DUES COLLECTION ON BEHALF OF CERTAIN NOT-FOR-PROFIT CORPORATIONS, Purpose, Request Procedure and Conditions, Commission Consideration of Properly Submitted Requests, Licensed Citrus Fruit Dealer Collection and Remittance Responsibilities, Fees

DEPARTMENT OF CITRUS
Departmental

RULE NO: RULE TITLE
20-7: DUES COLLECTION ON BEHALF OF CERTAIN NOT-FOR-PROFIT CORPORATIONS
20-7.001: Purpose
20-7.002: Request Procedure and Conditions
20-7.003: Commission Consideration of Properly Submitted Requests
20-7.004: Licensed Citrus Fruit Dealer Collection and Remittance Responsibilities
20-7.005: Fees

NOTICE OF CHANGE

Notice is hereby given that the following changes have been made to the proposed rule in accordance with subparagraph 120.54(3)(d)1., F.S., published in Vol. 32 No. 36, September 8, 2006 issue of the Florida Administrative Weekly.

20-7.001 Purpose.

Section 601.992, F.S., as amended by Chapter Law 2006-289, Laws of Florida, and signed by the governor on June 22, 2006, authorizes the Department to compel the entities regulated by the department to collect dues, contributions, or any other financial payments on behalf of certain specified not-for-profit corporations which are involved in citrus market news and citrus grower education. The purpose of this Rule (Chapter 20-7, F.A.C.) is to establish:

(1) The guidelines and conditions upon which a specified not-for-profit corporation may request the Department to consider an order implement a mechanism to require licensed citrus fruit dealers to collect such dues, contributions or other financial payments;

(2) A procedure for the remittance of such collected funds to a specified not-for-profit corporation; and

(3) A fee system to ensure that the Department recoups from any such not-for-profit corporation any direct costs incurred by the Department in implementing the dues collection contemplated hereunder.

Specific Authority 601.10(1), 601.992 FS. Law Implemented 601.992 FS. History–New ________.

 

20-7.002 Request Procedure and Conditions.

(1) Any not-for-profit corporation meeting the requirements of Section 601.992, F.S., may request the Department to consider the issuance of an order to require licensed citrus fruit dealers to collect and remit dues, contributions, or other financial payments on behalf of that corporation pursuant to this Chapter 20-7, F.A.C. Rule. Such request shall be initiated by the requesting corporation submitting a written request, which request shall be executed sworn under oath and signed before a notary public by the president of the corporation under penalty of perjury as outlined in Section 837.06, F.S., and shall contain affirmations and, where applicable, proof or descriptions, as to each of the following:

(a) The requesting corporation is an active, not-for-profit corporation organized in, and whose principle office is located in, the State of Florida and which corporation is registered with the Florida Department of State, Division of Corporations;

(b) The specific dues structure of the requesting corporation, including, but not limited to, a detailed statement of how dues, contributions, or other financial payments are calculated and assessed to members of the corporation, and which such dues, contributions, or other financial payments are requested to be collected under this Chapter 20-7, F.A.C. Rule;

(c) The specific mechanism/protocol for how licensed citrus fruit dealers are to collect and remit such dues, contributions, or other financial payments; Such submission shall also include

(d) A detailed description of the mechanism for the requesting corporation to process any refund requests from its members or licensed citrus fruit dealers; Such submission shall also include a draft of a proposed resolution, as outlined in subsection 20-7.003(2), F.A.C.

(e)(d) The specific reporting format requested of the licensed citrus fruit dealers and the specific mechanism for how adjustments by the corporation in such dues, contributions, or other financial payments are to be calculated, and how such adjustments shall be communicated to licensed citrus fruit dealers for collection, adjustment;

(f) A draft of a proposed order, as outlined in subsection 20-7.003(2), F.A.C.

(g)(e) a statement affirming that the requesting corporation is engaged, to the exclusion of agricultural commodities other than citrus, in market news and grower education solely for citrus growers;

(h)(f) A statement affirming that the requesting corporation has at least 5,000 members who are engaged in growing citrus in Florida for commercial sale;

(i)(g) A statement acknowledging that all activities undertaken by the Department pursuant to this Chapter 20-7, F.A.C. Rule, including, but not limited to, all submissions to the Department, are subject to Florida’s Public Records and Government in the Sunshine Laws, as may be amended from time to time;

(j)(h) A statement acknowledging that, if the corporation’s request is granted by the Department, then the corporation agrees to execute a contract, the duration of which shall not exceed five years, including a continuing indemnity agreement, in the form attached to this Chapter 20-7, F.A.C. Rule as Appendix A, Eff. 10-25-06, incorporated herein by reference;

(k)(i) A statement acknowledging that the Department is in no way an agent, for any purposes, of the requesting corporation, and in no way endorses the activities of the corporation; and

(l)(j) A statement acknowledging that, annually, the corporation shall pay to the Department a reasonable fee calculated by the Department to reimburse the Department for any and all direct costs (as defined in Rule 20-7.005, F.A.C.) attributable to such corporation’s dues collection as implemented by this Chapter 20-7, F.A.C. Rule.

(2) Any such request must be accompanied by a non-refundable processing fee made payable to the Department in the amount to be determined pursuant to subsection 20-7.005, which fee is intended to pay for the direct administrative costs incurred by the Department associated with processing the requesting corporation’s application.

Specific Authority 601.10(1), 601.992, 837.06 FS. Law Implemented 601.992 FS. History–New ________.

 

20-7.003 Commission Consideration of Properly Submitted Requests.

(1) Upon the Department’s receipt of any request pursuant to this Chapter 20-7, F.A.C. Rule, the Department shall determine whether any such request meets the requirements of this Chapter 20-7, F.A.C. Rule. Any request meeting Chapter 20-7, F.A.C., this Rule’s requirements shall be considered a properly submitted request and such properly submitted request, including all attachments thereto, shall be posted on the Department’s website. Such properly submitted request shall be placed as an agenda item for consideration by the Florida Citrus Commission at a regularly scheduled Commission meeting occurring no sooner than 15 days, but no later than 90 days, after such website posting the Department’s receipt of any properly submitted request. In deciding upon any such properly submitted request, the Commission may consider the following factors:

(a) The logistics and impacts of requiring licensed citrus fruit dealers to collect and remit the requested dues, contributions or other financial payments;

(b) Whether approval of the properly submitted request advances the purposes of The Florida Citrus Code, as may be amended from time to time;

(c) Public comments; and

(d) Recommendations by Department staff.

(2) If the Commission, by majority vote, approves the properly submitted request, then such approval shall be manifested in the form of a Commission Order Resolution issued pursuant to Section 601.10(1), F.S. The Order Resolution shall contain sufficient information, logistical and otherwise, to allow licensed citrus fruit dealers to collect dues, contributions, or any other financial payments on behalf of the corporation identified in the Order Resolution, and to remit those collected funds to said corporation.

(3) After issuance passage of the Order Resolution, the Department shall cause a contract, the duration of which shall be not greater than five years, but which shall be terminable by the Department without cause upon providing the requesting corporation 60 days written notice, and a continuing indemnity agreement in the form attached to this Chapter 20-7, F.A.C. Rule as Appendix A, Eff. 10-25-06, incorporated herein by reference to be presented to the requesting corporation identified in the Order Resolution. Each such contract shall include a requirement that the requesting corporation pay to the Department a fee equal to, but not exceeding, the amount necessary to ensure that any direct costs incurred by the Department in administering the contract are paid by the requesting corporation as calculated pursuant to section 20-7.005. Each such contract shall also include provisions to ensure that the requesting corporation continues to meet the requirements outlined in Section 601.992, F.S., and this Chapter 20-7, F.A.C. Rule, throughout the term of said contract. If the requesting corporation and the Department have not mutually agreed to a contract and indemnification agreement, for submission to the Commission for approval, within 63 days of the date of the Commission Order Resolution, then the Order Resolution shall be of no force and effect, except that the Department’s Executive Director or Secretary of the Commission may expand this 63-day time limit if, in their sound discretion, more time is needed to effectuate a contract consistent with the Order Resolution.

(4) Upon a majority vote of the Commission, any time limit herein may be expanded, condensed, or waived.

Specific Authority 601.10(1), 601.992 FS. Law Implemented 601.992 FS. History–New ________.

 

20-7.004 Licensed Citrus Fruit Dealer Collection and Remittance Responsibilities.

(1) Upon the execution of a Commission-approved contract as contemplated by this Chapter 20-7, F.A.C. Rule, the Department shall cause a copy of the Order Resolution to be sent to each affected licensed citrus fruit dealer licensed by the Department. Pursuant to the terms of the Order Resolution, each affected licensed citrus fruit dealer shall collect the dues, contributions, or any other financial payments on behalf of the corporation named in the Order and shall remit such funds as outlined in the Order Resolution.

(2) Licensed citrus fruit dealers found by the Department to be in non-compliance with any Resolution duly-promulgated hereunder may be subject to disciplinary action of the Florida Department of Agriculture and Consumer Services, including, but not limited to, fines, license suspension or revocation as prescribed in Sections 601.67 and 601.68, F.S.

Specific Authority 601.10(1), 601.992 FS. Law Implemented 601.992 FS. History–New ________.

 

20-7.005 Fees and Other Related Costs.

(1) Within 60 days of the effective date of this Chapter 20, F.A.C. Rule, and prior to August 1 of each year thereafter, the Department shall calculate the direct costs incurred by the Department for (i) processing request(s) for dues collection, and (ii) contract administration.

(2) For the purposes of calculating such fees, the term “direct costs” shall mean any actual costs incurred by the Department, including, but not limited to, the pro-rated value of any portion of any and all employees’ gross salary and benefits for any such employees’ time spent on administration of the services contemplated hereunder and any fees, expenses or costs which the Department may pay to any licensed citrus fruit dealer for the dues collection and remittance contemplated herein. Such “direct costs” shall also include any portion of other Department expenses and/or overhead which may be reasonably allocated to the services contemplated hereunder.

(3) In no event shall the Department’s calculation of fees hereunder result in the Department subsidizing any requesting corporation, nor shall any such calculation result in the Department levying a fee in gross excess of those direct costs incurred by the Department in administering the services contemplated hereunder.

(4) From the remittance payments outlined in subsection 20-7.003(2), F.A.C., a licensed citrus fruit dealer may withhold any actual costs reasonably incurred by the licensed citrus fruit dealer for the collection and remittance contemplated herein.

(5)(4) The processing request fee established annually hereunder shall govern all processing requests for dues collection filed in the subsequent fee year (August 1 – July 31).

(6)(5) The annual contract administration fee established hereunder shall be due as established by contract provision.

Specific Authority 601.10(1), 601.992 FS. Law Implemented 601.992 FS. History–New ________.