PREFILED DEC 20 2018
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REFERENCE TITLE: Arizona wine commission; duties; promotion |
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State of Arizona House of Representatives Fifty-fourth Legislature First Regular Session 2019
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HB 2010 |
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Introduced by Representatives Griffin: Barto, Cook, Dunn, Grantham, Kavanagh, Nutt, Rivero, Toma
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AN ACT
Amending Title 3, chapter 3, Arizona Revised Statutes, by adding article 5; amending Title 41, chapter 27, article 2, Arizona Revised Statutes, by adding section 41-3027.02; amending Title 42, chapter 3, article 3, Arizona Revised Statutes, by adding section 42-3105; relating to the Arizona wine industry.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 3, chapter 3, Arizona Revised Statutes, is amended by adding article 5, to read:
ARTICLE 5. ARIZONA WINE COMMISSION
3-541. Definitions
In this article, unless the context otherwise requires:
1. "Commission" means the Arizona wine commission.
2. "Grower" means a person that has at least five acres producing vinifera grapes in this state.
3. "Growers' association" means a nonprofit association of producers or a group of growers.
4. "Producer" means any person or other entity that grows vinifera grapes in this state or any person or other entity that is licensed pursuant to title 4 to produce wine made predominantly from vinifera grapes in this state.
5. "Vinifera grapes" means the agricultural product known as vitis vinifera and any hybrid of vitis vinifera that retains the predominant characteristics of vitis vinifera.
6. "Wine producer" means any person or other entity that is licensed pursuant to title 4 to produce wine from vinifera grapes in this state.
3-542. Arizona wine commission; members; terms; vacancies
A. The Arizona wine commission is established for the purposes of this article and consists of:
1. The director or the director's designee.
2. Four members who represent farm wineries that are located in this state and that are licensed pursuant to title 4.
3. One member who represents a wholesaler licensed pursuant to title 4.
4. One member who represents a retailer licensed pursuant to title 4.
B. The governor shall appoint all members of the commission except for the director or the director's designee. The governor shall consider candidates for membership on the commission who are recommended by a growers' association, and the governor shall attempt to ensure a balanced representation on the commission that reflects the composition of growers and wine producers of this state as to the number of acres cultivated and the amount of wine produced.
C. Members appointed by the governor shall serve for staggered two‑year terms.
D. Each member of the commission shall be a resident of this state and be at least twenty‑one years of age. Except for the director or the director's designee and the wholesaler and retailer licensed pursuant to title 4, each member shall be or shall 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.
2. Have a substantial investment in growing vinifera grapes or producing wine from vinifera grapes 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.
E. if a vacancy occurs on the commission, the governor shall appoint a qualified person to serve the remainder of the unexpired term.
F. Members of the commission are not eligible to receive compensation or reimbursement of expenses pursuant to title 38, chapter 4, article 2.
3-543. Powers and duties of commission
A. The commission shall:
1. Elect a chairperson, a treasurer and other officers from among its members as it deems necessary.
2. Adopt rules to govern the commission.
3. Meet at least annually to elect officers and conduct other business necessary under this article.
4. Receive donations of wine produced in this state to promote the wine industry in this state.
5. Administer the ARizona wine promotional Trust fund established by section 3‑545.
6. Promote the wine industry in this state in any lawful manner that includes research, trade promotions, marketing, advertising and selling or disseminating wine produced in this state without charge.
7. Keep accurate records of all receipts, disbursements and other financial transactions in accordance with generally accepted accounting principles and make these records available to the auditor general on request.
8. Assemble and maintain a list of wine producers, disseminate information among the wine producers and solicit suggestions and opinions of wine producers with respect to commission performance.
9. PErform any other tasks necessary to carry out this article.
B. The commission may:
1. Sue and be sued.
2. Contract.
3. Establish offices and incur expenses.
3-544. Administration; department services; reimbursement
A. The commission may:
1. Employ an executive director and a secretary to serve at the pleasure of the commission.
2. Prescribe the terms and conditions of employment of employees as necessary to perform the functions prescribed by this article. Commission employees are exempt from title 38, chapter 4 and chapter 5, article 2 and title 41, chapter 4, articles 5 and 6.
3. Enter into an interagency agreement with the department pursuant to title 11, chapter 7, article 3 to provide the necessary administrative services to the commission, including:
(a) Providing secretarial and other services necessary for the commission to carry out its activities.
(b) establishing separate operating accounts for the commission.
(c) Providing necessary financial and accounting services to the commission, including paying bills approved by the commission, providing annual audits and monthly or annual expenditures and receipt reports, preparing an annual budget and performing any other financial activities requested by the commission.
(d) Receiving mail and other communications for the commission.
(e) Receiving monies authorized under this article for deposit with the state treasurer.
(f) Accepting donated monies on behalf of the commission to be credited to the account of the commission.
(g) providing space for commission meetings.
(h) Assisting the commission in adopting rules.
(i) Providing any other administrative services that the commission requests or finds necessary.
B. If the department performs any function under this article, it acts as the commission's agent and does not have authority or control over the commission or the commission's employees or assets.
C. Except as provided in subsection D of this section, the commission shall reimburse the department for administrative services from the monies received under this article in an amount agreed on by the commission and the department.
D. The commission may not spend more than $25,000 annually for the employment of employees and for administrative services pursuant to an interagency agreement as provided in this section.
E. Department employees who are under contract to the commission under the provisions of an interagency agreement pursuant to title 11, chapter 7, article 3 shall remain under the direct supervision of the department unless otherwise agreed to by the commission and the department.
3-545. Arizona wine promotional trust fund; exemption
A. The Arizona wine promotional trust fund is established for the exclusive purpose of administering this article. The trust fund consists of monies appropriated pursuant to section 42‑3105, legislative appropriations and all other sources under this article. The monies collected constitute a separate and permanent fund for use by the commission in administering this article.
B. The commission shall administer the trust fund as trustee. The state treasurer shall accept, separately account for and hold in trust any monies deposited in the state treasury, which are considered to be trust monies as defined in section 35‑310 and may not be comingled with any other monies in the state treasury except for investment purposes. On notice from the commission, the state treasurer shall invest and divest any trust fund monies deposited in the state treasury as provided by sections 35‑313 and 35‑314.03, and monies earned from investment shall be credited to the trust fund.
C. The commission may accept and spend federal monies and private grants, gifts, contributions, and devises to assist in carrying out the purposes of this article.
D. The beneficiary of the trust is the agricultural program established pursuant to this article.
E. Monies in the trust fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations. Surplus monies, including any unexpended and unencumbered balance at the end of the fiscal year, do not revert to the state general fund.
3-546. Research, promotional and educational campaign; goals
A. The commission shall develop and implement a comprehensive research, promotional and education campaign to investigate and determine the needs of wine producers, market conditions and the degree of public awareness of wine products that are produced in this state.
B. The commission shall adopt the following goals to be achieved as a result of the comprehensive research, promotional and educational campaign:
1. Establishing wines produced in this state as a major factor in local, state, national and international markets.
2. Promoting wineries located in this state as tourism attractions.
3. Encouraging favorable media coverage of wines produced in this state and wineries located in this state.
4. Establishing this state as a major source of premium wine in local, state, national and international markets.
5. Recommending and encouraging favorable legislation and rules for wines produced in this state.
6. Fostering economic conditions favorable to investment in producing vinifera grapes and wine in this state.
7. Advancing knowledge and production practices related to vinifera grapes grown in this state.
8. Promoting the discovery and development of new and improved vines for reliable and economical production of vinifera grapes in this state.
9. Advancing the knowledge and practice of processing vinifera grapes in this state.
3-547. Indemnification of commission members
The commission shall INDEMNIFY each member of the commission against reasonable costs and expenses, including attorney fees, that the member incurs in connection with any action, suit or proceeding to which the member may be a party by reason of being or having been a member of the commission, except for any action, suit or proceeding in which the member is adjudged to have been acting in bad faith as a commission member. The right of indemnification is in addition to other rights to which the member is entitled as a matter of law.
Sec. 2. Title 41, chapter 27, article 2, Arizona Revised Statutes, is amended by adding section 41-3027.02, to read:
41-3027.02. Arizona wine commission; termination July 1, 2027
A. The arizona wine commission terminates on July 1, 2027.
B. Title 3, chapter 3, article 5 and this section are repealed on January 1, 2028.
Sec. 3. Title 42, chapter 3, article 3, Arizona Revised Statutes, is amended by adding section 42-3105, to read:
42-3105. Monies allocated to the Arizona wine promotional trust fund
Before monies are allocated pursuant to sections 42‑3102, 42‑3104 and 42‑3106, $100,000 of the monies collected pursuant to 42‑3052, paragraph 2 from a domestic farm winery or an in‑state producer, manufacturing or producing wine, that is licensed pursuant to title 4 is appropriated to the Arizona wine promotional trust fund established by section 3‑545.
Sec. 4. Initial terms of members of the Arizona wine commission
A. Notwithstanding section 3‑542, Arizona Revised Statutes, as added by this act, the initial terms of the members are:
1. Three terms ending January 1, 2020.
2. Three terms ending January 1, 2021.
B. The governor shall make all subsequent appoints as prescribed by statute.
Sec. 5. Purpose
Pursuant to section 41‑2955, subsection E, Arizona Revised Statutes, the legislature establishes the Arizona wine commission to promote, market and increase 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.