Supervisors Approve First Step in Creation of ‘San Luis Obispo County Wine Improvement District’ 

A tax on direct-to-consumer wine sales may be coming to San Luis Obispo County. On November 28, SLO County Supervisors approved 4-0 (with Supervisor Debbie Arnold abstaining) a proposal from the Paso Robles Wine Country Alliance to examine sales tax records and explore the creation of a Business Improvement District for the wine industry.

Background from the Staff Report:

“In August 2023, the County was approached by the Paso Robles Wine Country Alliance (PRWCA) and their consultant, Civitas Advisors, Inc. (Civitas), about a proposed San Luis Obispo County Wine Improvement District. The PRWCA and the SLO Coast Wine Alliance (SLOCWA) are exploring the possibility of creating a Business Improvement District (BID) under the Property & Business Improvement District Law of 1994. (“1994 Act”) (Streets and Highways Code § 36600 et seq.). Staff received direction from the Board on October 17, 2023, to return to the Board with a related request.

The proposed BID would impose an assessment on “wine tasting rooms” to be used for marketing and promotional activities and programs to benefit the wine industry. ...

Recommended Action

The proposed BID would impose an assessment on “wine tasting rooms” to be used for marketing and promotional activities and programs to benefit the wine industry. The process would begin with the resolution authorizing the examination of sales tax data.

On October 9, 2023 the PRWCA Board of Directors set out a letter (Attachment 3)  to all of their 193 winery owners in the Wine Alliance informing them of their effort to explore a BID for the wine industry. The PRWCA’s consultant, Civitas, will require access to sales tax data to estimate the amount of the proposed assessment. Given the confidential nature of this data, State law requires the governing body to adopt a resolution of authorization prior to such a contract taking effect. The proposed resolution for County’s adoption authorizes key County positions, Hinderliter, de Lamas and Associates (HdL), the County’s current sales or transactions and use tax analysis consultant with this authorization, and Civitas, to view the County’s sales and transaction and use tax records.

To satisfy the requirements for authorization to examine sales or transactions and use tax records pursuant to California Sales and Use Tax Code §7056, it is also recommended to adopt the Agreement to Examine Sales or Transactions and Use Tax Records between Civitas and the County.

Next Steps

If the County were to be involved in implementing a BID for the wine industry, several actions are required. Below is the tentative list of actions:

While governing codes set forth the minimum requirements to form a BID (for example, minimum of 50% + 1), the Board may create additional steps to be satisfied before forming the BID. The Board also has the option to not establish a BID, even if the BID has survived petition, ballot proceeding or protest hurdles.

If the Board elects not to form a BID, membership in PRWCA and SLOCWA will continue to be voluntary, and marketing activities of the organizations will be funded by membership dues.

Approval to move forward will allow for Civitas Advisors, Inc. to examine Sales or Transactions and Use Tax Records which will assist the PRWCA and SLOCWA to evaluate whether there may be value for the local wine industry business owners to assess wine tasting rooms for the purpose of marketing to increase the demand for sales through collaborative brand development and promotional efforts.”

This Week In SLO County Agriculture

Calendar- Upcoming Events & Deadlines:

• December 1-6- Office Closed for CA Farm Bureau Annual Meeting in Reno, NV
• December 25- Jan 1- Office Closed for Christmas and New Year's Holidays

Community: Farm Supply Company is Hiring a Branch Manager for Arroyo Grande Store

Local Government: San Luis Obispo County Board of Supervisors Meeting to be Held on Tuesday, December 5 

State Government: Check Out This Week's Farm Bureau at Work

This Week in California Farm Bureau's Farm Bureau at Work State Government Report

December 4, 2023

Insurance

The Los Angeles Superior Court Judge ruled in support of the California Department of Insurance’s order that the FAIR Plan must offer homeowners a comprehensive insurance policy option. In response to that ruling, Commissioner Ricardo Lara issued the following statement:

“This ruling is a win for homeowners and an essential part of our ongoing strategy during this unprecedented time in our state. It upholds my authority to implement measures that enhance the availability and affordability of insurance coverages for consumers. While we continue to pursue long-term insurance solutions to safeguard Californians from climate change, it’s essential that homeowners have a strong short-term option in the California FAIR Plan. Requiring Californians to purchase separate insurance policies only results in higher costs and greater confusion, leaving them on the hook for uninsured damage from a winter storm or burst pipe. Many FAIR Plan policyholders are seniors or families who cannot afford to pay these unexpected costs out-of-pocket. The sooner that the FAIR Plan can offer a more comprehensive policy option, the better for many Californians. This ruling is a step forward in achieving a balanced and robust insurance market that meets the needs of Californians. I will continue to put the needs of California’s insurance consumers first through a sustainable insurance marketplace that serves all consumers.”

The FAIR Plan is California’s “insurer of last resort,” offering a bare-bones residential policy that covers fire and smoke damage but forces homeowners to purchase an additional policy at an increased cost to have coverage for liability, water damage, and other common perils. Many FAIR Plan policyholders do not, and cannot, purchase a Difference in Conditions (DIC) policy, increasing the coverage gap for vulnerable communities. Modernizing the FAIR Plan to meet Californians’ coverage needs is a key goal of Commissioner Lara’s Sustainable Insurance Strategy, which he announced in September. This is the second time a judge has upheld Commissioner Lara’s action, supporting the Commissioner’s goal to restore stability in the property insurance market, including an expanded FAIR Plan policy as a short-term option for homeowners.

In the ruling, Judge Kin denied the FAIR Plan’s request to vacate his amended order, upholding the Commissioner’s ability to order additional coverages including accidental discharge or overflow of water or steam; premises liability; incidental workers’ compensation; theft; falling objects; weight of ice, snow, or sleet; freezing; and loss of use, including coverage for additional living expenses and fair rental value. These are typically included in a standard comprehensive homeowners policy, but not offered under the FAIR Plan’s limited fire policy.

FAIR Plan policyholders who want additional coverage must purchase a separate DIC policy offered by a private insurance company. Judge Kin wrote that “the prohibitive cost of DIC policies and confusion about what DIC policies cover supports the Commissioner’s desire to have an expanded policy as an option for homeowners, in furtherance of the goal of assuring stability in the property insurance market.”

The FAIR Plan has approximately 330,000 residential policies in the state as of September 2023, according to its data. According to Department of Insurance data, approximately 40% of FAIR Plan policyholders insuring an owner-occupied dwelling do not have a DIC policy, leaving them uninsured for winter storm damage and other common losses. In 2022, FAIR Plan insured approximately 270,000 residential policies. About 200,000 of these policies insured an owner-occupied dwelling, constituting roughly 3.1% of the state’s homeowners’ market. As of September 2023, FAIR Plan has shown growth exceeding 20% over last year.

Federal Government: Congress Extends Farm Bill, Debates New Legislation

This Week in California Farm Bureau's Federal Policy News

November 29, 2023

• Corporate Transparency Act Will Require New Employer Reporting Requirements Beginning January 1st
• CAFB Submits Comments on DHS Rule Concern H-2 Visa Updates
• USDA Announced Opening of Application Period for Regional Agricultural Promotion Program

Business Member Spotlight:

Community West Bank

You can count on Community West Bank

Since 1989, Community West Bank has put deposits to work locally, making loans to businesses, families and non-profit organizations. We are the largest publicly traded and only community bank headquartered and serving California’s Central and South Coast area of Ventura, Santa Barbara and San Luis Obispo counties, with full-service branches in Goleta, Oxnard, Paso Robles, San Luis Obispo, Santa Barbara, Santa Maria and Ventura. Count on our community bankers to provide the financing, deposit services, convenient treasury management and trusted advice you need.

communitywestbank.com

PHONE: 805-692-4435

Orchard: Before and After Photos Show Forests Wiped Out By Avocado Over-Farming

Environmental: State Seeks Helps in Defining 'Regenerative Agriculture'

Thank You Farm Bureau Members

New Agricultural Members

Jennifer Foster

Renewing Business Support Agricultural Members

Community West Bank and Roadrunner Construction

Renewing Agricultural Members

Douglas Thomason, George Lehnhoff, Russell Hall, Babe Farms Inc, James Spitzley, Barbara Parsons, Tom Madden, Kenneth Warren, KC Swan, Lauri Shiffrar, Kathleen Warren, David Alford, Jason Domingos, and Scott Vernon

Renewing Associate Member

Deborah Deis, David Gerber, and David Crye

Featured Member Benefit:

Free Airport Parking for Members at SLO County Farm Bureau

Flying Out of the San Luis Obispo for the Holidays?

Take advantage of free parking for members at the San Luis Obispo County Farm Bureau. Park in the large lot next to the building.

The airport is a 0.7 mile walk from the office.

Labor: Help Us Help You! Please Take this Anonymous Labor Survey

Livestock: New Proposed California Anti-Ag Measure Could Have National Implications

Vineyard and Wine:  California Vineyard Sought Out By The 'Royal' Family Of U.S. Wine World

Water: California Cities and Farms Will Get 10% of Requested State Water Supplies When 2024 Begins

Farm Bureau Membership Matters

We cannot support your freedom to farm and ranch without your membership.

Join SLO County Farm Bureau now or renew your membership online. Go to slofarmbureau.org to join, or download the membership form PDF.

Have your renewal notice available to speed up the process; you will need to enter your membership number, name and ZIP code. Renewal dues may be paid online or over the phone by credit card.

We're here to help! Call us if you need us to lookup your member number or we can process your membership for you, at 805-543-3654.

All California county Farm Bureau memberships are processed through the California Farm Bureau Federation, but please reach out to our SLO County office if you need your membership number or have questions.

SLO County Agriculture News is distributed by SLO County Farm Bureau for information purposes only. Stories written by SLO County Farm Bureau may be reprinted with attribution. Some outside story links may require site registration. Opinions expressed in stories, commentaries or editorials included in this newsletter do not necessarily represent the views of SLO County Farm Bureau. For information on advertising opportunities, please email info@slofarmbureau.org or call our office at 805-543-3654.

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