Can the Louisiana Rice Promotion Board collect the rice assessment itself?

Plain-English summary

The Louisiana Rice Promotion Board asked whether it could collect the assessment on rice produced in the state. The Attorney General said no. La. R.S. 3:551.64 assigned collection to the Commissioner of Agriculture, whom R.S. 3:551.61 defined for this law. The board received the proceeds through an annual transfer after the commissioner deducted actual collection and administration costs within the statute's cap.

The statute quoted in the opinion identifies different collection points: the buyer at the first sale of producer-sold rice; the producer or Commodity Credit Corporation for rice put under loan or delivered to that corporation; and the handler for seed rice cleaning. The AG's conclusion rested on the statute's separate statement that the commissioner collected the assessment.

Currency note

This opinion was issued in 2006. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the collection process or rates. Verify current law before relying on the amounts and dates below.

What this means for you

Rice Promotion Board members

Arrange to receive the annual settlement and its audit from the Commissioner of Agriculture. Under the version of La. R.S. 3:551.64 quoted in this opinion, the board was the recipient of net proceeds, not the collector of the assessment.

Buyers, producers, and seed rice handlers

Identify which transaction described in the statute applies before deciding who remits the assessment. The AG quoted different rules for a first sale, a Commodity Credit Corporation loan or delivery, and seed rice cleaning. Check current collection instructions before paying or collecting today.

Common questions

Who had legal authority to collect the rice assessment?

The Commissioner of Agriculture. The AG relied on the direct statement in La. R.S. 3:551.64 that the assessment “shall be collected by the commissioner.”

Could the board keep the gross amount collected?

No. The commissioner paid the collected funds to the board after deducting actual administration and collection costs, capped in the quoted law at two percent of gross collections.

When was the settlement due?

The opinion quotes an annual settlement as of July 1, accompanied by a complete audit of collections, disbursements, and actual collection and administration costs.

What rates did the 2006 opinion quote?

The quoted law set ceilings of three cents per hundredweight for dry rough paddy rice and two and seventy-one hundredths cents per hundredweight for rice sold on a green-weight basis. Those are the rates in the opinion's 2006 statutory quotation; check the current assessment before using them.

Background and statutory framework

La. R.S. 3:551.64 levied the assessment, assigned collection to the commissioner, and prescribed the annual transfer to the Rice Promotion Board. R.S. 3:551.61 identified the commissioner as Louisiana's Commissioner of Agriculture. The AG treated those assignments as conclusive: the board could receive the assessment proceeds but could not collect the assessment directly.

Citations

• La. R.S. 3:551.64 (levy, collection, and transfer).
• R.S. 3:551.61 (definition of commissioner).

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/06-0198

Original opinion text

August 28, 2006
OPINION NUMBER 06-0198

90-A-1 PUBLIC FUNDS & CONTRACTS
Mr. Kenneth O. Privat
La. R.S. 3:551.61; 3:551.64
Attorney at Law
Louisiana Rice Promotion Board
The assessment on rice produced in this state is to be
collected by the Commissioner of Agriculture, not by the
P.O. Drawer 449 Louisiana Rice Promotion Board. However, the
Crowley, Louisiana 70527-0449
Commissioner is required to turn over to the Board, on an
annual basis, the funds collected, less the cost of administering and collecting the assessment.
Dear Mr. Privat:

On behalf of the Louisiana Rice Promotion Board (“Board”), you requested an Attorney General’s opinion regarding the collection of the assessment on rice produced in this state. You question whether, under Louisiana law, the Board has the authority to collect the assessment.

The assessment was levied by La. R.S. 3:551.64, which provides in pertinent part:

A. Levy of assessment.

(1) There is hereby levied an assessment at the rate not to exceed three cents per hundredweight, or the equivalent thereof, of dry rough "paddy" rice produced in this state and a rate not to exceed two and seventy one- hundredths cents per hundredweight, or the equivalent thereof, on rice produced in this state and sold on a "green weight" basis.

                           *      *         *        *       *

E. Collection and enforcement. The assessment levied by this Part shall be collected by the commissioner. On rice sold by the producer, collection shall be from the buyer of the rice at the first point of sale only. On rice put under loan or purchased by the Commodity Credit Corporation and delivered to the Commodity Credit Corporation, collection shall be from the producer, or from the Commodity Credit Corporation on the producer's behalf. On seed rice, collection shall be from the handler performing the cleaning.

                          *       *         *       *        *

Page 2

Mr. Kenneth O. Privat
Opinion Number 06-0198
Page -2-

H. Transfer of funds.

(1) The commissioner of agriculture shall annually pay over to the Louisiana Rice Promotion Board the funds collected less the actual cost of administering and collecting the assessment levied herein up to but not to exceed two percent of the gross amount collected.

(2) The annual settlement to the Louisiana Rice Promotion Board shall be made as of the first day of July of each year and shall be accompanied by a complete audit of all funds collected and disbursed, and costs actually incurred in the collection and administration of the assessment.

R.S. 3:551.64(E) specifically provides that the assessment shall be collected by the commissioner. The commissioner is defined by R.S. 3:551.61 as “the Commissioner of Agriculture for the state of Louisiana”. Therefore, it is the opinion of our office that the Board is not authorized to collect the assessment.

While the assessment must be collected by the commissioner, he is required to pay over the funds collected to the Board on an annual basis. R.S. 3:551.64(H)(1) and (2) provide that the funds collected, less the cost of administering and collecting the assessment, are to be paid to the Board on the first day of July of each year.

Trusting this adequately responds to your request, we remain

Yours very truly,

CHARLES C. FOTI, JR.
ATTORNEY GENERAL

BY: _________
KENNETH L. ROCHE, III
Assistant Attorney General
CCF, JR/KLR, III/jv

Page 3

Opinion Number 06-0198

90-A-1 PUBLIC FUNDS & CONTRACTS

La. R.S. 3:551.61; 3:551.64

The assessment on rice produced in this state is to be collected by the Commissioner of Agriculture, not by the
Louisiana Rice Promotion Board.
However, the
Commissioner is required to turn over to the Board, on an annual basis, the funds collected, less the cost of administering and collecting the assessment.

Mr. Kenneth O. Privat
Attorney at Law
Louisiana Rice Promotion Board
P.O. Drawer 449
Crowley, Louisiana 70527-0449

Date Received:

Date Released: August 28, 2006

Kenneth L. Roche, III
Assistant Attorney General