SECTIONS 74951-74957 - California Statutes

FOOD AND AGRICULTURAL CODE

SECTION 74951-74957

74951. (a) Prior to the beginning of each marketing season or as
soon thereafter as possible, the commission shall establish an
assessment rate for the marketing season.
(b) The assessment rate for producers shall not exceed 1 percent
of the gross dollar value of winegrapes marketed by producers to
vintners. If a producer sells winegrapes for a specified sum in a
bona fide sale, the gross dollar amount of this sum is the gross
dollar value of the winegrapes.

74951.1. (a) The petition for a referendum to establish a local
commission shall set forth the assessment rate which shall become
effective during the first marketing season in which the local
commission is operative. Thereafter, prior to the beginning of each
marketing season or as soon thereafter as possible, the local
commission shall establish an assessment rate for the marketing
season. Assessment rates set by local commissions which vote to
continue in operation after the certification of the commission shall
be independent of, and additional to, any assessment rate
established by the commission.
(b) The assessment rate for producers shall not exceed 1 percent
of the gross dollar value of winegrapes grown in the producer region
and marketed by producers to vintners. If a producer sells winegrapes
for a specified sum in a bona fide sale, the gross dollar amount of
this sum is the gross dollar value of the winegrapes.

74952.5. (a) Unless exempted by this chapter, the commission shall
levy the assessment on the producer if he or she does any of the
following:
(1) Sells to a vintner or to a handler for processing.
(2) Contracts or otherwise arranges with a vintner for processing
into wine, with the producer retaining ownership of the wine for sale
other than in bottled form.
(3) Is a member of an agricultural nonprofit cooperative
association for processing.
(4) Processes winegrapes that he or she has grown and that are
included in the petition specified in Section 74922.1.
(b) If a producer delivers winegrapes to a vintner or handler for
processing without selling them to the vintner or handler, the
"weighted average producer returns per ton" by district as published
in the most recent Final Grape Crush Report issued annually for the
current marketing season by the department shall be used as the basis
for determining the gross dollar value of the winegrapes for the
purpose of determining the amount of the assessment.

74952.7. (a) Any producer who meets any of the requirements
specified by subdivision (b) may apply to the secretary prior to the
formation of the commission, or apply to the commission after its
formation, for, and, if found eligible, shall, at the discretion of
the commission, receive either an exemption from, or a refund of, the
assessment.
(b) A producer shall be eligible to claim an exemption from, or
refund of, the assessment for winegrapes grown by the producer, with
regard to which the producer does any of the following:
(1) Processes winegrapes that are grown by the producer. However,
the producer shall not be eligible for an exemption or refund of
assessments on winegrapes that are grown and sold, but a producer who
is also a vintner, and who commercially sells less than 25 tons of
winegrapes in a marketing season, is not subject to assessment.
(2) Sells to a related vintner or a related handler.
(3) Contracts or otherwise arranges with a related vintner for
processing into wine, with the producer retaining ownership of the
wine for sale other than in bottled form.
(4) Is a producer who is also a vintner and who contracts or
otherwise arranges with a nonrelated vintner for processing his or
her winegrapes into wine and retains ownership of the wine for sale
other than in bottled form.
(c) For the purpose of this section, an agricultural nonprofit
cooperative association is not a "related vintner" or a "related
handler." A vintner or handler is a "related vintner" or "related
handler" if any one of the following relationships exists:
(1) The producer has an ownership interest in the vintner or
handler processing the winegrapes. For purposes of this paragraph,
the term "ownership interest" does not include an interest that is
limited to ownership of shares of stock in a vintner or handler that
is a publicly traded stock corporation, unless the ownership interest
includes a right to management or control in the corporation.
(2) The vintner or handler processing the winegrapes has an
ownership interest in the producer.
(3) The producer, or any person controlling the producer, if the
producer is not a natural person, is a member of the immediate family
of the vintner or handler processing the winegrapes, or of any
person controlling the vintner or handler, if the vintner or handler
is not a natural person. For the purpose of this paragraph, "member
of the immediate family" means parents, spouses, and children.
(d) In order to be eligible for the exemption or refund, the
producer shall file a claim with the secretary prior to formation of
the commission and with the commission after its formation on a form
prescribed by the commission attesting to the facts establishing the
producer's right to the exemption or refund. The secretary or the
commission shall then determine whether the claim should be granted.
(e) The commission shall serve written notice on the claimant of
its decision within 30 days of receipt of the claim. All approved
claims shall be subject to verification through an independent audit
of the claimant and the related vintner's or handler's business
records by the commission or its duly authorized agent or, in the
case of a local commission, by the secretary or his or her duly
authorized agent. The local commission shall not serve as the
secretary's duly authorized agent for purposes of auditing business
records.
(f) Every producer receiving an exemption or refund shall, in
addition to the requirements of Section 74954, maintain sales
invoices, and all other business documents specified by the
commission as necessary to verify the claim. The records shall be
preserved for a period of two years and shall be offered and
submitted for inspection at any reasonable time upon written demand
of the commission or its duly authorized agent or, in the case of a
local commission, by the secretary or his or her duly authorized
agent. The local commission shall not serve as the secretary's duly
authorized agent for purposes of records inspection.
(g) No claim of exemption or refund shall be approved by the
commission after two years from the date the assessment was due.
Failure to file a claim of exemption or refund within that two-year
period constitutes a waiver of all claims or demands for an exemption
or refund against the commission.

74953. This chapter shall not apply to winegrapes produced only for
a producer's home use. However, any producer claiming this exemption
shall file an affidavit with the commission establishing the manner
in which the winegrapes are used. The commission shall then determine
whether the affidavit should be approved.

74954. Every producer subject to this chapter and every vintner who
purchases winegrapes from or processes winegrapes for producers
shall maintain normal commercial records of all winegrapes grown for
market or processed. The records shall be in simple form and contain
information as the commission shall prescribe. The records shall be
preserved for a period of two years and shall be offered and
submitted for inspection at any reasonable time upon written demand
of the commission or its duly authorized agent or, in the case of a
local commission, by the secretary or his or her duly authorized
agent. The local commission shall not serve as the secretary's duly
authorized agent for purposes of records inspection.

74954.5. Producers subject to this chapter shall provide to local
commissions the names of the vintners who purchase winegrapes from or
process winegrapes for the producers. Vintners shall provide to
local commissions the names of the producers subject to this chapter
from whom they purchase or for whom they process winegrapes and the
amount of assessment remitted to the local commission for each
producer.

74955. All proprietary information obtained by the commission or
the secretary from producers or vintners, and all lists of producers
in the possession of the commission or the secretary are confidential
and shall not be disclosed except when required by a court order
after a hearing in a judicial proceeding involving this chapter.
Information on volume shipments, commodity value, and other related
information that is required for reports to governmental agencies,
financial reports made to the commission or aggregate sales and
inventory information, and any other information which is requested
from the commission, except individual producer or vintner
information, may be disclosed by the commission.

74956. Any assessment levied by the commission, pursuant to this
chapter, is a personal debt of every person so assessed and is due
and payable to the commission within 30 days after the date the
vintner deducts the assessment from the amounts paid by the vintner
to the producer. The vintner first acquiring the grapes being
assessed shall deduct the assessments from amounts paid by the
vintner to the producer and shall be a trustee of the funds until
they are paid to the commission. The vintner responsible for
deducting the assessment may deduct and retain an amount not in
excess of that reasonably necessary to cover the actual cost of
services provided by the vintner, as determined by the commission.
Failure of a vintner to collect the assessment from a producer shall
not exempt the vintner from liability nor relieve the producer of the
obligation to pay the assessment.

74957. Any person who fails to file a return, or remit or pay any
assessment within the time required by the commission shall pay to
the commission a penalty of 10 percent of the amount of the
assessment determined to be due and, in addition, 1 1/2 percent
interest per month on the unpaid balance.