P.R. Laws tit. 5, § 374
In all cases in which a grower delivers his/her sugarcane to a mill for the manufacture of sugar, payment of the share of each grower in the sugar and molasses produced by his/her sugarcane is fixed in the manner stated below: It being understood that the grower’s share fixed in this section for the sugars and molasses produced by their cane is the minimum share that said growers shall receive; Provided, That such minimum share shall consist of a credit in favor of the grower who shall be given preference with regard to the real and personal property of the mill in which his/her sugarcane is ground, except for the tax credits in favor of the Commonwealth of Puerto Rico, or of the corresponding municipality, on the properties of the taxpayers for the amount of the last three annuities and the current unpaid taxes owed by them. Regardless of any other legal provisions to the contrary, this right shall subsist when conflicts with respect to the best right to collect credits owed to the creditors of a mill; and Provided, That the Department is hereby empowered, after a hearing that may be held by petition of a party or motu proprio, to fix a different share for the growers if, in its judgment, a change in said minimum share is justified.
(I) Sugar. —
(A) The share of sugar pertaining to the grower shall be determined on the basis of the exact average of the content of the grower’s cane ground during the fortnight or month covered by the liquidation, as hereinafter provided:
(a) On cane with a yield of 9.5 percent or less than 9.5 percent of sugar of 96 degrees of polarization, the grower’s share be 63.5 percent of the aggregate sugar production, as shown in the table appearing after paragraph (b) hereinbelow:
(b) On cane with a yield higher than 9.5 percent of sugar of 96 degrees of polarization, the grower’s share shall be increased as follows:
For each one-tenth of one percent of yield in excess of 9.5 percent, there shall be added one-tenth (0.1) to 63.5 percent, and the aggregate sum thus obtained shall be the percentage pertaining to the grower of the aggregate sugar production, as stated in the table below; Provided, That on cane with a yield higher than 14 percent of sugar of 96 degrees of polarization, the grower’s share shall be 68.0 percent of the aggregate sugar production.
TABLE FOR THE LIQUIDATION OF SUGAR TO COLONOS Colon’s Colon’s Colon’s Content Share Content Share Content Share 11.0 65.0 12.6 66.6 9.5 or less 63.5 11.1 65.1 12.7 66.7 9.6 63.6 11.2 65.2 12.8 66.8 9.7 63.7 11.3 65.3 12.9 66.9 9.8 63.8 11.4 65.4 13.0 67.0 9.9 63.9 11.5 65.5 13.1 67.1 10.0 64.0 11.6 65.6 13.2 67.2 10.1 64.1 11.7 65.7 13.3 67.3 10.2 64.2 11.8 65.8 13.4 67.4 10.3 64.3 11.9 65.9 13.5 67.5 10.4 64.4 12.0 66.0 13.6 67.6 10.5 64.5 12.1 66.1 13.7 67.7 10.6 64.6 12.2 66.2 13.8 67.8 10.7 64.7 12.3 66.3 13.9 67.9 10.8 64.8 12.4 66.4 14.0 or more 68.0 10.9 64.9 12.5 66.5
(II) Blackstrap molasses. — After the sugarcane season is over, and within the term fixed by the Department, the mill will be bound to liquidate their share in the value of the molasses produced to the growers, as follows:
(a) For each ton of cane delivered by a grower, the central shall pay to the grower a sum equal to the amount resulting from the multiplication of: (i) 66 percent of the net revenues per gallon of blackstrap molasses produced during the grinding season, by (ii) the average number of gallons of blackstrap molasses per ton of cane produced by the central during the grinding season. In case the grower so requests the central is bound to liquidate his share in molasses. In computing the net revenues that will serve as a basis for the share of the grower in the value of the molasses produced, the central may deduct from the gross revenues only the following expenses:
(1) Wages paid in the pump operations for the pumping of molasses from the storage tanks in the factory to the vehicles transporting same to the shipping ports.
(2) Transportation from the storage tanks in the factory to the point or port in Puerto Rico where the molasses is delivered to the purchaser.
(3) In the event that the mill transports the molasses with its own equipment up to the point or port in Puerto Rico where they are delivered to the purchaser, the mill shall only deduct the wages paid exclusively in the operation of transporting the molasses or the amount which, in the judgment of the Department, would be charged by a public carrier for similar transportation.
(4) Whenever the storage tanks or parts thereof are not located in the proper factory, the amount that the central may deduct for the transportation of molasses to the point where the molasses is delivered to the purchaser shall not be more than the transportation expenses that would be incurred if the transportation were directly from the factory to such point of delivery.
(b) The Department shall examine the sales of molasses of each mill during the year, and if, the result of such examination is, and the Department so determines that a mill has not sold its molasses freely as a result of the supply and demand on the Puerto Rican and/or New York market, or it has sold its molasses in such a manner, and to such entities or persons that said sale has resulted in a loss to the growers, the Department is hereby empowered to determine the simple average price, that is, the price of molasses whether it is quoted or not on the molasses market, taking into consideration the sales of all Puerto Rican sugar mills on the local and/or New York market, excluding such mill or mills that have not sold their molasses as a result of supply and demand, as provided in this subsection, and the mill shall be bound to liquidate to the growers their share in said molasses based on said simple average price.
In the event that each mill sells its molasses to a natural or juridical person, as such term is defined in subsection (c) of § 371 of this title, who is part of the same mill, or is a subsidiary thereof, or is under the control of said mill, or is managed by a board that also manages the mill, or that any of the owners of the mill is also a partner or co-owner of the purchasing organization, the Department shall supervise the sale of the molasses, ensuring that said mill liquidates the share of the molasses produced to which they are entitled to the growers, at the simple average price at which all the mills of Puerto Rico have sold their molasses on the Puerto Rico and/or New York market, excluding such mill or those mills that have not sold their molasses as a result of the supply and demand, as provided in this subsection, or at the price of the sale made by said mill, if it is higher than the average price at which all the sugar mills of Puerto Rico have sold their molasses in the Puerto Rico and/or New York market.
(c) The Department shall have the power to determine, in all cases, whether the expenses deducted upon computing the net income referred to in subsection (a) of this section, have been truly incurred and are fair and reasonable.
(d) If the Department, or any grower, does not agree with the reasonableness or correctness of the expenses deducted by the mill upon computing the net income from molasses, or deems that the same, or any part thereof, are not deductible under the terms of §§ 371—405 of this title, the Department, at the grower’s request or motu proprio, shall hold a hearing in which the parties shall have the opportunity to claim and present evidence regarding the rights they believe they have, and the Department shall resolve the controversy.
History —May 13, 1951, No. 426, p. 1138, § 5; June 30, 1961, No. 143, p. 316; Apr. 26, 1963, No. 9, p. 14; Aug. 5, 1993, No. 43, § 12, retroactive to July 1, 1993.