Rule 40-7-8-.04. Certification Mark Agreement

1. (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. (2) The Commissioner shall establish the terms and conditions of the agreement annually.
3. (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. (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.

   1. (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.

   2. (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.

   3. (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. (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.

Authority: O.C.G.A. Secs. 2-14-132.1, 2-14-133, 26-2-1et seq.

History. . 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.