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HomeFood and Agricultural CodeDiv. 22Pt. 2Ch. 9.5Art. 6§ 71126 Rice Handler Assessment Trust

§ 71126 Rice Handler Assessment Trust

Food and Agricultural Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 71126 Rice Handler Assessment Trust

Key Takeaways

  • •The first person who buys rice from a farmer must take out a small fee (assessment) from the money they pay the farmer and send it to the commission.
  • •This fee belongs to the commission right away, and the buyer must hold it safely until they send it.
  • •If the buyer doesn’t take the fee from the farmer, they still have to pay it themselves.
  • •If rice is given up because of a loan and a buyer already agreed to buy it, the buyer pays both their fee and the farmer’s fee. If the buyer is small (handles less than 100,000 hundredweight), they only pay the farmer’s fee.

Example

A farmer sells rice to a local buyer, who then sells it to a big company.

The local buyer must take a small fee from the money they pay the farmer and send it to the commission. If they forget to take the fee from the farmer, they still have to pay it themselves. The fee isn’t theirs—it belongs to the commission as soon as the rice is sold.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 71126 Rice Handler Assessment Trust

(a) Only the first handler of rice is subject to the handler assessment and shall deduct the producer assessment from amounts paid by him or her to the producer and shall be a trustee of these assessments and assessments required to be paid by the handler until they are paid to the commission at the time and in the manner prescribed by the commission. Title to the assessments shall pass immediately to the commission and handlers shall hold the assessments in trust for the benefit of the commission and shall remit them, with assessment reports, in the time and manner specified by the commission. All first handlers, without regard to the volume handled, shall deduct and remit the producer assessment. Failure to collect the assessment from any producer shall not exempt the handler from liability. In addition, failure of a handler to remit the collected producer assessments to the commission shall not relieve the producer of this obligation. (b) If rice is forfeited under a loan from the Commodity Credit Corporation, the handler shall pay both the producer and handler assessments if the rice is contracted to the handler. If the handler’s total volume for the marketing season is less than 100,000 hundredweight, only the producer assessment shall apply. If the rice forfeited under a loan from the Commodity Credit Corporation is not contracted to a handler, the producer shall pay both the handler and producer assessments. If the total volume handled by the producer during the marketing season is less than 100,000 hundredweight, only the producer assessment shall apply. (Added by Stats. 1998, Ch. 567, Sec. 1. Effective January 1, 1999.)

Last verified: January 23, 2026

Key Terms

assessmentcorporationfirst handlerproducerobligationliabilitycommissioncontract

Related Statutes

  • § 78926 Wine Industry Assessment Liability
  • § 71134 Post-Termination Rights Preservation
  • § 67105 Avocado Handler Assessment Liability
  • § 74956 Grape Assessment Payment Rules
  • § 75635 Handler Assessment Liability

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Food and Agricultural Code. Section 71126.
View Official Source