Senate Bill 2446c3

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    Florida Senate - 2000             CS for CS for CS for SB 2446

    By the Committees on Fiscal Policy; Comprehensive Planning,
    Local and Military Affairs; Agriculture and Consumer Services;
    and Senator Mitchell



    309-2163-00

  1                      A bill to be entitled

  2         An act relating to tobacco farm conversion;

  3         providing funds to purchase stranded tobacco

  4         farming equipment; providing for resale of

  5         purchased equipment with restrictions;

  6         providing for use of proceeds from resale of

  7         equipment; providing an effective date.

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  9         WHEREAS, tobacco was one of the first export

10  commodities in this country, becoming established as a staple

11  crop as early as 1703 when over 23 million pounds were

12  exported, and was the major commodity exported to raise funds

13  to finance the American Revolution, and

14         WHEREAS, from its beginnings the production of tobacco

15  was, and continues to be, a legal enterprise in this state and

16  nation, and

17         WHEREAS, tobacco has been produced by growers in this

18  state every year since a federally controlled quota system was

19  established in 1938, and

20         WHEREAS, tobacco has been one of the most stable and

21  predictable crops for Florida farmers due to the federal quota

22  system, which regulates the volume of production, and the

23  producer-owned-and-operated Flue-Cured Stabilization

24  Corporation, which provides market stability at no net cost to

25  any taxpayer or governmental entity, and

26         WHEREAS, the production of tobacco, as compared to

27  other agricultural commodities, requires a proportionally

28  larger investment of capital per unit of production due to

29  quotas and the infrastructure needed for production, which

30  requires sufficient agricultural land and specialized barns

31  and production equipment, and

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2000             CS for CS for CS for SB 2446
    309-2163-00




  1         WHEREAS, the necessarily large production costs to

  2  tobacco producers causes such producers to have very large

  3  asset investments and debt-service requirements, which

  4  constitute a disproportionally large component of the local

  5  economies of tobacco-growing counties in this state, and

  6         WHEREAS, the assistance to tobacco farmers provided by

  7  this act will help to ensure the stability of the economies of

  8  20 Florida counties by assisting the family farms in this

  9  state which have been adversely affected by Florida's

10  participation in the tobacco litigation, and

11         WHEREAS, this assistance will entail efforts to

12  diversify and convert farms that have for generations depended

13  on tobacco for their primary source of income, and

14         WHEREAS, there are precedents to the types of

15  assistance provided by this legislation, NOW, THEREFORE,

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17  Be It Enacted by the Legislature of the State of Florida:

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19         Section 1.  (1)  In order to assist Florida tobacco

20  farmers in reducing encumbered debt on stranded investment in

21  equipment, the nonrecurring sum of $5 million is appropriated

22  from the General Revenue Fund to the Department of Agriculture

23  and Consumer Services for the purchase at fair market value of

24  equipment associated with agricultural production of tobacco

25  from persons or entities that:

26         (a)  Were using such equipment for production of

27  tobacco between April 1 and October 1, 2000, on land within

28  this state; and

29         (b)  Sign a binding agreement with the department to

30  cease production of tobacco in this state within 12 months

31  after execution of the agreement.

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    Florida Senate - 2000             CS for CS for CS for SB 2446
    309-2163-00




  1  The department may adopt rules that, at a minimum, define and

  2  describe the equipment to be purchased under this section,

  3  prescribe criteria for identifying persons and entities who

  4  are eligible to have such equipment purchased by the

  5  department, and prescribe procedures to be followed for

  6  equipment purchases. From the funds appropriated by this

  7  section, the department is authorized to expend such sums as

  8  are reasonable and necessary to administer the program.

  9         (2)  Equipment purchased by the Department of

10  Agriculture and Consumer Services under this section may be

11  resold by the Department of Management Services. However, no

12  such equipment may be sold, leased, or conveyed to or for use

13  by a person or entity who produces tobacco in this state or

14  holds a quota for production of tobacco in this state. The

15  Department of Management Services shall deposit proceeds of

16  such sale, less reasonable administrative costs, in the

17  General Inspections Trust Fund of the Department of

18  Agriculture and Consumer Services.

19         (3)  The Department of Agriculture and Consumer

20  Services may use proceeds from the resale of equipment

21  purchased under this section to continue purchasing equipment

22  and to assist tobacco producers to seek out, experiment with,

23  and develop diverse profitable enterprises and retain

24  ownership of their land so that their farms can remain

25  productive agricultural entities and provide ancillary

26  environmental benefits.

27         Section 2.  This act shall take effect July 1, 2000.

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    Florida Senate - 2000             CS for CS for CS for SB 2446
    309-2163-00




  1          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  2                          CS/CS/SB 2446

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  4  Reduces the size and source of the appropriation. Appropriates
    $5 million from the General Revenue Fund to the Department of
  5  Agriculture and Consumer Services the purpose of which is
    limited to purchasing equipment used in the production of
  6  tobacco.

  7  Equipment used in the production of tobacco between April 1
    and October 1, 2000, may be purchased at fair market value,
  8  but sellers must agree to cease production of tobacco in
    Florida within 12 months.
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    The Florida Department of Agriculture and Consumer Services
10  may to adopt rules and the Department of Management Services
    may resell equipment with proceeds to be used to purchase
11  additional equipment or to assist tobacco farmers in remaining
    agriculturally viable.
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