HB 1398

                                             *HB1398.1*
                                                            January 15, 2026
           HOUSE BILL No. 1398
                 _____
   DIGEST OF HB 1398 (Updated January 15, 2026 9:45 am - DI 148)
Citations Affected: IC 15-15; IC 15-19.
Synopsis:     Agricultural programs. Creates the pork market
development program (pork program) and the soybean market
development program (soybean program). Specifies that the pork
program and soybean program apply only if assessments are not levied
and collected under federal law. Requires the Indiana Pork Producers
Association, Inc., to administer the pork program and the Indiana
Soybean Alliance to administer the soybean program. Establishes
various procedures and requirements for operating the pork program
and the soybean program. Makes technical corrections.
Effective: July 1, 2026.
               Baird, Heine, Moed
   January 8, 2026, read first time and referred to Committee on Agriculture and Rural
Development.
   January 15, 2026, amended, reported — Do Pass.
HB 1398—LS 7063/DI 150
                                                                             January 15, 2026
            Second Regular Session of the 124th General Assembly (2026)
 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
 Constitution) is being amended, the text of the existing provision will appear in this style type,
 additions will appear in this style type, and deletions will appear in this style type.
   Additions: Whenever a new statutory provision is being enacted (or a new constitutional
 provision adopted), the text of the new provision will appear in this style type. Also, the
 word NEW will appear in that style type in the introductory clause of each SECTION that adds
 a new provision to the Indiana Code or the Indiana Constitution.
  Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
 between statutes enacted by the 2025 Regular Session of the General Assembly.
                   HOUSE BILL No. 1398
    A BILL FOR AN ACT to amend the Indiana Code concerning
 agriculture and animals.
     Be it enacted by the General Assembly of the State of Indiana:
1    SECTION 1. IC 15-15-12.5 IS ADDED TO THE INDIANA CODE
2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2026]:
4    Chapter 12.5. Soybean Market Development
5    Sec. 1. (a) The Indiana Soybean Alliance shall serve as the
6 Qualified State Soybean Board for the state of Indiana as provided
7 in 7 CFR 1220.228(a)(1) as long as the ISA collects assessments
8 under the:
9      (1) Soybean Promotion, Research, and Consumer Information
10      Act (7 U.S.C. 6301 through 7 U.S.C. 6311); and
11      (2) Soybean Promotion and Research Order (7 CFR 1220).
12    (b) The provisions of this chapter, other than subsection (a),
13 apply only if assessments are not levied and collected under the:
14      (1) Soybean Promotion, Research, and Consumer Information
15      Act (7 U.S.C. 6301 through 7 U.S.C. 6311); and
16      (2) Soybean Promotion and Research Order (7 CFR 1220);
17 by the ISA as the Qualified State Soybean Board (as defined in 7
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1 CFR 1220.122).
2    (c) Except as provided in subsection (d), this chapter applies to
3 all types, varieties, and forms of soybeans marketed or sold as
4 soybeans by a producer in Indiana.
5    (d) Organic soybean farmers are exempt from this chapter if an
6 organic soybean farmer:
7(1) receives an exemption under the National Organic
8Program (NOP) described in 7 CFR 205; and
9(2) operates under an NOP approved organic system plan.
10    Sec. 2. As used in this chapter, "bushel" means sixty (60) pounds
11 of soybeans by weight.
12    Sec. 3. As used in this chapter, "Commodity Credit
13 Corporation" refers to the corporation that administers and issues
14 loans under a price support loan program in exchange for soybeans
15 pledged as collateral.
16    Sec. 4. As used in this chapter, "dean of agriculture" means the
17 dean of agriculture at Purdue University.
18    Sec. 5. As used in this chapter, "department" refers to the
19 Indiana state department of agriculture established by
20 IC 15-11-2-1.
21    Sec. 6. As used in this chapter, "first purchase" means a sale of
22 soybeans at the first point of delivery when the soybeans are:
23(1) weighed;
24(2) graded;
25(3) titled; and
26(4) transferred to the first purchaser.
27    Sec. 7. As used in this chapter, "first purchaser" means a person
28 who is engaged in Indiana in the business of buying or acquiring
29 soybeans from a producer or the Commodity Credit Corporation.
30    Sec. 8. As used in this chapter, "Indiana Soybean Alliance" or
31 "ISA" refers to the Indiana Soybean Alliance, Inc., an Indiana
32 nonprofit corporation incorporated in accordance with the laws of
33 the state of Indiana on July 1, 1997.
34    Sec. 9. As used in this chapter, "market development" means to:
35(1) provide for the development of new or larger domestic and
36foreign markets for products derived from soybeans; and
37(2) access federal government money available to the state to
38further the market development activities described in
39subdivision (1).
40    Sec. 10. As used in this chapter, "marketing year" means the
41 twelve (12) month period beginning October 1 and ending the
42 following September 30.
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1    Sec. 11. As used in this chapter, "net market price" means the
2 price paid per bushel of soybeans sold after moisture and quality
3 discounts or premiums, but before any deductions for storage,
4 handling, drying, inspection, or other services.
5    Sec. 12. As used in this chapter, "person" means:
6      (1) an individual;
7      (2) a partnership;
8      (3) a limited liability company;
9      (4) a public or private corporation;
10      (5) a political subdivision (as defined in IC 36-1-2-13);
11      (6) a cooperative;
12      (7) a society;
13      (8) an association; or
14      (9) a fiduciary.
15    Sec. 13. As used in this chapter, "producer" means a person
16 engaged in the business of producing and marketing soybeans in
17 Indiana under:
18      (1) the producer's own name; or
19      (2) the name of an entity in which the producer has
20      ownership.
21    Sec. 14. As used in this chapter, "program" means the Indiana
22 soybean marketing program established under section 19 of this
23 chapter.
24    Sec. 15. As used in this chapter, "promotion" means:
25      (1) communication directly with soybean producers,
26      promoters, purchasers, consumers, and stakeholders;
27      (2) technical assistance; and
28      (3) trade marketing activities;
29 to enhance the marketing opportunities of soybeans and any
30 product derived from soybeans in domestic and foreign markets.
31    Sec. 16. As used in this chapter, "research" means a study to
32 advance the:
33      (1) marketability;
34      (2) production;
35      (3) product development;
36      (4) quality; or
37      (5) functional or nutritional value;
38 of soybeans and any product derived from soybeans, including
39 research activities designed to identify and analyze barriers to
40 domestic and foreign sales of soybeans.
41    Sec. 17. As used in this chapter, "sale" means:
42      (1) a conveyance of title to soybeans; or
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1(2) the pledge or other encumbrance of soybeans as security
2for a loan extended by the Commodity Credit Corporation
3under a federal price support loan program.
4    Sec. 18. As used in this chapter, "soybeans" includes all types,
5 varieties, and forms of soybeans grown in Indiana and marketed
6 and sold as soybeans by the producer.
7    Sec. 19. (a) If this chapter applies as described in section 1 of
8 this chapter, then the Indiana soybean marketing program is
9 established. The ISA shall administer the program as required by
10 this chapter.
11    (b) The ISA consists of twenty-six (26) voting and at least eight
12 (8) ex officio, nonvoting board members. The elected board
13 members from districts listed under section 22 of this chapter
14 must:
15(1) be registered as voters in Indiana;
16(2) be at least eighteen (18) years of age;
17(3) be producers;
18(4) have an assessment on soybeans under section 28 of this
19chapter made during the previous two (2) years; and
20(5) not have requested or received a refund of any assessment
21during the previous two (2) years.
22    (c) Each elected board member of the ISA must reside in the
23 district identified in section 22 of this chapter from which the
24 board member is elected.
25    (d) The ISA shall elect a president, a vice president, a secretary,
26 treasurer, and other officers the ISA considers necessary.
27    (e) A majority of the voting board members of the ISA
28 constitutes a quorum. The affirmative votes of at least a majority
29 of the quorum, and at least fourteen (14) affirmative votes, are
30 required for the ISA to act.
31    (f) The ISA shall meet at least three (3) times in each marketing
32 year at the call of the president or at the request of two-thirds (2/3)
33 of the board members of the ISA.
34    (g) Each board member of the ISA who is not a state employee
35 or a member of the general assembly is entitled to reimbursement
36 for mileage, travel expenses, and other expenses actually incurred
37 in connection with the board member's duties in accordance with
38 the ISA's travel policy. Except as provided in section 22 of this
39 chapter, ISA board members are not entitled to a salary or per
40 diem. Reimbursement under this subsection shall be paid from
41 funds of the ISA.
42    (h) Each board member of the ISA who is a state employee is
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1 entitled to reimbursement for traveling expenses as provided under
2 IC 4-13-1-4 and other expenses actually incurred in connection
3 with the board member's duties as provided in the state policies
4 and procedures established by the Indiana department of
5 administration and approved by the budget agency.
6 Reimbursement under this subsection shall be paid from
7 appropriations made to the department.
8     Sec. 20. (a) The term of office of an elected or appointed ISA
9 board member is three (3) years. A board member's term of office
10 expires at the board meeting after the final marketing year in the
11 term. However, a board member continues in office until a
12 successor who meets the qualifications set forth in section 19 of this
13 chapter is elected or appointed.
14     (b) An elected or appointed ISA board member may not hold
15 office for more than three (3) full terms.
16     (c) Whenever an elected board member's office under section
17 22(a) of this chapter becomes vacant before the expiration of the
18 board member's term of office, the ISA shall fill the vacancy by
19 appointing a replacement member who meets the qualifications set
20 forth in section 19 of this chapter. The appointee shall serve for the
21 remainder of the unexpired term.
22     (d) Whenever the office of a board member appointed under
23 section 22(b), 22(c), 22(d), or 22(e) of this chapter becomes vacant,
24 the appointing authority who appointed the board member shall
25 fill the vacancy. An appointee under this subsection shall serve for
26 the remainder of the unexpired term.
27     Sec. 21. (a) When necessary, the ISA may appoint individuals
28 who hold offices of importance to the soybean industry or have
29 special expertise concerning the soybean industry to participate in
30 the work of the ISA. These individuals may not participate in votes
31 taken by the ISA but are eligible for reimbursement for traveling
32 expenses in the same manner as ISA board members under section
33 19(g) of this chapter.
34     (b) A person appointed under this section serves a term of one
35 (1) year but may be reappointed for additional terms.
36     Sec. 22. (a) Six (6) ISA board members shall be elected from
37 each of the following districts:
38DISTRICT 1. The counties of Benton, Carroll, Cass, Clinton,
39Elkhart, Fulton, Howard, Jasper, Kosciusko, Lake, LaPorte,
40Marshall, Miami, Newton, Porter, Pulaski, St. Joseph, Starke,
41Tipton, Wabash, and White.
42DISTRICT 2. The counties of Adams, Allen, Blackford,
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1DeKalb, Delaware, Grant, Henry, Huntington, Jay,
2LaGrange, Madison, Noble, Randolph, Steuben, Wayne,
3Wells, and Whitley.
4DISTRICT 3. The counties of Clay, Daviess, Dubois,
5Fountain, Gibson, Greene, Knox, Martin, Montgomery,
6Owen, Parke, Pike, Posey, Putnam, Spencer, Sullivan,
7Tippecanoe, Vanderburgh, Vermillion, Vigo, Warren, and
8Warrick.
9DISTRICT 4. The counties of Bartholomew, Boone, Brown,
10Clark, Crawford, Dearborn, Decatur, Fayette, Floyd,
11Franklin, Hamilton, Hancock, Harrison, Hendricks, Jackson,
12Jefferson, Jennings, Johnson, Lawrence, Marion, Monroe,
13Morgan, Ohio, Orange, Perry, Ripley, Rush, Scott, Shelby,
14Switzerland, Union, and Washington.
15     (b) The dean of agriculture shall appoint one (1) representative
16 of the largest general farm organization in Indiana, who must be
17 a producer, to serve as a board member of the ISA.
18     (c) The dean of agriculture shall appoint one (1) representative
19 of any agricultural membership organization in Indiana, who must
20 be a producer, to serve as a board member of the ISA. The
21 representative appointed in accordance with this subsection must
22 represent a different organization than the representative
23 appointed in accordance with subsection (b).
24     (d) The director shall appoint two (2) representatives of first
25 purchaser organizations to serve as nonvoting ISA board members.
26     (e) Four (4) board members serve on the ISA, to be appointed
27 as nonvoting board members as follows:
28(1) One (1) board member appointed by the president pro
29tempore of the senate.
30(2) One (1) board member appointed by the minority leader
31of the senate.
32(3) One (1) board member appointed by the speaker of the
33house of representatives.
34(4) One (1) board member appointed by the minority leader
35of the house of representatives.
36 The board members appointed under this subsection are ex officio
37 nonvoting board members of the ISA. The members of the senate
38 must be of different political parties. The members of the house of
39 representatives must be of different political parties. Each ex
40 officio board member of the ISA who is a member of the general
41 assembly is entitled to receive the same per diem, mileage, and
42 travel allowances paid to legislative members of interim study
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1 committees established by the legislative council. Per diem,
2 mileage, and travel allowances paid under this subsection shall be
3 paid from appropriations made to the legislative council or the
4 legislative services agency.
5    (f) The dean of agriculture or the dean's designee shall serve as
6 an ex officio, nonvoting ISA board member.
7    (g) The secretary of agriculture or the secretary's designee shall
8 serve as an ex officio, nonvoting ISA board member.
9    Sec. 23. (a) An election of an ISA board member shall be held in
10 a district in the year in which the term of the district's ISA board
11 member is to expire.
12    (b) The ISA shall provide notice to producers of the district of
13 the impending election by:
14(1) publishing one (1) or more notices in a statewide
15agricultural publication; and
16(2) making information available to the news media in the
17district;
18 four (4) months before the day of the election.
19    Sec. 24. (a) The ballot for the election of a district ISA board
20 member must include the name of each producer who:
21(1) meets the qualifications set forth in section 19 of this
22chapter; and
23(2) files with the ISA a petition in support of candidacy signed
24by ten (10) other producers who reside in the district.
25    (b) The ISA shall provide petition forms upon request and shall
26 make petition forms available via the ISA's website. All names on
27 the ballot must be listed in alphabetical order based on the
28 producer's surname.
29    (c) The ISA shall allow a producer to request a ballot through
30 the ISA's website.
31    (d) Each ballot submitted by a producer must contain an
32 attestation that the person is an eligible producer.
33    Sec. 25. The director shall appoint a third party person that
34 shall count all ballots and conduct other activities expressly
35 delegated to it by the director.
36    Sec. 26. The election of an ISA board member must be
37 conducted by the ISA in a manner designated by the ISA and set
38 forth in the notices required under section 23 of this chapter. The
39 winner of an election takes office at the first meeting after the end
40 of the marketing year.
41    Sec. 27. The ISA shall do the following:
42(1) Employ personnel and contract for services that are
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1necessary for the proper implementation of this chapter.
2(2) Bond the ISA treasurer and such other persons as
3necessary to ensure adequate protection of funds received and
4administered by the ISA.
5(3) Authorize the expenditure of funds and the contracting of
6expenditures to conduct proper activities under this chapter.
7(4) Annually establish priorities and prepare and approve a
8budget consistent with the estimated resources of the ISA and
9the scope of this chapter.
10(5) Annually provide:
11(A) an activities report to the legislative council in an
12electronic format under IC 5-14-6; and
13(B) an independent audit report to the state board of
14accounts.
15(6) Procure and evaluate data and information necessary for
16the proper implementation of this chapter.
17(7) Formulate and execute assessment procedures and
18methods of collection.
19(8) Receive and investigate complaints and violations of this
20chapter.
21(9) Take necessary enforcement action against individuals
22who violate this chapter.
23(10) Maintain bylaws and operating procedures governing
24operations of the ISA and the administration of funds
25collected under this chapter.
26(11) Keep accurate accounts of all receipts and disbursements
27of funds handled by the ISA and have the receipts and
28disbursements audited annually by a certified public
29accountant.
30(12) Take any other action necessary for the proper
31implementation of this chapter.
32(13) Comply with the requirements under IC 5-14-1.5.
33     Sec. 28. (a) First purchasers shall collect an assessment equal to
34 one-half of one percent (0.5%) of the net market price on all
35 soybeans sold in Indiana and remit to the ISA all assessments
36 collected under this section in the manner prescribed by subsection
37 (f).
38     (b) The first purchaser may only impose and collect an
39 assessment on a quantity of soybeans once.
40     (c) Only the general assembly may change the rate of the
41 assessment imposed by this section.
42     (d) The first purchaser of a quantity of soybeans shall deduct
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1 the assessment on the soybeans from the money to be paid to the
2 producer based on the sale of the soybeans. A first purchaser shall
3 accumulate assessments collected under this section throughout
4 each of the following periods:
5      (1) January, February, and March.
6      (2) April, May, and June.
7      (3) July, August, and September.
8      (4) October, November, and December.
9    (e) Within thirty (30) days after the end of each period, the first
10 purchaser shall remit to the ISA all assessments collected during
11 the period. A first purchaser who remits all assessments collected
12 during a period within thirty (30) days after the end of the period
13 is entitled to retain three percent (3%) of the total of the
14 assessments as a handling fee.
15    (f) The assessment on the sale of the soybeans must occur at the
16 time of first purchase as the payment for the soybeans is received
17 by the producer.
18    Sec. 29. (a) The ISA shall pay all expenses incurred under this
19 chapter with money from the assessments remitted to the ISA
20 under this chapter.
21    (b) The ISA may invest all money the ISA receives under this
22 chapter, including gifts or grants that are given for the express
23 purpose of implementing this chapter, in the same way allowed by
24 law for public funds.
25    (c) The ISA may expend money from assessments and from
26 investment income not needed for expenses for market
27 development, promotion, and research.
28    (d) The ISA may not use money received, collected, or accrued
29 under this chapter for any purpose other than the purposes
30 authorized by this chapter. The amount of money expended on
31 administering this chapter in the ISA's fiscal year may not exceed
32 ten percent (10%) of the average amount of assessments, grants,
33 and gifts received by the ISA as calculated under subsection (e).
34    (e) The ISA shall determine the amount that it may expend to
35 administer this chapter using the following formula:
36      STEP ONE: Determine the amount of assessments, grants,
37      and gifts received by the ISA in each of the preceding five (5)
38      fiscal years beginning with the immediately preceding fiscal
39      year.
40      STEP TWO: Determine the average annual amount of
41      assessments, grants, and gifts received by the ISA in each
42      fiscal year using three (3) of the five (5) fiscal years described
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1      in STEP ONE after excluding the two (2) years in which the
2      amount of assessments, grants, and gifts received by the ISA
3      were the highest and lowest totals.
4      STEP THREE: Divide the amount in STEP TWO by ten (10).
5 The amount in STEP THREE is the maximum amount that the ISA
6 may expend on administering this chapter for the current fiscal
7 year.
8    (f) When the board members of the ISA evaluate and approve
9 expenditures, ISA board members shall:
10      (1) emphasize programs that create opportunities and value
11      for Indiana soybean farmers and their operations; and
12      (2) prioritize collaborative projects with universities, states,
13      and organizations that have:
14(A) a regional;
15(B) a national; or
16(C) an international;
17      impact.
18    (g) The ISA shall use at least fifty percent (50%) of the funds
19 collected from the assessment under subsection (a) for approved
20 expenditures that meet the criteria set forth in subsection (f)(2).
21    Sec. 30. (a) Assessments collected by the ISA under the program
22 are subject to refund requests by a producer if the producer
23 requests a refund pursuant to the procedure established by the
24 ISA.
25    (b) A producer's application for a refund under this section
26 must be made to the ISA not more than one hundred eighty (180)
27 days after the state assessment is deducted from the sale price of
28 the producer's soybeans.
29    (c) If a refund is due under this section, the ISA shall remit the
30 refund to the producer not later than thirty (30) days after the date
31 the producer's completed application and proof of assessment are
32 received.
33    Sec. 31. (a) A first purchaser shall keep detailed records of all
34 assessments collected and remitted under this chapter for at least
35 three (3) years.
36    (b) Upon request, a first purchaser shall supply the ISA with
37 any information from records kept under subsection (a).
38    (c) The ISA may periodically audit a first purchaser's checkoff
39 assessment and remittance records kept under subsection (a). An
40 audit must be conducted by:
41      (1) a qualified public accountant of the ISA's choosing; or
42      (2) an auditor who is familiar with the:
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1(A) storage;
2(B) conditioning;
3(C) shipping; and
4(D) handling;
5      of agricultural commodities.
6 The costs of the audit shall be paid by the ISA.
7    Sec. 32. (a) If a first purchaser fails to remit the assessments
8 collected during a period specified in section 28 of this chapter
9 within thirty (30) days after the end of the period, the ISA shall
10 contact the first purchaser and allow the first purchaser to present
11 comments to the ISA concerning:
12      (1) the status and amount of the assessments due; and
13      (2) reasons why the ISA should not bring legal action against
14      the first purchaser.
15    (b) After allowing a first purchaser the opportunity to present
16 comments, the ISA:
17      (1) may adjust the amount of the assessments due, if the first
18      purchaser's comments reveal that the ISA's figure is
19      inaccurate;
20      (2) may assess a penalty against the first purchaser;
21      (3) shall:
22(A) assess a fee for an unpaid assessment due the ISA, from
23a person responsible for remitting assessments, at the rate
24of two percent (2%) of the amount of the unpaid
25assessment each month, beginning with the day following
26the date the assessment is due under this subsection; and
27(B) if there is any remaining amount due after the
28assessment of the fee under clause (A), assess a fee at the
29same rate on the corresponding day of each month
30thereafter until the entire amount of the unpaid assessment
31is paid;
32      (4) shall compute the amounts payable on unpaid assessments
33      under this section monthly and include any unpaid late
34      charges previously applied under this section; and
35      (5) shall determine the date of a payment for purposes of this
36      subsection by the postmark applied to the remitting envelope
37      or the date of the missed assessment.
38    (c) If a first purchaser fails to remit assessments after being
39 allowed to present comments under subsection (a) or to pay any
40 penalty assessed under subsection (b), the ISA may bring a civil
41 action against the first purchaser in a circuit, superior, or
42 municipal court of any county. The action shall be tried and a
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1 judgment rendered as in any other proceeding for the collection of
2 a debt. In an action under this subsection, the ISA may obtain:
3      (1) a judgment in the amount of all unremitted assessments
4      and any unpaid penalty; and
5      (2) an award of the costs of bringing the action.
6    Sec. 33. (a) Proceeds of the checkoff assessment collected by the
7 ISA under this chapter may not be used to influence legislation or
8 governmental action or policy.
9    (b) Proceeds of the assessment collected under this chapter may
10 be used to communicate information related to the:
11      (1) conduct;
12      (2) implementation; or
13      (3) results;
14 of promotion, research, and market development activities to
15 appropriate government officials.
16    Sec. 34. (a) If a person fails to discharge a duty imposed by this
17 chapter other than remitted assessments, the ISA shall allow the
18 person an opportunity to present comments to the ISA concerning
19 reasons why the ISA should not bring legal action against the
20 person.
21    (b) If it is necessary to obtain compliance with this chapter, the
22 ISA may bring an action against the person in a circuit, superior,
23 or municipal court of any county seeking an injunction mandating
24 compliance and any other appropriate legal remedies.
25    (c) In an action under this section, the ISA may be granted
26 injunctive relief without establishing the absence of an adequate
27 remedy at law.
28    SECTION 2. IC 15-19-8 IS ADDED TO THE INDIANA CODE AS
29 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
30 1, 2026]:
31    Chapter 8. Indiana Pork Market Development
32    Sec. 1. (a) This chapter applies only if all assessment collection
33 programs and checkoff programs are not operated under the:
34      (1) Pork Promotion, Research, and Consumer Information
35      Act (7 U.S.C. 4801 through 7 U.S.C. 4819); and
36      (2) Pork Promotion and Research Order (7 CFR 1230);
37 by the IPPA.
38    (b) If the assessments described under subsection (a) are levied,
39 the IPPA may not:
40      (1) collect assessments; or
41      (2) conduct any other activity that is expressly preempted by
42      a program described in subsection (a).
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1     (c) Except as provided in subsection (d), this chapter applies to
2 all types, varieties, and forms of pork marketed or sold as pork by
3 a producer in Indiana.
4     (d) Organic hog farmers are exempt from this chapter if an
5 organic hog farmer:
6(1) receives an exemption under the National Organic
7Program (NOP) described in 7 CFR 205; and
8(2) operates under an NOP approved organic system plan.
9     Sec. 2. As used in this chapter, "board of directors" refers to the
10 governing body of the program.
11     Sec. 3. As used in this chapter, "first purchaser" refers to the
12 following:
13(1) A person that buys or is engaged in the business of
14receiving a porcine animal as a commission merchant.
15(2) A person that buys or is engaged in the business of
16receiving a porcine animal at an auction market.
17(3) A person that buys or is engaged in the business of
18receiving a porcine animal at a livestock market.
19(4) A producer that raises a porcine animal, slaughters the
20porcine animal, and sells the pork.
21(5) A person in the business of purchasing a porcine animal on
22behalf of a producer.
23     Sec. 4. As used in this chapter, "Indiana Pork Advocacy
24 Coalition" or "INPAC" refers to the Indiana Pork Advocacy
25 Coalition, Inc., an Indiana nonprofit corporation organized under
26 the laws of the State of Indiana on October 12, 2001.
27     Sec. 5. As used in this chapter, "IPPA" refers to the Indiana
28 Pork Producers Association, Inc., an Indiana nonprofit corporation
29 incorporated under the laws of the State of Indiana on February
30 13, 1952.
31     Sec. 6. As used in this chapter, "Indiana Soybean Alliance"
32 refers to the Indiana Soybean Alliance, Inc., an Indiana nonprofit
33 corporation incorporated under the laws of the State of Indiana on
34 July 1, 1997.
35     Sec. 7. As used in this chapter, "INPAC director" means the
36 executive director of INPAC.
37     Sec. 8. As used in this chapter, "market" means to advertise:
38(1) the sale;
39(2) the slaughter for sale; or
40(3) any other method of disposal;
41 of a porcine animal in commerce.
42     Sec. 9. As used in this chapter, "market value" refers to the
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                                 14
1 following:
2      (1) If a porcine animal is slaughtered for sale by a producer,
3      the most recent annual seven-market average for barrows and
4      gilts, as published by the USDA.
5      (2) If a porcine animal is imported, the declared value.
6      (3) If a pork product is imported, an amount that represents
7      the value of the live porcine animal from that the pork
8      product was derived, based on the most recent annual
9      seven-market average for barrows and gilts, as published by
10      the USDA.
11    Sec. 10. As used in this chapter, "National Pork Board" refers
12 to the National Pork Board as established by 7 U.S.C. 4808.
13    Sec. 11. As used in this chapter, "National Pork Producers
14 Council" refers to the National Pork Producers Council, organized
15 under the laws of the State of Iowa on March 28, 1968.
16    Sec. 12. As used in this chapter, "person" means:
17      (1) an individual;
18      (2) a partnership;
19      (3) a limited liability company;
20      (4) a public or private corporation;
21      (5) a political subdivision (as defined in IC 36-1-2-13);
22      (6) a cooperative;
23      (7) a society;
24      (8) an association; or
25      (9) a fiduciary.
26    Sec. 13. As used in this chapter, "porcine animal" means a swine
27 that is raised as a:
28      (1) feeder pig that is a young pig sold to another person to be
29      finished for slaughtering over a period of more than one (1)
30      month;
31      (2) seedstock pig for breeding purposes and included in the
32      breeding herd; or
33      (3) market hog, slaughtered by the producer or sold to be
34      slaughtered, usually within one (1) month of the transfer.
35    Sec. 14. As used in this chapter, "pork" means the flesh of a
36 porcine animal.
37    Sec. 15. As used in this chapter, "pork product" means an edible
38 product:
39      (1) produced; or
40      (2) processed;
41 in whole or in part from pork.
42    Sec. 16. As used in this chapter, "producer" means a person
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                                 15
1 engaged in the business of farming and marketing hogs in Indiana
2 under:
3      (1) the producer's own name; or
4      (2) the name of an entity in which the producer has
5      ownership.
6    Sec. 17. As used in this chapter, "program" means the Indiana
7 pork marketing program.
8    Sec. 18. As used in this chapter, "promotion" means:
9      (1) communication directly with pork producers, promoters,
10      purchasers, consumers, and stakeholders;
11      (2) technical assistance; and
12      (3) trade marketing activities;
13 to enhance the marketing opportunities of pork and any product
14 containing pork in domestic and foreign markets and increase
15 access to federal government money available for Indiana pork
16 producers.
17    Sec. 19. As used in this chapter, "purchase" means a sale of
18 pork at the first point of delivery when the pork is:
19      (1) weighed;
20      (2) graded;
21      (3) titled; and
22      (4) transferred to the purchaser.
23    Sec. 20. As used in this chapter, "research" means a study to
24 advance the:
25      (1) marketability;
26      (2) production;
27      (3) product development;
28      (4) quality; or
29      (5) functional or nutritional value;
30 of pork and any product derived from pork, including research
31 activities designed to identify and analyze barriers to domestic and
32 foreign sales of pork.
33    Sec. 21. As used in this chapter, "USDA" means the United
34 States Department of Agriculture.
35    Sec. 22. As used in this chapter, "voting members" means the
36 voting members of the IPPA.
37    Sec. 23. (a) The Indiana pork marketing program is established.
38 The IPPA shall administer the program.
39    (b) The board of directors consists of the following voting board
40 members:
41      (1) At least three (3) and no more than twelve (12) at large
42      members, each of which are voting members of the IPPA, as
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                                 16
1     follows:
2(A) Each elected by the voting members of the IPPA.
3(B) No more than two (2) at-large members may represent
4any one (1) county within Indiana.
5(C) Each may serve for a term of two (2) years from the
6date of the member's election.
7(D) Each may not serve more than three (3) consecutive
8terms.
9     (2) At least (1) but no more than three (3) affiliated industry
10     members, as follows:
11(A) Each elected by the voting members of the IPPA.
12(B) Each of which represents an industry reasonably
13affiliated with the pork industry.
14(C) Each may serve for a term of two (2) years from the
15date of the member's election.
16(D) Each may not serve more than three (3) consecutive
17terms.
18     (3) The director of the National Pork Board, who serves as an
19     ex officio member.
20     (4) The director of the National Pork Producers Council, who
21     serves as an ex officio member.
22     (5) One (1) member of the board of directors of the IPPA
23     appointed by the dean of agriculture at Purdue University,
24     whose term expires if the dean appoints a replacement.
25     (6) One (1) member of the board of directors of the IPPA
26     appointed by the director of INPAC, whose term expires if the
27     INPAC director appoints a replacement.
28     (7) One (1) member who is the preceding president of the
29     IPPA, whose term as a member of the board of directors
30     expires when the current president's term concludes.
31     (8) The executive director of the IPPA, who serves as an ex
32     officio member.
33     (9) One (1) appointee of the chief executive officer of the
34     Indiana Soybean Alliance, whose term as a member of the
35     board of directors expires if the chief executive officer of the
36     Indiana Soybean Alliance appoints a replacement.
37   (c) In addition to the requirements under subsection (b), a
38 member of the board of directors must meet the following criteria:
39     (1) Be a registered voter in Indiana.
40     (2) Be at least eighteen (18) years of age.
41     (3) Be a producer.
42   (d) The IPPA shall elect a president, vice president, secretary,
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1 treasurer, and any other officers deemed necessary by the board
2 of directors.
3    (e) One-third (1/3) of the members of the board of directors
4 constitutes a quorum. An affirmative vote of at least a majority of
5 the quorum is required for the board of directors to act.
6    (f) The board of directors shall meet at least three (3) times in
7 each calendar year:
8(1) at the call of the president; or
9(2) at the request of two-thirds (2/3) of the members of the
10board of directors.
11    (g) Each member of the board of directors who is not a state
12 employee or a member of the general assembly is entitled to
13 reimbursement for mileage, travel expenses, and other expenses
14 actually incurred in connection with the board member's duties in
15 accordance with the IPPA's travel policy. Except as provided
16 subsection (h) of this chapter, the members of the board of
17 directors are not entitled to a salary or per diem as consideration
18 for their service as a member of the board of directors.
19 Reimbursements under this subsection must be paid from funds of
20 the IPPA.
21    (h) Each member of the board of directors who is a state
22 employee is entitled to reimbursement for traveling expenses as
23 provided under IC 4-13-1-4 and other expenses actually incurred
24 in connection with the member's duties as provided in the state
25 policies and procedures established by the Indiana department of
26 administration and approved by the budget agency.
27 Reimbursements under this subsection must be paid from
28 appropriations made to the legislative council or the legislative
29 services agency.
30    (i) A board member continues in office until a successor who
31 meets the applicable qualifications set forth in subsection (b) is
32 elected or appointed.
33    (j) If a vacancy occurs on the board of directors, the appointing
34 authority that appointed the member whose position is vacant shall
35 appoint an individual to fill the vacancy.
36    (k) The members of the board of directors must be elected by a
37 majority vote of the voting members of IPPA at the annual
38 meeting.
39    Sec. 24. (a) When necessary, the IPPA may appoint an
40 individual who:
41(1) holds an office of importance to the pork industry; or
42(2) has special expertise concerning the pork industry;
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                                 18
1  to participate in the work of the IPPA.
2     (b) An individual appointed under subsection (a) may not
3 participate in votes taken by the IPPA. However, the appointed
4 individual is eligible for reimbursement for travel expenses in the
5 same manner as IPPA's board members under section 23(g) of this
6 chapter.
7     (c) An individual appointed under this section serves a term of
8 one (1) year but may be reappointed for additional terms.
9     Sec. 25. The IPPA shall do the following:
10(1) Employ personnel and contract for services that are
11necessary for the proper implementation of this chapter.
12(2) Bond the IPPA treasurer and any other person as
13necessary to ensure adequate protection of funds received and
14administered by the IPPA.
15(3) Authorize the expenditure of funds and the contracting of
16expenditures to conduct proper activities under this chapter.
17(4) Annually establish priorities and prepare and approve a
18budget consistent with the estimated resources of the IPPA
19and the scope of this chapter.
20(5) Annually provide:
21(A) an activities report to the legislative council in an
22electronic format under IC 5-14-6; and
23(B) an independent audit report to the state board of
24accounts.
25(6) Procure and evaluate data and information necessary for
26the proper implementation of this chapter.
27(7) Formulate and execute assessment procedures and
28methods of collection.
29(8) Receive and investigate complaints and violations of this
30chapter.
31(9) Take necessary enforcement action against an individual
32who violates this chapter.
33(10) Maintain bylaws and operating procedures governing
34operations of the IPPA and the administration of funds
35collected under this chapter.
36(11) Keep accurate accounts of all receipts and disbursements
37of funds handled by the IPPA and have the receipts and
38disbursements audited annually by a certified public
39accountant.
40(12) Take any other action necessary to properly implement
41this chapter.
42(13) Comply with the requirements under IC 5-14-1.5.
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                                  19
1    Sec. 26. (a) A producer operating in Indiana that does any of the
2 following shall pay an assessment:
3(1) Raises and sells a porcine animal as a feeder pig.
4(2) Raises and sells a porcine animal for slaughter.
5(3) Raises a porcine animal, slaughters the porcine animal,
6and sells the pork.
7(4) Raises a porcine animal for breeding stock.
8    (b) A producer is exempt from paying an assessment on an
9 animal if the producer demonstrates to the IPPA board of
10 directors through appropriate documentation that an assessment
11 was previously paid on the animal in question.
12    Sec. 27. (a) The first purchaser shall collect an assessment equal
13 to thirty-five cents ($0.35) per one hundred dollars ($100) of
14 market value.
15    (b) The first purchaser may only impose and collect an
16 assessment on a porcine animal or a pork product once.
17    (c) Only the general assembly may change the rate of the
18 assessment imposed by this section.
19    (d) The first purchaser of a porcine animal or a pork product
20 shall deduct the assessment on the porcine animal or pork product
21 from the money to be paid to the producer or importer based on
22 the sale of the porcine animal or pork product. A first purchaser
23 shall accumulate assessments collected under this section
24 throughout each of the following periods:
25(1) January, February, and March.
26(2) April, May, and June.
27(3) July, August, and September.
28(4) October, November, and December.
29    (e) Not more than thirty (30) days after the end of each period,
30 the first purchaser shall remit to the IPPA all assessments collected
31 during the period in a manner prescribed by the IPPA.
32    (f) The assessment on the sale of the porcine animal or pork
33 product must occur at the time of first purchase as the payment for
34 the porcine animal or pork product is received by the producer or
35 importer.
36    Sec. 28. (a) The IPPA shall pay all expenses incurred under this
37 chapter with money from the assessments remitted to the IPPA
38 under this chapter.
39    (b) The IPPA may invest all money the IPPA receives under this
40 chapter, including gifts or grants that are given for the express
41 purpose of implementing this chapter, in the same way allowed by
42 law for public funds.
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                                   20
1     (c) The IPPA may expend money from assessments and from
2 investment income not needed for expenses for promotion and
3 research.
4     (d) The IPPA may not use money received, collected, or accrued
5 under this chapter for any purpose other than the purposes
6 authorized by this chapter. The amount of money expended on
7 administering this chapter in the IPPA's fiscal year may not exceed
8 an amount deemed reasonable by the IPPA to enable it to exercise
9 its powers and perform its duties in accordance with this chapter,
10 including the financing of certain plans and projects.
11     (e) The IPPA shall use eighty percent (80%) of the assessment
12 funds collected under section 27 of this chapter to carry out the
13 functions of the National Pork Board that is no longer operating.
14     Sec. 29. (a) Assessments collected by the IPPA under the
15 program are subject to refund requests by a producer if the
16 producer requests a refund under the procedure established by the
17 IPPA.
18     (b) A producer's application for a refund under this section
19 must be made to the IPPA not more than one hundred eighty (180)
20 days after the assessment is deducted from the market value of the
21 porcine animal or pork product.
22     (c) If a refund is due under this section, the IPPA shall remit the
23 refund to the producer not later than thirty (30) days after the date
24 the producer's completed application and proof of assessment are
25 received.
26     Sec. 30. (a) A first purchaser shall keep detailed records of all
27 assessments collected and remitted under this chapter for at least
28 three (3) years.
29     (b) Upon request, a first purchaser shall supply the IPPA with
30 any information from records kept under subsection (a).
31     (c) The IPPA may periodically audit a first purchaser's checkoff
32 assessment and remittance records kept under subsection (a). An
33 audit must be conducted by:
34(1) a certified public accountant of the IPPA's choosing; or
35(2) an auditor who is familiar with the:
36(A) storage;
37(B) conditioning;
38(C) shipping; and
39(D) handling;
40 of agricultural commodities. The costs of the audit shall be paid by
41 the IPPA.
42     Sec. 31. (a) If a first purchaser fails to remit the assessments
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                                  21
1 collected during a period specified in section 29 of this chapter not
2 more than thirty (30) days after the end of the period, the IPPA
3 shall contact the first purchaser and allow the first purchaser to
4 present comments to the IPPA concerning:
5      (1) the status and amount of the assessments due; and
6      (2) reasons why the IPPA should not bring legal action against
7      the first purchaser.
8    (b) After allowing a first purchaser the opportunity to present
9 comments, the IPPA:
10      (1) may adjust the amount of the assessments due, if the first
11      purchaser's comments reveal that the IPPA's figure is
12      inaccurate;
13      (2) may assess a penalty against the first purchaser;
14      (3) shall:
15(A) assess a fee for an unpaid assessment due to the IPPA
16from a person responsible for remitting assessments at the
17rate of two percent (2%) of the amount of the unpaid
18assessment each month, beginning with the day following
19the date the assessment is due under this subsection; and
20(B) if there is any remaining amount due after the
21assessment of the fee under clause (A), assess a fee at the
22same rate on the corresponding day of each month
23thereafter until the entire amount of the unpaid assessment
24is paid;
25      (4) shall compute the amounts payable on unpaid assessments
26      under this section monthly and include any unpaid late
27      charges previously applied under this section; and
28      (5) shall determine the date of a payment for purposes of this
29      subsection by the postmark applied to the remitting envelope
30      or date Automated Clearing House (ACH) transfer is
31      originated.
32    (c) If a first purchaser fails to remit assessments after being
33 allowed to present comments under subsection (a) or to pay any
34 penalty assessed under subsection (b), the IPPA may bring a civil
35 action against the first purchaser in a circuit, superior, or
36 municipal court of any county. The action must be tried and a
37 judgment rendered as in any other proceeding for the collection of
38 a debt. In an action under this subsection, the IPPA may obtain:
39      (1) a judgment in the amount of all unremitted assessments
40      and any unpaid penalty; and
41      (2) an award of the costs of bringing the action.
42    Sec. 32. (a) The IPPA may not use proceeds of the assessment
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                                  22
1 collected under this chapter to influence legislation or
2 governmental action or policy.
3    (b) The IPPA may not use proceeds of the assessment collected
4 under this chapter to communicate information related to the:
5(1) conduct;
6(2) implementation; or
7(3) results;
8 of promotion and research activities to appropriate government
9 officials.
10    Sec. 33. (a) If a person fails to discharge a duty imposed by this
11 chapter other than remitted assessments, the IPPA shall allow the
12 person an opportunity to present comments to the IPPA
13 concerning reasons why the IPPA should not bring legal action
14 against the person.
15    (b) If it is necessary to obtain compliance with this chapter, the
16 IPPA may bring an action against the person in a circuit, superior,
17 or municipal court of any county seeking an injunction mandating
18 compliance and any other appropriate legal remedies.
19    (c) In an action under this section, the IPPA may be granted
20 injunctive relief without establishing the absence of an adequate
21 remedy at law.
 HB 1398—LS 7063/DI 150
                            23
                 COMMITTEE REPORT
   Mr. Speaker: Your Committee on Agriculture and Rural
Development, to which was referred House Bill 1398, has had the same
under consideration and begs leave to report the same back to the
House with the recommendation that said bill be amended as follows:
   Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
   "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.
   (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
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                            24
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.
   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
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                            25
  (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,
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
HB 1398—LS 7063/DI 150
                              26
  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
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
HB 1398—LS 7063/DI 150
                             27
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,
   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
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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.
(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.
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                             29
   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.
 (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.
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                              30
  (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:
  (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
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                              31
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).
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
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                             32
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;
 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
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                             33
 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
 (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
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                             34
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.".
   Page 2, line 23, delete "non-profit" and insert "nonprofit".
   Page 2, line 26, delete "non-profit" and insert "nonprofit".
   Page 2, line 30, delete "non-profit" and insert "nonprofit".
   Page 9, between lines 8 and 9, begin a new paragraph and insert:
   "(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.".
   Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
   (Reference is to HB 1398 as introduced.)
                                                AYLESWORTH
Committee Vote: yeas 11, nays 0.
HB 1398—LS 7063/DI 150