text: The secretary may, by regulation, designate as a seed potato certification agency, any person or agency that the secretary finds is qualified to certify seed potatoes as to their variety, quality, and freedom from pests and diseases. The secretary shall consult with the University of California and representatives of the seed potato industry of California before approving the qualifications of any seed potato certification agency.

history: (History: Repealed and added by Stats. 1998, Ch. 573, Sec. 10. Effective January 1, 1999.)

chapter: 3. Seed Potato Certification

article: 1. Seed Potato Certification Agencies

path: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS > 3. Seed Potato Certification > 1. Seed Potato Certification Agencies


kind: section

code: FAC

text: The Legislature hereby declares that the purposes of this chapter are to promote, encourage, aid, and protect the planting and growing of cotton in the State of California; that it believes that these purposes can best be accomplished by restricting within certain areas the planting and growing of but two types of cotton, which are Acala and Pima; that, by this means, it is possible to bring the cotton-growing industry in the state to its highest possible development and to ensure the growing of the most superior varieties of cotton; that the planting of pure seed is essential to the production of more marketable and better grades of cotton and cottonseeds, and for the production of grades of fiber best suited for manufacturing purposes; and that the planting of impure seeds or plants, other than those authorized in these areas, is an economic harm and loss to the planter thereof and an irreparable injury to the adjoining or neighboring growers.

history: (History: Amended by Stats. 2008, Ch. 189, Sec. 1. Effective January 1, 2009. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 1. General Provisions

path: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS > 4. San Joaquin Valley Quality Cotton District > 1. General Provisions


text: The Legislature also declares that the restriction of the use to which cotton lands and cotton gins may be used, as provided in this chapter, is essential to the highest development of the cotton-growing industry; otherwise the different types of seed will be mixed, crossing will take place in the field, the varieties will be mongrelized and cease to be uniform, the fiber will deteriorate in quality, and the seed will be rendered unfit for planting.

history: (History: Amended by Stats. 2008, Ch. 189, Sec. 2. Effective January 1, 2009. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

division: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS

chapter: 4. San Joaquin Valley Quality Cotton District

article: 1. General Provisions


text: The Legislature declares that the development of varieties or species of cotton which meet the desired quality of Acala or Pima cotton should be encouraged, if reasonable restrictions are imposed to prevent contamination and preserve integrity of the high quality cotton produced within the district.

history: (History: Repealed and added by Stats. 1990, Ch. 730, Sec. 3. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 1. General Provisions


text: The production and marketing of Acala and Pima cotton produced in this state is hereby declared to be affected with public interest. This chapter is enacted in the exercise of the police power of this state for the purpose of protecting the health, peace, safety, and general welfare of the people of this state.

article: 1. General Provisions


text: No action taken by the board, nor by an individual in accordance with this chapter or pursuant to the regulations adopted under this chapter, is a violation of the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), the Unfair Practices Act (Chapter 4 (commencing with Section 17000) of that Part 2), or any statutory or common law against monopolies or combinations in restraint of trade.

article: 1. General Provisions


text: The Legislature further declares that all cotton approved by the board for planting in the district is for the benefit of the cotton-growing industry and is not for the exclusive or limited use of any person.

history: (History: Amended by Stats. 2008, Ch. 189, Sec. 3. Effective January 1, 2009. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 1. General Provisions


text: “Board” means the San Joaquin Valley Cotton Board.

history: (History: Amended by Stats. 1990, Ch. 730, Sec. 4. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 2. Definitions

path: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS > 4. San Joaquin Valley Quality Cotton District > 2. Definitions


text: “Industry members” means cottonseed oil crushers, handlers of raw cotton fiber, and cotton ginners or employees thereof.

history: (History: Added by Stats. 1978, Ch. 592. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 2. Definitions


text: “Handlers of raw cotton fiber” or “merchant” means any person or organization that is primarily engaged in the business of buying and selling spot cotton or forward contract cotton.

history: (History: Amended by Stats. 2008, Ch. 189, Sec. 4. Effective January 1, 2009. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 2. Definitions


text: “Cotton ginning organization” means any person or organization owning or operating one or more cotton gins.

article: 2. Definitions


text: “District” means the “San Joaquin Valley Quality Cotton District” which is comprised of all the counties in the San Joaquin Valley where cotton is produced.

history: (History: Amended by Stats. 1990, Ch. 730, Sec. 5. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 2. Definitions


text: “Delinter” means any person who, by any means or method, causes the short fibers to be removed from the seed coat of cottonseed.

history: (History: Added by Stats. 1987, Ch. 161, Sec. 6. Effective July 15, 1987. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 2. Definitions


text: “Cotton growers” or “growers” means any person in the district who produces, or causes to be produced, cotton for market.

history: (History: Added by Stats. 2008, Ch. 189, Sec. 5. Effective January 1, 2009. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 2. Definitions


text: “Handlers of whole cottonseed” means any person or organization that is engaged in the business of buying, selling, or processing whole cottonseed.

history: (History: Added by Stats. 2008, Ch. 189, Sec. 6. Effective January 1, 2009. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 2. Definitions


text:
There is in the state government the San Joaquin Valley Cotton Board. The board shall be composed of seven cotton growers, three cotton industry members operating in the San Joaquin Valley, and one public member.

(a) The grower members shall be elected by the cotton growers in the county they represent, as follows:

(1) There shall be five elected growers representing each of the five counties within the district with the largest cotton acreage.

(2) There shall be an additional elected grower from each of the two counties within the district with the largest cotton acreage.

(b) The three cotton industry members shall be elected as follows:

(1) One member elected from and by handlers of whole cottonseed.

(2) One member elected from and by handlers of raw cotton fiber.

(3) One member elected from and by cotton ginning organizations.

(4) An organization may not be represented in more than one of the categories specified in the foregoing paragraphs.

(c) One public member shall be appointed by the secretary. The board shall submit a list of three public members to the secretary. The secretary shall choose one public member from the list to serve as a member on the board. If the secretary determines that those on the list are unacceptable, the board shall submit a new list containing the names of three public members from which the secretary shall choose one. This procedure shall continue until a public member has been selected by the secretary to serve on the board.

(d) In addition, the board shall select one representative each from the United States Department of Agriculture and the University of California, and two representatives each from cotton planting seed delinting organizations, and organizations involved in the reproduction, sale, and distribution of cottonseed in the district, to serve as nonvoting ex officio members of the board. These members shall not be selected from the same organization.

history: (History: Amended by Stats. 2008, Ch. 189, Sec. 7. Effective January 1, 2009. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 3. San Joaquin Valley Cotton Board

path: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS > 4. San Joaquin Valley Quality Cotton District > 3. San Joaquin Valley Cotton Board


text: The secretary shall establish a list of growers and other persons and organizations subject to this chapter. Each person or organization on the list shall have one vote in any election conducted pursuant to Sections 52871 and 52873 in which that person or organization is authorized to vote.

history: (History: Amended by Stats. 1995, Ch. 136, Sec. 3. Effective January 1, 1996. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 3. San Joaquin Valley Cotton Board


text:
The secretary shall supervise and conduct any election held pursuant to Section 52871 and this section. Elections for grower members and elections for industry members shall be conducted as follows:

(a) The secretary shall distribute nomination petitions to each person or organization listed pursuant to Section 52872, and authorized to vote under Section 52871 in the election being held. The petition of signatures in support of a nominee signed by those whom the nominee represents shall be submitted to the secretary in order to nominate any candidate for election to the board within 30 days from the date of the secretary’s distribution of those petitions. There shall be at least 10 signatures on each petition of nomination for a cotton grower candidate, at least two signatures on each petition of nomination for handlers of whole cottonseed candidates, at least six signatures on each petition of nomination for handlers of raw cotton fiber candidates, and at least 10 signatures on each petition of nomination for cotton ginning candidates.

(b) The submitted petitions for nomination shall be verified by the secretary, and an election ballot containing the names of persons nominated shall thereafter be mailed to the persons and organizations eligible to vote in the election.

history: (History: Amended by Stats. 2008, Ch. 189, Sec. 8. Effective January 1, 2009. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 3. San Joaquin Valley Cotton Board


text: Each member of the board, except the ex officio members, shall have an alternate member, who shall be a candidate for election in the same manner as the member. The candidate receiving the greatest number of votes in the election for the vacant position shall be the member. The candidate with the next highest number of votes in the election for the vacant position shall be the alternate. In the event of a tie vote in electing members or alternates, the secretary, by lot, shall determine the member and alternate.

history: (History: Amended by Stats. 1995, Ch. 136, Sec. 5. Effective January 1, 1996. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 3. San Joaquin Valley Cotton Board


text:
An alternate member, in the absence of the member for whom he or she is alternate, shall sit in place of the member on the board, and shall have, and be able to exercise, all the rights, privileges, and powers of the member when sitting on the board. In the event of death, removal, resignation, or the disqualification of a member, the alternate shall act as a member on the board for the remainder of the term.

If an alternate member is unable to continue serving in that position because he or she has replaced a member on the board or is unable to continue serving for any other reason, a new alternate shall be selected, by majority vote of the board. However, that person shall fulfill all the qualifications set forth in this article as required for the alternate member whose office he or she is to fill. Qualification of any person to fill vacancies on the board shall be certified, in writing, by the secretary.

history: (History: Amended by Stats. 1995, Ch. 136, Sec. 6. Effective January 1, 1996. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 3. San Joaquin Valley Cotton Board


text:
Grower members and their alternates on the board shall have a financial interest in producing, or causing to be produced, cotton for market.

Cotton industry members or their alternates shall have a financial interest in, or be employed by, any person or organization handling cotton for markets.

The public member or his or her alternate on the board shall have all the powers, rights, and privileges of any other member on the board, but shall not have any direct financial interest in the cotton industry.

history: (History: Amended by Stats. 2008, Ch. 189, Sec. 9. Effective January 1, 2009. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 3. San Joaquin Valley Cotton Board


text: The term of office for each member, alternate, and ex officio member of the board is four years.

history: (History: Amended by Stats. 1981, Ch. 433, Sec. 5. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 3. San Joaquin Valley Cotton Board


text: Upon implementation of Article 9.5 (commencing with Section 52951), the board shall have the power to sue and be sued, and to enter into contracts. Copies of its proceedings, records, and acts, when certified by the secretary of the board, shall be admissible in evidence in all courts of the state, and shall be prima facie evidence of the truth of all statements therein.

history: (History: Amended by Stats. 2008, Ch. 189, Sec. 10. Effective January 1, 2009. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 3. San Joaquin Valley Cotton Board


text: The board may appoint its own officers, including a chairman, one or more vice chairmen, and such other officers as it deems necessary. The officers shall have the powers and duties as may be delegated to them by the board.

article: 3. San Joaquin Valley Cotton Board


text: The board may appoint committees composed of both members and nonmembers of the board to advise the board in carrying out this chapter. The board may retain outside counsel, with the approval of the Attorney General, when a possibility of conflict exists between the board and the department.

history: (History: Amended by Stats. 1995, Ch. 136, Sec. 8. Effective January 1, 1996. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 3. San Joaquin Valley Cotton Board


text: The board shall meet at least once a year, or at the call of the chairperson or the secretary, or at the request of any six voting members of the board.

history: (History: Amended by Stats. 2008, Ch. 189, Sec. 11. Effective January 1, 2009. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 3. San Joaquin Valley Cotton Board


text: A quorum of the board shall be any six voting members or their alternates. The vote of a majority of members present at a meeting at which there is a quorum shall constitute the act of the board.

history: (History: Amended by Stats. 2008, Ch. 189, Sec. 12. Effective January 1, 2009. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 3. San Joaquin Valley Cotton Board


text: The secretary or the secretary’s representatives shall be notified and may attend each meeting of the board.

history: (History: Amended by Stats. 1995, Ch. 136, Sec. 10. Effective January 1, 1996. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 3. San Joaquin Valley Cotton Board


text: No board member, alternate, member of a committee who is a nonmember of the board, or ex officio member shall receive a salary, but may, if approved by the board, be allowed per diem in accordance with Department of Human Resources rules for each day spent in actual attendance on, or in traveling to and from, meetings of the board or committees of the board, or on special assignment for the board.

history: (History: Amended by Stats. 2012, Ch. 665, Sec. 26. (SB 1308) Effective January 1, 2013. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 3. San Joaquin Valley Cotton Board


text: Upon board action, all moneys received by any person from the assessments levied under the authority of Article 9.5 (commencing with Section 52951) of this chapter shall be deposited in banks designated by the board and shall be disbursed by order of the board through the agent or agents it designates for that purpose. Any designated agent shall be bonded by a fidelity bond, executed by a surety company authorized to transact business in California, in favor of the board, conditioned upon the faithful performance of the agent’s duties and the strict accounting of all funds of the board, in the amount determined by the board.

history: (History: Amended by Stats. 2008, Ch. 189, Sec. 13. Effective January 1, 2009. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 3. San Joaquin Valley Cotton Board


text: The state shall not be liable for the acts of the board or its contracts. Payment of all claims arising by reason of the administration of this chapter or acts of the board shall be limited to the funds collected under this chapter. No member of the board or alternate member, or any employee or agent thereof, shall be personally liable on the contracts of the board nor shall a board member, alternate member, or employee of the board be responsible individually or jointly in any way to any cotton grower or handler or any other person for error in judgment, mistakes, or other acts, either of the board or omission, as principal, agent, or employee, except for his or her own individual acts of dishonesty or crime. No board member or alternate member shall be held responsible individually for any act or omission of any member of the board. The liability of the board members shall be several and not joint, and no board members shall be liable for the default of any other board member.

history: (History: Amended by Stats. 2008, Ch. 189, Sec. 14. Effective January 1, 2009. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 3. San Joaquin Valley Cotton Board


text:
The secretary may require the board to correct or cease any activity or function that is determined by the secretary not to be in the public interest or that is in violation of this chapter. If the board refuses or fails to cease those activities or functions or to make such corrections as required by the secretary, the secretary may, upon written notice, suspend all or a portion of the activities of the board until the time that the cessation or correction of activities or functions as required by the secretary have been accomplished.

Written notice to cease any activity that is the subject of a contract entered into by the board prior to the notice, shall not be effective until after the period of notice for termination provided in the contract or 120 days, whichever is shorter. Upon service of the written notice, the secretary shall give written notification to the board of the specific acts that the secretary determines are not in the public interest or are in violation of this chapter.

history: (History: Amended by Stats. 1995, Ch. 136, Sec. 11. Effective January 1, 1996. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 3. San Joaquin Valley Cotton Board


text: Either the secretary or the board may bring an action for judicial relief in a court of competent jurisdiction, which may thereafter issue a temporary restraining order, a permanent injunction, or other applicable relief.

history: (History: Amended by Stats. 1995, Ch. 136, Sec. 12. Effective January 1, 1996. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 3. San Joaquin Valley Cotton Board


text:
The powers and duties of the board shall include, but not be limited to, all of the following:

(a) Establish a separate Acala and Pima quality standard. When determining each standard, the board shall consider fiber length, strength, uniformity, micronaire, seed quality, productivity, resistance to disease, including verticillium wilt, and spinning characteristics.

(b) Annually review test data and approve for release and planting within the district, cotton varieties that meet the existing Acala or Pima quality standard but are superior in some meaningful respect, as determined by the board, and that have qualities generally recognized by the cotton industry to be essential factors in producing that cotton within the district, or significant area within the district.

(c) Conduct or commission tests for cotton production and quality evaluation in accordance with procedures to be adopted pursuant to Section 52902, and assess fees necessary for administering those tests.

(d) Conduct periodic referendums, as specified in this chapter, regarding the continuation of the district. A referendum shall also be conducted whenever the board proposes substantive changes in the Acala or Pima quality standard.

(e) Require all cotton varieties approved for release for planting, and produced in the district, to contain the word “Acala” or “Pima” in labeling and all lint to be marketed as “SJV Acala” or “SJV Pima.”

(f) Recommend to the secretary on all matters pertaining to this chapter including, but not limited to, the program for enforcing this chapter and the setting of an appropriate seed assessment rate necessary for the administration of this chapter.

history: (History: Amended by Stats. 1998, Ch. 708, Sec. 2. Effective January 1, 1999. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 4. Duties and Powers of the Board

path: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS > 4. San Joaquin Valley Quality Cotton District > 4. Duties and Powers of the Board


text:
(a) The board may, by resolution, take actions that are in the best interest of the cotton industry in the district, which shall include, but not be limited to, the growing of cottons other than Acala and Pima. The resolution may contain provisions to protect the quality and integrity of approved fiber and seed grown within the district.

(b) The resolution shall be subject to a referendum conducted by the secretary, upon the request of the board, using information supplied by the board and other information as determined by the secretary, or a referendum shall be conducted by the secretary if a petition signed by not less than 5 percent of the qualified cotton growers in the district is presented to the board. The costs of any referendum conducted pursuant to this chapter shall be paid from funds collected pursuant to this chapter.

(c) The secretary shall find the resolution approved if either of the following conditions is met:

(1) Not less than 65 percent of the cotton growers certified by the secretary who voted in the referendum, voted in favor, and that those cotton growers so voting represent at least a majority of the cotton producing acreage of all cotton growers who voted in the referendum.

(2) At least a majority of those cotton growers who voted in the referendum voted in favor and that those cotton growers so voting represent not less than 65 percent of the cotton producing acreage of all cotton growers who voted in the referendum. The secretary shall then so certify to the board, which shall then make the approved resolution effective as an order of the board within 10 days after the certification by the secretary.

history: (History: Amended by Stats. 2009, Ch. 140, Sec. 77. (AB 1164) Effective January 1, 2010. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 4. Duties and Powers of the Board


text:
Upon implementation of Article 9.5 (commencing with Section 52951), the powers and duties of the board shall also include, but not be limited to, all of the following:

(a) To adopt, and from time to time alter, rescind, modify, and amend, all proper and necessary rules, regulations, and orders for carrying out the provisions of this chapter and for exercising its powers and the performance of its duties, including rules for regulation of appeals from any rule, regulation, or order of the board.

(b) To administer and enforce this chapter, and to do and perform all acts and exercise all powers incidental to or in connection with or deemed reasonably necessary, proper, or advisable to effectuate the purposes of this chapter.

(c) To employ a manager to serve, at the pleasure of the board, as president and chief executive officer of the board and other personnel, including legal counsel, that are necessary to carry out the provisions of this chapter.

(d) To establish offices and incur expense, and to enter into any and all contracts and agreements, and to create such liabilities and borrow such funds in advance of receipt of assessments as may be necessary, in the opinion of the board, for the proper administration and enforcement of this chapter and the performance of its duties.

(e) To promote the sale of cotton by advertising and other promotional means for the purpose of maintaining and expanding present markets and creating new and larger intrastate, interstate, and foreign markets for cotton.

(f) To enter into cost-sharing advertising with other products considered, by the board, to be fair and equitable to both parties.

(g) In the discretion of the board, to make, in the name of the board, contracts to render service in formulating and conducting plans and programs, and other contracts or agreements deemed necessary for the promotion of the sale of cotton.

(h) In the discretion of the board, to conduct, and contract with others to conduct, scientific research, including the study, analysis, dissemination, and accumulation of information obtained from that research or elsewhere regarding the marketing and production of cotton. In connection with that research, the board shall have the power to accept contributions of, or to match, private, state, or federal funds that may be available for those purposes, and to employ or make contributions of funds to other persons or state or federal agencies conducting that research.

(i) In the discretion of the board, to publish and distribute, without charge, a bulletin or other communication for dissemination of information relating to the cotton industry to growers and other industry members.

history: (History: Amended by Stats. 2009, Ch. 140, Sec. 78. (AB 1164) Effective January 1, 2010. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 4. Duties and Powers of the Board


text: The board may require that all cottonseed delinted for planting within the district be certified by a qualified seed certification agency as provided by subdivision (d) of Section 52482.

history: (History: Amended by Stats. 2008, Ch. 189, Sec. 17. Effective January 1, 2009.)

article: 4. Duties and Powers of the Board


text:
The planting, possessing for planting, growing, picking, harvesting, ginning of cotton, delinting of cottonseed, or sale of lint by anyone conducting research on nonapproved varieties shall be in compliance with regulations adopted by the department. The department shall also adopt regulations to accomplish all of the following purposes:

(a) Maintain the integrity of approved Acala or Pima cotton and prevent contamination of those types of cotton.

(b) Require that applicants notify the department regarding the location of test sites and of the dates and procedures for planting, harvesting, and ginning of cotton.

(c) Establish a procedure for importing cottonseed into the district.

history: (History: Amended by Stats. 2008, Ch. 189, Sec. 18. Effective January 1, 2009.)

article: 5. Nonapproved Variety Research

path: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS > 4. San Joaquin Valley Quality Cotton District > 5. Nonapproved Variety Research


text: Before any nonapproved cotton is approved by the board for release and planting in the district, it shall be submitted to the board for production and quality evaluation and tests. The secretary, in consultation with the board and the University of California, shall adopt procedures for testing nonapproved cotton varieties. Variety tests shall be conducted for a minimum of three years prior to approval and release of the variety.

history: (History: Amended by Stats. 1995, Ch. 136, Sec. 16. Effective January 1, 1996. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 5. Nonapproved Variety Research


text: The secretary, by permit, may allow seed cotton produced outside the district to be ginned within the district if the planting seed has met the requirements of subdivision (c) of Section 52901. Cottonseed and lint resulting from these ginnings shall be disposed of as directed by the permit. Permittees may be charged an assessment not to exceed four dollars ($4) per bale to recover the department’s costs for permit enforcement.

history: (History: Amended by Stats. 1995, Ch. 136, Sec. 17. Effective January 1, 1996. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 5. Nonapproved Variety Research


text: This chapter does not apply to the transportation of cottonseed through the district established by this chapter, from a point outside of the district to a destination outside of the district.

history: (History: Added by Stats. 1978, Ch. 592. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 6. Exceptions

path: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS > 4. San Joaquin Valley Quality Cotton District > 6. Exceptions


text: All breeders seed for varieties developed by the United States Department of Agriculture or the University of California, and approved for release and planting by the board shall be allocated to the Foundation Seed and Seed Certification Service (FSSC) for expansion to foundation seed in cooperation with the board.FSSC shall distribute foundation seed to all qualified recipients. If there is not enough foundation seed available to satisfy all requests for foundation seed, FSSC may allocate the seed based upon any reasonable criteria, such as prior years acreage or allocation.

history: (History: Amended by Stats. 1995, Ch. 136, Sec. 18. Effective January 1, 1996. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 7. Seed Distribution

path: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS > 4. San Joaquin Valley Quality Cotton District > 7. Seed Distribution


text: FSSC shall provide a method that will enable persons requesting foundation seed who have no history of cottonseed distribution to receive an initial allocation of foundation seed.

history: (History: Amended by Stats. 1995, Ch. 136, Sec. 19. Effective January 1, 1996. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 7. Seed Distribution


text: FSSC shall develop criteria in consultation with the board for the allocation of foundation seed to qualified recipients. FSSC shall determine who is a qualified recipient and allocate foundation seed pursuant to that criteria.

history: (History: Amended by Stats. 1995, Ch. 136, Sec. 20. Effective January 1, 1996. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 7. Seed Distribution


text: A referendum of all cotton growers within the district shall be conducted if a petition, signed by not less than 5 percent of the cotton growers in the district, is submitted to the secretary, which calls for a referendum pertaining to the operation of this chapter.

history: (History: Amended by Stats. 2009, Ch. 140, Sec. 79. (AB 1164) Effective January 1, 2010. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 8. Referendum

path: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS > 4. San Joaquin Valley Quality Cotton District > 8. Referendum


text:
This chapter shall remain operative if either of the following conditions is met:

(a) Not less than 65 percent of the cotton growers certified by the secretary who voted in the referendum, voted in favor of this chapter, and those cotton growers so voting represent at least a majority of the cotton producing acreage of all cotton growers who voted in the referendum.

(b) At least a majority of those cotton growers who voted in the referendum voted in favor of this chapter and those cotton growers so voting represent not less than 65 percent of the cotton producing acreage of all cotton growers who voted in the referendum.

history: (History: Amended by Stats. 2009, Ch. 140, Sec. 80. (AB 1164) Effective January 1, 2010. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 8. Referendum


text: Nonreceipt of a ballot shall not invalidate such a referendum.

article: 8. Referendum


text: If the secretary finds that a favorable vote has been given as provided in Section 52932, he or she shall so certify and give notice of that favorable vote to the cotton growers in the district.

history: (History: Amended by Stats. 2008, Ch. 189, Sec. 21. Effective January 1, 2009. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 8. Referendum


text: If the secretary finds that a favorable vote has not been given as provided in Section 52932, the secretary shall so certify and declare all provisions of this chapter inoperative.

history: (History: Amended by Stats. 2008, Ch. 189, Sec. 22. Effective January 1, 2009. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 8. Referendum


text: In addition to Section 52931, the board may hold a referendum whenever the board proposes changes to the Acala or Pima quality standard as provided in Section 52891.

history: (History: Amended by Stats. 2008, Ch. 189, Sec. 23. Effective January 1, 2009. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 8. Referendum


text: A referendum shall be held if the board proposes to implement promotion and research funding as provided in Article 9.5 (commencing with Section 52951) of this chapter.

history: (History: Amended by Stats. 2008, Ch. 189, Sec. 24. Effective January 1, 2009. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 8. Referendum


text: The board may call for a referendum at any time.

article: 8. Referendum


text:
(a) Any person who has cottonseed delinted for planting purposes under this chapter, shall annually pay to the secretary an assessment in an amount not to exceed six dollars ($6) per hundredweight on the undelinted weight of the cottonseed.

(b) Cottonseed delinters, by June 15th of each year, shall provide the secretary with the name and address of each person having cottonseed delinted and the undelinted weight of their cottonseed.

history: (History: Amended by Stats. 2003, Ch. 236, Sec. 1. Effective August 11, 2003. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 9. Board and Enforcement Funding

path: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS > 4. San Joaquin Valley Quality Cotton District > 9. Board and Enforcement Funding


text: The assessment shall be used exclusively for enforcement of the provisions of this chapter, and the board functions including cotton variety testing and related administrative expenses.

article: 9. Board and Enforcement Funding


text: The secretary, after investigation and due notice, may fix the annual assessment provided under Section 52941 at a lesser amount that would provide sufficient funds to defray the board and enforcement costs incurred in administering this chapter.

history: (History: Amended by Stats. 1995, Ch. 136, Sec. 26. Effective January 1, 1996. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 9. Board and Enforcement Funding


text: The assessment shall be paid to the secretary within one calendar month after July 1 of each year, for cottonseed delinted in the preceding fiscal year or portion of a fiscal year beginning July 1, except that no assessment shall be paid by any person or organization for any cottonseed for which the assessment has been previously paid. If not paid within that period, a penalty of 10 percent of the assessment owed shall be due and payable to the secretary.

history: (History: Amended by Stats. 1995, Ch. 136, Sec. 27. Effective January 1, 1996. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 9. Board and Enforcement Funding


text: All moneys that are received by the secretary pursuant to this chapter shall be deposited in the Department of Food and Agriculture Fund and shall be expended only for the purposes of this chapter.

history: (History: Amended by Stats. 1995, Ch. 136, Sec. 28. Effective January 1, 1996. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 9. Board and Enforcement Funding


text: The board is authorized to annually assess cotton growers in the district in an amount not to exceed one-half of 1 percent of each grower’s gross dollar value from the previous year’s cotton crop.

history: (History: Amended by Stats. 2008, Ch. 189, Sec. 25. Effective January 1, 2009. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 9.5. Promotion and Research Funding

path: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS > 4. San Joaquin Valley Quality Cotton District > 9.5. Promotion and Research Funding


text: Assessments collected under this article are subject to Section 52937 and Section 52932 and shall be used exclusively for promotion, research, and related administrative expenses.

article: 9.5. Promotion and Research Funding


text:
The board shall develop a procedure for collecting assessments under this article.

(a) Collection of the assessment may be required of cotton growers or cotton handlers.

(b) A penalty of 10 percent of the unpaid assessment fee due and payable may be imposed.

history: (History: Amended by Stats. 2008, Ch. 189, Sec. 26. Effective January 1, 2009. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 9.5. Promotion and Research Funding


text: The secretary, and the commissioner of each county acting under the secretary’s supervision, shall enforce this chapter and carry out its provisions and requirements.

history: (History: Amended by Stats. 1995, Ch. 136, Sec. 29. Effective January 1, 1996. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 10. Enforcement

path: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS > 4. San Joaquin Valley Quality Cotton District > 10. Enforcement


text: It is unlawful for any person to violate the provisions of this chapter.

history: (History: Added by Stats. 1978, Ch. 592. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 11. Violations and Penalties

path: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS > 4. San Joaquin Valley Quality Cotton District > 11. Violations and Penalties


text: Except as otherwise provided in Article 5 (commencing with Section 52901), and Article 12 (commencing with Section 52981), in the district established by this chapter, it is unlawful for any person to plant, possess for planting, pick, harvest, gin, or delint any cotton except those seeds or plants that are approved by the board for planting within the district.

history: (History: Amended by Stats. 2008, Ch. 189, Sec. 27. Effective January 1, 2009. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 11. Violations and Penalties


text: Any person who violates any provision of this chapter is guilty of a misdemeanor and, in addition thereto, is liable in a civil action for all damages that may be occasioned or caused by a violation of this chapter.

article: 11. Violations and Penalties


text: Any seed cotton, cotton plant, or cottonseed that does not comply with this chapter is a public nuisance and is subject to seizure on complaint of the secretary or commissioner to a court of competent jurisdiction in the area in which the seed cotton, cotton plant, or cottonseed is located.

history: (History: Amended by Stats. 1995, Ch. 136, Sec. 30. Effective January 1, 1996. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 11. Violations and Penalties


text: The district attorney of the county in which any nuisance is found, at the request of the secretary or the commissioner, shall maintain, in the name of the people of the state, a civil action to abate and prevent the nuisance. Upon judgment and order of the court, that nuisance shall be condemned and destroyed in the manner directed by the court, denatured, or otherwise processed, or released upon conditions that the court may impose to ensure that the nuisance will be abated.

history: (History: Amended by Stats. 2008, Ch. 189, Sec. 28. Effective January 1, 2009. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 11. Violations and Penalties


text:
If the owner fails to comply with the order of the court within the time that is specified in the order, the court shall order the secretary, commissioner, sheriff, or marshal to dispose of the seed cotton, cotton plant, or cottonseed and containers, under those terms and conditions as the court may describe.

If the court orders the sale of any of the seed cotton, cotton plants, or cottonseed and containers that can be salvaged, the costs of disposal shall be deducted from the proceeds of sale and the balance shall be paid into court for the owner.

history: (History: Amended by Stats. 1996, Ch. 872, Sec. 33. Effective January 1, 1997. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 11. Violations and Penalties


text:
(a) Notwithstanding any other provision of this chapter, nonapproved varieties of cotton may be grown in the district, subject to regulations proposed by the board and adopted by the department.

(b) The department shall adopt regulations that ensure that the growing of nonapproved varieties of cotton do not adversely affect the quality of Acala and Pima cotton approved to be grown in the district.

history: (History: Added by Stats. 1998, Ch. 708, Sec. 3. Effective January 1, 1999.)

article: 12. Growing of Nonapproved Varieties

path: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS > 4. San Joaquin Valley Quality Cotton District > 12. Growing of Nonapproved Varieties


text: Article 9 (commencing with Section 52941), Article 10 (commencing with Section 52961), and Article 11 (commencing with Section 52971) apply to this article, except that the secretary may increase the assessment specified in Article 9 (commencing with Section 52941) in the amount necessary to enforce the regulations adopted by the department for nonapproved varieties of cotton grown in the district pursuant to this article, in order to ensure the quality of Acala and Pima cotton grown in the district.

history: (History: Added by Stats. 1998, Ch. 708, Sec. 3. Effective January 1, 1999. Conditionally inoperative on January 1, 2014, as prescribed in Section 52991.)

article: 12. Growing of Nonapproved Varieties


text:
(a) Except as specified in Section 52992, on and after January 1, 2014, the provisions of this chapter, and any regulations adopted pursuant to this chapter, shall become inoperative unless either of the following occurs:

(1) A resolution is approved in accordance with the procedures specified in subdivision (c) of Section 52891.1, as that section read on January 1, 2013, to continue the operation of this chapter.

(2) The secretary receives a petition from members of the cotton industry in the San Joaquin Valley and makes a determination that circumstances in the California cotton industry indicate that the operation of specified sections of this chapter is in the best interests of the cotton industry and the state. If the secretary makes that determination, the secretary may establish a committee to advise the secretary. The committee shall be comprised of cotton growers, handlers of whole cottonseed, handlers of raw cotton fiber, and representatives of cotton ginning organizations.

(b) If the provisions of this chapter become operative as described in paragraphs (1) and (2) of subdivision (a), the department shall post this fact on its Internet Web site.

history: (History: Added by Stats. 2013, Ch. 383, Sec. 2. (AB 1389) Effective January 1, 2014.)

article: 13. Operation

path: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS > 4. San Joaquin Valley Quality Cotton District > 13. Operation


text:
The following sections of this chapter shall remain operative and shall be administered by the secretary:

(a) Section 52893 as it relates to certified cottonseed.

(b) Section 52901 as it relates to certified cottonseed and colored cotton.

(c) Section 52981 as it relates to colored cotton.

article: 13. Operation


text: The secretary shall not be required to administer this article or any provisions of this chapter that are operative pursuant to Sections 52991 and 52992 unless the secretary determines that there are sufficient funds remaining in the Department of Food and Agriculture Fund that were deposited and authorized to be expended for the purposes of this chapter, or from other sources, including the California cotton industry, to pay the costs incurred by the secretary.

article: 13. Operation


text: Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.

history: (History: Enacted by Stats. 1967, Ch. 15.)

chapter: 5. Nursery Stock Grades and Standards

article: 1. Definitions

path: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS > 5. Nursery Stock Grades and Standards > 1. Definitions


text: “Advertisement” means any representation which relates to nursery stock, that is disseminated in any manner or by any means, except a representation which is on the label.

article: 1. Definitions


text: “Decorative plants” means indoor plants which are commonly grown and sold in movable containers, and which are not adapted for cultivation out of doors because of climatic conditions and natural peculiarities of habit or growth and because of the purpose of their cultivation.

article: 1. Definitions


text: “Grade size” means the designation relating to nursery stock which denotes the height, spread, caliper, dimension, condition, quality, age, methods of propagation, or means of growth.

article: 1. Definitions


text: “Labeling” means all labels, and other written, printed, or graphic representations, in any form whatsoever, which accompanies and pertains to any nursery stock.

article: 1. Definitions


text: “Nursery stock” means all kinds of nursery stock except decorative plants and seeds.

article: 1. Definitions


text: “Ornamental” means any plant which is grown for ornamental purposes, except decorative plants, dormant bulbs, tubers, roots, corms, rhizomes, and pips.

article: 1. Definitions


text: “Botanical name” means the genus and species, the genus, species, and cultivar name, or the genus and cultivar name given to a plant in accordance with the International Code of Botanical Nomenclature and the International Code of Nomenclature of Cultivated Plants.

history: (History: Added by Stats. 1981, Ch. 622, Sec. 1.)

article: 1. Definitions


text: “Cultivar name” means the cultivated variety name given to a plant in accordance with the International Code of Nomenclature of Cultivated Plants, without regard to whether that plant is selected from a wild or cultivated population or produced through hybridization.

history: (History: Added by Stats. 1981, Ch. 622, Sec. 2.)

article: 1. Definitions


text: “Blend” means a combination of the same kinds of nursery stock.

history: (History: Added by Stats. 1981, Ch. 622, Sec. 3.)

article: 1. Definitions


text: “Mixture” means a combination of two or more kinds of nursery stock.

history: (History: Added by Stats. 1981, Ch. 622, Sec. 4.)

article: 1. Definitions


text: “Sod” means grassy surface soil nursery stock held together by matted roots of the grass.

history: (History: Added by Stats. 1981, Ch. 622, Sec. 5.)

article: 1. Definitions


text: “Turf” means grassy surface soil nursery stock consisting of grass cultivars, mixtures or blends of grass cultivars, and dichondra for use in residential and commercial landscapes.

history: (History: Added by Stats. 1981, Ch. 622, Sec. 6.)

article: 1. Definitions


text: The Legislature hereby declares that by making any additions to or amendments of this chapter it intends to formulate a system of grades and standards and minimum requirements for nursery stock to the end that purchasers of nursery stock may have adequate knowledge concerning the name and the grade size of nursery stock with relation to established standards. If, however, any provisions of, or amendment or addition to, this chapter, either as originally enacted or as amended or added to, should be held to be unconstitutional, the unconstitutionality of such provision shall not affect any other provision of this chapter.

article: 2. General Provisions

path: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS > 5. Nursery Stock Grades and Standards > 2. General Provisions


text: The Legislature hereby declares that it would have enacted each section, subdivision, sentence, clause, or phrase of this chapter irrespective of the fact that one or more other sections, subdivisions, sentences, clauses, or phrases be declared unconstitutional.

article: 2. General Provisions


text: The director and the commissioners of each county of the state, their deputies and inspectors, under the supervision and control of the director, shall enforce this chapter.

article: 3. Enforcement

path: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS > 5. Nursery Stock Grades and Standards > 3. Enforcement


text: For the purpose of carrying out the provisions of this chapter, all enforcing officers may enter upon any public or private premises in order to have access to nursery stock subject to this chapter and the regulations which are adopted pursuant to it.

article: 3. Enforcement


text: If the director or the commissioner shall find that any person has violated any provision of this chapter, he may institute proceedings in a court of competent jurisdiction in the area in which the violation occurred, to have such person convicted of the violation, or he may file with the district attorney such evidence that may be deemed necessary.

article: 3. Enforcement


text: The director may adopt regulations which may be necessary to carry into effect the purposes of this chapter and each section of it, and may issue in relation to this chapter explanatory data and charts.

article: 4. Regulations

path: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS > 5. Nursery Stock Grades and Standards > 4. Regulations


text: The director by regulations may provide for grade sizes of the different kinds of nursery stock, and may provide that nursery stock shall be labeled with grade sizes which are established by such regulations. The director may make such other regulations as are necessary to carry out the provisions of this chapter.

article: 4. Regulations


text: The director or the commissioner may issue and enforce a written or printed warning tag or notice to the owner or custodian of any lot of nursery stock which he finds is in violation of any provision of this chapter, which shall prohibit movement of such nursery stock until such officer has evidence that the law has been complied with. Upon compliance such order shall be removed.

article: 5. Warning Tags or Notices

path: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS > 5. Nursery Stock Grades and Standards > 5. Warning Tags or Notices


text: It is unlawful for any person to move or otherwise dispose of any lot of nursery stock which is held under a warning tag or notice except with the permission of the director or the commissioner and for the purpose specified.

article: 5. Warning Tags or Notices


text: The owner or custodian of nursery stock which is held under a warning tag or notice shall, upon demand, have the right of a hearing before the director or the commissioner as to the justification of any such order, and may appeal to the director from any order of the commissioner which is made pursuant to this article.

article: 5. Warning Tags or Notices


text: This article shall not be construed as limiting the right of the enforcement officer to proceed as authorized by other provisions of this chapter.

article: 5. Warning Tags or Notices


text: Any decision of the director pursuant to this article is subject to review by any court of competent jurisdiction.

article: 5. Warning Tags or Notices


text:
Nursery stock which is sold shall comply with all of the following requirements:

(a) It shall be living stock and shall not be dead, or in a dying condition.

(b) It shall not be seriously broken, frozen, or damaged.

(c) It shall not be abnormally potbound.

article: 6. Standards

path: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS > 5. Nursery Stock Grades and Standards > 6. Standards


text:
Deciduous fruit and nut trees which are sold shall be free from any of the following defects:

(a) Twisted, crossed, frosted, broken, or other defective roots.

(b) Broken grafts.

(c) Other deformations and defects which would interfere with the normal and proper development of such trees after planting.

article: 6. Standards


text:
When nursery stock is sold, it shall be labeled plainly and legibly as to the grade size, if so required by regulations, and as to the correct name as follows:

(a) The correct name for ornamentals, except roses, fruit trees, and annual or herbaceous perennial ornamental plants, shall be the botanical name.

(b) The correct name for fruit trees shall be the recognized common name and cultivar.

(c) The correct name for turf shall be the kind and cultivar.

(d) The correct name for roses, annual or herbaceous perennial ornamental plants, dormant bulbs, tubers, roots, corms, rhizomes, pips, and other kinds of nursery stock shall be the cultivar name, except that the recognized common name shall be required whenever no cultivar name has been given or can be determined.

history: (History: Repealed (by Sec. 7) and added by Stats. 1981, Ch. 622, Sec. 8.)

article: 7. Labeling

path: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS > 5. Nursery Stock Grades and Standards > 7. Labeling


text: In order to identify nursery stock properly, whenever it is shipped, delivered, or transported to any purchaser, each plant shall be individually labeled as to the correct name. The director may create exceptions to this section by regulation.

history: (History: Repealed and added by Stats. 1981, Ch. 622, Sec. 10.)

article: 7. Labeling


text: Nursery stock on display for sale at retail may be labeled by a sign on any block of stock of the same kind and species. Turf shall be labeled by a sign showing the required correct name of the stock on display.

history: (History: Repealed and added by Stats. 1981, Ch. 622, Sec. 12.)

article: 7. Labeling


text: This article shall become operative January 1, 1982.

history: (History: Added by Stats. 1978, Ch. 1202. Note: This section prescribes a delayed operative date for Article 7, commencing with Section 53481.)

article: 7. Labeling


text:
It is unlawful for any person to sell, ship, deliver, or transport to any purchaser any nursery stock which is within any of the following:

(a) Is not labeled in accordance with the provisions of this chapter or the regulations of the director.

(b) Has false or misleading labeling, or pertaining to which there has been a false or misleading advertisement.

(c) Is represented to be certified or registered nursery stock unless it has been produced and labeled in accordance with the procedures and in compliance with the rules and regulations of an official agency.

This section does not apply to any common carrier in respect to any nursery stock which is transported or delivered for transportation in the ordinary course of its business as a carrier.

article: 8. Violations

path: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS > 5. Nursery Stock Grades and Standards > 8. Violations


text:
It is unlawful for any person to do any of the following:

(a) Detach, alter, deface, or destroy any label, warning tag, or notice which is provided for in this chapter or in the regulations which are adopted pursuant to it, or alter or substitute nursery stock, in a manner that may defeat the purpose of this chapter.

(b) Disseminate any false or misleading advertisement concerning nursery stock in any manner or by any means.

(c) Hinder or obstruct in any way any authorized person in the performance of his duties under this chapter.

(d) Fail to comply with a warning tag or notice.

article: 8. Violations


text: The violation of any provision of this chapter is a misdemeanor and punishable by a fine of not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000), or by imprisonment in the county jail for not more than six months, or by both fine and imprisonment.

history: (History: Amended by Stats. 1983, Ch. 1092, Sec. 122. Effective September 27, 1983. Operative January 1, 1984, by Sec. 427 of Ch. 1092.)

article: 9. Penalties

path: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS > 5. Nursery Stock Grades and Standards > 9. Penalties


text: Any lot of nursery stock which does not comply with the provisions of this chapter is a public nuisance and shall be subject to seizure on complaint of the director or the commissioner to a court of competent jurisdiction in the area in which the nursery stock is located.

article: 10. Abatement

path: 18. FIELD CROPS, SEEDS, SEED POTATOES, ONE-VARIETY COTTON DISTRICTS, AND NURSERY STOCK GRADES AND STANDARDS > 5. Nursery Stock Grades and Standards > 10. Abatement


text: The district attorney of the county in which any such nuisance is found, at the request of the director or the commissioner, shall maintain, in the name of the people of the State of California, a civil action to abate and prevent such nuisance. Upon judgment and by order of the court, such nuisance shall be condemned and destroyed in the manner directed by the court, or relabeled, or reconditioned, or released upon such conditions as the court in its discretion may impose to insure the nuisance will be abated.

history: (History: Amended by Stats. 1967, Ch. 26.)

article: 10. Abatement


text: If the owner fails to comply with the order of the court within the time specified in the order, the court may order that such nursery stock be forthwith destroyed or the nuisance otherwise abated as set forth in such order.

article: 10. Abatement


text: A proceeding pursuant to this article if the value of the property is thirty-five thousand dollars ($35,000) or less is a limited civil case.

history: (History: Amended by Stats. 2023, Ch. 861, Sec. 13. (SB 71) Effective January 1, 2024.)

article: 10. Abatement


text: Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.

chapter: 1. Nonprofit Cooperative Associations

article: 1. Definitions

path: 20. PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS > 1. Nonprofit Cooperative Associations > 1. Definitions


text: “Association” means any corporation which is organized pursuant to this chapter. An association shall be deemed incorporated pursuant to this chapter, or organized pursuant to this chapter and shall be deemed a producer of a product within the meaning of this chapter, if it is functioning under, or is subject to, the provisions of this chapter, irrespective of whether it was originally incorporated pursuant to such provisions or was incorporated under other provisions.

division: 20. PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS

article: 1. Definitions


text: “Member” includes members of associations without capital stock and holders of common stock in associations which are organized with shares of stock.

article: 1. Definitions


text: “Product” includes any horticultural, viticultural, aquacultural, forestry, dairy, livestock, poultry, bee, or farm product.

history: (History: Amended by Stats. 1995, Ch. 810, Sec. 13. Effective January 1, 1996.)

article: 1. Definitions


text:
The purpose of this chapter is to do all of the following:

(a) Promote, foster, and encourage the intelligent and orderly marketing of agricultural products through cooperation.

(b) Eliminate speculation and waste.

(c) Make the distribution of agricultural products between producer and consumer as direct as can be efficiently done.

(d) Stabilize the marketing of agricultural products.

article: 2. General Provisions

path: 20. PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS > 1. Nonprofit Cooperative Associations > 2. General Provisions


text:
The following are all here recognized:

(a) Agriculture is characterized by individual production in contrast to the group or factory system that characterizes other forms of individual production.

(b) The ordinary form of corporate organization permits industrial groups to combine for the purpose of group production and the ensuing group marketing, and the public has an interest in permitting farmers to bring their industry to the high degree of efficiency and merchandising skill evidenced in the manufacturing industries.

(c) The public interest urgently needs to prevent the migration from the farm to the city in order to keep up farm production and to preserve the agricultural supply of the nation.

(d) The public interest demands that the farmer be encouraged to attain a superior and more direct system of marketing in the substitution of merchandising for the blind, unscientific, and speculative selling of crops.

article: 2. General Provisions


text: Associations which are organized pursuant to this chapter are “nonprofit,” since they are not organized to make profit for themselves, as such, or for their members, as such, but only for their members as producers.

article: 2. General Provisions


text: Any provisions of law which are in conflict with this chapter do not apply to any association which is provided for in this chapter.

article: 2. General Provisions


text: Any exemption under any existing law which applies to any agricultural product in the possession, or under the control, of the individual producer, shall apply similarly and completely to such product which is delivered by its farmer members that are in the possession, or under the control, of the association.

article: 2. General Provisions


text: A person, firm, corporation, or association, that is hereafter organized or doing business in this state, may not use the word “cooperative” as part of its corporate name or other business name or title for producers’ cooperative marketing activities, unless it has complied with this chapter or is otherwise authorized by Chapter 22 (commencing with Section 26220) of Division 10 of the Business and Professions Code.

history: (History: Amended by Stats. 2017, Ch. 27, Sec. 111. (SB 94) Effective June 27, 2017.)

article: 2. General Provisions


text: Any corporation or association which is organized pursuant to previously existing statutes for the purpose of cooperatively marketing products as defined in this chapter or under Title 23 (commencing with Section 653aa), Part 4, Division 1 of the Civil Code shall be deemed to be organized and existing pursuant to, and by virtue of, this chapter, and all of the provisions of this chapter, and any of the restrictions and benefits of such provisions, shall apply to such corporation.

article: 2. General Provisions


text:
Any association which is organized pursuant to this chapter is not any of the following:

(a) A conspiracy, a combination in restraint of trade, or an illegal monopoly.

(b) An attempt to lessen competition, to fix prices arbitrarily, or to create a combination or pool in violation of any law of this state.

article: 2. General Provisions


text: The marketing contracts and agreements between an association which is organized pursuant to this chapter and its members and any agreements authorized in this chapter are not illegal, in restraint of trade, or contrary to any statute which is enacted against pooling or combinations.

article: 2. General Provisions


text: The General Corporation Law (Division 1 (commencing with Section 100) of Title 1 of the Corporations Code) as added by Chapter 682 of the Statutes of 1975 and as heretofore or hereinafter amended and all powers and rights under such law applies to each association which is organized pursuant to this chapter, except where such provisions are in conflict with or inconsistent with the express provisions of this chapter. For the purpose of associations organized without shares of stock, the members shall be deemed to be “shareholders” as the term is used in the General Corporation Law.

history: (History: Amended by Stats. 1978, Ch. 586.)

article: 2. General Provisions


text:
(a) Subject to subdivision (c), Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure does not apply to any proprietary interest in an association organized in accordance with this chapter. Any proprietary interest that would otherwise escheat to the state pursuant to Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure shall instead become the property of the association.

(b) This section shall apply to all proprietary interests which as of January 1, 1988, have not yet been paid or delivered to the Controller pursuant to the provisions of Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure.

(c) Notwithstanding subdivision (a), no proprietary interest shall become the property of the association under this section unless all of the following requirements are satisfied:

(1) At least 60 days prior notice of the proposed transfer of the proprietary interest to the association is given to the affected member by first-class or certified mail to the last address of the member shown on the association’s records, and by publication in a newspaper of general circulation in the county in which the member last resided as shown on the association’s records. Notice given in that manner constitutes actual notice.

(2) No written notice objecting to the transfer is received by the association from the affected member or, if the member is deceased, from the member’s heirs or the executor or executrix of the estate, prior to the date of the proposed transfer.

(d) “Proprietary interest” means and includes any membership, membership certificate, membership share, share certificate, or equity or dividend certificate of any class representing a proprietary interest in, and issued by, the association together with all accrued and unpaid earnings, dividends, and patronage distributions relating thereto.

history: (History: Added by Stats. 1987, Ch. 152, Sec. 2. Effective July 10, 1987.)

article: 2. General Provisions


text:
(a) An association organized pursuant to this chapter may request the board of supervisors of the county in which the association’s principal place of business is located to issue a certificate stating that the association meets the requirements of subdivision (b). When the certificate is provided by the board of supervisors to the association, the Franchise Tax Board shall exempt the association from the minimum franchise tax as provided in paragraph (2) of subdivision (c) of Section 23153 of the Revenue and Taxation Code.

(b) The board of supervisors shall issue a certificate if all of the following conditions are met:

(1) The association is located in an economically distressed area.

(2) At least 90 percent of the association’s members are, or have been, within the previous 12 months unemployed or dependent on public social services for their income.

(3) The request is made during the association’s first income year.

(c) The certificate issued by the board of supervisors shall be retained by the association. The association shall forward a copy of the certificate to the Franchise Tax Board upon request.

(d) As used in this section, “economically distressed area” means a county in which the unemployment rate is either 9 percent, or 2 percent above the statewide average, whichever is greater; or in which 8 percent of the residents are dependent on public social services for their income, or 2 percent more of the residents than the statewide average are dependent on public social services for their income, whichever is greater.

history: (History: Added by Stats. 1994, Ch. 427, Sec. 1. Effective September 7, 1994.)

article: 2. General Provisions


text:
Three or more natural persons, a majority of whom are residents of this state, who are engaged in the production of any product, may form an association pursuant to this chapter for the purpose of engaging in any activity in connection with any of the following:

(a) The production, marketing, or selling of the products of its members.

(b) The harvesting, preserving, drying, processing, canning, packing, grading, storing, handling, shipping, or utilization of any product of its members, or the manufacturing or making of the byproducts of any product of its members.

(c) The manufacturing, selling, or supplying to its members of machinery, equipment or supplies.

(d) The financing of the activities which are specified by this section.

(e) Any one or more of the activities which are specified in this section.

history: (History: Enacted by Stats. 1967, Ch. 15.)

article: 3. Purposes

path: 20. PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS > 1. Nonprofit Cooperative Associations > 3. Purposes


text:
The articles of incorporation of the association shall show that the signers of the articles of incorporation are engaged in the production of products, and that they propose to incorporate an association pursuant to this chapter, and shall state all of the following:

(a) The name of the association.

(b) The purposes for which it is formed.

(c) The county where the principal office for the transaction of business of the association is to be located.

(d) The number of directors of the association, which shall not be less than three, and the names and addresses of the persons who are to serve as first directors. If it is desired that the first directors shall serve for terms of different length, the term for which each person so named shall serve shall also be stated.

(e) If organized without shares of stock, whether the voting power and the property rights and interest of each member are equal or unequal. If voting power and property rights and interest of each member are unequal, the general rule or rules which are applicable to all members by which the voting power and the property rights and interests, respectively, of each member may be and are determined and fixed shall also be stated.

(f) If organized with shares of stock, the number of shares which may be issued and if the shares are to have a par value, the par value of each share, and the aggregate par value of all shares. If the shares are to be without par value it shall be so stated.

If the shares of stock are to be classified, a description of the classes of shares and a statement of the number of shares of each kind or class and the nature and extent of the preferences, rights, privileges, and restrictions which are granted to or imposed upon the holders of the respective classes of stock.

Except as to the matters and things so stated, no distinction shall exist between the classes of stock or the holders of them. One class of stock shall always be known as common stock and voting power may be restricted to holders of common stock.

article: 4. Articles of Incorporation

path: 20. PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS > 1. Nonprofit Cooperative Associations > 4. Articles of Incorporation


text: Articles of incorporation shall be signed, acknowledged, and filed in the manner which is prescribed by the general laws of this state for domestic corporations.

article: 4. Articles of Incorporation


text: The articles of incorporation of any association may be amended in the manner and for the purposes which are authorized by the General Corporation Law, Division 1 (commencing with Section 100), Title 1 of the Corporations Code.

article: 4. Articles of Incorporation


text:
Each association shall, within 30 days after its incorporation, adopt for its government and management, a code of bylaws, not inconsistent with this chapter. The vote or written assent of shareholders or members that hold at least a majority of the voting power is necessary to adopt such bylaws and is effectual to repeal or amend any bylaws, or to adopt additional bylaws.

The power to repeal and amend the bylaws, and adopt new bylaws, may, by a similar vote, or similar written assent, be delegated to the board of directors, which authority may, by a similar vote, or similar written assent, be revoked.

article: 5. Bylaws

path: 20. PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS > 1. Nonprofit Cooperative Associations > 5. Bylaws


text: The bylaws may prescribe the time, place, and manner of calling and conducting its meetings. Meetings of members or stockholders shall be held at the place as provided in the bylaws; and if no provision be made, then in the city where the principal place of business is located at a place designated by the board of directors. Meetings of the board of directors may be held at any place within or without the state which is fixed by a quorum of the board of directors unless otherwise provided in the articles of incorporation or bylaws.

article: 5. Bylaws


text: The bylaws may prescribe the number of stockholders or members which constitutes a quorum.

article: 5. Bylaws


text: The bylaws may prescribe the right of members or stockholders to vote by proxy or by mail or both, and the conditions, manner, form, and effects of such votes; the right of members or stockholders to cumulate their votes and the prohibition, if desired, of cumulative voting.

article: 5. Bylaws


text: The bylaws may prescribe the number of directors which constitutes a quorum.

article: 5. Bylaws


text:
(a) The bylaws may prescribe the qualifications, compensation, duties, and term of office of directors and officers and the time of their election.

(b) The number of directors set forth in the articles of incorporation shall be either a fixed number or a variable number. If a fixed number, it shall not be less than three, and if a variable number, the stated minimum shall not be less than three and the stated maximum shall not be greater than two times the stated minimum minus one.

(c) The number of directors may also be set forth in the bylaws either as a fixed number or as a variable number subject to the same limitations as in subdivision (b). After shares have been issued or members have been admitted, any adoption or amendment of such bylaw provision shall be approved by the outstanding shares as provided in Section 152 of the Corporations Code.

(d) In the event of an inconsistency between an article provision referred to in subdivision (b) and a bylaw provision referred to in subdivision (c), the provision more recently adopted or amended shall prevail.

(e) If a variable number of directors is set forth in the articles of incorporation or the bylaws, the exact number of directors shall be fixed, within the limits specified, by approval of the board of directors or the shareholders as provided in Section 153 of the Corporations Code in the manner designated in the bylaws.

article: 5. Bylaws


text: The bylaws may prescribe penalties for violations of the bylaws.

article: 5. Bylaws


text: The bylaws may prescribe the amount of entrance, organization, and membership fees, if any; the manner and method of collection of such fees; and the purposes for which they may be used.

article: 5. Bylaws


text: The bylaws may prescribe the amount which each member or stockholder shall be required to pay annually, or from time to time, if at all, to carry on the business of the association; the charge, if any, to be paid by each member or stockholder for services which are rendered by the association to him and the time of payment and the manner of collection; and the marketing contract between the association and its members or stockholders which every member or stockholder may be required to sign.

article: 5. Bylaws


text: The bylaws may prescribe the amount of any dividends that may be declared on the stock or membership capital. To the extent that dividends are payable out of the excess of association income over association expenses attributable to business transacted with or for members, dividends shall not exceed 8 percent per annum. Dividends are in the nature of interest, and do not affect the nonprofit character of any association that is organized pursuant to this chapter.

history: (History: Amended by Stats. 1997, Ch. 46, Sec. 1. Effective January 1, 1998.)

article: 5. Bylaws


text: The bylaws may prescribe the number and qualification of members or stockholders of the association and the conditions precedent to membership or ownership of common stock; the method, time, and manner of permitting members to withdraw or the holders of common stock to transfer their stock; the manner of assignment and transfer of the interest of members, and of the shares of common stock; the conditions upon which, and time when, membership of any member shall cease; the automatic supsension of the rights of a member when he ceases to be eligible to membership in the association; and the mode, manner, and effect of the expulsion of a member.

article: 5. Bylaws


text: The bylaws may prescribe the manner of determining the value of a member’s interest and provision for its purchase by the association upon the death or withdrawal of a member or upon the expulsion of a member or forfeiture of his membership, or at the option of the association, the purchase at a price fixed by conclusive appraisal by the board of directors; and the conditions and terms for the repurchase by the association from its stockholders of their stock upon their disqualification as stockholders. In case of the expulsion of a member, and where the bylaws do not provide any procedure or penalty, the board of directors shall equitably and conclusively appraise his property interest in the association and shall fix the amount of his property interest in money, which shall be paid to him within one year after such expulsion.

article: 5. Bylaws


text: The affairs of the association shall be managed by a board of not less than three directors who are elected by the members or stockholders.

article: 6. Directors and Management

path: 20. PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS > 1. Nonprofit Cooperative Associations > 6. Directors and Management


text: The bylaws may provide that the territory in which the association has members shall be divided into districts and that directors shall be elected from the several districts. In any such case, the bylaws shall specify the number of directors to be elected by each district, the manner and method of reapportioning the directors and of redistricting the territory covered by the association.

article: 6. Directors and Management


text: The bylaws may provide that primary elections shall be held to nominate directors. If the bylaws provide that the territory in which the association has members shall be divided into districts, the bylaws may also provide that the results of the primary elections in the various districts shall be final and shall be ratified at the annual meeting of the association.

article: 6. Directors and Management


text: The bylaws may provide that the territory in which the association has members shall be divided into districts, and that the directors shall be elected by representatives or advisers, who themselves have been elected by the members or stockholders from the several territorial districts. In any such case, the bylaws shall specify the number of representatives or advisers to be elected by each district, the manner and method of reapportioning the representatives or advisers and of redistricting the territory which is covered by the association.

article: 6. Directors and Management


text: The bylaws may provide that one or more directors may be chosen by any public official or commission or by the other directors selected by the members. Such director shall represent primarily the interest of the general public in such associations. The directors so chosen shall have the same powers and rights as other directors. Such directors shall not number more than one-fifth of the entire number of directors.

article: 6. Directors and Management


text: The bylaws may provide for an executive committee and may allot to such committee all the functions and powers of the board of directors, subject to the general direction and control of the board.

article: 6. Directors and Management


text: An association may provide a fair remuneration for the time which is actually spent by its officers and directors in its service and for the service of the members of its executive committee.

history: (History: Enacted by stats. 1967, Ch. 15.)

article: 6. Directors and Management


text: If a vacancy on the board of directors occurs except by expiration of term, the remaining members of the board, by a majority vote, shall fill the vacancy unless the bylaws provide for an election of directors by districts. If the bylaws provide for an election of directors by districts, the vacancy shall be filled by the election of a director from the district in which the vacancy occurs or the board of directors may call a special meeting of the members or stockholders in that district to fill the vacancy.

article: 6. Directors and Management


text:
The directors shall elect a president, one or more vice presidents, a secretary, a treasurer, and such other officers as may be prescribed by the bylaws. Any two or more offices, except those of president and secretary, may be held by the same person.

The treasurer may be a bank or any depository and as such, shall not be considered as an officer, but as a function of the board of directors. In such case, the secretary shall perform the usual accounting duties of the treasurer, except that the funds shall be deposited only as and where authorized by the board of directors.

history: (History: Amended by Stats. 1967, Ch. 107.)

article: 6. Directors and Management


text:
Any member may bring charges against an officer or director by filing them in writing with the secretary of the association, together with a petition which is signed by five percent of the members, which requests the removal of the officer or director in question. The removal shall be voted upon at the next regular or special meeting of the association and, by a vote of a majority of the members, the association may remove the officer or director and fill the vacancy. The director or officer, against whom such charges have been brought, shall be informed in writing of the charges previous to the meeting and shall have an opportunity at the meeting to be heard in person or by counsel and to present witnesses. The person bringing the charges against him shall have the same opportunity.

If the bylaws provide for election of directors by districts with primary elections in each district, the petition for removal of a director shall be signed by 20 percent of the members that reside in the district from which such director was elected. The board of directors shall call a special meeting of the members that reside in that district to consider the removal of the director; and by a vote of the majority of the members of that district, the director in question shall be removed from office.

article: 6. Directors and Management


text: An association may engage in any activity in connection with the marketing, selling, preserving, harvesting, drying, processing, manufacturing, canning, packing, grading, storing, handling, or utilization of any product which is produced or delivered to it by its members; or the manufacturing or marketing of the byproducts of any such product; or any activity in connection with the purchase, hiring, or use by its members of supplies, machinery, or equipment, or in the financing of any such activities; or in any one or more of the activities which are specified in this section.

article: 7. Powers

path: 20. PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS > 1. Nonprofit Cooperative Associations > 7. Powers


text: An association may borrow without limitation as to amount of corporate indebtedness or liability and may make advances to members.

article: 7. Powers


text: An association may act as the agent or representative of any member or members in any of the activites which are mentioned in Section 54171 or 54172.

article: 7. Powers


text: An association may purchase or otherwise acquire, hold, own, and exercise all rights of ownership in, sell, transfer, pledge, or guarantee the payment of dividends or interest on, or the retirement or redemption of, shares of the capital stock or bonds of any corporation or association which is engaged in any related activity or in the warehousing, handling, marketing, packing, manufacturing, processing, or preparing for market of any product which is handled by the association.

article: 7. Powers


text: An association may establish reserves and invest the funds of the reserves in bonds or in such other property as may be provided in the bylaws.

article: 7. Powers


text: An association may buy, hold, and exercise all privileges of ownership, over such real or personal property as may be necessary or convenient for the conduct and operation of, or incidental to, any of the business of the association.

article: 7. Powers


text: An association may levy assessments in the manner and in the amount as may be provided in its bylaws.

article: 7. Powers


text: An association may do each and every thing which is necessary, suitable, or proper for the accomplishment of any one of the purposes, or the attainment of any one or more of the objects, which are enumerated in this article; or conducive to or expedient for the interest or benefit of the association; and contract accordingly; exercise and possess all powers, rights, and privileges which are necessary or incidental to the purposes for which the association is organized or to the activities in which it is engaged; and, in addition, any other rights, powers, and privileges which are granted by the laws of this state to ordinary corporations, except such as are inconsistent with the express provisions of this chapter; and do any such thing anywhere.

article: 7. Powers


text: An association may use or employ any of its facilities for any purpose, provided the proceeds which arise from such use and employment shall go to reduce the cost of operation for its members. The products which are handled for, or the services, machinery, equipment, or supplies or facilities which are furnished to, nonmembers shall not, however, exceed in value the products which are handled for, or the services, merchandise, or facilities which are supplied to, members during the same period.

article: 7. Powers


text:
An association may organize, form, operate, own, control, have an interest in, own stock of, or be a member of any other corporation, with or without capital stock, which is engaged in preserving, drying, processing, canning, packing, storing, handling, shipping, utilizing, manufacturing, marketing, or selling of any product which is handled by the association, or the byproducts of any such product.

If such corporations are warehousing corporations, they may issue legal warehouse receipts to the association against the commodities which are delivered by it, or to any other person and such legal warehouse receipts shall be considered as adequate collateral to the extent of the usual and current value of the commodity which they represent. If such warehouse is licensed or licensed and bonded pursuant to the laws of this state or the United States, its warehouse receipt which is delivered to the association on any commodity of the association or its members, or delivered by the association or its members, shall not be challenged or discriminated against because of ownership or control, wholly or in part, by the association.

Any two or more corporations which are organized pursuant to this section may be merged into one such constituent corporation or consolidated into a new corporation, such merger or consolidation to be made in the manner that is prescribed by the general laws of the state which cover domestic corporations.

article: 7. Powers


text:
Any association may, upon resolution adopted by its board of directors, enter into all necessary and proper contracts and agreements and make all necessary and proper stipulations, agreements and contracts and arrangements with any other cooperative or other corporation, or association, which is formed in this or in any other state, for the cooperative and more economical carrying on of its business or any part of its business.

Any two or more associations may, by agreement between them, unite in employing and using, or may separately employ and use, the same personnel, methods, means, and agencies for carrying on and conducting their respective business.

article: 7. Powers


text:
(a) Any association organized and operating pursuant to this chapter or pursuant to similar laws of any other state, the District of Columbia, or the United States, which acts for its members as a producer marketing or bargaining association in its dealings with a person licensed pursuant to Chapter 6 (commencing with Section 55401) or Chapter 7 (commencing with Section 56101) in connection with any product produced by its members, may, either in its own name or in the name of its members, assert all the rights of a producer under either of these chapters with respect to any of those products.

(b) Subdivision (a) does not apply to any late charges claimed under Section 55881 on any agricultural products delivered or scheduled to be delivered prior to January 1, 1986.

history: (History: Added by Stats. 1989, Ch. 835, Sec. 2.)

article: 7. Powers


text: An association is not subject in any manner to the terms of the Corporate Securities Law, Division 1 (commencing with Section 25000), Title 4 of the Corporations Code, and any association may issue its membership certificates or stock or other securities as provided in this chapter without the necessity of any qualification under that law.

history: (History: Amended by Stats. 1968, Ch. 88.)

article: 8. Financial Provisions

path: 20. PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS > 1. Nonprofit Cooperative Associations > 8. Financial Provisions


text: If an association issues nonpar value stock, the issuance of such stock shall be governed by the terms of all general laws which cover the issuance of nonpar value stock in domestic corporations.

article: 8. Financial Provisions


text: If an association with preferred shares of stock purchases the stock or any property, or any interest in any property of any person, it may discharge the obligations which are so incurred, wholly or in part, by exchanging for the acquired interest, shares of its preferred stock to an amount which at par value would equal the fair market value of the stock or interest so purchased, as determined by the board of directors. In that case the transfer to the association of the stock or interest which is purchased is equivalent to payment in cash for the shares of stock which are issued.

article: 8. Financial Provisions


text:
The board of directors of every association shall cause to be sent to the members of the association not later than 120 days after the close of the fiscal or calendar year an annual report of the operations of the association, unless such report is expressly dispensed with in the bylaws.

If required by the bylaws, interim reports of the operations of the association for the three month, six month, or nine month periods of the current fiscal year of the association shall be furnished to the members of the association.

Such annual report and any such interim reports shall include a balance sheet as of such closing date. Such financial statement shall be prepared from, and be in accordance with, the books. It shall be prepared in a form which is sanctioned by sound accounting practice for the association or approved by a duly certified public accountant or a public accountant.

article: 8. Financial Provisions


text: Under the terms and conditions which are prescribed in the bylaws adopted by it, an association may admit as members or issue common stock to only such persons as are engaged in the production of any product which is to be handled by or through the association, or that use or employ any service or facility offered by the association on, or in connection with, land which is used for the production of any product, including the lessees and tenants of land which is used for the production of such product and any lessors and landlords that receive as rent all or part of the crop which is raised on the leased premises.

article: 9. Members

path: 20. PROCESSORS, STORERS, DEALERS, AND DISTRIBUTORS OF AGRICULTURAL PRODUCTS > 1. Nonprofit Cooperative Associations > 9. Members


text: If a member of a nonstock association is other than a natural person, such member may be represented by any individual, associate, officer, or manager or member of it, who is duly authorized in writing.

article: 9. Members


text: Any association may become a member or stockholder of any other association.

article: 9. Members


text: If a member of an association which is established without shares of stock has paid his membership fee in full, he shall receive a certificate of membership.

article: 9. Members


text: An association shall not issue a certificate for stock to a member until it has been fully paid for. The promissory notes of the members may be accepted by the association as full or partial payment. The association shall hold the stock as security for the payment of the note, but such retention as security does not affect the member’s right to vote.

article: 9. Members


text: An association, in its bylaws, may limit the amount of common stock which any member may own.

article: 9. Members


text: The bylaws shall prohibit the transfer of the common stock or membership certificates of the associations to any person that is not qualified to be a shareholder or member as specified in this chapter. Such restrictions shall be printed upon every certificate of stock or membership which is subject to them.

article: 9. Members


text: The association may, at any time, as specified in the bylaws, except when the debts of the association exceed 50 percent of its assets, buy in or purchase its common stock at the book value of the common stock, as conclusively determined by the board of directors, and pay for it in cash within one year thereafter.

article: 9. Members


text: A member or stockholder is not liable for the debts of the association to an amount which exceeds the sum which remains unpaid on his membership fee or his subscription to the capital stock, including any unpaid balance on any promissory note which is given in payment of the membership fee or the subscription to the capital stock.

article: 9. Members