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Amendment of Karnataka Act 11 of 1959. SCHEDULE. 9 * * * * STATEMENTS OF OBJECTS AND REASONS I Act 27 of 1966.- This Bill is intended to provide for a uniform law relating to the better regulation of buying and selling of agricultural produce and the establishment of markets for agricultural produce throughout the new State of Mysore repealing and replacing the following Acts which are in force in the several areas:- (1) The Bombay Agricultural Produce Markets Act 1939 (Bombay Act 22 of 1939) as in force in the Bombay area; (2) The Madras Commercial Crops Markets Act, 1933 (Madras Act 20 of 1933) as in force in the Madras Area and as in force in Bellary District; (3) The Coorg Agricultural Produce Markets Act, 1956 (Coorg Act 7 of 1956) as in force in the Coorg District; (4) The Hyderabad Agricultural Market Act, 1339F (Hyderabad Act 2 of 1339F) as in force in the Hyderabad Area; (5) The Mysore Agricultural Produce Markets Act. 1939 (Mysore Act 16 of 1939) as in force in the Mysore Area. This Bill has been prepared taking into consideration the suggestions of the Government of India that there is need for reorienting the pattern of regulation of markets so as to effectively regulate the sale and purchase of agricultural produce. Among other things, provision is made in this Bill for- (i) defining 'agriculture produce' to include all produce of agriculture, animal husbandry, apiculture, horticulture or pissciculture, forest produce and any other produce, live-stock and poultry; (ii) notifying the intention of Government to regulate the purchase and sale of agricultural produce in specified area and declaration of market area and of market yard; (iii) establishment of market committees for trading in specified kinds of agricultural produce and also separate market committees within the same market area for trading in any particular kind of agricultural produce; (iv) representation on the market committee to purchasers of agricultural produce, representatives of the purchasers' co-operative societies, representatives of co-operative marketing and processing societies, municipalities, taluk boards and the Central Warehousing Corporation or State Warehousing Corporation; (v) levy and collection of market fees by the market committee; (vi) constitution of market committee funds and Central Market Fund; 10 (vii) conferring borowing powers on market committee; (viii) appointment of Government servants as Secretaries, Assistant Secretaries, Technical Accounts and Audit Staff of Market Committees to ensure efficient administration and control of market; (ix) inquiry or inspection by the Chief Marketing Officer; and (x) suspension of market committee for failure to perform duties. (Published in the Karnataka Gazette (Extraordinary) Part IV-2A dated 30-3-1963 as No. 47) II Amending Act 19 of 1969.- The Karnataka Agricultural Produce Marketing (Regulation) Act, 1966, came into force on 1st May, 1968. Section 154(1) of the Act repeals the previous Acts on the subject in force and provides for the continuance of the market committees constituted under those Acts until the constitution of market committees under the new Act. By this provision it was intended to bring into existence elected market committees under the new Act in place of the old market committee. But in Marularadhya -Vs- Regulated Market Committee, Shimoga & Others, 1969 (1) Kar. L.J.533, the High Court of Karnataka has held that the election of a market committee under Section 11 of the Act should be preceded by the composition of a nominated market committee under section 10 and that it is only by that process that an old Market Committee which continues to function under proviso (c) to Section 154(1) can vacate office. A market committee nominated under Section 10 will hold office for a period of two years. Government considered that it was not desirable in the democratic set up to nominate members to all these committees. Some of the existing committees had not been reconstituted for the last 10-12 years, and the pattern of representation on the committees was substantially different from the pattern prescribed under the new Act and some of the constituencies prescribed under the new Act were totally unrepresented in these committees. In many market committees representatives of the traders were functioning as Chairman which was inconsistent with the fundamental principles of the new Act. In some of the committees the bodies had ceased to exist as their period has expired and only the Chairmen were functioning on behalf of the committees. It will take nearly a year to prepare the voters list, to publish them and to hold the elections. It was, therefore, decided to terminate the period of office of all the existing market committees and to appoint administrators for a period not exceeding one year in place of the existing market committees in order to ensure their proper working. The administrators will also take immediate action to constitute the market committees within a period of one year. 11 Under the new Act, in respect of every market area, there should be a market and a market yard, and the market fee can be levied in respect of agricultural produce brought by a trader or other person in the yard. It was found that in respect of many existing market areas, the market and market yards had not been duly notified. A removal of Difficulties Order was therefore issued under Section 152 empowering the Chief Marketing Officer to issue necessary notifications in this behalf. To place the matter beyond doubt, it was considered desirable to validate the notifications issued by him. This opportunity has been taken to make certain clarificatory amendment. (Published in the Karnataka Gazette (Extraordinary) Part IV-2A dated 16-8-1969 as No. 402) (Obtained from L.A. Bill No. 26 of 1969) III Amending Act 3 of 1970.- The election to the Market Committee have to be held within one year from 19th July 1969. It was considered necessary that only occupants and tenants cultivating the agricultural lands should be registered as the voters in the agriculturists' constituencies as this would facilitate preparation of the voters' list without delay. Where there are more than one Taluk Marketing Societies in a Taluk it was considered necessary that any member of the committee of any society might be nominated to the first Market Committee. It was also considered necessary to provide that all elected Directors should form an electoral college to elect one from among themselves to be member of a Market Committee in respect of the Taluk Marketing Societies. It was considered necessary to prohibit a person from being a member of more than one Market Committee. Certain necessary clarification amendments were also considered necessary. An Ordinance was promulgated for these purposes and Bill is intended to replace the Ordinance. (Published in the Karnataka Gazette (Extraordinary) Part IV-2A dated 12-1-1970 as No. 17 at page 5. ) IV Amending Act 20 of 1973.- Under Section 65 of the Act market committee may levy market fees as prescribed by bye law upto 30 paise per 100 rupees price of the produce sold. For developing regulated markets in the State, the International Development Association has agreed to advance a loan of rupees ten crores to the State Government on the condition among others, that the maximum market fee to be levied may be one rupee per one hundred rupees of the price of the agricultural produce sold. 12 The loan had to be expeditiously obtained. In view of this urgency and as both Houses of the Legislature were not in session, the Mysore Agricultural Produce Marketing (Regulation) (Amendment) Ordinance, 1973 was promulgated. Since the loan would be advanced through commercial banks, another amendment was made to section 90 to authorise investments by the Market Committees in Scheduled Banks also. The Bill is to replace the Ordinance. (Published in the Karnataka Gazette (Extraordinary) Part IV-2A dated 30-8-1973 as No. 690 at page 3.) V Amending Act 24 of 1975.- There has been an incessant and continuous demand from within and outside the Legislature to provide adequate communication facilities to all the villages in the State in order that the agriculturists may better utilise the facilities of regulated markets provided under the Act. Inspite of ad-hoc arrangements made from time to time, it has not been possible to fully meet the said demand for roads in rural areas, due to mainly lack of regulated flow of funds for the purpose. It is therefore considered necessary to provide for levy of a market fee on the sellers also and utilise the proceeds for the development of rural roads. Hence this Bill. (Obtained from File No. LAW 25 LGN 75.) VI Amending Act 14 of 1976.- In the existing section 60, the Chief Marketing Officer has to transfer the Secretary of the Market Committee only if 3/4 of the total number of members of the Committee vote for such a transfer. Since the Secretaries of the Market Committees are Government servants, such a legal obligation on the part of the Chief Marketing Officer is not proper. Hence, section 60 is proposed to be deleted. In the existing Act, the functions of the Agricultural Produce Market Committees are limited to regulate buying and selling of agricultural produce. It is felt necessary to help forge a link between producers with consumers by the establishment of processing units in or around the Market Areas for fair distribution of processed agricultural produce to the consumer at reasonable rates, for the benefit of both the producer and the consumer. In the existing Act, there is no power to exempt any Market Committee levy and collection of Market Fee in respect of agricultural produce. It is proposed to empower the State Government to exempt any Market Committee from levying and collecting Market Fees and sellers in respect of any agricultural produce sold by such sellers in the Market Area. This 13 provision is considered necessary in order to prevent large diversion of trade particularly in the market functioning in the border areas of the State. The less of income on this account is likely to be made good, many times mere as a result of the stoppage of diversion of trade. The proposal is to reduce the quantum of contribution by the State Government to the State Agricultural Marketing Board from the existing rate of five per cent of the total income of the Market Committees in the State to one per cent of the gross receipts of the Market Committees during that year by way of Market Fees and Licence Fees. This provision reduces the burden of financial commitments on the part of the State Government to the State Agricultural Marketing Board. Hence this Bill. (Published in the Karnataka Gazette (Extraordinary) Part IV-2A dated 5-2-1976 as No. 689 at pages 3-4.) VII Amending Act 43 of 1976.- In line with the current thinking on the subject it is proposed to expand the objectives of the Act so as to include within its ambit regulation of grading, processing, transport, packaging etc. It is also proposed to provide that wholesale trade in notified agricultural produces can be conducted only in the market yards and sub-market yards so as to have effective regulation of trade and to afford on the spot processing and packaging facilities to the traders as well. (Published in the Karnataka Gazette (Extraordinary) Part IV-2A dated 7-4-1976 as No. 1858 at page 4.) VIII Amending Act 47 of 1976.- Section 41 of the Act which deals with the procedure for election of the Chairman and Vice- Chairman does not provide for what should happen when the meeting cannot be concerned within the prescribed time limit, or having been convened does not meet for some reason or other. This results in a stalemate, much to the detriment of the functioning of the Committee. It is necessary to amend this section making suitable provisions. Section 133 of the Act which provides exemptions, permits exemptions only in favour of such class of societies of which all members are either agriculturists or primary producers of any notified agricultural produce. Recently the definition of the word "Marketing" in the Act 14 has been enlarged. In view of this other co-operatives also will have to be brought within the exemption clause. It is proposed to do so. Hence this Bill. (Published in the Karnataka Gazette (Extraordinary) Part IV-2A dated 24-5-1976 as No. 2815 at page 5.) IX Amending Act 17 of 1980.- It is proposed to specify in a schedule the agricultural produces, the marketing of which are to be regulated in the market areas in the State. It is also provided to treat the market committees as local authorities for all purposes. Section 10 and 11 are proposed to be amended providing for the reservation of one seat among the agriculturists constituency for the Scheduled Castes and Scheduled Tribes in all the market committees and power is also taken to nominate one person on all the market committees who shall be as far as possible a person belonging to the Scheduled Castes and Scheduled Tribes. Power is taken to notify the classes of officers and servants specified by the Government as officers and servants of the State, and to constitute a separate service for them. Provision is also made to advance loans by the market committees which are financially sound to the other needy market committees and the State Agricultural Marketing Board. It is proposed to validate the levy and collection of market fees from the seller since service corers of rupees is to be refunded in view of the recent judgment of the High Court. The refund would have considerably affected the finance of the State. It is now proposed to empower the market committees to levy market fee on the buyers only at a rate not exceeding two per cent of the price of the agricultural produce brought. Some consequential amendments are also effected. It is also proposed to increase the rate of commission from 1 1/2 per cent to 2 per cent and in case of fruits and vegetables 4 per cent. Providing facilities for the transport of agricultural produces to the market yard is made as one of the obligatory duty of the market committees. Provision is made to amalgamate two or more market areas into to one single market area. Since the Legislative Council was not in session, an Ordinance was promulgated and hence this Bill to replace the said Ordinance. (Published in the Karnataka Gazette (Extraordinary) Part IV-2A dated 24-9-1979 as No. 955 at page 18.) X Amending Act 4 of 1982.- The Bill seeks to validate certain acts of the Chief Marketing Officer and the market committees in the matter of levy and collection of market fees, the making of bye-laws which were vitiated only due to purely technical and Procedural 15 irregularities. The Bill also seeks to vest the control of elections in the matter of cancellation of calendar of events or postponement of poll in the Government. The other main features of the Bill are - (a) Where there is an alteration in any market area or the notified agricultural produce relating thereto but the market or sub-market continues to be the same, it is provided that it is not necessary to notify the market or sub-market etc., again. (b) the CMO is given the power to cancel the allotment of sites made for market committees for reasons to be recorded in writing. (c) the Market Committees are required to make reservation of posts in favour of SCs, STs, and other backward classes. (d) the market fee on cattle is to be collected, on the basis of number and not on their value. (e) Market fee is made payable on the purchase of wood from the State or Central Government. (f) CMO is empowered to revise the contributions to be made to the consolidated fund of the State by the market committees for services rendered by Government. (g) Some other incidental and minor matters. Two ordinances were promulgated in this behalf. This Bill seeks to replace the said two Ordinances. (Published in the Karnataka Gazette (Extraordinary) Part IV-2A dated 6-2-1982 as No. 89 at page 7.) XI Amending Act 2 of 1984.- In the Karnataka Marriages (Registration and Miscellaneous Provisions) Act, 1976 (Karnataka Act 2 of 1984) certain consequential amendment were made to the Karnataka Agricultural Produce Marketing (Regulation ) Act, 1966 (Karnataka Act 27 of 1966. XII Amending Act 35 of 1986.- In the Course of implementation of Karnataka Agricultural Produce Marketing (Regulation) Act, 1966 the Market Committee and the Department of Marketing have felt the need for amendments to the existing provisions of the Act. It is also found necessary to add certain provisions to the Act by way of amendment to avoid leakage in market fees and effective regulation of trade in the notified commodities. One of the important amendments is regarding charging commission on Commission Agents. At 16 present the Commission Agents are recovering their commission from the sellers at 2%. Most of the Chairmen of the Agricultural Produce Marketing Committees who are members of the Karnataka State Agricultural Marketing Board have informed that even though statute restricts the commission charge at 2%, the Commission Agents in practice collect more from the agriculturists as most of the producers/sellers are illiterate. It is also felt necessary to define commission sales and to provide penal provisions.