SECTIONS 78961-78965

78961.  Every five years, commencing with the 2011-2012 marketingseason, the secretary shall hold a hearing to determine whether theoperation of this chapter should be continued. If the secretaryfinds, after the hearing, that a substantial question exists amongeligible persons regarding whether the operation of this chaptershould be continued, the secretary shall submit the chapter to areapproval referendum. If a reapproval referendum is required, theoperation of this chapter shall continue in effect if the secretaryfinds that a majority of the eligible producers voting in thereferendum voted in favor of continuing this chapter and a majorityof the eligible vintners voting in the referendum voted in favor ofcontinuing this chapter. In finding whether the commission iscontinued pursuant to this article, the vote of any nonprofitagricultural cooperative marketing association that is authorized byits member to so vote, shall be considered to be the approval orrejection by the individual members thereof, or the individualstockholders therein. No bond or security shall be required for anyreferendum required by this chapter however, this shall not apply toadvance deposit of funds required by the department to cover theactual cost of a referendum.78962.  If the secretary finds, after conducting a hearing pursuantto Section 78961, that no substantial question exists, or that afavorable vote has been given after a referendum, the secretary shallso certify and this chapter shall remain operative. If the secretaryfinds that a favorable vote has not been given after a referendumvote, he or she shall so certify and declare the operation of thischapter and the commission suspended upon the expiration of the thencurrent marketing season. Thereupon, the operations of the committeeshall be wound up and concluded and funds distributed in the mannerprovided in Section 78964.78963.  (a) Upon a finding by a two-thirds vote of the commissionthat this chapter has not tended to effectuate its declared purpose,the commission may recommend to the secretary that this chapter besuspended. However, any suspension shall not become effective untilthe expiration of the then current marketing season. (b) Alternatively, the secretary may be petitioned to suspend thischapter. The petition must be signed by 2 percent of the producers,by number, who produced not less than 20 percent of the volume ofwinegrapes in the immediately preceding marketing season and 20percent of the vintners, by number, who acquired not less than 20percent of the volume of winegrapes in the immediately precedingmarketing season. (c) The secretary shall, upon receipt of the recommendation tosuspend this chapter from the commission, and may, after holding ahearing on the petition to suspend this chapter, hold a referendumamong the producers and vintners to determine if the commission shallbe suspended. However, the secretary shall not hold a referendum asa result of the petition unless the petitioner shows by apreponderance of the evidence that this chapter has not tended toeffectuate its declared purposes. (d) The secretary shall establish a referendum period that shallnot be less than 10 days nor more than 60 days in duration. Thesecretary may prescribe additional procedures as may be necessary toconduct the referendum. At the close of the referendum period, thesecretary shall tabulate the ballots filed during the period. If atleast 40 percent of the total number of producers and 40 percent ofthe total number of vintners from the lists established by thesecretary participate in the referendum, the secretary shall suspendthis chapter if he or she finds either of the following has occurred: (1) Sixty-five percent or more of the producers and vintners whovoted in the referendum voted in favor of suspension, the producersso voting marketed the majority of the total quantity of winegrapesmarketed in the preceding marketing season by all of the producerswho participated in the referendum, and the vintners so votingacquired the majority of the total quantity of winegrapes acquired inthe preceding marketing season by all of the vintners whoparticipated in the referendum. (2) A majority of the producers and vintners who voted in thereferendum voted in favor of suspension, the producers so votingmarketed 65 percent or more of the total quantity of winegrapesmarketed in the preceding marketing season by all of the producerswho voted in the referendum, and the vintners so voting acquired 65percent or more of the total quantity of winegrapes acquired in thepreceding marketing season by all of the vintners who voted in thereferendum.78964.  After the effective date of suspension of this chapter, theoperation of the commission shall be wound up and concluded and allmoneys held by the commission not required to defray the expenses ofconcluding and terminating the operations of the committee shall bereturned on a pro rata basis to all persons from whom assessmentswere collected in the immediately preceding marketing season.However, if the commission finds that the amounts returnable are suchthat it would be impractical or administratively burdensome tocalculate and refund the moneys to the assessment payers, any fundsremaining after payment of all expenses of winding up and terminatingoperations shall be withdrawn from the approved depository and paidto another program conducted or used to fund activities related tothe subject matter of this chapter.78965.  Upon suspension of this chapter, the commission shall mail acopy of the notice of suspension to all producers and vintnersaffected by the suspension whose names and addresses are on file.