In this subtitle the following words have the meanings indicated. “Agricultural commodity” means livestock, poultry, field crops, including nursery stock, bulbs, and flowers; and other agricultural products having a domestic or foreign market. “Certified agency” means any association, board, council, or other entity authorized by the Secretary to conduct a referendum under this section among the persons qualifying as voters. “Voter”, with respect to a referendum on the question of an annual assessment on a particular agricultural commodity, means any person engaged in the production of the commodity, and includes the owner of the farm on which the commodity is produced, tenants, and sharecroppers.

It is declared to be in the interest of the public welfare that the Maryland farmers who are producers of livestock, poultry, field crops, including nursery stock, bulbs, and flowers; and other agricultural products having a domestic or foreign market, shall be permitted and encouraged to act jointly and in cooperation with growers, handlers, dealers, and processors of these products in promoting and stimulating, by advertising and other methods, the increased production, and domestic and foreign use and sale of any agricultural commodities. The passage by the Seventy-Ninth Congress of a law designated as Public Law 733, and, particularly Title II of that act, cited as “Agricultural Marketing Act of 1946”, makes it important for producers, handlers, processors, and others concerned with specific agricultural commodities to associate themselves in action programs, separately, and with public and private agencies, to obtain the greatest and most immediate benefits under the provisions of the federal law, in respect to research, studies, and problems of marketing, transportation, and distribution. It is declared to be in the public interest and highly advantageous to the State’s agricultural economy that farmers, producers, and growers commercially producing agricultural commodities be permitted by referendum to be held among the respective groups and, subject to the provisions of this article, to levy upon themselves an assessment on the respective commodities or upon the acreage used in their production and provide for the collection of the assessment. The assessments are for the financing, or to contribute towards the financing, of a program of advertising and other methods designed to increase consumption and domestic and foreign markets for any agricultural commodity. The assessments also may be used for the financing, or to contribute towards the financing, of a program of production, use, and sale of any agricultural commodity.

No association, meeting, or activity undertaken in pursuance of the provisions of this article and intended to benefit all of the producers, handlers, and processors of a particular agricultural commodity shall be deemed illegal or in restraint of trade.

Any association, council, board, or other agency fairly representative of persons qualifying as voters may apply to the Secretary for certification and approval to conduct a referendum among the persons qualifying as voters on the question of levying an assessment, and collecting and utilizing the proceeds for the purposes stated in the referendum. Upon the filing of the application the Secretary shall consider the application within 90 days. If the Secretary finds that the applicant is fairly representative of and has been duly chosen and delegated as representative of the persons qualifying as voters, and otherwise finds and determines that the application conforms to the provisions of this article and its purposes, he shall certify the association, council, board, or other agency as the certified agency of the persons qualifying as voters.

The certified agency shall arrange and manage any referendum conducted under the provisions of this article and shall bear all expenses in connection with the referendum. Before calling and announcing a referendum, the certified agency shall determine and publicly announce through the public press at least 60 days before the date determined for the referendum: The date, hours, polling places, and rules and regulations for voting; The amount and basis of the assessment proposed to be collected; The method by which the authorized assessment shall be collected; and How the proceeds shall be administered and the general purposes to which they shall be applied. The agency also shall give direct written notice to every farm organization in the State and to the county agent in each county in which the agricultural commodity is grown.

Any referendum may be held either on an area or statewide basis, as determined by the certified agency before the referendum is called. Any persons qualifying as a voter may participate in the referendum. The voters shall vote upon the question of whether an annual assessment shall be levied for a period of five years in the amount set forth in the call for the referendum on the agricultural commodity.

The certified agency shall prepare and distribute in advance of the referendum all necessary ballots and, under rules and regulations adopted by the certified agency, arrange for the necessary poll holders for conducting the referendum. Within ten days after the referendum, the certified agency shall canvass and publicly declare the result of the referendum.

A proposed assessment on an agricultural commodity passes if a majority of those persons qualifying as voters and voting in the area in which the referendum is conducted vote in favor of the levying and collection of the proposed assessment on the agricultural commodity. If a proposed assessment passes, the agency conducting the referendum shall announce the assessment. The assessment shall be collected: According to the method and rules and regulations adopted by the certified agency conducting the referendum; and For the number of years set forth in the call for the referendum.

If an assessment has passed and the assessments have been levied annually for the period set forth in the call for the referendum, then the agency that conducted the referendum may call and conduct another referendum during the last year of the assessment period, on the question of an annual assessment for the next 5 years. If a proposed assessment does not pass, then the agency that conducted the referendum may call another referendum the next succeeding year, for the purposes set forth in this subtitle, on the question of an annual assessment for 5 years.

The collected assessments shall be paid into the certified agency treasury to be used together with any other funds from other sources, including donations from any person and grants from the State or governmental agencies, to promote and stimulate, by advertising and other methods, the increased domestic and foreign use and sale of the agricultural commodity covered by the referendum. The assessments also may be used to finance research and education programs or to contribute toward the financing of a program on production, use, and sale of any agricultural commodity. The assessments may be used to support multistate, area, or national programs whose purposes are essentially the same as those of the State producers.

As an alternate method for the collection of assessments under § 10–110 of this subtitle, and upon the request of a certified agency, the Secretary shall notify, by registered letter, any person engaged in the business of purchasing any agricultural commodity in the State that the assessments shall be deducted by the purchaser, or the purchaser’s agent or representative, from the purchase price of the agricultural commodity. The deducted assessment shall be remitted by the purchaser to the certified agency as directed by the Secretary. A certified agency may initiate judicial proceedings in the circuit court of the county where the agricultural commodity was purchased if a purchaser fails to remit the deducted assessment required under paragraph (1) of this subsection. The books and records of a purchaser of any agricultural commodity shall be open for inspection by the Secretary or the certified agency that conducted the referendum for the agricultural commodity at any time during regular business hours.

As an alternate method for the collection of assessments provided for in § 10–110 of this subtitle, the certified agency representing the producers of peaches, apples, or other tree fruits may establish the names and addresses of the persons qualifying as voters, and number of trees or acres of trees and certify them to the Secretary. The Secretary shall notify the persons qualifying as voters by registered letter that by the date specified by the certified agency, the persons qualifying as voters shall pay the assessments to the Secretary. The certified date of collection of the assessments may be established by the certified agency representing the producers of any agricultural commodity.

As an alternative method for the collection of assessments provided for in § 10–110 of this subtitle, upon the request of the certified agency, the Secretary shall notify, by registered letter, all livestock dealers, operators of any livestock auction markets, slaughterhouses, packinghouses, and any other person engaged in the buying, selling, or handling of livestock for slaughter in the State. On and after the date specified in the letter, the assessments shall be deducted by the purchaser, or his agent or representative, from the purchase price of any livestock bought, acquired, or sold for slaughter. The deducted assessment for any month shall be remitted by the purchaser to the Secretary by the 20th day of the following month, and the Secretary shall pay the amount of the assessment to the certified agency. The books and records of every livestock dealer, operator of any livestock auction market slaughterhouse, packinghouse, or person engaged in buying, acquiring, or selling livestock for slaughter shall be open for the inspection by the Secretary at any time during regular business hours. A livestock dealer, operator of any livestock auction market slaughterhouse, packinghouse, or its managers, or agents, or any person who buys, sells, or handles livestock for slaughter in the State may not fail to collect or pay the deducted assessments to the Secretary. If any person violates the provisions of subsection (d) of this section, the certified agency concerned may institute judicial proceedings to enforce the assessment.

If the referendum is supported and the assessment is levied and collected as provided, any person upon whom an annual assessment was levied and collected, if dissatisfied with the assessment may demand and receive from the treasurer of the certified agency a refund of the collected annual assessment. The demand for refund shall be made in writing within 30 days from the date of collection from the person. However, any person, qualified to vote in a referendum in which potatoes or peaches are the agricultural commodity, may seek a refund of an assessment, if he pays the assessment by the end of the assessment year in which the assessment was levied. The assessment year shall be determined by the certified agency representing the commodity. If any person, qualified to vote in a referendum in which potatoes or peaches are the agricultural commodity, fails to make any protest against the assessment and levy in writing, addressed to the certified agency representing the commodity concerned, within 30 days from the date the assessment becomes due and payable, and the certified agency concerned may institute judicial proceedings to enforce the collection of the assessment.

Within 30 days after the end of any year in which an assessment was levied and collected, the treasurer of the certified agency conducting the referendum shall publish in the public press a statement of the amount received and collected by him during that year under this subtitle. Before collecting and receiving the assessments, the treasurer of the certified agency shall give a bond in the amount of at least the estimated total of the assessments to be collected. The surety on the bond shall be a surety company licensed to do business in the State and shall be in the form and amount approved by the certified agency and filed with the chairman or executive head of the agency.

The assessing body and the Secretary each may deduct not more than 3 percent of the funds collected by the certified agency to defray the expenses of making assessments under this subtitle.