First Regular Session H.B. 2608
COMMITTEE ON WATER AND AGRICULTURE
SENATE AMENDMENTS TO H.B. 2608
(Reference to House engrossed bill)
Strike everything after the enacting clause and insert:
"Section 1. Section 3-109.02, Arizona Revised Statutes, is amended to read:
3-109.02. Office of commodity development and promotion; fees; commodity promotion fund; subaccount; appropriation; advisory council; report; advisory council termination; definitions
A. The office of commodity development and promotion shall provide for programs to stimulate, educate, encourage and foster the production and consumption of Arizona agricultural products domestically and abroad.
B. The office may provide authorized or contracted administrative functions for councils and commissions established by law.
C. The director may collect a fee, which the director shall establish by rule, for the issuance of certificates of free sale. The amount of the fee shall not exceed the actual cost of preparing the certificate of free sale. All monies collected from the fees shall be deposited, pursuant to sections 35‑146 and 35‑147, in the commodity promotion fund.
D. The commodity promotion fund is established. The fund consists of all monies collected pursuant to any promotional service provided to industry under this section and not supported by state general fund appropriation, and monies received pursuant to section 3‑107, subsection B, paragraph 8. The director shall administer the fund. On notice from the director, the state treasurer shall invest and divest monies in the fund as provided by section 35‑313, and monies earned from investment shall be credited to the fund. Monies in the fund are:
1. Continuously appropriated to the department for the purposes of this section.
2. Exempt from the provisions of section 35‑190 relating to lapsing of appropriations.
E. The Arizona wine promotional subaccount is established in the commodity promotion fund for the purposes of promoting, marketing and increasing the production of all wines produced in this state and to promote the research and development of vinifera grapes in this state, including vitis vinifera and any hybrid of vitis vinifera. The subaccount shall consist of legislative appropriations and monies collected pursuant to promotional services provided to the Arizona wine industry. The director shall administer the subaccount. Monies in the subaccount are exempt from the provisions of section 35 190, relating to lapsing of appropriations.
F. The director shall establish by rule or order an Arizona wine advisory council to assist and make recommendations to the office of commodity development and promotion to promote the wine industry in this state. The Arizona wine advisory council shall:
1. Consist of the following members appointed by the director to serve for staggered two year terms:
(a) three members who represent farm wineries that are located in this state and that are licensed pursuant to title 4.
(b) one member who represents a wholesaler licensed pursuant to title 4.
(c) one member who represents a retailer licensed pursuant to title 4.
2. Advise the office of commodity development and promotion regarding expenditures from the Arizona wine promotional subaccount.
3. Make recommendations to the office of commodity development and promotion to promote the wine industry in this state, including research, trade promotions, marketing, advertising and selling or disseminating wine produced in this state without charge.
G. Each member of the Arizona wine advisory council shall be a resident of this state and be at least twenty one years of age. Except for the wholesaler and retailer members licensed pursuant to title 4, each member shall be or have been engaged in the growing or wine producing industry that the member is appointed to represent and shall either:
1. Derive a substantial portion of the member's income from the growing or wine producing industry in this state.
2. Have a substantial investment in growing vinifera grapes or producing wine from vinifera grapes in this state as an owner, lessee, partner or stockholder owning at least ten percent of the voting stock in a corporation engaged in growing vinifera grapes or producing wine from vinifera grapes.
3. Be the manager or executive officer of a corporation engaged in growing vinifera grapes or producing wine from vinifera grapes.
H. Members of the Arizona wine advisory council are not eligible to receive compensation or reimbursement of expenses pursuant to title 38, chapter 4, article 2.
I. The office of commodity development and promotion shall submit an annual report of its promotional activities relating to the Arizona wine industry and expenditures from the Arizona wine promotional subaccount to the governor, the president of the senate and the speaker of the house of representatives on or before november 1 and shall provide a copy of this report to the secretary of state.
J. The Arizona wine advisory council established by this section ends on july 1, 2027 pursuant to section 41 3103.
E. K. For the purposes of this section: ,
1. "certificate of free sale" means a document that authenticates a commodity that is generally and freely sold in domestic channels of trade.
2. "vinifera grapes" means the agricultural product known as vitis vinifera and any hybrid of vitis vinifera that retains the predominant characteristics of vitis vinifera.
Sec. 2. Initial terms of members of the Arizona wine advisory council
A. Notwithstanding section 3 109.02, subsection F, Arizona Revised Statutes, as added by this act, the initial terms of the members are:
1. Three terms ending January 1, 2020.
2. Two terms ending January 1, 2021.
B. The director of the Arizona department of agriculture shall make all subsequent appoints as prescribed by statute.
Sec. 3. Appropriation; Arizona wine promotional subaccount
The sum of $100,000 is appropriated from the state general fund in fiscal year 2019-2020 to the Arizona wine promotional subaccount of the commodity promotion fund established by section 3-109.02, Arizona Revised Statutes, as amended by this act."
Amend title to conform