# Title 4.1 — Agriculture

## Chapter 4.1-04 — Corn Utilization Council

### § 4.1-04-01. Definitions.

As used in this chapter:
1. "Commissioner" means the agriculture commissioner or the commissioner's designee.
2. "Corn" means all varieties of corn, except sweet corn and popcorn.
3. "Council" means the North Dakota corn utilization council.
4. "Designated handler" means:
a. Any public warehouse, licensed grain buyer, roving grain buyer, processing plant,
merchandising company, or ethanol plant that purchases corn from a producer;
and
b. Any person having a claim against the producer if the actual or constructive
possession of the corn is taken as security, partial payment, or in satisfaction of a
mortgage, pledge, lien, or claim.
5. "Producer" means any person that:
a. Plants or causes to be planted a corn crop in which the person has an ownership
interest, with the intent that upon maturity the crop will be harvested;
b. Will have met the requirements of subdivision a during the next available growing
season; or
c. Has met the requirements of subdivision a during the immediately preceding
growing season.
### § 4.1-04-02. Corn districts - Establishment.

The state consists of the following seven corn districts:
1. Richland County;
2. Cass, Steele, and Traill Counties;
3. Benson, Bottineau, Burke, Cavalier, Divide, Grand Forks, McHenry, Mountrail, Nelson,
Pembina, Pierce, Ramsey, Renville, Rolette, Towner, Walsh, Ward, and Williams
Counties;
4. Barnes, Eddy, Foster, Griggs, and Stutsman Counties;
5. Sargent and Ransom Counties;
6. Dickey and LaMoure Counties; and
7. All remaining counties in which corn is grown.
### § 4.1-04-03. Corn council - Membership - Term.

1. The council consists of one producer elected from each of the seven districts
established in section 4.1-04-02.
2. Each member of the council must be a resident of the district that the member
represents.
3. A member of the council may not have requested a refund under section 4.1-04-13
during the preceding year.
4. The term of each member is four years and begins on April first following the member's
election. The terms must be staggered so that no more than two expire each year.
5. If at any time during a member's term the member ceases to possess any of the
qualifications provided for in this chapter, the member's office is deemed vacant and
the council, by majority vote, shall appoint another qualified producer for the remainder
of the term.
6. An elected member of the council may not serve more than two consecutive terms.
7. If an individual is appointed to complete a vacancy, that service is not counted as a
term for purposes of this section unless the duration of that service exceeds one year.

### § 4.1-04-04. Election of county representative.

1. a. No later than March first of the year in which the term of a council member is to
expire, the extension agent for each county in that member's district shall hold a
meeting of corn producers for the purpose of electing a county representative.
b. The council shall publish notice of the meeting in the official newspaper of the
county for two consecutive weeks. The last notice must be published no fewer
than five nor more than ten days before the meeting.
c. The meeting must be held within the county.
d. During the meeting, the county extension agent shall conduct the election.
e. Any producer who resides in the county and who did not request a refund during
the preceding year may vote in the election.
f. The county extension agent shall canvass the votes, notify the director of the
North Dakota state university extension service and the council that the election
has taken place, and provide to the director and the council the name and
address of the newly elected county representative.
2. Subsection 1 does not apply if the extension agent for a county, in consultation with
the executive director of the county farm service agency office, determines and notifies
the council that no corn producers willing to serve as county representatives reside
within the county.
### § 4.1-04-04.1. Election of district representative - Council members.

1. Upon receiving the notice required by subdivision f of subsection 1 of section
4.1-04-04, the director of the North Dakota state university extension service shall call
a meeting of all county representatives in the district represented by the member
whose term is to expire.
2. The director shall notify each county representative in the district of the meeting, by
registered mail, at least five days before the meeting.
3. The meeting must be held within the district.
4. At the meeting, the county representatives shall elect one from among themselves to
serve as the council member from that district.
5. The director shall notify the governor and the council that the election has taken place
and shall provide to the governor and the council the name and address of the newly
elected council member.
### § 4.1-04-05. Election costs - Responsibility.

All costs of holding an election are the responsibility of the council.
### § 4.1-04-06. Meetings.

1. Annually, the council shall elect one member to serve as the chairman.
2. The chairman shall call all meetings of the council and shall call a special meeting of
the council within seven days when petitioned to do so by three council members.
### § 4.1-04-07. Council members - Compensation.

Each member of the council is entitled to receive compensation in the amount established
by the council but not exceeding one hundred thirty-five dollars per day plus reimbursement for
expenses as provided by law for state officials if the member is attending meetings or
performing duties directed by the council.
### § 4.1-04-08. Council - Powers.

The council may:
1. Expend moneys collected pursuant to this chapter for its administration;
2. Employ, bond, and compensate necessary personnel;
3. Accept gifts, grants, and donations of money, property, and services to carry out this
chapter;

4. Contract with any person for any purpose related to this chapter, including research,
education, publicity, promotion, and transportation;
5. Establish a grant program and guidelines to provide funding to corn-related programs
and organizations that benefit North Dakota corn producers, consistent with this
chapter;
6. Sue and be sued; and
7. Do all things necessary and proper to enforce and administer this chapter.
### § 4.1-04-09. Council - Duties.

1. The council shall determine the uses for which any moneys raised under this chapter
may be expended. The uses may include the funding of research, education programs,
corn policy development, promotion, and market development efforts, as well as
participation in programs under the auspices of other state, regional, national, and
international promotion groups.
2. The council shall develop and disseminate information regarding the purpose of the
corn assessment and ways in which the assessment benefits corn producers.
3. The council shall hold two public input meetings per year with organizations dedicated
to serving North Dakota corn producers to discuss recommendations for the use of
moneys received under this chapter.
### § 4.1-04-10. Assessment.

Until the commissioner certifies that a national corn checkoff is in effect, an assessment at
the rate of one-quarter of one percent of the value of a bushel must be imposed upon all corn
purchased by the first designated handler in this state.
### § 4.1-04-11. Collection of assessment - Records.

1. A designated handler shall collect the assessment from the producer by deducting the
assessment from the purchase price of the corn.
2. Each designated handler shall keep documents regarding all purchases, sales, and
shipments of corn for a period of three years. The records may be examined by the
council upon request.
3. At the time and in the manner prescribed by the council, each designated handler shall
file a report with the council. The report must state, in individual and total amounts, the
quantity of all corn that the designated handler received, sold, or shipped, and the
source of all corn that the designated handler received, sold, or shipped.
### § 4.1-04-12. Submission of assessment by producer - Civil penalty.

1. If a producer sells corn to a person that is not a designated handler, the producer shall
forward the assessment to the council within thirty days after the end of each calendar
quarter.
2. If a producer fails to submit the assessments as required by this section, the council
may levy a penalty equal to ten percent of the assessment due, plus interest at the
rate of twelve percent per annum from the due date.
### § 4.1-04-13. Refund of assessment - Form.

1. To receive a refund of any assessment paid in accordance with this chapter, a
producer shall submit to the council a written request for a refund application within
sixty days after the date of the assessment or final settlement.
2. The producer shall complete the refund application and return the application to the
council, together with a record of the assessment collected, within ninety days after the
date of the assessment or final settlement. The council shall then refund to the
producer the net amount of the assessment that had been collected from the producer.
3. If a request for a refund is not submitted to the council within the prescribed time
period, the producer is presumed to have agreed to the assessment.

4. A producer is not entitled to a refund under this section unless the refundable amount
meets or exceeds five dollars.
### § 4.1-04-14. Reimbursement for double payments.

Notwithstanding section 4.1-04-13, if a producer documents to the council that the producer
has paid the assessment more than once on the same corn, the council shall reimburse the
producer for the double payment.
### § 4.1-04-15. Submission of assessments - Civil penalty.

1. Each designated handler shall forward to the council all assessments collected by the
designated handler within thirty days after the end of each calendar quarter.
2. If a designated handler fails to submit the assessments as required by this section, the
council may levy a penalty equal to ten percent of the assessment due, plus interest at
the rate of twelve percent per annum from the due date.
### § 4.1-04-16. Expenditures - Approval - Records.

The council shall approve all expenditures made pursuant to this chapter. The expenditures
must be recorded on itemized vouchers and the records must be maintained as directed by the
state records administrator.
### § 4.1-04-17. Continuing appropriation.

The council shall forward all moneys received under this chapter to the state treasurer for
deposit in the corn fund. All moneys in the corn fund are appropriated on a continuing basis to
the council to be used exclusively to carry out this chapter.
### § 4.1-04-18. Advisory referendum.

1. a. When petitioned to do so by fifteen percent of the producers, the council shall
conduct a referendum among the producers of the state to determine the amount
by which the assessment imposed by this chapter should be raised or lowered.
b. To be considered a valid petition, no more than fifty percent of the producers who
signed the petition may reside in one district.
2. The council shall determine the date on which in-person voting will take place.
3. The council shall prepare the ballots and make the ballots available to producers at
each county extension office in the state.
4. Each ballot must include a statement indicating:
a. The date, time, and location at which the council will open and tabulate the
ballots; and
b. That any producer may be present at the time the ballots are opened and
tabulated.
5. a. Beginning no sooner than thirty days before the date established for in-person
voting in accordance with subsection 2, the council also shall provide absentee
ballots upon request to producers who expect to be absent from their county of
residence on the date established for in-person voting in accordance with
subsection 2.
b. The council shall include with each absentee ballot requested a form indicating
that the producer is eligible to participate in the referendum. The form must be
signed by the absentee producer and returned with the absentee ballot.
c. In order to be counted, an absentee ballot and the voter's statement of eligibility
must be received by the council at least forty-eight hours before the time at which
the council stated it would open and tabulate ballots.
6. If a majority of the producers voting upon the question are in favor of the proposed
change, the council shall submit proposed legislation to the next regular session of the
legislative assembly to amend this chapter.

### § 4.1-04-19. Penalty.

Any person willfully violating this chapter is guilty of a class B misdemeanor.
