Article 8 - Continuation or Suspension and Termination

California Food and Agricultural Code — §§ 79991-79995

Sections (5)

Added by Stats. 2024, Ch. 725, Sec. 1. (AB 2606) Effective January 1, 2025.

(a)Five years after implementation of this chapter, the secretary shall hold a public hearing, after providing proper notice to persons subject to this chapter and any other persons or entities who have requested, in writing, notice of the hearing, to determine whether the commission shall continue to operate and this chapter shall continue to be implemented.

(b)If the secretary finds after the hearing that no substantial question exists among the growers and processors assessed pursuant to this chapter regarding whether the commission shall continue to operate, the secretary shall certify the finding and this chapter shall continue to be implemented.

(c)If the secretary finds after the hearing that a substantial question exists among the growers and processors assessed pursuant to this chapter regarding whether the commission shall continue to operate, the secretary shall conduct a referendum among growers and processors to determine whether the operation of the commission shall be terminated, in accordance with both of the following:

(1)The commission shall continue to operate unless the secretary determines from the referendum that a majority of the eligible growers and a majority of the eligible processors voting in the referendum voted in favor of terminating the commission.

(2)If the secretary finds that a vote to terminate the operation of the commission

has been given, the secretary shall certify the vote and declare the implementation of this chapter is suspended upon the expiration of the current marketing season. Thereupon, the operation of the commission shall be concluded and funds distributed in the manner provided in Section 79994. A bond or security shall not be required for the referendum.

§ 79992

Added by Stats. 2024, Ch. 725, Sec. 1. (AB 2606) Effective January 1, 2025.

Following a hearing, or a referendum resulting in a vote to continue the operation of the commission if required, the process specified in Section 79991 shall be conducted by the secretary every five years thereafter between April 1 and March 31 of the following year, unless a referendum is conducted as the result of a petition pursuant to Section 79993. In that case, the hearing, and referendum if required, shall be conducted every five years following the industry petitioned referendum.

§ 79993

Added by Stats. 2024, Ch. 725, Sec. 1. (AB 2606) Effective January 1, 2025.

(a)Upon a finding by a two-thirds vote of the commission board of directors that the commission has not tended to effectuate its declared purposes, the commission may recommend to the secretary that the operation of the commission be suspended. Any suspension shall not become effective until expiration of the current marketing season.

(b)(1) The secretary shall, upon receipt of a recommendation, or may, after a public hearing to review a petition described in paragraph (2) requesting the suspension, cause a referendum to be conducted among the listed growers and processors to determine if the operation of the commission shall be suspended. The secretary

shall not hold a referendum as a result of a petition described in paragraph (2) unless the petitioner shows by the weight of evidence that the implementation of this chapter has not effectuated its declared purposes.

(2)A petition filed requesting suspension of the operation of the commission shall be signed by at least 15 percent of the growers and at least 15 percent of the processors, by number, who also cultivate and process at least 15 percent of the total volume of agave in the preceding marketing season.

(c)The secretary shall establish a referendum period, which shall not be less than 10 days or more than 60 days in duration. The secretary may prescribe additional procedures necessary to conduct the referendum. At the close of the established referendum period, the

secretary shall tabulate the ballots filed during the period. The secretary shall suspend the operation of the commission if the secretary finds both of the following:

(1)At least 40 percent of the total number of growers from the list established by the secretary participate, and that either of the following occurs:

(A)Sixty-five percent of the growers that voted in the referendum voted in favor of suspension, and the growers so voting grew a majority of the total quantity of agave cultivated in the preceding marketing season by all of the growers voting in the referendum.

(B)A majority of the growers that voted in the referendum voted in favor of suspension, and the growers so voting grew 65 percent or more of

the total quantity of agave cultivated in the preceding marketing season by all of the growers voting in the referendum.

(2)At least 40 percent of the total number of processors from the list established by the secretary participate, and that either of the following occurs:

(A)Sixty-five percent of the processors that voted in the referendum voted in favor of suspension, and the processors so voting processed a majority of the total quantity of agave processed in the preceding marketing season by all of the processors voting in the referendum.

(B)A majority of the processors that voted in the referendum voted in favor of suspension, and the processors so voting processed 65 percent or more of the total quantity of agave

processed in the preceding marketing season by all of the processors voting in the referendum.

§ 79994

Added by Stats. 2024, Ch. 725, Sec. 1. (AB 2606) Effective January 1, 2025.

After the effective date of suspension of the operation of the commission, the operation of the commission shall be concluded and all moneys held by the commission, and moneys collected by assessment and not required to defray the expenses of concluding and terminating the operation of the commission, 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 board of directors finds that the amounts returnable are so small as to make impractical the computation and remitting of the pro rata refund to those persons, any moneys remaining after payment of all expenses of winding up and terminating the operation shall be withdrawn from the approved

depository and paid into a related state or federal program or used to fund activities related to the subject matter of this chapter.

§ 79995

Added by Stats. 2024, Ch. 725, Sec. 1. (AB 2606) Effective January 1, 2025.

Upon suspension of the operation of the commission, the commission shall mail a copy of the notice of suspension to growers and processors affected by the suspension whose names and addresses are on file.