(1) Any person, entity, or business
organization desiring to (a) grow; (b) pack; (c) process; (d) market; (e) sell
onions as Vidalia® onions or Vidalia® green onions; and/or (f) use the
"Vidalia®" Mark on products containing Vidalia® onions
or Vidalia® green onions, must enter into an agreement with the Georgia
Department of Agriculture for the use of the registered U. S. Certification
Mark "Vidalia®".
(2) The Commissioner shall establish the
terms and conditions of the agreement annually.
(3) The royalty/license fees shall be paid to
and collected by the Georgia Department of Agriculture for all processed
Vidalia® onions and for all products that use and incorporate Vidalia®
onions in any form and shall be $0.005 for six ounces, or portion or product
thereof. The royalty/license fee may be adjusted by the Commissioner upon
renewal of the agreement but in no circumstance be greater that $0.005 for six
ounces, or portion or product thereof. The only exceptions is in the case of
frozen products or meat products that use and incorporate Vidalia® onions
in any form shall be $0.001 for six ounces, or portion thereof.
(4) To calculate the royalty/license fees,
the processors report to the Department the total amount of product in pounds,
the poundage is then converted into weighted ounces, divide by six, and
calculate the fee based on $0.005 for every six ounces.
(a) Example 1: A processor produces 100
pounds of Vidalia® onion product. The processor sells the product in 200
eight ounce bottles.
100 lbs x 16 (ounces) =1600 ounces.
1600 ounces ÷ 8 = 200 products (containing 8
ounces)
First six ounces (of the 8 ounce product) =
$0.005 is assessed
$0.005 x 200 products = $1.00 for first six ounces
Remaining two ounces (of the 8 ounce product) = $0.005
$0.005 x 200 products (remaining portion) = $1.00
Thus $2.00 in royalty/license fees are due and owing by the
processor and to be collected by the Georgia Department of Agriculture.
(b) Example 2: A processor
produces 500 pounds of Vidalia® onion product. The processor sells the
product in 200 twenty-five ounce containers.
500 lbs x 16 (ounces) = 8000 ounces
8000 ounces ÷ 25 = 320 products (containing 25
ounces)
First six ounces (of the 25 ounce product) =
$0.005 is assessed
$0.005 x 320 products = $1.60 for first six ounces
Second six ounces (of the 25 ounce product) =$0.005 is
assessed
$0.005 x 320 products = $1.60 for second six ounces
Third six ounces (of the 25 ounce product) =
$0.005 is assessed
$0.005 x 320 products = $1.60 for third six ounces
Fourth six ounces (of the 25 ounce product) =
$0.005 is assessed
$0.005 x 320 products = $1.60 for fourth six ounces
Remaining one ounce (of the 25 ounce product) = $0.005
$0.005 x 320 products (remaining portion) = $1.60
Thus $8.00 in royalty/license fees are due and owing by the
processor and to be collected by the Georgia Department of Agriculture.
(c) Example 3: A processor
produces 500 pounds of Vidalia® onion product in frozen form (e.g., frozen
onion rings) or in a meat product. The processor sells the product in 500
sixteen ounce packages.
500 lbs x 16 (ounces) = 8000 ounces
8000 ounces ÷ 16 = 500 packages (containing 16 ounces)
First six ounces (of the 16 ounce package) = $0.001 is
assessed
$0.001 x 500 products = $0.50 for first six ounces
Second six ounces (of the 16 ounce product) = $0.001 is
assessed
$0.001 x 500 products = $0.50 for the second six
ounces
Remaining four ounces (of 16 ounce product) = $0.001 is
assessed
$0.001 x 500 products (remaining portion) = $0.50 for
remaining four ounces
Thus $1.50 in royalty/license fees are due and owing by the
processor and to be collected by the Georgia Department of Agriculture.
(5) The agreement with
the Georgia Department of Agriculture must be renewed annually. The term of the
agreement shall be from the date of execution through the last day of February
of the next year in all cases except those for processed onions or products
containing Vidalia® onions, and through the last day of the next June in
the case of processed onions or products containing Vidalia®
onions.
Notes
Ga. Comp. R.
& Regs. R. 40-7-8-.04
O.C.G.A. Secs.
2-14-132.1,
2-14-133,
26-2-1et
seq.
. Original Rule entitled
"Labeling" adopted. F. Apr. 30, 1996; eff.
May 20, 1996.
Amended: Rule retitled "Certification Mark Agreement".
F. Dec. 13, 1996; eff.
Jan. 2, 1997.
Amended: ER. 40-7-8-0.63-.04 adopted. F.
July 7, 2000; eff.
July 1, 2000, as specified by the
Agency.
Amended: Permanent Rule adopted. F.
Sept. 8, 2000; eff.
Sept. 28, 2000.
Amended: F. June 5,
2001; eff. June 25,
2001.
Amended: F. Mar. 4,
2004; eff. Mar. 24,
2004.
Repealed: New Rule of same title adopted. F.
Aug. 6, 2004; eff.
Aug. 26, 2004.
Repealed: New Rule of same title adopted. F.
Oct. 6, 2005; eff.
Oct. 26, 2005.
Amended: F. Aug. 11,
2006; eff. Aug. 31,
2006.
Repealed: New Rule of same title adopted. F.
June 11, 2007; eff.
July 1, 2007.
Repealed: New Rule of same title adopted. F.
Sept. 20, 2007; eff.
Oct. 10, 2007.
Repealed: New Rule of same title adopted. F.
Mar. 31, 2010; eff.
Apr. 20,
2010.
