SB 55

           Second Regular Session of the 124th General Assembly (2026)
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between statutes enacted by the 2025 Regular Session of the General Assembly.
      SENATE ENROLLED ACT No. 55
   AN ACT to amend the Indiana Code concerning agriculture and
animals.
    Be it enacted by the General Assembly of the State of Indiana:
   SECTION 1. IC 15-15-12.5 IS ADDED TO THE INDIANA CODE
AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2026]:
   Chapter 12.5. Soybean Market Development
   Sec. 1. (a) The Indiana Soybean Alliance shall serve as the
Qualified State Soybean Board for the state of Indiana as provided
in 7 CFR 1220.228(a)(1) as long as the ISA collects assessments
under the:
      (1) Soybean Promotion, Research, and Consumer Information
      Act (7 U.S.C. 6301 through 7 U.S.C. 6311); and
      (2) Soybean Promotion and Research Order (7 CFR 1220).
   (b) The provisions of this chapter, other than subsection (a),
apply only if assessments are not levied and collected under the:
      (1) Soybean Promotion, Research, and Consumer Information
      Act (7 U.S.C. 6301 through 7 U.S.C. 6311); and
      (2) Soybean Promotion and Research Order (7 CFR 1220);
by the ISA as the Qualified State Soybean Board (as defined in 7
CFR 1220.122).
   (c) Except as provided in subsection (d), this chapter applies to
all types, varieties, and forms of soybeans marketed or sold as
soybeans by a producer in Indiana.
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   (d) Organic soybean farmers are exempt from this chapter if an
organic soybean farmer:
     (1) receives an exemption under the National Organic
     Program (NOP) described in 7 CFR 205; and
     (2) operates under an NOP approved organic system plan.
   Sec. 2. As used in this chapter, "bushel" means sixty (60) pounds
of soybeans by weight.
   Sec. 3. As used in this chapter, "Commodity Credit
Corporation" refers to the corporation that administers and issues
loans under a price support loan program in exchange for soybeans
pledged as collateral.
   Sec. 4. As used in this chapter, "dean of agriculture" means the
dean of agriculture at Purdue University.
   Sec. 5. As used in this chapter, "department" refers to the
Indiana state department of agriculture established by
IC 15-11-2-1.
   Sec. 6. As used in this chapter, "first purchase" means a sale of
soybeans at the first point of delivery when the soybeans are:
     (1) weighed;
     (2) graded;
     (3) titled; and
     (4) transferred to the first purchaser.
   Sec. 7. As used in this chapter, "first purchaser" means a person
who is engaged in Indiana in the business of buying or acquiring
soybeans from a producer or the Commodity Credit Corporation.
   Sec. 8. As used in this chapter, "Indiana Soybean Alliance" or
"ISA" refers to the Indiana Soybean Alliance, Inc., an Indiana
nonprofit corporation incorporated in accordance with the laws of
the state of Indiana on July 1, 1997.
   Sec. 9. As used in this chapter, "market development" means to:
     (1) provide for the development of new or larger domestic and
     foreign markets for products derived from soybeans; and
     (2) access federal government money available to the state to
     further the market development activities described in
     subdivision (1).
   Sec. 10. As used in this chapter, "marketing year" means the
twelve (12) month period beginning October 1 and ending the
following September 30.
   Sec. 11. As used in this chapter, "net market price" means the
price paid per bushel of soybeans sold after moisture and quality
discounts or premiums, but before any deductions for storage,
handling, drying, inspection, or other services.
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   Sec. 12. As used in this chapter, "person" means:
     (1) an individual;
     (2) a partnership;
     (3) a limited liability company;
     (4) a public or private corporation;
     (5) a political subdivision (as defined in IC 36-1-2-13);
     (6) a cooperative;
     (7) a society;
     (8) an association; or
     (9) a fiduciary.
   Sec. 13. As used in this chapter, "producer" means a person
engaged in the business of producing and marketing soybeans in
Indiana under:
     (1) the producer's own name; or
     (2) the name of an entity in which the producer has
     ownership.
   Sec. 14. As used in this chapter, "program" means the Indiana
soybean marketing program established under section 19 of this
chapter.
   Sec. 15. As used in this chapter, "promotion" means:
     (1) communication directly with soybean producers,
     promoters, purchasers, consumers, and stakeholders;
     (2) technical assistance; and
     (3) trade marketing activities;
to enhance the marketing opportunities of soybeans and any
product derived from soybeans in domestic and foreign markets.
   Sec. 16. As used in this chapter, "research" means a study to
advance the:
     (1) marketability;
     (2) production;
     (3) product development;
     (4) quality; or
     (5) functional or nutritional value;
of soybeans and any product derived from soybeans, including
research activities designed to identify and analyze barriers to
domestic and foreign sales of soybeans.
   Sec. 17. As used in this chapter, "sale" means:
     (1) a conveyance of title to soybeans; or
     (2) the pledge or other encumbrance of soybeans as security
     for a loan extended by the Commodity Credit Corporation
     under a federal price support loan program.
   Sec. 18. As used in this chapter, "soybeans" includes all types,
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varieties, and forms of soybeans grown in Indiana and marketed
and sold as soybeans by the producer.
   Sec. 19. (a) If this chapter applies as described in section 1 of
this chapter, then the Indiana soybean marketing program is
established. The ISA shall administer the program as required by
this chapter.
   (b) The ISA consists of twenty-six (26) voting and at least eight
(8) ex officio, nonvoting board members. The elected board
members from districts listed under section 22 of this chapter
must:
      (1) be registered as voters in Indiana;
      (2) be at least eighteen (18) years of age;
      (3) be producers;
      (4) have an assessment on soybeans under section 28 of this
      chapter made during the previous two (2) years; and
      (5) not have requested or received a refund of any assessment
      during the previous two (2) years.
   (c) Each elected board member of the ISA must reside in the
district identified in section 22 of this chapter from which the
board member is elected.
   (d) The ISA shall elect a president, a vice president, a secretary,
treasurer, and other officers the ISA considers necessary.
   (e) A majority of the voting board members of the ISA
constitutes a quorum. The affirmative votes of at least a majority
of the quorum, and at least fourteen (14) affirmative votes, are
required for the ISA to act.
   (f) The ISA shall meet at least three (3) times in each marketing
year at the call of the president or at the request of two-thirds (2/3)
of the board members of the ISA.
   (g) Each board member of the ISA who is not a state employee
or a member of the general assembly is entitled to reimbursement
for mileage, travel expenses, and other expenses actually incurred
in connection with the board member's duties in accordance with
the ISA's travel policy. Except as provided in section 22 of this
chapter, ISA board members are not entitled to a salary or per
diem. Reimbursement under this subsection shall be paid from
funds of the ISA.
   (h) Each board member of the ISA who is a state employee is
entitled to reimbursement for traveling expenses as provided under
IC 4-13-1-4 and other expenses actually incurred in connection
with the board member's duties as provided in the state policies
and procedures established by the Indiana department of
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administration and approved by the budget agency.
Reimbursement under this subsection shall be paid from
appropriations made to the department.
    Sec. 20. (a) The term of office of an elected or appointed ISA
board member is three (3) years. A board member's term of office
expires at the board meeting after the final marketing year in the
term. However, a board member continues in office until a
successor who meets the qualifications set forth in section 19 of this
chapter is elected or appointed.
    (b) An elected or appointed ISA board member may not hold
office for more than three (3) full terms.
    (c) Whenever an elected board member's office under section
22(a) of this chapter becomes vacant before the expiration of the
board member's term of office, the ISA shall fill the vacancy by
appointing a replacement member who meets the qualifications set
forth in section 19 of this chapter. The appointee shall serve for the
remainder of the unexpired term.
    (d) Whenever the office of a board member appointed under
section 22(b), 22(c), 22(d), or 22(e) of this chapter becomes vacant,
the appointing authority who appointed the board member shall
fill the vacancy. An appointee under this subsection shall serve for
the remainder of the unexpired term.
    Sec. 21. (a) When necessary, the ISA may appoint individuals
who hold offices of importance to the soybean industry or have
special expertise concerning the soybean industry to participate in
the work of the ISA. These individuals may not participate in votes
taken by the ISA but are eligible for reimbursement for traveling
expenses in the same manner as ISA board members under section
19(g) of this chapter.
    (b) A person appointed under this section serves a term of one
(1) year but may be reappointed for additional terms.
    Sec. 22. (a) Six (6) ISA board members shall be elected from
each of the following districts:
       DISTRICT 1. The counties of Benton, Carroll, Cass, Clinton,
       Elkhart, Fulton, Howard, Jasper, Kosciusko, Lake, LaPorte,
       Marshall, Miami, Newton, Porter, Pulaski, St. Joseph, Starke,
       Tipton, Wabash, and White.
       DISTRICT 2. The counties of Adams, Allen, Blackford,
       DeKalb, Delaware, Grant, Henry, Huntington, Jay,
       LaGrange, Madison, Noble, Randolph, Steuben, Wayne,
       Wells, and Whitley.
       DISTRICT 3. The counties of Clay, Daviess, Dubois,
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      Fountain, Gibson, Greene, Knox, Martin, Montgomery,
      Owen, Parke, Pike, Posey, Putnam, Spencer, Sullivan,
      Tippecanoe, Vanderburgh, Vermillion, Vigo, Warren, and
      Warrick.
      DISTRICT 4. The counties of Bartholomew, Boone, Brown,
      Clark, Crawford, Dearborn, Decatur, Fayette, Floyd,
      Franklin, Hamilton, Hancock, Harrison, Hendricks, Jackson,
      Jefferson, Jennings, Johnson, Lawrence, Marion, Monroe,
      Morgan, Ohio, Orange, Perry, Ripley, Rush, Scott, Shelby,
      Switzerland, Union, and Washington.
    (b) The dean of agriculture shall appoint one (1) representative
of the largest general farm organization in Indiana, who must be
a producer, to serve as a board member of the ISA.
    (c) The dean of agriculture shall appoint one (1) representative
of any agricultural membership organization in Indiana, who must
be a producer, to serve as a board member of the ISA. The
representative appointed in accordance with this subsection must
represent a different organization than the representative
appointed in accordance with subsection (b).
    (d) The director shall appoint two (2) representatives of first
purchaser organizations to serve as nonvoting ISA board members.
    (e) Four (4) board members serve on the ISA, to be appointed
as nonvoting board members as follows:
      (1) One (1) board member appointed by the president pro
      tempore of the senate.
      (2) One (1) board member appointed by the minority leader
      of the senate.
      (3) One (1) board member appointed by the speaker of the
      house of representatives.
      (4) One (1) board member appointed by the minority leader
      of the house of representatives.
The board members appointed under this subsection are ex officio
nonvoting board members of the ISA. The members of the senate
must be of different political parties. The members of the house of
representatives must be of different political parties. Each ex
officio board member of the ISA who is a member of the general
assembly is entitled to receive the same per diem, mileage, and
travel allowances paid to legislative members of interim study
committees established by the legislative council. Per diem,
mileage, and travel allowances paid under this subsection shall be
paid from appropriations made to the legislative council or the
legislative services agency.
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   (f) The dean of agriculture or the dean's designee shall serve as
an ex officio, nonvoting ISA board member.
   (g) The secretary of agriculture or the secretary's designee shall
serve as an ex officio, nonvoting ISA board member.
   Sec. 23. (a) An election of an ISA board member shall be held in
a district in the year in which the term of the district's ISA board
member is to expire.
   (b) The ISA shall provide notice to producers of the district of
the impending election by:
     (1) publishing one (1) or more notices in a statewide
     agricultural publication; and
     (2) making information available to the news media in the
     district;
four (4) months before the day of the election.
   Sec. 24. (a) The ballot for the election of a district ISA board
member must include the name of each producer who:
     (1) meets the qualifications set forth in section 19 of this
     chapter; and
     (2) files with the ISA a petition in support of candidacy signed
     by ten (10) other producers who reside in the district.
   (b) The ISA shall provide petition forms upon request and shall
make petition forms available via the ISA's website. All names on
the ballot must be listed in alphabetical order based on the
producer's surname.
   (c) The ISA shall allow a producer to request a ballot through
the ISA's website.
   (d) Each ballot submitted by a producer must contain an
attestation that the person is an eligible producer.
   Sec. 25. The director shall appoint a third party person that
shall count all ballots and conduct other activities expressly
delegated to it by the director.
   Sec. 26. The election of an ISA board member must be
conducted by the ISA in a manner designated by the ISA and set
forth in the notices required under section 23 of this chapter. The
winner of an election takes office at the first meeting after the end
of the marketing year.
   Sec. 27. The ISA shall do the following:
     (1) Employ personnel and contract for services that are
     necessary for the proper implementation of this chapter.
     (2) Bond the ISA treasurer and such other persons as
     necessary to ensure adequate protection of funds received and
     administered by the ISA.
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      (3) Authorize the expenditure of funds and the contracting of
      expenditures to conduct proper activities under this chapter.
      (4) Annually establish priorities and prepare and approve a
      budget consistent with the estimated resources of the ISA and
      the scope of this chapter.
      (5) Annually provide:
         (A) an activities report to the legislative council in an
         electronic format under IC 5-14-6; and
         (B) an independent audit report to the state board of
         accounts.
      (6) Procure and evaluate data and information necessary for
      the proper implementation of this chapter.
      (7) Formulate and execute assessment procedures and
      methods of collection.
      (8) Receive and investigate complaints and violations of this
      chapter.
      (9) Take necessary enforcement action against individuals
      who violate this chapter.
      (10) Maintain bylaws and operating procedures governing
      operations of the ISA and the administration of funds
      collected under this chapter.
      (11) Keep accurate accounts of all receipts and disbursements
      of funds handled by the ISA and have the receipts and
      disbursements audited annually by a certified public
      accountant.
      (12) Take any other action necessary for the proper
      implementation of this chapter.
      (13) Comply with the requirements under IC 5-14-1.5.
    Sec. 28. (a) First purchasers shall collect an assessment equal to
one-half of one percent (0.5%) of the net market price on all
soybeans sold in Indiana and remit to the ISA all assessments
collected under this section in the manner prescribed by subsection
(f).
    (b) The first purchaser may only impose and collect an
assessment on a quantity of soybeans once.
    (c) Only the general assembly may change the rate of the
assessment imposed by this section.
    (d) The first purchaser of a quantity of soybeans shall deduct
the assessment on the soybeans from the money to be paid to the
producer based on the sale of the soybeans. A first purchaser shall
accumulate assessments collected under this section throughout
each of the following periods:
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     (1) January, February, and March.
     (2) April, May, and June.
     (3) July, August, and September.
     (4) October, November, and December.
   (e) Within thirty (30) days after the end of each period, the first
purchaser shall remit to the ISA all assessments collected during
the period. A first purchaser who remits all assessments collected
during a period within thirty (30) days after the end of the period
is entitled to retain three percent (3%) of the total of the
assessments as a handling fee.
   (f) The assessment on the sale of the soybeans must occur at the
time of first purchase as the payment for the soybeans is received
by the producer.
   Sec. 29. (a) The ISA shall pay all expenses incurred under this
chapter with money from the assessments remitted to the ISA
under this chapter.
   (b) The ISA may invest all money the ISA receives under this
chapter, including gifts or grants that are given for the express
purpose of implementing this chapter, in the same way allowed by
law for public funds.
   (c) The ISA may expend money from assessments and from
investment income not needed for expenses for market
development, promotion, and research.
   (d) The ISA may not use money received, collected, or accrued
under this chapter for any purpose other than the purposes
authorized by this chapter. The amount of money expended on
administering this chapter in the ISA's fiscal year may not exceed
ten percent (10%) of the average amount of assessments, grants,
and gifts received by the ISA as calculated under subsection (e).
   (e) The ISA shall determine the amount that it may expend to
administer this chapter using the following formula:
     STEP ONE: Determine the amount of assessments, grants,
     and gifts received by the ISA in each of the preceding five (5)
     fiscal years beginning with the immediately preceding fiscal
     year.
     STEP TWO: Determine the average annual amount of
     assessments, grants, and gifts received by the ISA in each
     fiscal year using three (3) of the five (5) fiscal years described
     in STEP ONE after excluding the two (2) years in which the
     amount of assessments, grants, and gifts received by the ISA
     were the highest and lowest totals.
     STEP THREE: Divide the amount in STEP TWO by ten (10).
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The amount in STEP THREE is the maximum amount that the ISA
may expend on administering this chapter for the current fiscal
year.
   (f) When the board members of the ISA evaluate and approve
expenditures, ISA board members shall:
     (1) emphasize programs that create opportunities and value
     for Indiana soybean farmers and their operations; and
     (2) prioritize collaborative projects with universities, states,
     and organizations that have:
         (A) a regional;
         (B) a national; or
         (C) an international;
     impact.
   (g) The ISA shall use at least fifty percent (50%) of the funds
collected from the assessment under subsection (a) for approved
expenditures that meet the criteria set forth in subsection (f)(2).
   Sec. 30. (a) Assessments collected by the ISA under the program
are subject to refund requests by a producer if the producer
requests a refund pursuant to the procedure established by the
ISA.
   (b) A producer's application for a refund under this section
must be made to the ISA not more than one hundred eighty (180)
days after the state assessment is deducted from the sale price of
the producer's soybeans.
   (c) If a refund is due under this section, the ISA shall remit the
refund to the producer not later than thirty (30) days after the date
the producer's completed application and proof of assessment are
received.
   Sec. 31. (a) A first purchaser shall keep detailed records of all
assessments collected and remitted under this chapter for at least
three (3) years.
   (b) Upon request, a first purchaser shall supply the ISA with
any information from records kept under subsection (a).
   (c) The ISA may periodically audit a first purchaser's checkoff
assessment and remittance records kept under subsection (a). An
audit must be conducted by:
     (1) a qualified public accountant of the ISA's choosing; or
     (2) an auditor who is familiar with the:
         (A) storage;
         (B) conditioning;
         (C) shipping; and
         (D) handling;
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     of agricultural commodities.
The costs of the audit shall be paid by the ISA.
   Sec. 32. (a) If a first purchaser fails to remit the assessments
collected during a period specified in section 28 of this chapter
within thirty (30) days after the end of the period, the ISA shall
contact the first purchaser and allow the first purchaser to present
comments to the ISA concerning:
     (1) the status and amount of the assessments due; and
     (2) reasons why the ISA should not bring legal action against
     the first purchaser.
   (b) After allowing a first purchaser the opportunity to present
comments, the ISA:
     (1) may adjust the amount of the assessments due, if the first
     purchaser's comments reveal that the ISA's figure is
     inaccurate;
     (2) may assess a penalty against the first purchaser;
     (3) shall:
         (A) assess a fee for an unpaid assessment due the ISA, from
         a person responsible for remitting assessments, at the rate
         of two percent (2%) of the amount of the unpaid
         assessment each month, beginning with the day following
         the date the assessment is due under this subsection; and
         (B) if there is any remaining amount due after the
         assessment of the fee under clause (A), assess a fee at the
         same rate on the corresponding day of each month
         thereafter until the entire amount of the unpaid assessment
         is paid;
     (4) shall compute the amounts payable on unpaid assessments
     under this section monthly and include any unpaid late
     charges previously applied under this section; and
     (5) shall determine the date of a payment for purposes of this
     subsection by the postmark applied to the remitting envelope
     or the date of the missed assessment.
   (c) If a first purchaser fails to remit assessments after being
allowed to present comments under subsection (a) or to pay any
penalty assessed under subsection (b), the ISA may bring a civil
action against the first purchaser in a circuit, superior, or
municipal court of any county. The action shall be tried and a
judgment rendered as in any other proceeding for the collection of
a debt. In an action under this subsection, the ISA may obtain:
     (1) a judgment in the amount of all unremitted assessments
     and any unpaid penalty; and
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      (2) an award of the costs of bringing the action.
    Sec. 33. (a) Proceeds of the checkoff assessment collected by the
ISA under this chapter may not be used to influence legislation or
governmental action or policy.
    (b) Proceeds of the assessment collected under this chapter may
be used to communicate information related to the:
      (1) conduct;
      (2) implementation; or
      (3) results;
of promotion, research, and market development activities to
appropriate government officials.
    Sec. 34. (a) If a person fails to discharge a duty imposed by this
chapter other than remitted assessments, the ISA shall allow the
person an opportunity to present comments to the ISA concerning
reasons why the ISA should not bring legal action against the
person.
    (b) If it is necessary to obtain compliance with this chapter, the
ISA may bring an action against the person in a circuit, superior,
or municipal court of any county seeking an injunction mandating
compliance and any other appropriate legal remedies.
    (c) In an action under this section, the ISA may be granted
injunctive relief without establishing the absence of an adequate
remedy at law.
    SECTION 2. IC 15-19-8 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2026]:
    Chapter 8. Indiana Pork Market Development
    Sec. 1. (a) This chapter applies only if all assessment collection
programs and checkoff programs are not operated under the:
      (1) Pork Promotion, Research, and Consumer Information
      Act (7 U.S.C. 4801 through 7 U.S.C. 4819); and
      (2) Pork Promotion and Research Order (7 CFR 1230);
by the IPPA.
    (b) If the assessments described under subsection (a) are levied,
the IPPA may not:
      (1) collect assessments; or
      (2) conduct any other activity that is expressly preempted by
      a program described in subsection (a).
    (c) Except as provided in subsection (d), this chapter applies to
all types, varieties, and forms of pork marketed or sold as pork by
a producer in Indiana.
    (d) Organic hog farmers are exempt from this chapter if an
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organic hog farmer:
     (1) receives an exemption under the National Organic
     Program (NOP) described in 7 CFR 205; and
     (2) operates under an NOP approved organic system plan.
   Sec. 2. As used in this chapter, "board of directors" refers to the
governing body of the program.
   Sec. 3. As used in this chapter, "first purchaser" refers to the
following:
     (1) A person that buys or is engaged in the business of
     receiving a porcine animal as a commission merchant.
     (2) A person that buys or is engaged in the business of
     receiving a porcine animal at an auction market.
     (3) A person that buys or is engaged in the business of
     receiving a porcine animal at a livestock market.
     (4) A producer that raises a porcine animal, slaughters the
     porcine animal, and sells the pork.
     (5) A person in the business of purchasing a porcine animal on
     behalf of a producer.
   Sec. 4. As used in this chapter, "Indiana Pork Advocacy
Coalition" or "INPAC" refers to the Indiana Pork Advocacy
Coalition, Inc., an Indiana nonprofit corporation organized under
the laws of the State of Indiana on October 12, 2001.
   Sec. 5. As used in this chapter, "IPPA" refers to the Indiana
Pork Producers Association, Inc., an Indiana nonprofit corporation
incorporated under the laws of the State of Indiana on February
13, 1952.
   Sec. 6. As used in this chapter, "Indiana Soybean Alliance"
refers to the Indiana Soybean Alliance, Inc., an Indiana nonprofit
corporation incorporated under the laws of the State of Indiana on
July 1, 1997.
   Sec. 7. As used in this chapter, "INPAC director" means the
executive director of INPAC.
   Sec. 8. As used in this chapter, "market" means to advertise:
     (1) the sale;
     (2) the slaughter for sale; or
     (3) any other method of disposal;
of a porcine animal in commerce.
   Sec. 9. As used in this chapter, "market value" refers to the
following:
     (1) If a porcine animal is slaughtered for sale by a producer,
     the most recent annual seven-market average for barrows and
     gilts, as published by the USDA.
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     (2) If a porcine animal is imported, the declared value.
     (3) If a pork product is imported, an amount that represents
     the value of the live porcine animal from that the pork
     product was derived, based on the most recent annual
     seven-market average for barrows and gilts, as published by
     the USDA.
   Sec. 10. As used in this chapter, "National Pork Board" refers
to the National Pork Board as established by 7 U.S.C. 4808.
   Sec. 11. As used in this chapter, "National Pork Producers
Council" refers to the National Pork Producers Council, organized
under the laws of the State of Iowa on March 28, 1968.
   Sec. 12. As used in this chapter, "person" means:
     (1) an individual;
     (2) a partnership;
     (3) a limited liability company;
     (4) a public or private corporation;
     (5) a political subdivision (as defined in IC 36-1-2-13);
     (6) a cooperative;
     (7) a society;
     (8) an association; or
     (9) a fiduciary.
   Sec. 13. As used in this chapter, "porcine animal" means a swine
that is raised as a:
     (1) feeder pig that is a young pig sold to another person to be
     finished for slaughtering over a period of more than one (1)
     month;
     (2) seedstock pig for breeding purposes and included in the
     breeding herd; or
     (3) market hog, slaughtered by the producer or sold to be
     slaughtered, usually within one (1) month of the transfer.
   Sec. 14. As used in this chapter, "pork" means the flesh of a
porcine animal.
   Sec. 15. As used in this chapter, "pork product" means an edible
product:
     (1) produced; or
     (2) processed;
in whole or in part from pork.
   Sec. 16. As used in this chapter, "producer" means a person
engaged in the business of farming and marketing hogs in Indiana
under:
     (1) the producer's own name; or
     (2) the name of an entity in which the producer has
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     ownership.
   Sec. 17. As used in this chapter, "program" means the Indiana
pork marketing program.
   Sec. 18. As used in this chapter, "promotion" means:
     (1) communication directly with pork producers, promoters,
     purchasers, consumers, and stakeholders;
     (2) technical assistance; and
     (3) trade marketing activities;
to enhance the marketing opportunities of pork and any product
containing pork in domestic and foreign markets and increase
access to federal government money available for Indiana pork
producers.
   Sec. 19. As used in this chapter, "purchase" means a sale of
pork at the first point of delivery when the pork is:
     (1) weighed;
     (2) graded;
     (3) titled; and
     (4) transferred to the purchaser.
   Sec. 20. As used in this chapter, "research" means a study to
advance the:
     (1) marketability;
     (2) production;
     (3) product development;
     (4) quality; or
     (5) functional or nutritional value;
of pork and any product derived from pork, including research
activities designed to identify and analyze barriers to domestic and
foreign sales of pork.
   Sec. 21. As used in this chapter, "USDA" means the United
States Department of Agriculture.
   Sec. 22. As used in this chapter, "voting members" means the
voting members of the IPPA.
   Sec. 23. (a) The Indiana pork marketing program is established.
The IPPA shall administer the program.
   (b) The board of directors consists of the following voting board
members:
     (1) At least three (3) and no more than twelve (12) at large
     members, each of which are voting members of the IPPA, as
     follows:
         (A) Each elected by the voting members of the IPPA.
         (B) No more than two (2) at-large members may represent
         any one (1) county within Indiana.
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        (C) Each may serve for a term of two (2) years from the
        date of the member's election.
        (D) Each may not serve more than three (3) consecutive
        terms.
     (2) At least (1) but no more than three (3) affiliated industry
     members, as follows:
        (A) Each elected by the voting members of the IPPA.
        (B) Each of which represents an industry reasonably
        affiliated with the pork industry.
        (C) Each may serve for a term of two (2) years from the
        date of the member's election.
        (D) Each may not serve more than three (3) consecutive
        terms.
     (3) The director of the National Pork Board, who serves as an
     ex officio member.
     (4) The director of the National Pork Producers Council, who
     serves as an ex officio member.
     (5) One (1) member of the board of directors of the IPPA
     appointed by the dean of agriculture at Purdue University,
     whose term expires if the dean appoints a replacement.
     (6) One (1) member of the board of directors of the IPPA
     appointed by the director of INPAC, whose term expires if the
     INPAC director appoints a replacement.
     (7) One (1) member who is the preceding president of the
     IPPA, whose term as a member of the board of directors
     expires when the current president's term concludes.
     (8) The executive director of the IPPA, who serves as an ex
     officio member.
     (9) One (1) appointee of the chief executive officer of the
     Indiana Soybean Alliance, whose term as a member of the
     board of directors expires if the chief executive officer of the
     Indiana Soybean Alliance appoints a replacement.
   (c) In addition to the requirements under subsection (b), a
member of the board of directors must meet the following criteria:
     (1) Be a registered voter in Indiana.
     (2) Be at least eighteen (18) years of age.
     (3) Be a producer.
   (d) The IPPA shall elect a president, vice president, secretary,
treasurer, and any other officers deemed necessary by the board
of directors.
   (e) One-third (1/3) of the members of the board of directors
constitutes a quorum. An affirmative vote of at least a majority of
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the quorum is required for the board of directors to act.
    (f) The board of directors shall meet at least three (3) times in
each calendar year:
       (1) at the call of the president; or
       (2) at the request of two-thirds (2/3) of the members of the
       board of directors.
    (g) Each member of the board of directors who is not a state
employee or a member of the general assembly is entitled to
reimbursement for mileage, travel expenses, and other expenses
actually incurred in connection with the board member's duties in
accordance with the IPPA's travel policy. Except as provided
subsection (h), the members of the board of directors are not
entitled to a salary or per diem as consideration for their service as
a member of the board of directors. Reimbursements under this
subsection must be paid from funds of the IPPA.
    (h) Each member of the board of directors who is a state
employee is entitled to reimbursement for traveling expenses as
provided under IC 4-13-1-4 and other expenses actually incurred
in connection with the member's duties as provided in the state
policies and procedures established by the Indiana department of
administration and approved by the budget agency.
Reimbursements under this subsection must be paid from
appropriations made to the legislative council or the legislative
services agency.
    (i) A board member continues in office until a successor who
meets the applicable qualifications set forth in subsection (b) is
elected or appointed.
    (j) If a vacancy occurs on the board of directors, the appointing
authority that appointed the member whose position is vacant shall
appoint an individual to fill the vacancy.
    (k) The members of the board of directors must be elected by a
majority vote of the voting members of IPPA at the annual
meeting.
    Sec. 24. (a) When necessary, the IPPA may appoint an
individual who:
       (1) holds an office of importance to the pork industry; or
       (2) has special expertise concerning the pork industry;
 to participate in the work of the IPPA.
    (b) An individual appointed under subsection (a) may not
participate in votes taken by the IPPA. However, the appointed
individual is eligible for reimbursement for travel expenses in the
same manner as IPPA's board members under section 23(g) of this
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chapter.
   (c) An individual appointed under this section serves a term of
one (1) year but may be reappointed for additional terms.
   Sec. 25. The IPPA shall do the following:
     (1) Employ personnel and contract for services that are
     necessary for the proper implementation of this chapter.
     (2) Bond the IPPA treasurer and any other person as
     necessary to ensure adequate protection of funds received and
     administered by the IPPA.
     (3) Authorize the expenditure of funds and the contracting of
     expenditures to conduct proper activities under this chapter.
     (4) Annually establish priorities and prepare and approve a
     budget consistent with the estimated resources of the IPPA
     and the scope of this chapter.
     (5) Annually provide:
        (A) an activities report to the legislative council in an
        electronic format under IC 5-14-6; and
        (B) an independent audit report to the state board of
        accounts.
     (6) Procure and evaluate data and information necessary for
     the proper implementation of this chapter.
     (7) Formulate and execute assessment procedures and
     methods of collection.
     (8) Receive and investigate complaints and violations of this
     chapter.
     (9) Take necessary enforcement action against an individual
     who violates this chapter.
     (10) Maintain bylaws and operating procedures governing
     operations of the IPPA and the administration of funds
     collected under this chapter.
     (11) Keep accurate accounts of all receipts and disbursements
     of funds handled by the IPPA and have the receipts and
     disbursements audited annually by a certified public
     accountant.
     (12) Take any other action necessary to properly implement
     this chapter.
     (13) Comply with the requirements under IC 5-14-1.5.
   Sec. 26. (a) A producer operating in Indiana that does any of the
following shall pay an assessment:
     (1) Raises and sells a porcine animal as a feeder pig.
     (2) Raises and sells a porcine animal for slaughter.
     (3) Raises a porcine animal, slaughters the porcine animal,
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      and sells the pork.
      (4) Raises a porcine animal for breeding stock.
   (b) A producer is exempt from paying an assessment on an
animal if the producer demonstrates to the IPPA board of
directors through appropriate documentation that an assessment
was previously paid on the animal in question.
   Sec. 27. (a) The first purchaser shall collect an assessment equal
to thirty-five cents ($0.35) per one hundred dollars ($100) of
market value.
   (b) The first purchaser may only impose and collect an
assessment on a porcine animal or a pork product once.
   (c) Only the general assembly may change the rate of the
assessment imposed by this section.
   (d) The first purchaser of a porcine animal or a pork product
shall deduct the assessment on the porcine animal or pork product
from the money to be paid to the producer or importer based on
the sale of the porcine animal or pork product. A first purchaser
shall accumulate assessments collected under this section
throughout each of the following periods:
      (1) January, February, and March.
      (2) April, May, and June.
      (3) July, August, and September.
      (4) October, November, and December.
   (e) Not more than thirty (30) days after the end of each period,
the first purchaser shall remit to the IPPA all assessments collected
during the period in a manner prescribed by the IPPA.
   (f) The assessment on the sale of the porcine animal or pork
product must occur at the time of first purchase as the payment for
the porcine animal or pork product is received by the producer or
importer.
   Sec. 28. (a) The IPPA shall pay all expenses incurred under this
chapter with money from the assessments remitted to the IPPA
under this chapter.
   (b) The IPPA may invest all money the IPPA receives under this
chapter, including gifts or grants that are given for the express
purpose of implementing this chapter, in the same way allowed by
law for public funds.
   (c) The IPPA may expend money from assessments and from
investment income not needed for expenses for promotion and
research.
   (d) The IPPA may not use money received, collected, or accrued
under this chapter for any purpose other than the purposes
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authorized by this chapter. The amount of money expended on
administering this chapter in the IPPA's fiscal year may not exceed
an amount deemed reasonable by the IPPA to enable it to exercise
its powers and perform its duties in accordance with this chapter,
including the financing of certain plans and projects.
    (e) The IPPA shall use eighty percent (80%) of the assessment
funds collected under section 27 of this chapter to carry out the
functions of the National Pork Board that is no longer operating.
    Sec. 29. (a) Assessments collected by the IPPA under the
program are subject to refund requests by a producer if the
producer requests a refund under the procedure established by the
IPPA.
    (b) A producer's application for a refund under this section
must be made to the IPPA not more than one hundred eighty (180)
days after the assessment is deducted from the market value of the
porcine animal or pork product.
    (c) If a refund is due under this section, the IPPA shall remit the
refund to the producer not later than thirty (30) days after the date
the producer's completed application and proof of assessment are
received.
    Sec. 30. (a) A first purchaser shall keep detailed records of all
assessments collected and remitted under this chapter for at least
three (3) years.
    (b) Upon request, a first purchaser shall supply the IPPA with
any information from records kept under subsection (a).
    (c) The IPPA may periodically audit a first purchaser's checkoff
assessment and remittance records kept under subsection (a). An
audit must be conducted by:
      (1) a certified public accountant of the IPPA's choosing; or
      (2) an auditor who is familiar with the:
          (A) storage;
          (B) conditioning;
          (C) shipping; and
          (D) handling;
of agricultural commodities. The costs of the audit shall be paid by
the IPPA.
    Sec. 31. (a) If a first purchaser fails to remit the assessments
collected during a period specified in section 29 of this chapter not
more than thirty (30) days after the end of the period, the IPPA
shall contact the first purchaser and allow the first purchaser to
present comments to the IPPA concerning:
      (1) the status and amount of the assessments due; and
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                                21
     (2) reasons why the IPPA should not bring legal action against
     the first purchaser.
   (b) After allowing a first purchaser the opportunity to present
comments, the IPPA:
     (1) may adjust the amount of the assessments due, if the first
     purchaser's comments reveal that the IPPA's figure is
     inaccurate;
     (2) may assess a penalty against the first purchaser;
     (3) shall:
         (A) assess a fee for an unpaid assessment due to the IPPA
         from a person responsible for remitting assessments at the
         rate of two percent (2%) of the amount of the unpaid
         assessment each month, beginning with the day following
         the date the assessment is due under this subsection; and
         (B) if there is any remaining amount due after the
         assessment of the fee under clause (A), assess a fee at the
         same rate on the corresponding day of each month
         thereafter until the entire amount of the unpaid assessment
         is paid;
     (4) shall compute the amounts payable on unpaid assessments
     under this section monthly and include any unpaid late
     charges previously applied under this section; and
     (5) shall determine the date of a payment for purposes of this
     subsection by the postmark applied to the remitting envelope
     or date Automated Clearing House (ACH) transfer is
     originated.
   (c) If a first purchaser fails to remit assessments after being
allowed to present comments under subsection (a) or to pay any
penalty assessed under subsection (b), the IPPA may bring a civil
action against the first purchaser in a circuit, superior, or
municipal court of any county. The action must be tried and a
judgment rendered as in any other proceeding for the collection of
a debt. In an action under this subsection, the IPPA may obtain:
     (1) a judgment in the amount of all unremitted assessments
     and any unpaid penalty; and
     (2) an award of the costs of bringing the action.
   Sec. 32. (a) The IPPA may not use proceeds of the assessment
collected under this chapter to influence legislation or
governmental action or policy.
   (b) The IPPA may not use proceeds of the assessment collected
under this chapter to communicate information related to the:
     (1) conduct;
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                                 22
      (2) implementation; or
      (3) results;
of promotion and research activities to appropriate government
officials.
   Sec. 33. (a) If a person fails to discharge a duty imposed by this
chapter other than remitted assessments, the IPPA shall allow the
person an opportunity to present comments to the IPPA
concerning reasons why the IPPA should not bring legal action
against the person.
   (b) If it is necessary to obtain compliance with this chapter, the
IPPA may bring an action against the person in a circuit, superior,
or municipal court of any county seeking an injunction mandating
compliance and any other appropriate legal remedies.
   (c) In an action under this section, the IPPA may be granted
injunctive relief without establishing the absence of an adequate
remedy at law.
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President of the Senate
President Pro Tempore
Speaker of the House of Representatives
Governor of the State of Indiana
Date:  Time:
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