Section 1. Legislative findings and purposes. The legislature finds
that the wine/grape industry is a significant part of the state's
agricultural industry and that the continued production of wine,
unfermented juice and table grapes is of significant importance to the
economy of the state.
The legislature further finds that in recent years economic conditions
have had an adverse effect on the wine/grape industry, especially grape
growers, resulting predominately from an international surplus of
grapes. Such economic disadvantages have included various incentives
made available by their counties to European wine producers, tariff and
non-tariff barriers to United States wines entering other countries and
most recently, a strong United States dollar which has increased the
price of all domestic wines in relation to foreign wines. All these
conditions have resulted in a decline in New York's share of the
national and international wine market.
The legislature further finds and recognizes that an important step in
strengthening the agricultural and economic potential of New York's
wine/grape industry is to encourage the long term operation of an
organization, representative of all sectors of the grape industry for
the purpose of conducting an extensive and coordinated promotional and
applied research program intended to stimulate and centralize the New
York wine/grape industry.
For these purposes, there shall be created a non-profit corporation
known as the "New York wine/grape foundation", which may independently
initiate promotional and research projects to fulfill essential public
purposes which are necessary for the health, safety and welfare of the
people of this state.
New York wine/grape foundation. 1. There is hereby created a
non-profit corporation which shall be known as the "New York wine/grape
foundation". Such foundation shall be governed by the not-for-profit
corporation law except where such law conflicts with this act, in which
case the provisions of this act shall govern.
2. The foundation is created to fulfill the public purpose of
providing for an effective and continuous program of research, promotion
and education to strengthen the New York wine and grape industry's
position in the marketplace including the maintenance and expansion of
domestic and foreign markets and uses for grapes grown and processed
within the state.
Purposes and powers. 1. The foundation is authorized and directed
to plan and provide for the implementation of programs to:
(a) Engage in research into market development, new or improved
methods of production, packaging, and processing of wine, grapes, and
grape products; production of by-products of grape manufacturing
processes and any other marketable products; improved methods of grape
breeding, virus resistance and control of pests and disease; vineyard
conversion; mechanization of brandy production; and overall improvement
in the production and quality of wines, grapes and grape products,
(b) Reduce agricultural unemployment and increase state and local
revenues by developing methods and techniques to enhance the image and
quality of New York wine and grape products so as to expand existing
markets and develop new markets therefor,
(c) Advertise and promote the sale of wine and other grape products in
areas that will reach the greatest number of potential consumers,
(d) Publish and distribute to producers, retailers and consumers
information relating to the grape, wine and grape products industries,
(e) Facilitate educational and promotional activities to enhance the
image of New York wines and grape products through coordination,
promotional and educational activities with other organizations,
(f) Carry out in any other way the declared policy of this act to
promote wine and other grape products and the grape industry of this
state.
2. The foundation shall have power: (a) to sue and be sued; (b) to
have a seal and alter the same at pleasure; (c) to acquire, hold and
dispose of personal property for its corporate purposes; (d) to enter
into contracts with the state, political subdivisions or any agency or
instrumentality thereof, or any person, firm or corporation; (e) to
accept gifts, funds, property or services from public or private sources
in furtherance of its corporate purposes; (f) to adopt, amend and repeal
by-laws for the management and regulation of its affairs; and (g) to do
any and all other things necessary or convenient to carry out its
purposes and effectively implement the provisions of this act.
The New York wine marketing program is hereby created. The New
York wine/grape foundation is authorized, within available
appropriations and/or other sources, to establish and operate the New
York wine marketing program. The New York wine marketing program shall
market New York state labeled wine both within and outside of New York
state with the goal of promoting New York state wines. Notwithstanding
any provision of law to the contrary, no commitment from such foundation
shall be required in the case of a contract for the New York wine
marketing program.
Report. The foundation shall submit to the governor and the
legislature within ninety days after the end of its fiscal year, an
annual report setting forth its operations and accomplishments, assets
and liabilities, receipts and expenditures during such fiscal year as
set forth according to generally accepted accounting practices, and a
list of its consultants and outside contracts with the purposes and
amounts thereof set forth. The report shall also include information on
the amount of money designated for applied research and the types of
research conducted; and the amount of money designated for promotion and
the geographic distribution of promotion funds and the effectiveness of
this program.
Board of directors of the foundation. 1. The foundation shall be
managed by, and its powers, functions and duties shall be exercised
through a board of directors.
2. The initial board of directors shall consist of eleven members of
whom three shall be appointed by the governor, three by the temporary
president of the senate and three by the speaker of the assembly, one by
the minority leader of the senate and one by the minority leader of the
assembly. In making the appointments, consideration should be given to
ensure that the four wine/grape regions of the state are geographically
represented. Of the eleven appointed members, one shall be a person who
receives the major portion of his or her income from the growing of wine
grapes, one shall be an officer or owner of a commercial winery, one
shall be a person who receives the major portion of his or her income
from the operation of a farm/estate winery, one shall be a person who
receives a major portion of his or her income from growing table grapes,
one shall be a person engaged in the manufacturing of grape products
other than wine, one shall be a person engaged in the retail sale of
wine for off premises consumption, one shall be a person engaged in the
wholesale sale of wine, one shall be an owner or operator of a licensed
establishment engaged in the sale of wine on premises, two shall be on
the staff of an educational institution which is engaged in the study of
viticulture, entomology and enology and one shall be a person familiar
with the advertising, promotion and marketing of commercial products.
The directors so appointed shall serve for a term of three years, except
that, of the directors so appointed by the governor one shall serve for
a term of two years and one shall serve for a term of one year; of the
three directors so appointed by the temporary president of the senate
one shall serve for a term of two years and one shall serve for a term
of one year; and of the three directors so appointed by the speaker of
the assembly one shall serve for a term of two years and one shall serve
for a term of one year.
3. The commissioner of agriculture and markets and the commissioner of
commerce shall be ex-officio members of the board for that period of
time during which state moneys are available to the foundation.
4. If any vacancy other than by expiration of term occurs on the board
amongst those first appointed such vacancy shall be filled by
appointment for the unexpired term by the appointing authority initially
appointing such member. Upon expiration of the initial terms, successors
shall be elected by the remaining members of the board for a three year
term; such directors shall have the qualifications required of the
original directors. Members shall continue as such until their
successors have been duly elected.
5. The board of directors shall elect one of its members as chairman
and one of its members as vice chairman of such board, and may appoint
such officers and employees as it deems advisable.
6. Members of the board of directors shall serve without compensation,
but shall be reimbursed for actual expenses reasonably incurred in the
performance of their duties.
7. The board shall meet four times annually at the call of the
chairman or in his absence the vice chairman or on petition of any three
members. A majority of the members of the board then in office shall
constitute a quorum for the transaction of any business. The board is
encouraged to conduct its meetings in a manner which will ensure the
active participation of any person having an interest in the wine/grape
industry.
Cooperation and coordination. 1. The foundation shall establish
and maintain working relationships with organizations and institutions
in the state directly involved in the production, processing and sales
of wine, grapes, and grape products and in related educational and
research activities. Such contact should also include governmental
agencies which may have promotional or economic development
responsibilities or have jurisdiction over facilities at which wine or
grape products may be used or sold.
2. The foundation shall annually request from the groups and
organizations with which its directors have affiliations and from other
appropriate organizations and interests such as noted in subdivision
one, reports detailing their present and planned activities in the area
of promotion and research for wine and other grape products. The
foundation shall review such activities and take them into account in
development of its own plans and programs.
3. The foundation should annually make available to all interested
parties a description of its programs and plans and the ways in which
the activities of others will be supplemented.
Limitation of liability. Neither the directors nor any member,
officer or employee of the corporation, while acting within the scope of
his or her authority, shall be subject to any personal liability
resulting from the activities of the corporation.
Inconsistent provisions of other laws superseded. Insofar as the
provisions of this act are inconsistent with the provisions of any other
law, general, special or local, the provisions of this act shall be
controlling.
Short title. Sections one through nine of this act shall be known
and may be cited as the New York wine/grape foundation act.
1. The department of agriculture and markets, within moneys
appropriated therefor, shall enter into a contract or contracts with the
New York wine/grape foundation created by section two of this act for:
(a) a research study or studies into new or improved methods of
production, packaging, and processing of wine, grapes, and grape
products; production of by-products of grape manufacturing processes and
any other marketable products; improved methods of grape breeding, virus
resistance and control of pests and disease; vineyard conversion;
mechanization of brandy production; and overall improvement in the
production and quality of wines, grapes and grape products;
(b) a demonstration project or projects to reduce agricultural
unemployment and increase state and local revenues by developing methods
and techniques to enhance the image and quality of New York wine and
grape products so as to expand existing markets and develop new markets
therefor;
(c) advertising and promotion of the sale of wine and other grape
products in areas that will reach the greatest number of potential
consumers;
(d) publication and distribution to producers, retailers and consumers
information relating to the grape, wine and grape products industries;
(e) the facilitating of educational and promotional activities to
enhance the image of New York wines and grape products through
coordination, promotional and educational activities with other
organizations; and
(f) the carrying out in any other way the declared policy of this act
to promote wine and other grape products and the grape industry of this
state.
Not less than twenty-five percent and not more than forty percent of
the sum total of moneys made available to the foundation through such
contract or contracts shall be applied for purposes of paragraph (a) of
this subdivision, and not more than two and one-half percent of such
moneys shall be applied for purposes of administration of the
foundation.
2. Any such contract shall provide that the cost of the work to be
performed thereunder during the state fiscal year commencing April 1,
1987 shall be at least one hundred eleven percent of the amount to be
paid by the state to such foundation. Any such contract shall provide
that the cost of the work to be performed thereunder during the state
fiscal year commencing April 1, 1988 shall be at least one hundred
thirty-three percent of the amount to be paid by the state to such
foundation. Any such contract shall provide that the cost of the work to
be performed thereunder during the state fiscal year commencing April 1,
1989 shall be at least two hundred percent of the amount paid by the
state to such foundation. Any such contract shall provide that the work
to be performed thereunder during the state fiscal year commencing April
1, 1990 shall be at least four hundred percent of the amount paid by the
state to such foundation. No such contract shall be entered into between
the foundation and the department of agriculture and markets unless and
until the foundation expressly commits funds of the foundation in an
amount sufficient, together with the amount to be paid by the state, to
pay the total cost of the work to be performed under such contract;
provided, however, that no such commitment shall be required in the case
of a contract to be entered into prior to April 1, 1987.
Separability. If any clause, sentence, paragraph, section or
part of this act shall be adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not affect, impair or
invalidate the remainder thereof, but shall be confined in its operation
to the clause, sentence, paragraph, section or part thereof directly
involved in the controversy in which such judgment shall have been
rendered.