CHAPTER 536

An Act to provide for increased agricultural research, education and
service; to state the policy of the General Assembly in relatton
thereto; to create the Virginia Agricultural Foundation and to set
forth its powers, duties and functions; to create the Virginia Agrt-
cultural Foundation Fund and to provide for the management and
expenditure thereof; to amend and reenact §§ 8-117.8, 3-117.32, $-
627, 8-628, 3-631, 58-715 and 58-780, as severally amended, of the
Code of Virginia, relating, respectively, to inspection fees and taxes
upon commercial feeds and fertilizers and refunds of the motor fuel
tax; to provide for increases in such taxes and fees and to provide
for the application of the proceeds of such fees and taxes; to provide
for the disposition of such motor fuel tax refunds; and to repeal
§ 8-6.1 of the Code of Virginia relating to the Agricultural Research
and Education Commission and the Agricultural Research and Edu-
cation Fund, and all other acts and parts of acts in conflict; and to
pansfer certain moneys to the Virginia Agricultural Foundation
und.

[S 224]
Approved April 5, 1966

Be it enacted by the General Assembly of Virginia:
1. § 1. This act may be cited as the “Pennies for Progress Act.”
§ 2. The General Assembly finds and declares that agriculture 18
important to the prosperity of this State and is a major source of income
to a large segment of the State’s population. Additional research 18
required to find new uses for agricultural products, to develop new
markets for such products, and to promote more efficient and economical
methods of agricultural production. An expanded program of agricultural
research is essential to these objectives and will be beneficial to the
State as a whole. This act is adopted in furtherance of these purposes.
§ 8. The General Assembly further declares it to be in the public
interest that assessments be levied upon certain agricultural supplies
used by farmers with revenues therefrom to be used in encouraging an
expanded program of agricultural research, education and agricultural
services. The word “farmers” as used herein includes all producers of
agricultural products such as cotton, tobacco, peanuts, soybeans, po-
tatoes, vegetables, fruits, livestock, livestock products, poultry and turkeys,
and any other agricultural products having domestic and foreign mark-
ets.
The revenues from such assessments are intended to supplement
other appropriations by the General Assembly and not as a substitute

therefor.

§ 4. (a) The Virginia Agricultural Foundation its hereby estab-
lished within the Executive Branch of the State government. The Foun-
dation shall be composed of fifteen members to be appointed by the gov-
ernor, all of whom shall be actively engaged in farming. Insofar as
practical, each of the twelve members required to be actively engaged wn
farming shall be primurily engaged in the production of a different agricul-
tural commodity. The terms of the members shall run concurrently with
the term of the Governor making the appointment but vacancies occurring
before the expiration of term shall be filled for the unexpired term. The
Governor shall designate one of the original appointees to serve as chair-
man pro tem until officers are elected as hereinafter provided. The initial
meeting of the Foundation shall be held on call of the chairman pro

(6) Members of the Foundation shall be paid their necessary travel-
ing expenses incurred in connection therewith. Such compensation and ex-
penses shall be paid from the Virginia Agricultural Foundation Fund.

(c) The Foundation shall elect from its membership a Chairman,
Vice-Chairman, and such other officers as it deems appropriate.

(d) The Foundation shall have charge of the management and
expenditure of the Virginia Agricultural Foundation Fund. The Founda-
tion shall have power to expend funds to provide for programs of agri-
cultural research and education and agricultural services; to manage the
Fund so as to accumulate a reserve for contingencies; to establish an
office and employ such technical, professional and other assistance as
may be required; subject to the provisions of the Virginia Personnel Act;
to contract for research and other services; and to take all such measures
as will assist in strengthening and promoting the best interests of agricul-
ture in this State.
(e) The Chairman of the Foundation shall make a report at each
annual meeting of the Foundation and furnish the members with a
statement of the total receipts and disbursements for the year. He shall
file a copy of such report with the Commissioner of Agriculture and
Immigration and shall make copies of such report available for publica-

§ 5. There is hereby established in the State treasury a special
fund to be designated as the “Virginia Agricultural Foundation Fund”
which shall consist of transfers made to it under §§ 8-117.8, 3-627, 58-715
and 58-780 of the Code of Virginia, of other moneys appropriated thereto,
gifts and grants, and interest accruing thereon. The Fund shall be ex-
pended in accordance with the directions of the Virginia Agricultural
Foundation and drawn from the State treasury in the manner provided
by law. No part of such Fund shall revert to the general fund of the
State treasury.

2. That §§ 8-117.8, 3-117.82, 8-627, 3-628, 3-631, 58-715 and 58-730, as
severally amended, of the Code of Virginia be amended and reenacted as
ollows:

§ 8-117.8. (a) For the purpose of carrying out the provisions of
this chapter, all registrants or manufacturers who sell any commercial
fertilizer in Virginia shall pay to the * Commissioner an inspection fee
of twenty-five cents per short ton of commercial fertilizer, as follows:

(b) Each registrant or manufacturer, shall make application to the
Commissioner for a permit to report the tonnage of commercial fertilizer
sold in accordance with which report the inspection fee shall be paid.

(c) The Commissioner shall grant such permit, except that no
permit shall be issued unless the applicant uses a system of keeping
books that is satisfactory to the Commissioner, indicates accurately in
his records the tonnage of commercial fertilizer sold in the State, and
agrees to allow the Commissioner or his duly authorized representative
to examine such records and verify the tonnage statement. The report
shall be under oath on forms furnished by the Commissioner and shall
be filed in the office of the Commissioner.

(d) The report of tonnage and inspection fee shall be due and
payable quarterly on the first day of April, the first day of July, the first
day of October and the first day of January, covering tonnage and grades
of mixed fertilizer and fertilizer materials sold during the preceding
months. If the report is not filed and the inspection fee paid by the tenth
day following due date, or if the report of tonnage is false, the Commis-
sioner may revoke the permit, and if the inspection fee be unpaid after
a fifteen day grace period the amount shall bear a penalty of ten per
cent, which shall be added to the inspection fee due and shall constitute
a debt and become the basis of judgment against the registrant or man-
ufacturer.

(f) On individual packages of commercial fertilizer containing
twenty-five pounds or less, and soil amendments sold in packages or in
bulk there shall be paid in lieu of the annual registration fee of two
dollars per brand and the twenty-five cents per short ton inspection fee,
an annual registration and inspection fee of fifty dollars for each brand
and grade sold, unless the annual tonnage of commercial fertilizer sold
in packages of twenty-five pounds or less and soil amendments sold in
packages or bulk exceed two hundred and fifty tons, in which event
the twenty-five cents per ton inspection fee shall apply on all excess over
two hundred and fifty tons. Where a person sells commercial fertilizer
in packages of twenty-five pounds or less and in packages over twenty-
five pounds or in bulk this annual registration and inspection fee of fifty
dollars shall apply only to that portion sold in packages of twenty-five
pounds or less and that portion sold in packages over twenty-five pounds or
in bulk shall be subject to the same inspection fee of twenty-five cents
per short ton as provided in this chapter. _.

(g) Any registrant or manufacturer selling commercial fertilizers
in packages of twenty-five pounds or less and soil amendments in pack-
ages or bulk shall report to the Commissioner annually on July first. of
each year the quantity of each brand and grade sold during the preceding
year. This report shall be made on forms furnished by the Commissioner
and failure to make such report on or before the fifteenth day following
due date shall constitute a violation of this chapter and the Commissioner
is authorized to cancel the registration to do business in this State of
any registrant failing to make such report.

(h) Any nonresident person desiring to distribute within this State
any commercial fertilizer in packages of only twenty-five pounds or less,
or any soil amendment, shall file a written power of attorney designating
the Secretary of the Commonwealth or a resident agent as the agent
of such nonresident upon whom service of process may be had in the
event of any suit or action against such nonresident person; and such
power of attorney shall be so prepared and in such form as to render
effective the jurisdiction of the courts of Virginia over such nonresident
person and make such person amenable to the jurisdiction of the courts
of this State. The Secretary of the Commonwealth shall be allowed such
fees therefor as provided by law for designating resident agents. The
Commissioner shall be furnished with a copy of a duly certified copy of
such designation of the Secretary of the Commonwealth or of a resident
agent.

(i) For the purpose of compiling statistical data on the consumption
of commercial fertilizer in this State, each registrant selling commercial
fertilizers in packages of more than twenty-five pounds or in bulk to a
nonregistrant in this State shall report to the Commissioner the pounds
or tonnage of each grade of commercial fertilizer shipped to each destina-
tion or county in the State. This information may be reported by either
of the following methods: (1) By sending to the Commissioner a copy
of the invoice or order on each shipment of commercial fertilizer in or
into this State, within fifteen days after shipment is made, or (2) By
submitting a summary report on or before January thirty-first of each
year, covering shipments made between July one and December thirty-
first of the preceding year; and on or before July thirty-first of each
year, covering shipments made between January one and June thirtieth
of the same year. The Commissioner is authorized to cancel, after due
warning, the registrations of any registrant failing to comply with this
provision. The * Commissioner shall publish and distribute, semiannually
to commercial fertilizer registrants and other interested persons a com-
posite report showing the tons of each grade of commercial fertilizer sold
in each county of the State. This report shall in no way divulge the
operation of any registrant.

(j) The Commissioner shall pay into the State treasury to the
credit of the Virginia Agricultural Foundation Fund twenty per centum
of the revenue derived from the inspection fee on each short ton but
exclusive of the registration fee.

§ 3-117.32. All moneys collected under the provisions of this chapter,
except penalties and assessments levied under §§ 3-117.9 to 3-117.25,
and except as otherwise provided in § 8-117.8, shall be paid into the
State treasury to the credit of the general fund.

§ 3-627. Every manufacturer, or distributor of any commercial feed
as defined in § 3-619 shall pay the Commissioner an inspection tax of *
twenty cents per ton for each ton of such commercial feed sold, offered
or exposed for sale or distributed in this State; provided, however, that
for all commercial feeds sold in individual packages of five pounds or
less the annual inspection fee shall be fifteen dollars for each brand in
lieu of any other fee imposed by this section on the tonnage so packaged.

As used in this chapter, the word “ton” shall mean a net weight
of two thousand pounds avoirdupois.

Each manufacturer or distributor subject to an inspection fee based
upon tonnage shall keep an accurate record of the tonnage of commercial
feed sold in the State. Such records shall be subject to examination and
verification by the Commissioner or his authorized representative during
regular business hours.

A report, under oath, on forms supplied by the Commissioner
shall be filed in the office of the Commissioner by each manu-
facturer or distributor subject to the provisions of this chapter on
the fifteenth day of January, April, July and October, setting forth the
tonnage of commercial feed sold in this State during the preceding cal-
endar quarter, and the inspection fee based upon such report shall then
be due and payable to the Commissioner. If the report is not filed and
the inspection fee is not paid by the due date, the Commissioner within
five days thereafter shall notify the manufacturer or distributor, by
certified or registered mail, of his failure to file or pay. If the inspection
fee is not paid by the fifteenth day following due date, the amount shall
bear a penalty of ten per cent which shall be added to the inspection
fee due and shall constitute a debt and become the basis of judgment
against such manufacturer or distributor.

Except as otherwise provided in § 3-629, filing the reports and pay-
ment of the fees required by this section shall be the responsibility of
the person, firm or corporation who distributes commercial feed to the
ultimate consumer thereof.

Twenty-five per centum of the revenue derived from the inspection
tax shall be paid by the Commissioner into the State treasury to the
credit of the Virginia Agricultural Foundation Fund.

§ 3-628. The inspection tax of * twenty cents per ton shall not
apply to sales of commercial feeds to manufacturers or exchanges between
manufacturers, provided the commercial feed so sold or exchanged is
used solely in the manufacture of a registered feed or is sold outside
this State. Nothing in this chapter shall be construed as exempting any
registered commercial feed which enters into the composition of a feed
mixture upon which no fee is paid from payment of the inspection fee
provided for in § 3-627.

§ 3-631. Except as otherwise provided by § 8-627, the * moneys col-
lected under the provisions of § 3-627 shall be paid into the State treasury
to the credit of the general fund.

§ 58-715. (a) Any person who shall buy, in quantities of five
gallons or more at any one time, any motor fuel for the purpose of
operating or propelling (1) boats, ships, stationary gas engines, or pump-
ing or mixing equipment on motor vehicles where the motor fuel used to
operate such equipment is stored in an auxiliary tank separate from the
motor fuel tank used to propel the motor vehicle, and the motor vehicle
is mechanically incapable of self-propulsion while motor fuel is being
used from the auxiliary tank, (2) tractors used for agricultural purposes,
(3) buses owned and operated by a county or the school board thereof
while being used to transport children to and from public schools, (4)
buses owned and operated by a private nonprofit nonsectarian school
while being used to transport children to and from such schools or buses
while solely used to transport children to and from such schools, pro-
vided that the total of refunds in all cases under this provision No. (4)
of this paragraph shall not, in any fiscal year, exceed the sum of two
thousand dollars, (5) equipment of voluntary fire fighting companies
within the State actually and necessarily used for fire fighting purposes,
equipment of volunteer rescue squads within the State actually and neces-
sarily used for rescue purposes, (6) motor equipment belonging to cities,
towns and counties used exclusively in public activities and shall actually
use the same for such purpose, (7) any person who shall purchase an
use any of such fuel for spraying purposes or for cleaning, dyeing or
other commercial use except in motor vehicles operated, or intended to
be operated in whole or in part upon any of the public highways, streets
or alleys of this State, on which motor fuel the tax or taxes imposed
by this chapter shall have been paid, shall, except as otherwise provided
in subsection (b) of this section, be reimbursed and repaid the amount
of such tax or taxes paid by such person. Any resident of this State
who operates a farm on any island outside the State but within one
mile of its boundaries shall be reimbursed and repaid the amount. of
such tax or taxes paid by such person on motor fuel used for farming
purposes on such island. And a refund of three cents per gallon on all
motor fuel purchased within the State and consumed in aeroplanes or
aircraft in flights over and within the boundaries of this State shall be
made and a refund of the full tax paid shall be made on all motor fuel
purchased in this State and consumed in aeroplanes or aircraft in flights
outside the boundaries of the State, the quantities consumed within and
without the State to be determined by the flight logs of each trip and
the average consumption of motor fuel per hour per month by each
aeroplane or aircraft. On and after July one, nineteen hundred sixty-one,
with respect to all motor fuel and other fuels as are subject to the tax
imposed by Chapter 14 (§ 58-731 et seq.) of this title purchased in this
State and consumed in aeroplanes or aircraft in flights over and within
the boundaries of this State, a refund in the following graduated amounts
shall be made to each user of such fuel. The quantity of such fuel used
in aircraft subject to graduated refunds shall accumulate to each user
throughout each fiscal year beginning on July first of each year.

The amount of the refund with respect to all motor fuel and other
fuels as are subject to the tax imposed by Chapter 14 (§ 58-731 et seq.)
of this title used by any person in flights over and within the boundaries
of this State, with respect to the accumulated usage of such fuels during
each fiscal year, shall be:

(1) On each gallon of such fuel so used less than one hundred
thousand gallons, a refund per gallon equal to the amount of the tax per
gallon less four cents, the intention being that the State shall retain four
cents tax per gallon;

(2) On each gallon of such fuel so used more than one hundred
thousand gallons and less than two hundred thousand gallons, a refund
per gallon equal to the amount of the tax per gallon less two cents, the
intention being that the State shall retain two cents tax per gallon;

(3) On each gallon of such fuel so used more than two hundred
thousand gallons and less than three hundred thousand gallons, a refund
per gallon equal to the amount of the tax per gallon less one cent, the
intention being that the State shall retain one cent tax per gallon;

(4) On each gallon of such fuel so used more than three hundred
thousand gallons and less than four hundred thousand gallons, a refund
per gallon equal to the amount of the tax per gallon less one-half cent,
ani intention being that the State shall retain one-half cent tax per

on;

(5) On each gallon of such fuel so used more than four hundred
thousand gallons, a refund per gallon equal to the amount of the tax per
gallon less one-quarter cent, the intention being that the State shall re-
tain one-quarter cent tax per gallon.

(6) If the applicant for refund includes with such application a
statement that the fuel was used for agricultural purposes, * the Com-
missioner shall refund to such applicant siz and one-half cents per gallon
on all such motor fuel. One-half cent per gallon on such fuel so used
shall be paid by the Commissioner into the State treasury to the credtt
of the Virginia Agricultural Foundation Fund. ;

On any island in this State on which no motor vehicle is operated
upon any public highways, streets or alleys, the refund provided for by
this section may be made to the merchant selling such motor fuel to the
consumer. :

§ 58-780. After providing for the refunds under this chapter, the
Commissioner shall promptly pay all taxes and fees collected by him
under this chapter into the State treasury. The revenue derived from
the tax levied as aforesaid is hereby appropriated for the construction,
reconstruction or maintenance of the roads and projects comprising the
State Highway System, Interstate System and Secondary System of State
Highways and shall be applied to no other purpose, except that: —

(1) There may be paid out of this fund as a contribution towards
the construction, reconstruction or maintenance of streets in cities and
towns such sums as may be provided by law, ;

(2) Such sums out of such funds may be expended for the operation
and maintenance of the State Highway Department and the Division of
Motor Vehicles as may be provided by law,

(3) The Governor is hereby authorized to transfer out of such fund
an amount necessary for the purpose of inspection of gasoline and motor
grease measuring and distributing equipment, and for inspection and
analysis of gasoline for purity,

(4) The Commissioner of the Division of Motor Vehicles shall also
pay, at the rate of seven cents a gallon, less refunds made in accordance
with law, for each and every gallon of aviation fuel sold and delivered
or used in this State into the treasury, as a special fund, to be disbursed
upon order of the State Corporation Commission, on warrants of the
Comptroller to defray the cost of the administration of the laws of this
State relating to aviation and for the construction, maintenance and im-
provement of airports and landing fields to which the public now, or
which it is proposed shall, have access, and for the promotion of aviation
in the interest of operators and the public generally,

Such sums shall be paid out of these funds to counties which
have withdrawn from the secondary system of State Highways under the
provisions of § 11 of chapter 415 of the Acts of 1982, approved March
1, 1932, and which have not elected to return, as may be provided by

w, an

(6) The Commissioner of the Division of Motor Vehicles shall also

pay at the rate of one-half cent per gallon for each and every gallon of
motor fuel on which the refund has been paid at the rate of six and one-
half cents per gallon in accordance with the provisions of § 58-715 or
§ 58-719 relating to refunds for fuel consumed in tractors and unlicensed
equipment used for agricultural purposes into the State treasury as a
special fund known as the Virginia Agricultural * Foundation Fund to be
disbursed * as provided by law to make certain refunds and defray the
costs of the research and educational phases of the agricultural program,
including supplemental salary payments to certain employees at the Vir-
ginia Polytechnic Institute, the State Department of Agriculture and the
Virginia Truck Experiment Station including reasonable expenses of the
Virginia Agricultural * Foundation.
8. § 3-6.1 of the Code of Virginia is repealed. Any moneys standing
in the State treasury to the credit of the Agricultural Research and
Education Fund shall be transferred and credited to the Virginia Agri-
cultural Foundation Fund and disbursed as provided by this act.

4, If any provision of this act or any application thereof be held invalid
by a court of last resort all other provisions and applications hereof
remain in full force and effect.
os " All acts in conflict herewith are repealed to the extent of such con-