AB1322 - Agricultural commissions and reports.

Assembly Bill No. 1322 CHAPTER 188 An act to amend Sections 6047.10, 6761, 55601.5, 55601.6, 67052, 67052.5, 67054, 67057, 67059.5, 67062, 67082, 67091, 67101, 67133, 75601, 79818, and 79821 of, and to add Sections 67026 and 79824 to, the Food and Agricultural Code, relating to agriculture. [ Approved by Governor October 01, 2025. Filed with Secretary of State October 01, 2025. ] LEGISLATIVE COUNSEL'S DIGEST AB 1322, Committee on Agriculture. Agricultural commissions and reports. (1) The Clare Berryhill Grape Crush Report Act of 1976 requires every processor who crushes grapes in this state, on or before January 10 of each year, to furnish to the Secretary of Food and Agriculture a report that includes specified information, including the total number of tons of grapes purchased by the processor in California during the preceding crush within each grape-pricing district and the total number of tons of each variety of grape crushed within each grape-pricing district. The act requires the secretary, on or before February 10 of each year, to publish a preliminary summary report on the preceding crush, and, on or before March 10 of each year, to publish a final summary report that contains the data furnished to it by the processors, as specified. This bill would require those processors to furnish those reports on or before January 31, rather than January 10, of each year. The bill would require the secretary to publish the preliminary summary report on or before March 15, rather than February 10, of each year and, on or before April 30, rather than March 10, of each year to publish the final summary report. Existing law requires certain assessments to be paid to the department annually by January 10. This bill would require those assessments to instead be paid to the department annually by January 31, rather than January 10. Under existing law, a violation of the Food and Agricultural Code is a misdemeanor, except as otherwise specified. Because the above provisions of this bill would be part of that code, the bill would impose a state-mandated local program. (2) Existing law specifies the duties of the secretary and county agricultural commissioners with respect to the sale and control of nursery stock, as defined. Existing law requires a person to hold a valid license in order to sell nursery stock. Existing law establishes the California Grape Rootstock Improvement Commission to maintain and regulate grape rootstock in the state. This bill would authorize the secretary, after investigation and hearing, to refuse to issue or renew a license, or to suspend or revoke a license, if the secretary determines that the licensee or the applicant has violated specified provisions relating to the California Grape Rootstock Improvement Commission. (3) Existing law establishes the California Avocado Commission to efficiently develop and manage the marketing of avocados and provides requirements for membership to the commission, including for alternate members, as specified. The bill would, among other things, expand specified provisions regarding membership to the commission to alternate members, require the assessment established by the commission to be as a fixed rate or percentage of value rather than as solely a fixed rate, and require any remaining assessment funds to be distributed for the benefit of the avocado industry into any state or federal programs in the event of termination or suspension of the commission. (4) Existing law establishes the California Apple Commission to efficiently develop and manage the marketing of apples, as specified. Existing law authorizes the commission to recommend to the secretary the adoption of maturity standards authorized pursuant to the California Marketing Act of 1937, as specified. This bill would authorize the California Apple Commission to recommend to the secretary quality standards and product labeling standards, and to engage in any other activity, authorized by California Marketing Act of 1937. (5) Existing law establishes the Olive Oil Commission of California to efficiently develop and manage the marketing of olive oil, as specified. Existing law defines the terms “handler” and “producer” for purposes of these provisions. This bill would specify that “handler” and “producer” include persons that toll process olives for olive oil. The bill would define “toll processor” for purposes of these provisions, as specified. (6) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill Text The people of the State of California do enact as follows: SECTION 1. Section 6047.10 of the Food and Agricultural Code is amended to read: 6047.10. (a) All assessments payable under this article shall be remitted to the department no later than January 31 of each year. The department shall deposit the assessments remitted into the Department of Food and Agriculture Fund. (b) In no event shall any proprietary information specified in Section 6047.13 that is received by the department in collecting assessments be transferred to the board. (c) Processors shall not charge producers an administrative fee for collecting and remitting assessments. SEC. 2. Section 6761 of the Food and Agricultural Code is amended to read: 6761. The secretary, after investigation and hearing, may refuse to issue or renew a license, or may suspend or revoke a license, if the secretary determines that the licensee or the applicant has done any of the following: (a) Has willfully refused to comply with the laws and regulations relative to nursery stock, or to any pest that might be carried by nursery stock. (b) Was intentionally guilty of fraud or deception in the procurement of the license. (c) Has been guilty of fraud or misrepresentation in the handling or sale of nursery stock. (d) Has failed to maintain nursery stock produced or sold by the secretary in accordance with the standards of cleanliness that are prescribed by the secretary. (e) Has failed to comply with a lawful order that is issued by the secretary or commissioner. (f) Has failed to pay any assessment levied pursuant to this code on nursery stock or products comprising nursery stock. SEC. 3. Section 55601.5 of the Food and Agricultural Code is amended to read: 55601.5. (a) (1) Notwithstanding Section 55461, on or before January 31 of every year, every processor who crushes grapes in this state shall furnish to the secretary, on forms provided by the secretary, a report that includes all of the following: (A) The total number of tons of grapes purchased by the processor in this state during the preceding crush within each grape-pricing district, broken down by total tons purchased, variety, and price, including any bonuses or allowances, and sugar calculations. (B) The total number of tons of grapes purchased by the processor in this state in nonrelated purchases during the preceding crush within each grape-pricing district, broken down by total tons purchased, variety, and price, including any bonuses or allowances, and sugar calculations. (C) The total number of tons of each variety of grape crushed within each grape-pricing district and the average sugar content of each variety within each grape-pricing district. (D) The total number of tons of grapes purchased and crushed that are expected, as of the date of reporting by the processor, to be marketed as grape concentrate. In reporting tons purchased and crushed that are expected to be marketed as grape concentrate, processors may estimate equivalent tonnage. In estimating the equivalent tonnage, the processor shall include all equivalent tons crushed for the production of grape concentrate for wine and all other purposes marketed outside the state and the equivalent tons crushed for the production of grape concentrate for all purposes other than wine marketed within the state. In determining the estimated equivalent tons, processors shall make their best estimate of the gallons of concentrate per ton of grapes crushed based upon the Brix level of the grapes used in concentrate production. (2) (A) When reporting price within the category of all tonnage purchased, processors shall include grapes purchased from (i) growers for wine, wine vinegar, juice, concentrate, and beverage brandy, (ii) another processor only if that processor was also the grower of the grapes, (iii) growers that are considered separate entities from the processor operation, or (iv) growers or other processors, but not by the reporting processor; and shall exclude (i) material other than grapes, and defects, or other weight adjustments deducted from the gross-weight ticket, (ii) any raisin-distilling material, (iii) grapes grown by the processor from vineyards that are not considered separate entities, (iv) grapes purchased from other processors that were previously purchased from growers, or (v) grapes crushed to grower accounts or crushed for other wineries. If several varieties were packaged together and purchased for one price, the processor shall report the average price per ton as one mixed lot, and when reporting crush information, shall report individual variety and tonnage information. (B) When reporting price within the category of nonrelated purchases, processors shall exclude tonnage of grapes purchased from a grower if, during the reporting year (i) the grower or an affiliate of the grower, or both the grower and the affiliate of the grower, owned, directly or indirectly, at least 5 percent of the indicia of ownership or voting authority of the processor, (ii) the processor or an affiliate of the processor, or both the processor and the affiliate of the processor, owned, directly or indirectly, at least 5 percent of the indicia of ownership or voting authority of the grower, or (iii) the processor or an affiliate of the processor, or both the processor and the affiliate of the processor, provided long-term financing to the grower in exchange for rights or options to purchase a significant portion of the grower’s harvest. (b) On or before February 25 of every year, each processor who crushes grapes in this state shall furnish to the secretary information concerning the final prices, including any bonuses or allowances, paid by variety and grape-pricing district to all growers holding reference price contracts in effect before January 1, 1977, which payments have not been reported on January 31. (c) (1) The secretary may not release or otherwise make available any information furnished by an individual processor under this section, except in proceedings brought against the processor by the secretary for the purpose of enforcing this section, or except in the case of a producer who holds any reference price-grape purchase contract, to whom the secretary may furnish, upon request and at a reasonable cost, the information needed to verify the reference price, including any bonuses or allowances, set forth in the contract. (2) The secretary shall not release or otherwise make available any information furnished by an individual processor under this section to any other division of the department except in accordance with a subpoena issued in accordance with Section 1985.3 of the Code of Civil Procedure. (3) The secretary shall release only aggregate figures for grapes crushed that are expected to be marketed as grape concentrate and shall not include information by district, types, or variety. (d) The secretary shall enforce the collection of the information and, on or before March 15 of each year, shall publish a preliminary summary report on the preceding crush. The report shall include all of the following information: (1) The weighted average price paid on the basis of the prices, including any bonuses or allowances, reported and average sugar content for each grape variety purchased within each grape-pricing district. (2) The total number of tons of grapes crushed and the average sugar content for each grape variety within each grape-pricing district. (3) Each price category paid, separated by sugar calculations, if any, and the percentage each represents of the total for each variety within each grape-pricing district. (4) Commencing with the report for the 1997 crush, in a separate and independent table without affecting or modifying existing tables, by weighted average price only, nonrelated purchases, by variety within each grape-pricing district excluding any bonuses, allowances, sugar calculations, and tonnage. (e) On or before April 30 of each year, the secretary shall publish a final summary report, which shall contain all of the data furnished by the processors on or before January 31 and on or before February 25 of each year covering purchases under reference price contracts. The secretary may publish an addendum or supplemental report when reasonably necessary to correct any erroneous or misleading information contained in the annual report required by this section. (f) The forms provided to processors by the secretary pursuant to this section shall provide for the separate reporting of grapes used by a processor (1) as distilling material and (2) for both beverage brandy and other than beverage brandy. A processor shall report all grapes used as distilling material by variety. The secretary, in determining the weighted average price paid for each grape variety purchased within each grape-pricing district, shall not include the prices paid for grapes of any variety used as distilling material for other than beverage brandy in determining the weighted average price. The secretary’s report shall include a separate summary regarding grapes used by processors as distilling material. (g) All grape purchase contracts entered into on or after January 1, 1977, shall provide for a final price, including any bonuses or allowances, to be set on or before the January 31 following delivery of the grapes purchased. Any grape purchase contract entered into in violation of this subdivision is illegal and unenforceable. For the purpose of this section, a grape purchase contract shall not include any existing supply contract between a nonprofit cooperative association and a commercial processor. (h) (1) If the department reasonably believes that a processor has failed, refused, or neglected to provide the information required by this section, or if the department finds apparent discrepancies in the information reported, the department may audit or investigate in accordance with Article 11 (commencing with Section 55721) or proceed in accordance with Article 5 (commencing with Section 55521), except as specified in paragraph (6). Injunctive relief under Section 55921 shall issue only upon a finding [Text truncated for display. Full text available on Congress.gov.]