275.330.  Procedure after petition received. — 1.  When the director receives a petition for permission to establish a commodity merchandising council he shall:

  (1)  Determine the legal sufficiency of the petition;

  (2)  Establish a list of producers of such agricultural commodity or make any such existing list current;

  (3)  Hold a public hearing or hearings on the proposed program;

  (4)  Publish a notice to producers of the commodity to be affected advising them:

  (a)  That a petition has been filed with the director;

  (b)  The time and place or places of the public hearing or hearings;

  (c)  That a referendum may be held to establish a commodity merchandising council; and

  (d)  That to be eligible to vote in the referendum the producer must register.  

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The director shall give notice in not less than three publications devoted to agriculture and each of which has a statewide circulation of not less than seventy-five thousand, at least one month prior to the hearing.  The fees for the publication of notice shall be advanced in cash to the director by the representative group and no publication of notice shall be paid for by state funds;

  (5)  Provide forms to enable producers to register, which forms shall include the producer's name, mailing address, and the yearly average quantity of such commodity produced or handled by him in the three years preceding the date of the notice, or in such lesser period as a producer has produced or handled the commodity in question;

  (6)  Approve the petition, in whole or as revised, or disapprove the petition depending upon the determinations made after public hearing;

  (7)  After approval of a petition, hold a referendum among the producers of the commodity to determine whether or not the merchandising council is to be established.

  2.  The director shall determine the sufficiency of the petition within twenty-one days after it is submitted to him and shall publish notice of the public hearing and registration requirements giving at least ten days' notice prior to public hearing and thirty days' notice to register prior to the referendum.

  3.  If a majority of the votes cast are in favor of adoption, and if those producers voting in favor of adoption represent a majority of the production of all registered producers casting votes, the petition is adopted.

  4.  If the required percentage by number and by production of those voting is in favor of the adoption of the proposal in the petition, the director shall declare the proposal to be adopted.

  5.  A proposal to change the amount of the fee to be collected or to make other major changes may be made by a two-thirds vote of the council or by petition of twenty-five percent of the commodity producers.  The proposal shall then be submitted to referendum under which the same percentages by number and production shall be required for approval as were required for establishment of the original merchandising program.  However, the council, by two-thirds vote, may lower the amount of the fee to be collected, or may thereafter increase the amount of the fee to not more than the rate originally approved without a referendum vote.  Such increase or decrease of fees shall not become effective except at the beginning of the next state fiscal year.

  6.  A proposal to terminate the commodity merchandising program may be made by a majority of the council or by petition of ten percent of the registered commodity producers.  The proposed termination shall be submitted to referendum under which a simple majority of those voting shall be required for termination.

  7.  No referendum to set up a merchandising council in a particular commodity, or to change the amount of fee, or to make other major changes, or to terminate a commodity merchandising council may be held within twelve months of a referendum conducted for a similar purpose for the same commodity.