of and provide care for the equine for a fifteen‑day period. The order shall not be issued unless the affidavit provides that the livestock custody trust fund established by section 3‑1377 has a balance that permits the department to provide such care or that the department can demonstrate that the expenses have been contracted for pursuant to subsection E of this section. The clerk of the court or justice of the peace, as the case may be, after filing and docketing the petition, shall enter a brief statement of the petition on the docket and set a time for a hearing that is not less than five and not more than fifteen days after the petition is filed. The order shall state the time and place of the hearing.
B. On receiving the order the department shall take possession of the equine. The department shall serve the order on the owner of the equine, if known, at least twenty‑four hours before the hearing, either by personal service on the owner or by leaving a copy of the order with a person of suitable discretion at the owner's residence or place of business. If the owner is not known, the department shall give notice by posting a copy of the order on the day of the seizure in a conspicuous place at the location where the equine was seized and in at least two public places in the county where the equine was seized. The order shall be served by a livestock officer, constable or sheriff of the county.
C. If, at the hearing, it is determined that the equine at the time of taking possession was not in poor physical condition because of neglect or cruel treatment, the owner may immediately reclaim the equine and shall not be liable for payment of any expense incurred in the handling, feeding and care of the equine. Unless malice is proved, no action taken by an employee of the department or by a peace officer pursuant to this article shall be subject to civil or criminal liability.
D. Upon On failure of the owner to be awarded immediate, expense‑free possession of the equine pursuant to subsection C of this section, the department shall either sell the equine at public auction or, if the equine's condition makes its sale impractical, dispose of the equine in the most humane manner possible. The department shall deposit, pursuant to sections 35‑146 and 35‑147, the proceeds of the sale in the livestock custody trust fund established by section 3‑1377 for distribution in the following priority:
1. The department shall be reimbursed for auction, handling, feeding and caring expenses.
2. Any monies derived from the sale in excess of the expenses to be paid pursuant to paragraph 1 shall be paid to the owner of the equine. After thirty days if the owner has not claimed the money, this money shall revert to the livestock custody trust fund established by section 3‑1377.
E. The director may contract with any person or group to handle, feed and care for any equine taken into custody pursuant to this section. The state shall not be liable for injury or death of any person or equine or damage to property caused by the performance of the contract.
F. Notwithstanding any provision of this article to the contrary, the county attorney of the county in which the equine was seized may, at any time prior to the expiration of fifteen days after the seizure of the equine, may take charge of and keep the equine at the expense of the county when the county attorney considers it to be of evidentiary value in any criminal prosecution relating to the condition of the equine.
G. In addition to violating section 13‑2910, a person who subjects an equine to neglect or cruel treatment is subject to a civil penalty of not more than seven hundred fifty dollars for each violation. All civil penalties assessed pursuant to this subsection shall be deposited, pursuant to sections 35‑146 and 35‑147, in the state general fund.
H. The county attorney of the county, or the city attorney of the city, in which the livestock is seized may represent the livestock officer and the interests of this state in proceedings under this section.
I. Upon On receipt the department shall deposit, pursuant to sections 35‑146 and 35‑147, all monies, except civil penalties, collected pursuant to this section or received as a money donation from any public or private group, society, association or individual in the livestock custody trust fund established by section 3‑1377. The monies in the fund shall be used to reimburse the department for expenses incurred in the handling, feeding, care and auctioning of equines seized pursuant to this section.
Sec. 45. Section 3-2602, Arizona Revised Statutes, is amended to read:
3-2602. Administration and enforcement
A. In addition to other duties imposed by law, the associate director of the division shall administer and enforce the provisions of this article under the supervision of the director.
B. The salaries and expenses of travel and subsistence for employees who administer and enforce this article shall be paid from the commercial feed trust fund.
Sec. 46. Section 3-2604, Arizona Revised Statutes, is amended to read:
3-2604. Publications; membership in professional organizations
A. The department may publish at such times and in such form as the director deems proper:
1. Information concerning the sale of commercial feeds and customer‑formula feeds together with such data on their production and use as he may consider advisable, but the information concerning production and use of commercial feeds and customer‑formula feeds shall not disclose the operations of any one person.
2. Reports of chemists' findings based on official samples of each brand of commercial feed and customer‑formula feed sampled and analyzed as compared to the guaranteed chemical analysis for each such feed.
B. The director may authorize employees of the department to:
1. Join and subscribe to any state, district, regional or national organization or publications relating to sale and distribution of or control of sale and distribution of commercial feeds.
2. Attend state, district, regional and national meetings relating to sale and distribution or control of sale and distribution of commercial feeds.
C. Expenses authorized by this section shall be paid from and limited by the commercial feed trust fund.
Sec. 47. Section 3-2607, Arizona Revised Statutes, is amended to read:
3-2607. Commercial feed trust fund
A. The commercial feed trust fund is established for the exclusive purpose of implementing, continuing and supporting the agricultural program established by this article. All monies collected under the provisions of this article shall be deposited, pursuant to sections 35‑146 and 35‑147, in the trust fund.
B. The director shall administer the fund as trustee. The state treasurer shall accept, SEPARATELY ACCOUNT FOR and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 AND WHICH SHALL NOT BE COMMINGLED WITH ANY OTHER MONIES IN THE STATE TREASURY EXCEPT FOR INVESTMENT PURPOSES. On notice from the director, the state treasurer shall invest and divest monies in the any trust fund monies deposited in the state treasury as provided by section SECTIONS 35-313 AND 35-314.03, and monies earned from investment shall be credited to the trust fund.
C. The beneficiary of the trust is the agriculture program established by this article. The trust fund shall be used solely for the purpose of administering the provisions purposes of this article upon on the order of the director.
D. The commercial feed trust fund is exempt from the provisions of section 35‑190 relating to lapsing appropriations. Surplus monies, including ANY unexpended and unencumbered balance at the end of the fiscal year, do not revert to the state general fund.
Sec. 48. Section 3-2913, Arizona Revised Statutes, is amended to read:
3-2913. Aquaculture trust fund
A. The aquaculture trust fund is established consisting for the exclusive purpose of implementing, continuing and supporting the agricultural program established by this article. The trust fund consists of revenues received from fees and all other sources under this article except civil penalties under section 3‑2912. The monies collected constitute a separate and permanent fund for the use of the director in administering and enforcing this article.
B. The director shall administer the trust fund as trustee. The state treasurer shall accept, SEPARATELY ACCOUNT FOR and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 AND WHICH SHALL NOT BE COMMINGLED WITH ANY OTHER MONIES IN THE STATE TREASURY EXCEPT FOR INVESTMENT PURPOSES. On notice from the director, the state treasurer shall invest and divest monies in the any trust fund monies deposited in the state treasury as provided by section SECTIONS 35-313 AND 35-314.03, and monies earned from investment shall be credited to the trust fund.
C. The beneficiary of the trust is the agricultural program established by this article.
D. Any monies remaining unexpended in the fund on June 30 each year shall be carried forward to the following year and do not revert to the state general fund. The director shall take that amount into account in computing and setting fees under this article for that year.
Sec. 49. Section 5-113, Arizona Revised Statutes, is amended to read:
5-113. Disposition of revenues and monies; funds; committee
A. All revenues derived from permittees, permits and licenses as provided by this article shall be deposited, pursuant to sections 35‑146 and 35‑147, in the state general fund.
B. The Arizona county fairs racing betterment fund is established under the jurisdiction of the department. The department shall distribute monies from the fund to the county fair association or county fair racing association of each county conducting a county fair racing meeting in such proportion as the department deems necessary for the promotion and betterment of county fair racing meetings. All expenditures from the fund shall be made upon on claims approved by the department. In order to be eligible for distributions from the fund, a county fair association must provide the department with an annual certification in the form required by the department supporting expenditures made from the fund. Balances remaining in the fund at the end of a fiscal year do not revert to the state general fund.
C. The county fairs livestock and agriculture promotion fund is established under the control of the governor and shall be used for the purpose of promoting the livestock and agricultural resources of the state and for the purpose of conducting an annual Arizona national livestock fair by the Arizona exposition and state fair board to further promote livestock resources. The direct expenses less receipts of the livestock fair shall be paid from this fund, but such payment shall not exceed thirty per cent of the receipts of the fund for the preceding fiscal year. Balances remaining in the fund at the end of a fiscal year do not revert to the state general fund. All expenditures from the fund shall be made upon claims approved by the governor, as recommended by the livestock and agriculture committee, for the promotion and betterment of the livestock and agricultural resources of this state. The livestock and agriculture committee is established and shall be composed of the following members, at least three of whom are from counties that have a population of less than five hundred thousand persons, appointed by the governor:
1. Three members representing county fairs.
2. One member representing Arizona livestock fairs.
3. One member representing the university of Arizona college of agriculture.
4. One member representing the livestock industry.
5. One member representing the farming industry.
6. One member representing the governor's office.
7. One member representing the Arizona state fair conducted by the Arizona exposition and state fair board.
8. One member representing the general public.
D. The governor shall appoint a chairman from the members. Terms of members shall be four years.
E. Members of the committee are not eligible to receive compensation but are eligible to receive reimbursement for expenses pursuant to title 38, chapter 4, article 2.
F. The Arizona breeders' award fund is established under the jurisdiction of the department. The department shall distribute monies from the fund to the breeder, or the breeder's heirs, devisees or successors, of every winning horse or greyhound foaled or whelped in this state, as defined by section 5‑114, in a manner and in an amount established by rules of the commission to protect the integrity of the racing industry and promote, improve and advance the quality of race horse and greyhound breeding within this state. The department may contract with a breeders' association to provide data, statistics and other information necessary to enable the department to carry out the purposes of this subsection. Persons who are not eligible to be licensed under section 5‑107.01 or persons who have been refused licenses under section 5‑108 are not eligible to participate in the Arizona greyhound breeders' award fund. Balances remaining in the fund at the end of a fiscal year do not revert to the state general fund. For the purposes of this subsection, "breeder" means the owner or lessee of the dam of the animal at the time the animal was foaled or whelped.
G. The Arizona stallion award fund is established under the jurisdiction of the department to promote, improve and advance the quality of stallions in this state. The department shall distribute monies from the fund to the owner or lessee, or the owner's or lessee's heirs, devisees or successors, of every Arizona stallion whose certified Arizona bred offspring, as prescribed in section 5‑114, finishes first, second or third in an eligible race in this state. The department may contract with a breeders' association to provide data, statistics and other information necessary to enable the department to carry out the purposes of this subsection. Balances remaining in the fund at the end of a fiscal year do not revert to the state general fund. The commission shall adopt rules pursuant to title 41, chapter 6 to carry out the purposes of this subsection. The rules shall prescribe at a minimum:
1. The manner and procedure for distribution from the fund, including eligibility requirements for owners and lessees.
2. Subject to availability of monies in the fund, the amount to be awarded.
3. The requirements for a stallion registered with the jockey club, Lexington, Kentucky or with the American quarter horse association, Amarillo, Texas to be certified as an Arizona stallion.
4. The types and requirements of races for which an award may be made.
H. The greyhound and retired racehorse adoption fund is established. The department shall administer the fund and maintain separate accounts for greyhound adoptions and retired racehorse adoptions. All revenues derived from license fees collected from dog breeders, racing kennels and other operations pursuant to section 5‑104, subsection F, paragraphs 7, 8 and 9 shall be deposited, pursuant to sections 35‑146 and 35‑147, in the greyhound adoption account of the fund. All revenues derived from retired racehorse adoption surcharges collected pursuant to section 5‑104, subsection G shall be deposited, pursuant to sections 35‑146 and 35‑147, in the retired racehorse adoption account of the fund. The department shall distribute monies from the fund to provide financial assistance to nonprofit enterprises approved by the commission to promote the adoption of former racing greyhounds as domestic pets and to promote the adoption of retired racehorses pursuant to section 5‑104, subsection G in a manner and in an amount established by rules of the commission. Balances remaining in the fund at the end of a fiscal year do not revert to the state general fund.
I. The county fair racing fund is established. The department shall administer the fund. Monies in the fund are continuously appropriated. The department shall use fund monies for the administration of county fair racing. Any monies remaining unexpended in the fund at the end of the fiscal year in excess of seventy‑five thousand dollars shall revert to the state general fund.
J. The agricultural consulting and training trust fund is established for the exclusive purpose of implementing, continuing and supporting. Monies in the fund are continuously appropriated. The Arizona department of agriculture shall use monies in the fund for the agricultural consulting and training program established by section 3‑109.01. The director of the Arizona department of agriculture shall administer the trust fund as trustee. The state treasurer shall accept, separately account for and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 and which shall not be commingled with any other monies in the state treasury except for investment purposes. On notice from the director, the state treasurer shall invest and divest any trust fund monies deposited in the state treasury as provided by sections 35‑313 and 35-314.03, and monies earned from investment shall be credited to the trust fund. The beneficiary of the trust is the agricultural consulting and training program established by section 3-109.01. Surplus monies, including balances remaining in the trust fund at the end of a fiscal year do not revert to the state general fund.
Sec. 50. Section 3-108, Arizona Revised Statutes, as amended by this act, is amended to read:
3-108. Administrative support fund; use; exemption
A. A department of agriculture administrative support fund is established. All monies collected pursuant to any interagency agreement with the department pursuant to section 3‑588, subsection A and section 3‑1084, subsection A shall be deposited, pursuant to sections 35‑146 and 35‑147, in the fund.
B. All monies collected pursuant to any interagency agreement with the department in accordance with section 3‑468.03, subsection A and section 3‑526.03, subsection A shall be deposited in the administrative support fund or deposited in the citrus, fruit and vegetable revolving trust fund established by section 3‑447 pursuant to the terms of the interagency agreement. Deposits in the administrative support fund shall be made pursuant to sections 35‑146 and 35‑147.
C. Monies in the fund are continuously appropriated and exempt from the provisions of section 35‑190 relating to lapsing of appropriations.
Sec. 51. Section 3-214.01, Arizona Revised Statutes, as amended by this act, is amended to read:
3-214.01. Dangerous plants, pests and diseases fund
A. A dangerous plants, pests and diseases trust fund is established for the exclusive purpose of implementing, continuing and supporting the agricultural program established by this article. All monies collected under the provisions of this article except civil penalties assessed pursuant to section 3‑204, 3‑205, 3‑205.02 or 3‑215.01 shall be deposited, pursuant to sections 35‑146 and 35‑147, in the dangerous plants, pests and diseases trust fund.
B. The director shall administer the trust fund as trustee. The state treasurer shall accept, separately account for and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 and which shall not be commingled with any other monies in the state treasury except for investment purposes. On notice from the director, the state treasurer shall invest and divest monies in the any trust fund monies deposited in the state treasury as provided by section sections 35-313 and 35-314.03, and monies earned from investment shall be credited to the trust fund.
C. The beneficiary of the trust is the agricultural program established by this article. All monies in the dangerous plants, pests and diseases trust fund are to be used by the department subject to legislative appropriation exclusively to carry out the provisions of this article, including salaries, fees and office, administrative, bonding and travel expenses incurred.
D. The unexpended and unencumbered balance of monies, if any, remaining in the dangerous plants, pests and diseases trust fund at the end of each fiscal year shall not revert to the state general fund. END_STATUTE
Sec. 52. Section 3-218, Arizona Revised Statutes, as amended by this act, is amended to read:
3-218. Citrus budwood certification; fee
A. The director may direct a state citrus budwood certification program. Under the program, inspectors may:
1. Monitor the fumigation of blocks of citrus trees.
2. Monitor the transplanting of seedlings from the seed bed.
3. Monitor the cutting of budwood from mother blocks or other certified blocks within a twenty-four hour period.
4. Tag certified citrus trees with certified tags.
5. Map blocks in a certified nursery.
6. Audit records that are kept by the nursery and by private inspection associations.
B. The director may assess a fee of not more than ten cents per budwood to cover the costs of implementing the citrus budwood certification program. The director shall establish the amount of the fee by rule pursuant to a cooperative agreement among the department, private inspection associations and the university of Arizona, Yuma Mesa agricultural center. The director shall deposit, pursuant to sections 35‑146 and 35‑147, revenues collected from the fee in the dangerous plants, pests and diseases trust fund established by section 3‑214.01.
Sec. 53. Section 3-233, Arizona Revised Statutes, as amended by this act, is amended to read:
3-233. Powers and duties; fees; penalty
A. For the purpose of carrying out this article, the director may:
1. In order to have access to seeds and the records pertaining to seeds subject to this article and the rules adopted under this article, enter upon:
(a) Any established plant, warehouse or place of business during customary business hours.
(b) Any truck or other conveyance operated on land, on water or in the air on probable cause or reasonable suspicion to believe that a violation of this article has occurred.
2. Issue and enforce a written cease and desist order to the owner or custodian of any lot of agricultural, vegetable or ornamental plant seed that the director finds is in violation of this article, as provided in section 3‑238, and any lot or lots of seed sold, or transported for sale, that do not meet all requirements of the plant variety protection act (P.L. 91‑577; 84 Stat. 1542; 7 United States Code sections 2321 through 2582).
3. Provide through the state agricultural laboratory for seed testing facilities, employ qualified persons and incur expenses necessary to comply with this article.
4. Through the state agricultural laboratory:
(a) Provide for making purity, germination, noxious weed, tetrazolium and pathology tests of seeds for farmers and dealers on request pursuant to rules prescribed by the director governing such testing.
(b) Collect charges for the tests as prescribed by the director.
5. Cooperate with the United States department of agriculture and other agencies in seed law enforcement.
6. Revoke, suspend, restrict, deny or choose not to renew a license issued under this article or fix periods and terms of probation for a license holder after a hearing at which the license holder is found by a preponderance of the evidence to have violated this article or any of the rules adopted under this article.
7. Establish by rule fees that are sufficient to cover the costs of interstate and international exportation inspection activities under section 3‑232, subsection A, paragraph 1, but annually not more than one dollar fifty cents per acre. Monies received under this paragraph shall be deposited in the seed law trust fund pursuant to section 3‑234.
B. For the purposes of this article, the director, after an opportunity for a hearing, shall establish and collect the following fees:
1. For a seed dealer's license, not more than fifty dollars per year.
2. For a labeler's license, not more than five hundred dollars per year.
C. The director shall assess a license holder who does not submit the annual license renewal fees to the department by July 1 a penalty of ten per cent of the amount of the license fee per month for not more than three months. Penalties collected under this subsection shall be deposited in the seed law trust fund pursuant to section 3‑234.
Sec. 54. Section 3-234, Arizona Revised Statutes, as amended by this act, is amended to read:
3-234. Seed law fund
A. A seed law trust fund is established for the exclusive purpose of implementing, continuing and supporting the agricultural program established by this article. All monies collected pursuant to section 3‑233 shall be deposited, pursuant to sections 35‑146 and 35‑147, in the seed law trust fund.
B. The director shall administer the trust fund as trustee. The state treasurer shall accept, separately account for and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 and which shall not be commingled with any other monies in the state treasury except for investment purposes. On notice from the director, the state treasurer shall invest and divest monies in the any trust fund monies deposited in the state treasury as provided by section sections 35-313 and 35-314.03, and monies earned from investment shall be credited to the trust fund. Surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year, do not revert to the state general fund.
C. The beneficiary of the trust is the agricultural program established by this article. All monies in the seed law trust fund are subject to legislative appropriation to the department to be spent as directed by the director to carry out the provisions of this article.
Sec. 55. Section 3-266, Arizona Revised Statutes, as amended by this act, is amended to read:
3-266. Annual reports and publications; membership in professional organizations
A. The director may provide for publishing at such times and in such form as the director deems proper information concerning the sale of fertilizer materials together with such data on their production and use as the director considers advisable, and a report of the monies received and expended, but the information concerning production and use of fertilizer materials shall not disclose the operations of any one person. Reports of chemists' findings based on official samples of each brand of fertilizer material sampled and analyzed during the year as compared to the guaranteed chemical analysis for each such fertilizer material shall be published annually as promptly as possible after January 1 each year.
B. The director may authorize employees of the division to join and subscribe to any state, district, regional or national organizations or publications relating to sale and distribution or control of sale and distribution of fertilizer materials, and attend state, district, regional and national meetings relating to sale and distribution or control of sale and distribution of fertilizer materials.
C. Expenses authorized by this section shall be paid from and limited by the fertilizer materials trust fund.
Sec. 56. Section 3-269, Arizona Revised Statutes, as amended by this act, is amended to read:
3-269. Fertilizer materials fund
A. The fertilizer materials trust fund is established for the exclusive purpose of implementing, continuing and supporting the agricultural program established by this article. Except as provided in section 3‑272, subsection B, paragraph 2, all monies collected under the provisions of this article shall be deposited, pursuant to sections 35‑146 and 35‑147, in the trust fund.
B. The director shall administer the trust fund as trustee. The state treasurer shall accept, separately account for and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 and which shall not be commingled with any other monies in the state treasury except for investment purposes. On notice from the director, the state treasurer shall invest and divest monies in the any trust fund monies deposited in the state treasury as provided by section sections 35-313 and 35-314.03, and monies earned from the investment shall be credited to the trust fund.
C. The beneficiary of the trust is the agricultural program established by this article. The trust fund shall be used solely for the purposes of this article on the order of the director.
D. The fertilizer materials trust fund shall be exempt from the provisions of section 35‑190 relating to lapsing appropriations. Surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year, do not revert to the state general fund.
Sec. 57. Section 3-344, Arizona Revised Statutes, as amended by this act, is amended to read:
3-344. Advisory committee; membership; appointment; duties; uniformity of labeling and standards of pesticides
A. The director may appoint an advisory committee as needed to assist and advise the director and associate director in adopting technical rules. The director shall designate the chairman. Meetings of the committee shall be held upon call of the associate director or director. Members of the committee shall serve without compensation, but shall be entitled to reimbursement for expenses of travel and subsistence incurred in the performance of their duties, which shall be paid from and limited by the pesticide trust fund.
B. In order to avoid confusion endangering the public health, which would result from diverse requirements, particularly as to the labeling and coloring of pesticides, and to avoid increased costs to the public due to the necessity of complying with such diverse requirements in the manufacture and sale of such pesticides, it is desirable that there should be uniformity between the requirements of the several states and the federal government relating to such pesticides. To this end, the director may after a hearing adopt rules applicable to and in conformity with primary standards established by this article as have been or may be prescribed by federal agencies with respect to pesticides.
Sec. 58. Section 3-345, Arizona Revised Statutes, as amended by this act, is amended to read:
3-345. Publications; membership in professional organizations
A. The department may publish, at such times and in such forms as the director deems proper, information concerning the production and use of pesticides and reports of chemists' findings based on official samples taken of pesticides sold within the state as compared with guaranteed analyses registered under section 3‑351.
B. The director may authorize employees of the department to:
1. Join and subscribe to any state, district, regional or national organizations or publications relating to and dealing with pesticides.
2. Attend state, district, regional and national meetings relating to pesticides that in the director's discretion may be necessary or for the best interests of those affected by this article.
C. Expenses authorized by this section shall be paid from and limited by the pesticide trust fund.
Sec. 59. Section 3-350, Arizona Revised Statutes, as amended by this act, is amended to read:
3-350. Pesticide fund
A. The pesticide trust fund is established for the exclusive purpose of implementing, continuing and supporting the agricultural program established by this article. Except as provided in section 3‑351, subsection D, paragraph 2, all monies collected under the provisions of this article shall be deposited, pursuant to sections 35‑146 and 35‑147, in the trust fund.
B. The director shall administer the trust fund as trustee. The state treasurer shall accept, separately account for and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 and which shall not be commingled with any other monies in the state treasury except for investment purposes. On notice from the director, the state treasurer shall invest and divest monies in the any trust fund monies deposited in the state treasury as provided by section sections 35-313 and 35-314.03, and monies earned from investment shall be credited to the trust fund.
C. The beneficiary of the trust is the agricultural program established by this article. The trust fund shall be used solely for the purposes of this article on the order of the director.
D. The pesticide trust fund shall be exempt from the provisions of section 35‑190 relating to lapsing appropriations. Surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year, do not revert to the state general fund.
Sec. 60. Section 3-354, Arizona Revised Statutes, as amended by this act, is amended to read:
3-354. Cease and desist orders; condemnation and destruction or sale of noncomplying pesticides or devices
A. When the director finds from investigation that any pesticide or device being distributed or delivered for transportation or transported in intrastate commerce or between points within the state through any point outside this state does not meet the requirements of this article as follows, the director may take the action prescribed by subsection B of this section:
1. In the case of a pesticide:
(a) If it is adulterated or misbranded.
(b) If it has not been registered, if necessary, under section 3‑351.
(c) If it fails to bear on its label the information required by law.
(d) If it is a white powder pesticide and is not colored as required under this article.
2. In the case of a device, if it is misbranded.
B. Upon the discovery of any of the facts set forth in subsection A of this section:
1. The director may serve the person violating this article with a cease and desist order requiring the person, on receiving the notice, to immediately cease and desist the violation. The order shall be served by any method of service authorized by the Arizona rules of civil procedure.
2. The department may issue and serve a written cease and desist order on the owner or custodian of any pesticide or device found to be in violation of this article. The pesticide or device shall not be sold, used or removed until this article has been complied with and the pesticide or device has been released in writing by the director or the violation has been otherwise disposed of as provided in this article by a court of competent jurisdiction.
3. If the director discovers any pesticide or device that is in violation of this article, and the owner or custodian is not available for service of the order, the director may attach the order to the pesticide or device and the pesticide or device shall not be sold, used or removed until this article has been complied with and the pesticide or device has been released in writing by the director or the violation has been otherwise disposed of as provided in this article by a court of competent jurisdiction.
C. After a cease and desist order is served on any person, either that person or the director may file an action in the superior court in the county in which a violation of this article is alleged to have occurred for an adjudication of the alleged violation. The court may issue temporary or permanent injunctions, mandatory or restraining, and intermediate orders it deems necessary or advisable. The court may order condemnation of any pesticide or device that does not meet the requirements of this article. The action shall be tried de novo.
D. If the article is condemned, it shall be disposed of, after entry of decree, by destruction or sale as the court directs, and the proceeds, if the article is sold, less legal costs, shall be paid into the pesticide trust fund. On payment of costs and execution and delivery of a good and sufficient bond conditioned so that the article shall not be disposed of unlawfully, the court may direct that the article be delivered to the owner of the article for relabeling or reprocessing as the case may be.
E. When a decree of condemnation is entered against the article, court costs, fees and storage and other proper expenses shall be awarded against the person, if any, intervening as claimant of the article.
Sec. 61. Section 3-415, Arizona Revised Statutes, as amended by this act, is amended to read:
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 trust funds for the exclusive purpose of implementing, continuing and supporting the respective marketing order or marketing agreement. The commission or committee shall administer the trust fund as trustee. The state treasurer shall accept, separately account for and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 and which shall not be commingled with any other monies in the state treasury except for investment purposes. On notice from the commission or committee, the state treasurer shall invest and divest any trust fund monies deposited in the state treasury as provided by sections 35-313 and 35‑314.03, and monies earned from investment shall be credited to the trust fund. The beneficiary of the trust is the agricultural program established by the marketing order or marketing agreement. The trust fund shall be used solely for those purposes on the order of the commission or committee. Surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year or at the termination of the marketing order or agreement, do not revert to the state general fund.
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.
Sec. 62. Section 3-417, Arizona Revised Statutes, as amended by this act, is amended to read:
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. 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. 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 trust 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.
Sec. 63. Section 3-447, Arizona Revised Statutes, as amended by this act, is amended to read:
3-447. Citrus, fruit and vegetable fund; administration
A. The citrus, fruit and vegetable revolving trust fund is established consisting for the exclusive purpose of implementing, continuing and supporting the agricultural program established by this article and article 4 of this chapter. The trust fund consists of revenues from assessments and other monies designated for deposit in the trust fund by 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 trust fund shall be used solely for the purpose of administering and enforcing the provisions of this article and article 4 of this chapter.
B. Monies in the fund may be invested the director shall administer the trust fund as trustee. The state treasurer shall accept, separately account for and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 and which shall not be commingled with any other monies in the state treasury except for investment purposes. On notice from the director, the state treasurer shall invest any trust fund monies deposited in the state treasury pursuant to section sections 35-313 and 35-314.03, and all interest earned on these monies shall be credited to the trust fund.
C. The beneficiaries of the trust are the agricultural programs established by this article and article 4 of this chapter.
D. C. Monies in the trust fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations. Surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year, do not revert to the state general fund.
E. D. 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 trust fund during the preceding fiscal year and transmit the report to the citrus, fruit and vegetable advisory council on or before December 1.
F. E. Any monies remaining unexpended in the trust 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.
Sec. 64. Section 3-448, Arizona Revised Statutes, as amended by this act, is amended to read:
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 trust 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.
Sec. 65. Section 3-449, Arizona Revised Statutes, as amended by this act, is amended to read:
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 trust 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 trust fund.
Sec. 66. Section 3-449.04, Arizona Revised Statutes, as amended by this act, is amended to read:
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 trust fund.
Sec. 67. Section 3-450, Arizona Revised Statutes, as amended by this act, is amended to read:
3-450. Exemption from citrus fruit standardization; 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 trust 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.
Sec. 68. Section 3-466, Arizona Revised Statutes, as amended by this act, is amended to read:
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 trust fund.
Sec. 69. Section 3-468.04, Arizona Revised Statutes, as amended by this act, is amended to read:
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 trust 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.
Sec. 70. Section 3-468.06, Arizona Revised Statutes, as amended by this act, is amended to read:
3-468.06. Deposit of fees; use on termination
A. The Arizona citrus trust fund is established for the exclusive purpose of implementing, continuing and supporting the agricultural program established by this article. 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 trust fund.
B. The council shall administer the trust fund as trustee. The state treasurer shall accept, separately account for and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 and which shall not be commingled with any other monies in the state treasury except for investment purposes. On notice from the director, the state treasurer shall invest and divest any trust fund monies deposited in the state treasury as provided by sections 35-313 and 35‑314.03, and monies earned from the investment shall be credited to the trust fund.
C. The beneficiary of the trust is the agricultural program established by this article. Monies in the trust fund shall be disbursed as approved by the council exclusively for the purposes prescribed in this article.
D. Surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year, do not revert to the state general fund.
E. B. If the council is terminated, any monies in the council's accounts trust fund 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.
Sec. 71. Section 3-484, Arizona Revised Statutes, as amended by this act, is amended to read:
3-484. Deputies and clerks; compensation; expenses
A. The compensation of the supervisor shall be as determined pursuant to section 38‑611. The supervisor, with the approval of the director, shall 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 trust fund provided for in section 3‑447.
Sec. 72. Section 3-489, Arizona Revised Statutes, as amended by this act, is amended to read:
3-489. Requests for inspection by unlicensed or unregistered 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 trust 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.
Sec. 73. Section 3-491, Arizona Revised Statutes, as amended by this act, is amended to read:
3-491. Exemption from fruit or vegetable standardization; 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 trust 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.
Sec. 74. Section 3-492, Arizona Revised Statutes, as amended by this act, is amended to read:
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 trust 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 trust fund.
Sec. 75. Section 3-498, Arizona Revised Statutes, as amended by this act, is amended to read:
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 trust fund.
Sec. 76. Section 3-521, Arizona Revised Statutes, as amended by this act, is amended to read:
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 trust fund.
Sec. 77. Section 3-526.04, Arizona Revised Statutes, as amended by this act, is amended to read:
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 trust 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.
Sec. 78. Section 3-526.06, Arizona Revised Statutes, as amended by this act, is amended to read:
3-526.06. Deposit of fees; use on termination
A. The iceberg lettuce trust fund is established for the exclusive purpose of implementing, continuing and supporting the agricultural program established by this article. 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 trust fund.
B. The council shall administer the trust fund as trustee. The state treasurer shall accept, separately account for and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35‑310 and which shall not be commingled with any other monies in the state treasury except for investment purposes. On notice from the director, the state treasurer shall invest and divest any trust fund monies deposited in the state treasury as provided by sections 35-313 and 35‑314.03, and monies earned from the investment shall be credited to the trust fund.
C. The beneficiary of the trust is the agricultural program established by this article. Monies in the trust fund shall be disbursed as approved by the council exclusively for the purposes prescribed in this article.
D. Surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year, do not revert to the state general fund.
E. B. If the council is terminated, any monies in the council's accounts trust fund 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.
Sec. 79. Section 3-584, Arizona Revised Statutes, as amended by this act, is amended to read:
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 to be held in trust in, and subject to the terms and conditions prescribed for, the Arizona grain research trust fund established by section 3-590.
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. All donations of monies shall be held in trust in, and subject to the terms and conditions prescribed for, the Arizona grain research trust fund established by section 3-590.
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.
Sec. 80. Section 3-590, Arizona Revised Statutes, as amended by this act, is amended to read:
3-590. Arizona grain research fund
A. The Arizona grain research trust fund is established for the exclusive purpose of administering implementing, continuing and supporting the agricultural program established by this article. The council shall administer the trust fund as trustee. The trust fund consists of fees collected pursuant to this article.
B. The beneficiary of the trust is the agricultural program established by this article. The trust fund shall be used exclusively for the purposes of this article on the order of the council.
C. The state treasurer shall accept, separately account for and hold in trust monies deposited in the state treasury, which are considered to be trust monies as defined by section 35-310 and which shall not be commingled with any other monies in the state treasury except for investment purposes. On notice from the council, the state treasurer shall invest and divest monies in the trust fund monies deposited in the state treasury as provided by section sections 35‑313 and 35-314.03, and monies earned from investment shall be credited to the trust fund.
D. B. Monies in the trust fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations. Surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year, do not revert to the state general fund.
E. C. If the council is terminated, any monies remaining in the trust 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. END_STATUTE
Sec. 81. Section 3-592, Arizona Revised Statutes, as amended by this act, is amended to read:
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 by the first buyer or the first purchaser. The council shall direct the state treasurer, as trustee, to 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.
Sec. 82. Section 3-710, Arizona Revised Statutes, as amended by this act, is amended to read:
3-710. Powers and duties; preemption
A. The department may acquire and distribute to persons interested useful information relative to the preparation for market, handling, purchasing, transportation, storage and marketing of eggs and egg products, including the demonstration of how to classify eggs and egg products in accordance with the uniform standards and grades prescribed pursuant to this chapter.
B. The department may issue in booklet form copies of this article containing complete descriptive terms as to shell, aircell, white, yolk and germ, and may make changes in definitions of terms and grades as they are made and promulgated by the United States department of agriculture.
C. On request of the United States government, and others, the director may negotiate and sign cooperative agreements to do inspection and grading services and charge and receive payment for the reasonable cost thereof. The monies received for such services shall be deposited, pursuant to sections 35‑146 and 35‑147, in the state egg inspection trust fund.
D. When the production of papers, books and records relating to any matter under investigation is deemed advisable, the director may apply to the superior court in any county for an order requiring the production of the papers, books and records. If the court is satisfied that the papers, books and records are pertinent to the matter under investigation, their production shall be ordered.
E. A complaint filed with the department charging a noncompliance with or violation of any provision of this article shall be in writing and signed by the complainant.
F. The supervisor and inspectors shall enforce the provisions of this article in conformity with rules adopted by the director. The refusal of an officer authorized under this article to carry out the orders and directions of the director in the enforcement of this article or prosecutions thereunder is neglect of duty. The director shall make and enforce such rules as he deems necessary to carry out the provisions of this article.
G. An inspector may enter and inspect any place or conveyance within the state over which he has supervision where eggs are produced, candled, incubated, stored, packed, delivered for shipment, loaded, shipped, transported or sold, and may inspect all invoices, eggs and the cases and containers thereof and equipment found in the places or conveyances, and may take for inspection representative samples of the invoices, eggs and cases or containers for the purpose of determining whether or not any provision of this article has been violated.
H. An inspector, while enforcing the provisions of this article, may seize and hold as evidence an advertisement, sign, placard, invoice, case or container of eggs or egg products or all or any part of any pack, load, lot consignment or shipment of eggs or egg products packed, stored, delivered for shipment, loaded, shipped, transported or sold in violation of any provisions of this article.
I. The department may prescribe minimum standards for egg processing plants and sanitary standards for the processing of shell eggs. The department shall establish these standards by rule. Chemicals used in egg processing plants, sanitizers used in egg processing, egg soaps, egg oil and other substances used in processing shell eggs are subject to the approval of the director.
J. The director shall adopt rules for poultry husbandry and the production of eggs sold in this state. This subsection does not apply to egg producers operating or controlling the operation of one or more egg ranches each having fewer than twenty thousand egg-laying hens producing eggs.
K. Consistency of poultry husbandry practices for the production of eggs is a statewide matter. The regulation of poultry husbandry practices related to the production of eggs is not subject to further regulation by a county, city, town or other political subdivision of this state.
Sec. 83. Section 3-716, Arizona Revised Statutes, as amended by this act, is amended to read:
3-716. Inspection fees; report and payment by dealers; exception; penalty; collection
A. An inspection fee of not more than three mills per dozen on shell eggs and three mills per pound on egg products shall be paid by a dealer, producer‑dealer, manufacturer or producer on all eggs and egg products regardless of origin, sold to a retailer, hotel, hospital, bakery, restaurant, other eating place or consumer for human consumption within this state. Inspection fees on eggs used for the purpose of breaking, freezing or drying shall be paid by the manufacturer, dealer or distributor if sold or offered for sale to retailers or consumers for human consumption within this state.
B. If it appears that the revenue derived from inspection fees is more than is required for the administration of this article, the director may decrease the inspection fee and at any time thereafter may increase or decrease the inspection fee, but at no time shall it exceed an amount of three mills per dozen on shell eggs or three mills per pound on egg products.
C. All manufacturers, dealers, producer‑dealers and producers shall file:
1. A quarterly report with the department showing the name and address of the manufacturer, dealer, producer‑dealer or producer.
2. The number of dozen of eggs or pounds of egg products sold or delivered for the period to retail stores, hotels, hospitals, bakeries, restaurants, other eating places or consumers for human consumption within this state.
D. The report shall be accompanied by check or money order covering the inspection fee total of a value equal to the inspection fee in force at that time on all eggs or egg products shown on such report within thirty days following the close of quarterly report periods.
E. The records shall be retained for a period of one year and shall be open at all times to the inspection of the department.
F. Notwithstanding the requirements of this section, twenty‑five cases per year of nest run eggs as provided in section 3‑715 may be sold by any person to retailers or consumers without being subject to the report and inspection fee as provided by this section.
G. In addition to the inspection fees prescribed by this section, a penalty of ten per cent shall be added for the delinquent filing of any report or the delinquent payment of any inspection fee, and if the report and payment are not made within ten days after notification of delinquency, the penalty shall be twenty‑five per cent of the inspection fee. Persons filing a false report shall be penalized fifty per cent of the amount due for inspection fees. The penalties prescribed by this section shall be deposited, pursuant to sections 35‑146 and 35‑147, in the state egg inspection trust fund.
H. Such inspection fees and penalties shall be collected by civil action filed by the county attorney. END_STATUTE
Sec. 84. Section 3-717, Arizona Revised Statutes, as amended by this act, is amended to read:
3-717. State egg inspection fund
A. All fees provided by this article shall be paid to the department that shall issue a receipt for such fees. It shall report to the department of administration the total amount received from all sources and the department shall deposit, pursuant to sections 35‑146 and 35‑147, the full amount in a special fund known as the state egg inspection trust fund. The trust fund is established for the exclusive purpose of implementing, continuing and supporting the agricultural program established by this article.
B. The director shall administer the trust fund as trustee. The state treasurer shall accept, separately account for and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 and which shall not be commingled with any other monies in the state treasury except for investment purposes. On notice from the director, the state treasurer shall invest and divest monies in the any trust fund monies deposited in the state treasury pursuant to section sections 35-313 and 35-314.03, and monies earned from investment shall be credited to the trust fund.
C. The beneficiary of the trust is the agricultural program established by this article. The trust fund shall be used exclusively for the purposes of this article on the order of the director.
D. C. Monies deposited in the state egg inspection trust fund:
1. Shall be subject to section 35‑143.01.
2. Are exempt from the provisions of section 35‑190 relating to lapsing of appropriations. Surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year, do not revert to the state general fund.
Sec. 85. Section 3-911, Arizona Revised Statutes, as amended by this act, is amended to read:
3-911. Conservation and public education
A. The department may conserve the highly safeguarded native plants including the use, and encouraging the use, of all methods and procedures that are necessary to bring the highly safeguarded native plants to the point where they are no longer in need of federal protection as endangered or threatened plants or state protection as highly safeguarded native plants. These methods and procedures include all activities associated with scientific resource management such as research, census, law enforcement, habitat protection and maintenance, propagation and transplantation.
B. The department shall encourage commercial businesses engaged in land development or other activities conducted on private land to salvage protected native plants to the greatest extent feasible.
C. The department may produce, and collect reasonable fees for, seminars, courses, pamphlets and other educational programs and publications concerning the effect, intent and interpretation of this chapter, the identification, nature or condition of protected native plants and the feasibility and techniques for their conservation and salvage for presentation and dissemination to:
1. State agencies and political subdivisions, including state and local law enforcement agencies and counties or municipalities which have enacted or consider enacting ordinances preserving protected native plants.
2. Real estate and other commercial businesses engaged in land development and other activities conducted on private land.
3. Landowners and the public at large.
4. Persons or entities that are convicted of violating this chapter or rules and ordinances adopted pursuant to this chapter and that are ordered by the court to attend educational classes or programs as part of their sentences.
D. Notwithstanding section 35‑148, subsection A, the director shall deposit any monies received under this section in the trust fund established by section 3‑913. END_STATUTE
Sec. 86. Section 3-913, Arizona Revised Statutes, as amended by this act, is amended to read:
3-913. Fiscal provisions; fees; Arizona protected native plant fund
A. The department shall collect nonrefundable fees for issuing permits, tags, seals and receipts under this article, except for scientific purposes, from landowners moving protected plants from one of their properties to another, or from the independent owner of residential property of ten acres or less if no such plants are to be offered for sale.
B. The director shall establish the amount of the fee by rule to reasonably reflect the cost to the department for administering this chapter or to reflect the value of the service, permit, tag, seal or receipt, including at least the following amounts:
1. For cereus giganteus (saguaro), at least three dollars for each plant.
2. For native plants that the director determines to be useful for revegetation and that cannot be salvaged economically at a higher fee, at least twenty‑five cents per plant.
3. For all other native plants, at least two dollars for each plant.
4. For all receipts for live harvest restricted native plants cut or removed for wood, at least one dollar per cord.
5. For a permit for the by‑products or fiber of harvest restricted native plants, at least one dollar per ton.
C. The Arizona protected native plant trust fund is established for the exclusive purpose of implementing, continuing and supporting the program established by this chapter. All fees and other monies collected under this chapter except civil penalties assessed pursuant to section 3‑933 or 3‑934 shall be deposited, pursuant to sections 35‑146 and 35‑147, in the trust fund. The monies deposited constitute a separate and permanent fund for use by the director, subject to legislative appropriation, to administer and enforce this chapter. The director shall administer the trust fund as trustee. The state treasurer shall accept, separately account for and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 and which shall not be commingled with any other monies in the state treasury except for investment purposes. On notice from the director, the state treasurer shall invest and divest monies in the any trust fund monies deposited in the state treasury as provided by section sections 35-313 and 35-314.03 and monies earned from investment shall be credited to the trust fund. The beneficiary of the trust is the program established by this chapter. The trust fund shall be used exclusively for the purposes of this chapter on the order of the director. Surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year, do not revert to the state general fund.
Sec. 87. Section 3-1294, Arizona Revised Statutes, as amended by this act, is amended to read:
3-1294. Improperly maintaining a stallion or jack; classification; seizure and sale; expenses for care
A. A person who maintains a stallion or jack with reckless disregard for the safety or health of other persons or property or livestock of another is guilty of a class 2 misdemeanor.
B. In addition, the appropriate court, on affidavit by the livestock officer, may issue an order to seize and impound the stallion or jack until remedial action has been taken by the owner, agent or person in charge of the stallion or jack. If no remedial action has been taken after twenty days, the livestock officer shall sell the stallion or jack to the highest bidder for cash at public auction. Immediately after the sale is made, or after release to the owner who pays the hauling charges and expenses of feeding and caring for the livestock, the livestock officer shall remit the proceeds to the agency together with an itemized statement of the expense of the seizure and sale, which shall be paid as other claims. The amount received by the agency shall be deposited, pursuant to sections 35‑146 and 35‑147, in the livestock custody trust fund established by section 3‑1377 and retained until final determination by the court of all actions arising from the seizure of the stallion or jack.
Sec. 88. Section 3-1350, Arizona Revised Statutes, as amended by this act, is amended to read:
3-1350. Registry of equine rescue facilities; fees
A. The department shall establish and maintain a registry of equine rescue facilities and a public list of registered equine rescue facilities at department offices and on the department's official website.
B. To be registered under this section an equine rescue facility must:
1. Be incorporated as a nonprofit corporation in this state.
2. Meet minimum standards prescribed by the department for:
(a) The physical condition of the facility.
(b) Equine care and treatment at the facility.
C. The term of registration is one year from the initial date of registration, renewable annually.
D. For initial registration or annual renewal of registration, a person representing the facility must file with the department:
1. A letter from a licensed veterinarian, dated within fifteen days of filing, certifying that the facility meets the standards prescribed by the department for the physical condition of the facility and for the care of equines at the facility.
2. Documents demonstrating the facility's current status as a nonprofit corporation in good standing in this state.
E. The registry shall include the documents filed for registration or renewal of registration under subsection D of this section or a link to the facility's website where the documents are displayed.
F. The director may:
1. Assess and collect fees for registering and renewing the registration of equine rescue facilities under this section. Revenues from the fees shall be deposited in the livestock custody trust fund established by section 3-1377.
2. Adopt rules to implement this section.
Sec. 89. Section 3-1372, Arizona Revised Statutes, as amended by this act, is amended to read:
3-1372. Keeping livestock following seizure; expenses; use of livestock in criminal prosecution; sale of forfeited livestock; nonliability of state
A. A livestock officer who has seized livestock, as provided by this article, shall safely keep and care for it while it is under the department's custody and control, during which time any person may inspect the livestock.
B. The expense of seizing, feeding and caring for livestock shall be paid from any fund available to the division for that purpose. The division shall recover its expenses as provided by this article.
C. At any time before the hearing on the ownership of the livestock, the county attorney of the county in which the livestock is seized may take charge of and keep the livestock at the expense of the state when the livestock is of evidentiary value in any criminal prosecution arising from the seizure.
D. If livestock is forfeited to this state and ordered to be sold, as provided by this article, the department shall cause notice to be posted in three public places in the precinct where the livestock is held stating that the livestock will be sold at public auction for cash to the highest bidder. The notice shall be posted for at least five days before the sale. The notice shall state the location where the livestock will be sold. Proceeds from the sale shall be transmitted to the department to be deposited in the livestock custody trust fund established by section 3‑1377, and on final determination of all actions arising from the seizure of the livestock the department shall pay the proceeds, less the hauling charges and expense of feeding and caring for such livestock, to the persons entitled thereto under the judgment of the court.
E. The director may contract with any person to handle, feed and care for livestock taken into custody under this section. This state is not liable for the injury or death of any person or livestock or damage to property due to performance of the contract.
Sec. 90. Section 3-1377, Arizona Revised Statutes, as amended by this act, is amended to read:
3-1377. Sale of seized stock; disposition of proceeds; livestock custody fund
A. Livestock officers shall execute an order of sale made pursuant to this article and deliver a bill of sale to the purchaser, describing the livestock sold and the amount it sold for, and forward to the division a duplicate of the bill of sale. On delivery of the bill of sale, title to the livestock shall pass to the purchaser.
B. Immediately after the sale is made, or after release to the owner who pays the hauling charges and expenses of feed and care of such livestock, livestock officers shall remit the proceeds of the sale to the department, together with an itemized statement of the expense of the seizure and sale, which shall be paid as other claims.
C. The amount received by the department pursuant to this section and sections 3‑1294, 3-1350, 3‑1372, 3‑1402, 3‑1403 and 3‑1721 shall be deposited, pursuant to sections 35‑146 and 35‑147, in a special fund designated the livestock custody trust fund. , Which is established for the exclusive purpose of implementing, continuing and supporting the agricultural program established by this chapter. The director shall administer the fund as trustee. The state treasurer shall accept, separately account for and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 and which shall not be commingled with any other monies in the state treasury except for investment purposes. On notice from the department director, the state treasurer shall invest and divest monies in the any trust fund monies deposited in the state treasury as provided by section sections 35-313 and 35-314.03, and monies earned from investment shall be credited to the trust fund. The beneficiaries of the trust are the agricultural programs established by this chapter. The trust fund shall be used exclusively for the purposes of this chapter on the order of the director. The trust fund is exempt from the provisions of section 35‑190 relating to lapsing of appropriations. Surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year, do not revert to the state general fund.
D. The livestock custody fund is subject to legislative appropriation for use by the department for the enforcement of any of the provisions of this title.
Sec. 91. Section 3-1402, Arizona Revised Statutes, as amended by this act, is amended to read:
3-1402. Holding and sale of stray animals; repossession before and after sale; nonliability of state
A. Any person who finds a stray animal may attempt to locate and, if located, notify the owner where the animal may be found. If the owner is unknown or cannot be located, or the person elects not to locate or notify the owner, the person shall notify the department and the department shall follow procedures pursuant to this section.
B. A livestock officer or inspector who finds or is notified of a stray animal shall attempt to locate the owner and, if located, notify the owner where the animal may be found. If the owner does not take immediate possession of the animal, or if the owner or claimant is unknown or cannot be located, the livestock officer or inspector shall hold the stray animal for at least seven days, but shall hold the stray animal up to fourteen days at the request of any person or organization, and sell it at public auction to the highest bidder for cash, after giving at least five days' notice of the sale.
C. The department shall cause notice to be posted in three public places in the justice precinct where the stray animal is held stating:
1. That the stray animal will be sold at public auction for cash to the highest bidder.
2. The location where the stray animal will be held and the location where the animal will be sold.
D. The owner of a stray animal may take possession of the animal at any time prior to sale by proving ownership and paying the inspection fee and all expenses incurred in keeping and caring for the animal.
E. If the owner of the stray does not claim the animal before the day of sale, or if the owner is unknown or cannot be located, the livestock officer or inspector shall sell the animal pursuant to the notice, and shall deliver an invoice of sale or a livestock inspection certificate to the purchaser. The owner of an animal sold may take possession of it at any time before the purchaser sells it by paying to the purchaser the purchase price paid at the sale, together with the expense of keeping and caring for the animal from the date of sale to the time the owner takes possession of the animal.
F. Livestock that is received at auction markets without proper documentation but with no evidence of criminal intent by the shipper may be sold, but the director shall impound the proceeds of the sale in the livestock custody trust fund established by section 3‑1377. On presentation of proper documentation of ownership, the director shall pay the proceeds, less any charges incurred, to the person who is entitled to the proceeds.
G. The director may contract with any person to handle, feed and care for stray animals taken into custody under this section. This state is not liable for the injury or death of any person or stray animal or damage to property due to performance of the contract.
Sec. 92. Section 3-1403, Arizona Revised Statutes, as amended by this act, is amended to read:
3-1403. Report by livestock officer or inspector; preliminary disposition of proceeds of sale
A. On making the sale as provided by section 3‑1402, the livestock officer or inspector shall notify the division of the name of the purchaser, the time and place of sale, the amount for which the animal was sold and a description of the animal showing the marks and brands, if any, or other identifying marks and shall pay to the department the net proceeds realized at the sale.
B. The department shall place the amount realized from the sale of stray animals in the livestock custody trust fund established by section 3‑1377.
Sec. 93. Section 3-1721, Arizona Revised Statutes, as amended by this act, is amended to read:
3-1721. Petition of seizure; notice of seizure; lien for expenses; forced sale; disposition of proceeds; nonliability of state; neglect or cruel treatment of equine; civil penalty; legal representation
A. Any person or peace officer who believes that an equine is in poor physical condition because of neglect or cruel treatment may petition on affidavit a justice of the peace of the precinct or a city magistrate of the city in which the equine is found for an order authorizing the department to take possession of and provide care for the equine for a fifteen‑day period. The order shall not be issued unless the affidavit provides that the livestock custody trust fund established by section 3‑1377 has a balance that permits the department to provide such care or that the department can demonstrate that the expenses have been contracted for pursuant to subsection E of this section. The clerk of the court or justice of the peace, as the case may be, after filing and docketing the petition, shall enter a brief statement of the petition on the docket and set a time for a hearing that is not less than five and not more than fifteen days after the petition is filed. The order shall state the time and place of the hearing.
B. On receiving the order the department shall take possession of the equine. The department shall serve the order on the owner of the equine, if known, at least twenty‑four hours before the hearing, either by personal service on the owner or by leaving a copy of the order with a person of suitable discretion at the owner's residence or place of business. If the owner is not known, the department shall give notice by posting a copy of the order on the day of the seizure in a conspicuous place at the location where the equine was seized and in at least two public places in the county where the equine was seized. The order shall be served by a livestock officer, constable or sheriff of the county.
C. If, at the hearing, it is determined that the equine at the time of taking possession was not in poor physical condition because of neglect or cruel treatment, the owner may immediately reclaim the equine and shall not be liable for payment of any expense incurred in the handling, feeding and care of the equine. Unless malice is proved, no action taken by an employee of the department or by a peace officer pursuant to this article shall be subject to civil or criminal liability.
D. On failure of the owner to be awarded immediate, expense‑free possession of the equine pursuant to subsection C of this section, the department shall either sell the equine at public auction or, if the equine's condition makes its sale impractical, dispose of the equine in the most humane manner possible. The department shall deposit, pursuant to sections 35‑146 and 35‑147, the proceeds of the sale in the livestock custody trust fund established by section 3‑1377 for distribution in the following priority:
1. The department shall be reimbursed for auction, handling, feeding and caring expenses.
2. Any monies derived from the sale in excess of the expenses to be paid pursuant to paragraph 1 shall be paid to the owner of the equine. After thirty days if the owner has not claimed the money, this money shall revert to the livestock custody trust fund established by section 3‑1377.
E. The director may contract with any person or group to handle, feed and care for any equine taken into custody pursuant to this section. The state shall not be liable for injury or death of any person or equine or damage to property caused by the performance of the contract.
F. Notwithstanding any provision of this article to the contrary, the county attorney of the county in which the equine was seized, at any time prior to the expiration of fifteen days after the seizure of the equine, may take charge of and keep the equine at the expense of the county when the county attorney considers it to be of evidentiary value in any criminal prosecution relating to the condition of the equine.
G. In addition to violating section 13‑2910, a person who subjects an equine to neglect or cruel treatment is subject to a civil penalty of not more than seven hundred fifty dollars for each violation. All civil penalties assessed pursuant to this subsection shall be deposited, pursuant to sections 35‑146 and 35‑147, in the state general fund.
H. The county attorney of the county, or the city attorney of the city, in which the livestock is seized may represent the livestock officer and the interests of this state in proceedings under this section.
I. On receipt the department shall deposit, pursuant to sections 35‑146 and 35‑147, all monies, except civil penalties, collected pursuant to this section or received as a money donation from any public or private group, society, association or individual in the livestock custody trust fund established by section 3‑1377. The monies in the fund shall be used to reimburse the department for expenses incurred in the handling, feeding, care and auctioning of equines seized pursuant to this section.
Sec. 94. Section 3-2602, Arizona Revised Statutes, as amended by this act, is amended to read:
3-2602. Administration and enforcement
A. In addition to other duties imposed by law, the associate director of the division shall administer and enforce the provisions of this article under the supervision of the director.
B. The salaries and expenses of travel and subsistence for employees who administer and enforce this article shall be paid from the commercial feed trust fund.
Sec. 95. Section 3-2604, Arizona Revised Statutes, as amended by this act, is amended to read:
3-2604. Publications; membership in professional organizations
A. The department may publish at such times and in such form as the director deems proper:
1. Information concerning the sale of commercial feeds and customer‑formula feeds together with such data on their production and use as he may consider advisable, but the information concerning production and use of commercial feeds and customer‑formula feeds shall not disclose the operations of any one person.
2. Reports of chemists' findings based on official samples of each brand of commercial feed and customer‑formula feed sampled and analyzed as compared to the guaranteed chemical analysis for each such feed.
B. The director may authorize employees of the department to:
1. Join and subscribe to any state, district, regional or national organization or publications relating to sale and distribution of or control of sale and distribution of commercial feeds.
2. Attend state, district, regional and national meetings relating to sale and distribution or control of sale and distribution of commercial feeds.
C. Expenses authorized by this section shall be paid from and limited by the commercial feed trust fund.
Sec. 96. Section 3-2607, Arizona Revised Statutes, as amended by this act, is amended to read:
3-2607. Commercial feed fund
A. The commercial feed trust fund is established for the exclusive purpose of implementing, continuing and supporting the agricultural program established by this article. All monies collected under the provisions of this article shall be deposited, pursuant to sections 35‑146 and 35‑147, in the trust fund.
B. The director shall administer the fund as trustee. The state treasurer shall accept, separately account for and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 and which shall not be commingled with any other monies in the state treasury except for investment purposes. On notice from the director, the state treasurer shall invest and divest monies in the any trust fund monies deposited in the state treasury as provided by section sections 35-313 and 35-314.03, and monies earned from investment shall be credited to the trust fund.
C. The beneficiary of the trust is the agriculture program established by this article. The trust fund shall be used solely for the purposes of this article on the order of the director.
D. The commercial feed trust fund is exempt from the provisions of section 35‑190 relating to lapsing appropriations. Surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year, do not revert to the state general fund.
Sec. 97. Section 3-2913, Arizona Revised Statutes, as amended by this act, is amended to read:
3-2913. Aquaculture fund
A. The aquaculture trust fund is established consisting for the exclusive purpose of implementing, continuing and supporting the agricultural program established by this article. The trust fund consists of revenues received from fees and all other sources under this article except civil penalties under section 3‑2912. The monies collected constitute a separate and permanent fund for the use of the director in administering and enforcing this article.
B. The director shall administer the trust fund as trustee. The state treasurer shall accept, separately account for and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 and which shall not be commingled with any other monies in the state treasury except for investment purposes. On notice from the director, the state treasurer shall invest and divest monies in the any trust fund monies deposited in the state treasury as provided by section sections 35-313 and 35-314.03, and monies earned from investment shall be credited to the trust fund.
C. The beneficiary of the trust is the agricultural program established by this article.
D. C. Any monies remaining unexpended in the fund on June 30 each year shall be carried forward to the following year and do not revert to the state general fund. the director shall take that amount into account in computing and setting fees under this article for that year.
Sec. 98. Section 5-113, Arizona Revised Statutes, as amended by this act, is amended to read:
5-113. Disposition of revenues and monies; funds; committee
A. All revenues derived from permittees, permits and licenses as provided by this article shall be deposited, pursuant to sections 35‑146 and 35‑147, in the state general fund.
B. The Arizona county fairs racing betterment fund is established under the jurisdiction of the department. The department shall distribute monies from the fund to the county fair association or county fair racing association of each county conducting a county fair racing meeting in such proportion as the department deems necessary for the promotion and betterment of county fair racing meetings. All expenditures from the fund shall be made on claims approved by the department. In order to be eligible for distributions from the fund, a county fair association must provide the department with an annual certification in the form required by the department supporting expenditures made from the fund. Balances remaining in the fund at the end of a fiscal year do not revert to the state general fund.
C. The county fairs livestock and agriculture promotion fund is established under the control of the governor and shall be used for the purpose of promoting the livestock and agricultural resources of the state and for the purpose of conducting an annual Arizona national livestock fair by the Arizona exposition and state fair board to further promote livestock resources. The direct expenses less receipts of the livestock fair shall be paid from this fund, but such payment shall not exceed thirty per cent of the receipts of the fund for the preceding fiscal year. Balances remaining in the fund at the end of a fiscal year do not revert to the state general fund. All expenditures from the fund shall be made upon claims approved by the governor, as recommended by the livestock and agriculture committee, for the promotion and betterment of the livestock and agricultural resources of this state. The livestock and agriculture committee is established and shall be composed of the following members, at least three of whom are from counties that have a population of less than five hundred thousand persons, appointed by the governor:
1. Three members representing county fairs.
2. One member representing Arizona livestock fairs.
3. One member representing the university of Arizona college of agriculture.
4. One member representing the livestock industry.
5. One member representing the farming industry.
6. One member representing the governor's office.
7. One member representing the Arizona state fair conducted by the Arizona exposition and state fair board.
8. One member representing the general public.
D. The governor shall appoint a chairman from the members. Terms of members shall be four years.
E. Members of the committee are not eligible to receive compensation but are eligible to receive reimbursement for expenses pursuant to title 38, chapter 4, article 2.
F. The Arizona breeders' award fund is established under the jurisdiction of the department. The department shall distribute monies from the fund to the breeder, or the breeder's heirs, devisees or successors, of every winning horse or greyhound foaled or whelped in this state, as defined by section 5‑114, in a manner and in an amount established by rules of the commission to protect the integrity of the racing industry and promote, improve and advance the quality of race horse and greyhound breeding within this state. The department may contract with a breeders' association to provide data, statistics and other information necessary to enable the department to carry out the purposes of this subsection. Persons who are not eligible to be licensed under section 5‑107.01 or persons who have been refused licenses under section 5‑108 are not eligible to participate in the Arizona greyhound breeders' award fund. Balances remaining in the fund at the end of a fiscal year do not revert to the state general fund. For the purposes of this subsection, "breeder" means the owner or lessee of the dam of the animal at the time the animal was foaled or whelped.
G. The Arizona stallion award fund is established under the jurisdiction of the department to promote, improve and advance the quality of stallions in this state. The department shall distribute monies from the fund to the owner or lessee, or the owner's or lessee's heirs, devisees or successors, of every Arizona stallion whose certified Arizona bred offspring, as prescribed in section 5‑114, finishes first, second or third in an eligible race in this state. The department may contract with a breeders' association to provide data, statistics and other information necessary to enable the department to carry out the purposes of this subsection. Balances remaining in the fund at the end of a fiscal year do not revert to the state general fund. The commission shall adopt rules pursuant to title 41, chapter 6 to carry out the purposes of this subsection. The rules shall prescribe at a minimum:
1. The manner and procedure for distribution from the fund, including eligibility requirements for owners and lessees.
2. Subject to availability of monies in the fund, the amount to be awarded.
3. The requirements for a stallion registered with the jockey club, Lexington, Kentucky or with the American quarter horse association, Amarillo, Texas to be certified as an Arizona stallion.
4. The types and requirements of races for which an award may be made.
H. The greyhound and retired racehorse adoption fund is established. The department shall administer the fund and maintain separate accounts for greyhound adoptions and retired racehorse adoptions. All revenues derived from license fees collected from dog breeders, racing kennels and other operations pursuant to section 5‑104, subsection F, paragraphs 7, 8 and 9 shall be deposited, pursuant to sections 35‑146 and 35‑147, in the greyhound adoption account of the fund. All revenues derived from retired racehorse adoption surcharges collected pursuant to section 5‑104, subsection G shall be deposited, pursuant to sections 35‑146 and 35‑147, in the retired racehorse adoption account of the fund. The department shall distribute monies from the fund to provide financial assistance to nonprofit enterprises approved by the commission to promote the adoption of former racing greyhounds as domestic pets and to promote the adoption of retired racehorses pursuant to section 5‑104, subsection G in a manner and in an amount established by rules of the commission. Balances remaining in the fund at the end of a fiscal year do not revert to the state general fund.
I. The county fair racing fund is established. The department shall administer the fund. Monies in the fund are continuously appropriated. The department shall use fund monies for the administration of county fair racing. Any monies remaining unexpended in the fund at the end of the fiscal year in excess of seventy‑five thousand dollars shall revert to the state general fund.
J. The agricultural consulting and training trust fund is established for the exclusive purpose of implementing, continuing and supporting. Monies in the fund are continuously appropriated. The Arizona department of agriculture shall use monies in the fund for the agricultural consulting and training program established by section 3‑109.01. The director of the Arizona department of agriculture shall administer the trust fund as trustee. The state treasurer shall accept, separately account for and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35-310 and which shall not be commingled with any other monies in the state treasury except for investment purposes. On notice from the director, the state treasurer shall invest and divest any trust fund monies deposited in the state treasury as provided by sections 35‑313 and 35-314.03, and monies earned from investment shall be credited to the trust fund. The beneficiary of the trust is the agricultural consulting and training program established by section 3-109.01. Surplus monies, including Balances remaining in the trust fund at the end of a fiscal year do not revert to the state general fund.
Sec. 99. Delayed effective date
Sections 50 through 98 of this act are effective from and after December 31, 2012.
