SECTIONS 78961-78965 - California Statutes

FOOD AND AGRICULTURAL CODE

SECTION 78961-78965

78961. Every five years, commencing with the 2011-2012 marketing
season, the secretary shall hold a hearing to determine whether the
operation of this chapter should be continued. If the secretary
finds, after the hearing, that a substantial question exists among
eligible persons regarding whether the operation of this chapter
should be continued, the secretary shall submit the chapter to a
reapproval referendum. If a reapproval referendum is required, the
operation of this chapter shall continue in effect if the secretary
finds that a majority of the eligible producers voting in the
referendum voted in favor of continuing this chapter and a majority
of the eligible vintners voting in the referendum voted in favor of
continuing this chapter. In finding whether the commission is
continued pursuant to this article, the vote of any nonprofit
agricultural cooperative marketing association that is authorized by
its member to so vote, shall be considered to be the approval or
rejection by the individual members thereof, or the individual
stockholders therein. No bond or security shall be required for any
referendum required by this chapter however, this shall not apply to
advance deposit of funds required by the department to cover the
actual cost of a referendum.

78962. If the secretary finds, after conducting a hearing pursuant
to Section 78961, that no substantial question exists, or that a
favorable vote has been given after a referendum, the secretary shall
so certify and this chapter shall remain operative. If the secretary
finds that a favorable vote has not been given after a referendum
vote, he or she shall so certify and declare the operation of this
chapter and the commission suspended upon the expiration of the then
current marketing season. Thereupon, the operations of the committee
shall be wound up and concluded and funds distributed in the manner
provided in Section 78964.

78963. (a) Upon a finding by a two-thirds vote of the commission
that this chapter has not tended to effectuate its declared purpose,
the commission may recommend to the secretary that this chapter be
suspended. However, any suspension shall not become effective until
the expiration of the then current marketing season.
(b) Alternatively, the secretary may be petitioned to suspend this
chapter. The petition must be signed by 2 percent of the producers,
by number, who produced not less than 20 percent of the volume of
winegrapes in the immediately preceding marketing season and 20
percent of the vintners, by number, who acquired not less than 20
percent of the volume of winegrapes in the immediately preceding
marketing season.
(c) The secretary shall, upon receipt of the recommendation to
suspend this chapter from the commission, and may, after holding a
hearing on the petition to suspend this chapter, hold a referendum
among the producers and vintners to determine if the commission shall
be suspended. However, the secretary shall not hold a referendum as
a result of the petition unless the petitioner shows by a
preponderance of the evidence that this chapter has not tended to
effectuate its declared purposes.
(d) The secretary shall establish a referendum period that shall
not be less than 10 days nor more than 60 days in duration. The
secretary may prescribe additional procedures as may be necessary to
conduct the referendum. At the close of the referendum period, the
secretary shall tabulate the ballots filed during the period. If at
least 40 percent of the total number of producers and 40 percent of
the total number of vintners from the lists established by the
secretary participate in the referendum, the secretary shall suspend
this chapter if he or she finds either of the following has occurred:
(1) Sixty-five percent or more of the producers and vintners who
voted in the referendum voted in favor of suspension, the producers
so voting marketed the majority of the total quantity of winegrapes
marketed in the preceding marketing season by all of the producers
who participated in the referendum, and the vintners so voting
acquired the majority of the total quantity of winegrapes acquired in
the preceding marketing season by all of the vintners who
participated in the referendum.
(2) A majority of the producers and vintners who voted in the
referendum voted in favor of suspension, the producers so voting
marketed 65 percent or more of the total quantity of winegrapes
marketed in the preceding marketing season by all of the producers
who voted in the referendum, and the vintners so voting acquired 65
percent or more of the total quantity of winegrapes acquired in the
preceding marketing season by all of the vintners who voted in the
referendum.

78964. After the effective date of suspension of this chapter, the
operation of the commission shall be wound up and concluded and all
moneys held by the commission not required to defray the expenses of
concluding and terminating the operations of the committee shall be
returned on a pro rata basis to all persons from whom assessments
were collected in the immediately preceding marketing season.
However, if the commission finds that the amounts returnable are such
that it would be impractical or administratively burdensome to
calculate and refund the moneys to the assessment payers, any funds
remaining after payment of all expenses of winding up and terminating
operations shall be withdrawn from the approved depository and paid
to another program conducted or used to fund activities related to
the subject matter of this chapter.

78965. Upon suspension of this chapter, the commission shall mail a
copy of the notice of suspension to all producers and vintners
affected by the suspension whose names and addresses are on file.