Cotton and Cotton Products.

Ala. Code tit. 2, ch. 8, art. 6

in effect

Ala. Code § 2-8-190 Legislative Purpose and Intent.

2-8-190. Legislative Purpose and Intent. It is hereby declared to be in the interest of the public welfare that producers of cotton shall be authorized and encouraged to act jointly and in cooperation with handlers, dealers, purchasers and ginners of cotton, with the Commissioner of Agriculture and Industries and with the State Board of Agriculture and Industries in promoting and stimulating by research, education, advertising and other methods, the increased and efficient production, distribution, use and sale of cotton and cotton products; and it is the intent and purpose of this article to authorize and provide a method and procedure for a promotional program for the cotton industry and the financing thereof pursuant to powers of the Legislature as authorized by Amendment No. 388 to the Constitution which expressly authorizes such activity. (Acts 1981, No. 81-388, p. 586, §1.)

Ala. Code § 2-8-191 Authorized Activities Not Illegal or in Restraint of Trade.

2-8-191. Authorized Activities Not Illegal or in Restraint of Trade. No association, meeting or activity undertaken in pursuance of the provisions of this article and intended to benefit the Alabama cotton producers and the cotton industry in general shall be deemed or considered illegal or in restraint of trade. (Acts 1981, No. 81-388, p. 586, §2.)

Ala. Code § 2-8-192 Referendum to Levy Assessment Declared to Be in the Public Interest.

2-8-192. Referendum to Levy Assessment Declared to Be in the Public Interest. It is hereby further declared to be in the public interest and highly advantageous to the economy of the state that cotton producers be permitted by referendum as hereinafter provided to levy upon themselves an assessment, and to provide for the collection thereof for the financing or contributing toward the financing of a program of research, education, advertising and other methods designed to increase or promote the efficient and economical production, distribution and marketing as well as the increased use, consumption and sale of cotton and cotton products. (Acts 1981, No. 81-388, p. 586, §3.)

Ala. Code § 2-8-193 Application for Certification and Approval to Conduct Referendum - Generally.

2-8-193. Application for Certification and Approval to Conduct Referendum - Generally. (a) Any commission, established by the mutual agreement of any two or more nonprofit associations of cotton producers, fairly and substantially representative of the producers of cotton throughout the state, may at any time after May 5, 1981, make application to the State Board of Agriculture and Industries for certification and approval for the purpose of conducting a referendum among cotton producers of the state, upon the question of levying an assessment, collecting, expending and utilizing the same for the purpose or purposes authorized under this article and as stated in such referendum. For the purpose of determining whether the cotton producers are fairly represented by such applicant, the nonprofit associations establishing the commission or the commission shall submit to the State Board of Agriculture and Industries for approval or disapproval a plan or system for dividing the state into six districts, each district to contain as nearly as possible the same number of acres planted to cotton during the last year immediately prior to the date of submitting such plan for which such statistics are available. The commission shall be composed of not more than eleven members, six of whom shall be elected representatives of the six respective districts into which the state is divided, as above provided, and the remainder shall be appointed from the state at large by the mutual consent of the nonprofit associations of cotton producers establishing the commission which applies for authorization to conduct the referendum and promotional program. Every member of the commission shall be a bona fide Alabama cotton producer. Any commission approved or certified hereunder by the State Board of Agriculture and Industries shall be authorized to execute or carry out such a promotional program within the limits prescribed by this article, and hereinafter shall be referred to as an approved or certified commission. (b) Any commission authorized to make assessments pursuant to subsection (a) may make application to the State Board of Agriculture and Industries for certification and approval to conduct a referendum on the question of levying an assessment without any provision for refunds. The referendums and the levying, collection, expending, and utilization of the assessments shall otherwise be subject to the provisions of this article. Upon approval of any assessment authorized pursuant to this subsection, the assessment shall supersede any prior assessment being collected at the time of the referendum. (Acts 1981, No. 81-388, p. 586, §4; Act 2014-278, §1.)

Ala. Code § 2-8-194 Application for Certification and Approval to Conduct Referendum - Action by Board on Application.

2-8-194. Application for Certification and Approval to Conduct Referendum - Action by Board on Application. Upon the filing with the State Board of Agriculture and Industries of an application by any commission, formed by mutual agreement of two or more nonprofit associations of cotton producers, the said board shall within 30 days thereafter meet and consider the application. If it is shown by the applicant to the satisfaction of the board that the applicant is fairly and substantially representative of the cotton producers of this state, and the board shall otherwise find and determine that such application and the program proposed therein are in conformity with the provisions and purposes of this article, then, and in such an event, the board shall certify such organization as the duly delegated and authorized commission and shall likewise certify that such commission is duly authorized to conduct among the cotton producers of this state a referendum for the purpose set forth in its application which shall be consistent with the purposes of this article. In the event there is more than one pending application at any time, the board must decide between the pending applications based on the program proposed, the number and geographical distribution of cotton producer members in the applicant commission, the size, stability, potential effectiveness and fiscal soundness of the applicant commission and any organizations with which it is affiliated, the existence and effectiveness of affiliated county organizations in the applicant commission and its affiliates, and the sentiment of cotton producers as ascertained by petitions, hearings, and otherwise as may be determined by the board. No application shall be considered if another commission holds currently valid certification. (Acts 1981, No. 81-388, p. 586, §5.)

Ala. Code § 2-8-195 Authority of Certified Commission to Conduct Referendum on Assessment.

2-8-195. Authority of Certified Commission to Conduct Referendum on Assessment. Upon being so certified by the State Board of Agriculture and Industries, such commission shall thereupon be fully authorized and empowered to hold and conduct on the part of the Alabama cotton producers a referendum wherein they shall be entitled to vote on the question of whether or not they shall levy upon themselves an assessment under and subject to and for the purpose stated in this article. The referendum shall be conducted on a statewide basis. (Acts 1981, No. 81-388, p. 586, §6.)

Ala. Code § 2-8-196 Notice of Referendum.

2-8-196. Notice of Referendum. With respect to any referendum conducted under the provisions of this article, the duly certified commission shall, not less than 30 days before the date of such referendum, publicly announce the date, hours, polling places and rules for voting in the referendum, the amount and basis of the assessment proposed to be collected, the means by which such assessment shall be collected, and the general purposes to which said amount so collected shall be expended and applied. Such notice shall be published by the certified commission through the medium of an established farm publication and written notice thereof shall be given to each county agent in the area covered by the referendum. (Acts 1981, No. 81-388, p. 586, §7.)

Ala. Code § 2-8-197 Conduct of Referendum; Payment of Expense.

2-8-197. Conduct of Referendum; Payment of Expense. The arrangements for and the management of any referendum conducted hereunder shall be under the direction of the commission certified by the State Board of Agriculture and Industries to conduct same, and such commission shall furnish all necessary ballots and arrange for the necessary poll holders. All expense and costs necessary to conduct such a referendum shall be borne by such commission. (Acts 1981, No. 81-388, p. 586, §8.)

Ala. Code § 2-8-198 Eligibility to Vote in Referendum; Question to Be Voted On; Votes Cast by Secret Ballot.

2-8-198. Eligibility to Vote in Referendum; Question to Be Voted On; Votes Cast by Secret Ballot. Any referendum conducted hereunder may be held on a statewide basis pursuant to rules and regulations adopted by the State Board of Agriculture and Industries for the holding of such referendum. Every producer of cotton who shall be subject to any assessment levied hereunder and who produced cotton in the crop year immediately preceding the referendum shall be entitled to one vote in the referendum. In such referendum, individuals so eligible for participation therein shall vote upon the question of whether there shall be levied an assessment for a period of ten years in an amount set forth in the call for such referendum, which amount shall not exceed the limitations prescribed by this article. Votes shall be cast by secret ballot. (Acts 1981, No. 81-388, p. 586, §9.)

Ala. Code § 2-8-199 Approval of Assessment; Assessment Amount.

2-8-199. Approval of Assessment; Assessment Amount. (a) If in the referendum a majority of the cotton producers who vote therein vote in favor of levying and collecting the assessment proposed in the referendum, the assessment shall be levied on a per bale basis and collected in the manner hereinafter provided. (b) All cotton producers who produced cotton in the crop year immediately preceding the referendum may participate in the referendum. Following the referendum and within 30 days thereafter, the certified commission shall canvass, tabulate, and publicly announce the results. (c) The assessment levied upon the sale of cotton may not exceed one dollar and thirty cents ($1.30) per bale. The commission shall determine the assessment amount on an annual basis. (Acts 1981, No. 81-388, p. 586, §10; Act 2002-152, p. 400, §1; Act 2025-346, §1.)

Ala. Code § 2-8-200 Subsequent Referendums.

2-8-200. Subsequent Referendums. In the event any such referendum conducted as herein provided shall fail to receive the required number of affirmative votes from cotton producers eligible for participation and voting therein, then the certified commission conducting the said referendum shall be authorized to call another referendum for the purposes herein set forth in the next succeeding year, on the question of an assessment and promotional program for the period authorized by this article, provided no such referendum shall be held within a period of 12 months from the date on which the last referendum was held; and such commission shall call another statewide referendum for the purposes herein set forth after the expiration of ten years from the date on which the last such referendum failed to receive the required number of affirmative votes from cotton producers voting therein, and each ten years thereafter. In the event such referendum is carried or favored by the required number of eligible cotton producers participating therein and assessments in pursuance thereof are levied for the period set forth in the call for such referendum, then the commission conducting such referendum shall have full power and authority to call and conduct during, or after, the last year of such period another referendum in which the cotton producers shall vote upon the question of whether or not such assessments shall be continued or renewed for another period of time as authorized under this article. Any subsequent referendums as authorized hereunder shall be subject to all of the requirements as an original referendum conducted under the provisions of this article. (Acts 1981, No. 81-388, p. 586, §11.)

Ala. Code § 2-8-201 Collection of Assessment; “Ginner” Defined; Remittance of Assessments by Ginner; Inspection of Books and Records by Commissioner; Deductions for Expenses.

2-8-201. Collection of Assessment; “Ginner” Defined; Remittance of Assessments by Ginner; Inspection of Books and Records by Commissioner; Deductions for Expenses. (a) In the event the required number of cotton producers approve, by a referendum as provided hereunder, the levying of an assessment upon the ginning of cotton for a promotional program, the Commissioner of Agriculture and Industries shall, within 30 days, notify in writing every person engaged in the business of ginning cotton in Alabama that on or after the date designated in such notice, which shall not be less than 30 nor more than 60 days after the mailing of such notice by the Commissioner of Agriculture and Industries, the amount of the assessment levied pursuant to the referendum shall be collected by all ginners of cotton when such cotton is ginned within the state. (b) For the purposes of this article, the word “ginner” shall mean any person, partnership, corporation or cooperative association, public or private, which gins cotton, whether for hire or for itself only. (c) On or before the fifteenth day after the completion of its ginning season, and in no event later than January 15 of each year, every ginner shall remit all assessments collected pursuant to this article during the ginning season to the Commissioner of Agriculture and Industries. If a ginner gins any cotton after January 15 in any year, then the assessment levied hereunder on such cotton shall be remitted to the Commissioner of Agriculture and Industries not later than fifteen days after such ginning. (d) The books and records of all such ginners of cotton subject to the collection of assessments levied hereunder shall at all times during regular business hours be open for inspection by the Commissioner of Agriculture and Industries or his duly authorized representatives or agents for the purpose of ascertaining the accuracy of amounts remitted hereunder. The Commissioner of Agriculture and Industries shall be entitled to deduct three percent of all sums remitted to the Department of Agriculture and Industries under this article to defray expenses incident to collection and administration thereof. The amount thus deducted by the commissioner for expenses incident to the administration of this article shall be paid into the State Treasury to the credit of the Agricultural Fund. (Acts 1981, No. 81-388, p. 586, §12.)

Ala. Code § 2-8-202 Remittances to Treasurer of Commission.

2-8-202. Remittances to Treasurer of Commission. The Commissioner of Agriculture and Industries shall remit to the treasurer of the certified commission all moneys paid to or collected by him on a quarterly basis between the first and fifteenth of February, May, August and November of each year, less a commission of three percent of the total amount so collected which commission shall be deposited in the Agricultural Fund of the State Treasury. The amount so remitted to the treasurer of the certified commission shall be used and expended by such commission for a promotional program in the manner provided in this article and the rules and regulations of the commission. (Acts 1981, No. 81-388, p. 586, §13.)

Ala. Code § 2-8-204 Bond of Treasurer of Commission.

2-8-204. Bond of Treasurer of Commission. Before any money is remitted by the Commissioner of Agriculture and Industries to the treasurer of a commission as authorized under the provisions of this article, the treasurer of said commission shall furnish the commissioner a bond approved by the commissioner in the amount of not less than the estimated annual total amount of the assessments handled by such officer. The surety on said bond shall be a corporate surety company duly qualified and licensed to do business in Alabama and said bond shall be conditioned upon the faithful handling, proper accounting and properly authorized expenditure of all funds received and disbursed by the principal named in said bond. (Acts 1981, No. 81-388, p. 586, §15.)

Ala. Code § 2-8-205 Expenditure of Assessments.

2-8-205. Expenditure of Assessments. The funds derived from any assessments levied upon the ginning of cotton as authorized under this article shall be used and expended by the certified commission after such funds are remitted to it by the Commissioner of Agriculture and Industries for the purpose of promoting and stimulating by advertising and other methods the increased use and sale of cotton and cotton products. Any funds expended by the certified commission not authorized by the promotional program previously approved shall be deemed as an unauthorized and illegal expenditure of such funds. All funds approved by the certified commission for expenditure for an approved promotional program for the cotton industry, as authorized under this article, are hereby appropriated for disbursement and expenditure by said certified commission to carry out any such approved promotional program or programs; and it shall not be necessary for the Legislature to make any specific or general appropriation for such disbursements or expenditures nor shall such disbursements and expenditures be subject to the budget and allotment requirements of Title 41, Chapter 4, Article 4, and such disbursements and expenditures shall not be restricted or subject to any other requirements for any general or special appropriations. (Acts 1981, No. 81-388, p. 586, §16.)

Ala. Code § 2-8-206 Joint Programs with Other States.

2-8-206. Joint Programs with Other States. Any certified commission may enter into agreements with like commissions, councils, boards or other agencies or non-profit associations of cotton growers of other states for the purpose of conducting a similar agricultural commodities promotional program jointly with such commissions, councils, boards or other agencies or non-profit associations of cotton growers in other states, and such certified commission shall be authorized to contribute a proportionate share of the cost and expense necessary for such a program. (Acts 1981, No. 81-388, p. 586, §17.)

Ala. Code § 2-8-207 Annual Audit of Commission; Examination by Department of Examiners of Public Accounts; Publication of Statement.

2-8-207. Annual Audit of Commission; Examination by Department of Examiners of Public Accounts; Publication of Statement. The approved and certified commission receiving and disbursing funds as herein authorized shall following the close of their fiscal year every two years, cause an audit of their books and accounts for the two-year period to be conducted by a certified public accountant disclosing receipts, disbursements, expenditures, and other information related thereto, and a copy thereof shall be forwarded to the State Board of Agriculture and Industries for inspection and review. The examiner of public accounts of the Department of Examiners of Public Accounts may audit, review, and otherwise investigate the receipts and disbursements of the funds in the same manner that those duties are performed for examination and audits of agencies and departments of the state. An examination or audit as herein required and submitted to the State Board of Agriculture and Industries shall be open to public inspection. Within 90 days following the close of the certified commission’s fiscal year, if it has received any funds from assessments levied and collected pursuant to this article, the commission shall forward a copy of a financial statement to the state board showing the amount received and collected and the amount spent for each project and item. The statement shall be available for public inspection. (Acts 1981, No. 81-388, p. 586, §18; Act 2010-257, p. 448, §1.)

Ala. Code § 2-8-208 Rules and Regulations.

2-8-208. Rules and Regulations. The State Board of Agriculture and Industries is hereby authorized and empowered to adopt and promulgate rules and regulations to carry out the evident intent and purpose of this article which shall include the rules and regulations governing the holding of referendums as adopted by the certified commission, the collection, deposit, handling, withdrawal and disbursement of assessments collected hereunder, and such other reasonable rules and regulations as may be necessary to effectuate the evident intent and purposes of this article. The certified commission authorized to conduct a promotional program as authorized under this article shall have a right to recommend such rules and regulations to the State Board of Agriculture and Industries and upon receipt of such recommended rules and regulations said board shall meet within a period of not more than 90 days to consider their adoption. The certified commission shall be given at least ten days’ notice in writing of any such meeting held for the purpose of adopting rules and regulations as authorized hereunder. (Acts 1981, No. 81-388, p. 586, §19.)

Ala. Code § 2-8-209 Enforcement Duties of Commissioner; Revocation of Certification of Commission.

2-8-209. Enforcement Duties of Commissioner; Revocation of Certification of Commission. It shall be the duty of the Commissioner of Agriculture and Industries through the facilities of the Department of Agriculture and Industries to enforce and collect the assessment charges levied upon the ginning of cotton as set forth under the provisions of this article and to enforce the rules and regulations of the State Board of Agriculture and Industries relative thereto. The State Board of Agriculture and Industries shall have authority at any time to revoke or cancel any approval or certification of a commission in the event it finds that such commission is not carrying out its promotional program in accordance with the provisions of this article and rules and regulations promulgated thereunder. Before any certification may be revoked, the certified commission shall be given notice and an opportunity to be heard by the State Board of Agriculture and Industries upon the question of whether its certification should be revoked. (Acts 1981, No. 81-388, p. 586, §20.)

Ala. Code § 2-8-210 Compliance with Article Prerequisite for Holding Ginner’s Permit Under Section 2-19-61.

2-8-210. Compliance with Article Prerequisite for Holding Ginner’s Permit Under Section 2-19-61. In addition to all other prerequisites for holding a ginner’s permit issued pursuant to Section 2-19-61 the holding thereof shall also be conditioned upon compliance with the provisions of this article and rules and regulations duly adopted for carrying out the requirements of this article relative to the collection and remittance of assessments on the ginning of cotton in Alabama. (Acts 1981, No. 81-388, p. 586, §21.)

Ala. Code § 2-8-211 Penalty; Inspection of Books and Records; Injunctions.

2-8-211. Penalty; Inspection of Books and Records; Injunctions. (a) Any ginner of cotton who willfully fails or refuses to collect and pay to the Commissioner of Agriculture and Industries any assessment required by this article to be so collected and remitted to the commissioner shall be guilty of a Class C misdemeanor. Any ginner of cotton who fails or refuses to allow the Commissioner of Agriculture and Industries or his authorized agents and employees to inspect and review his books and records which disclose the bales of cotton he ginned for the purpose of ascertaining accuracy of amounts of assessments collected and remitted as required under this article shall also be guilty of a Class C misdemeanor. (b) In addition to the above penalty and notwithstanding the existence of an adequate remedy, the circuit court or any judge thereof, shall have jurisdiction for cause shown to grant a temporary or permanent injunction, or both, restraining and enjoining any person from violating any provision or requirement of this article. Actions for injunctive relief as authorized hereunder shall be filed in the name of the Commissioner of Agriculture and Industries in the circuit court or other court of like jurisdiction in the county of residence of the person who gins cotton in violation of the provisions of this article or in the county where such violation occurs. Any restraining order or injunction issued hereunder shall be issued without a bond. (Acts 1981, No. 81-388, p. 586, §22.)

Source: Alabama Legislature (alison.legislature.state.al.us)URL: https://alison.legislature.state.al.us/code-of-alabamaFetched: 10/20/2026