SECTIONS 58881-58897 - California Statutes

FOOD AND AGRICULTURAL CODE

SECTION 58881-58897

58881. Except as otherwise provided in Sections 58657 and 58747,
any marketing order which is issued by the director pursuant to this
chapter may contain any or all of the provisions which are prescribed
by this article for regulating, or providing methods for regulating
producer marketing, or the handling, or any of the operations of
processing or distributing by handlers, of any commodity within the
state, but no others.

58882. A marketing order may contain provisions for determining the
existence and extent of the surplus of any commodity, or of any
grade, size, or quality of it, and providing for the control and
disposition of such surplus, and for equalizing the burden of such
surplus elimination or control among the producers, processors,
distributors, or other handlers that are affected.
Notwithstanding any other appropriate means of equalizing the
burden of surplus control and its elimination as provided in this
chapter, provision may be made for the creation of a stabilization
fund to be used for purchasing or otherwise acquiring any portion of
the surplus of any commodity either in fresh or processed form,
except when processed in hermetically sealed containers, and for the
diversion of such surplus quantity of such commodity which is so
acquired into noncompetitive or byproducts uses or for disposing of
such surplus in noncommercial channels. Money for such stabilization
fund shall be provided by means of the establishment of an assessment
rate for such purpose levied upon producers or handlers, or upon
both producers and handlers. Such assessment rate shall be based upon
the units in which such commodity is handled or marketed or upon any
other uniform basis which the director determines to be reasonable
and equitable. For convenience of collection, the director may
collect any producer assessments from handlers of such commodity.
Handlers paying such assessments for, and on behalf of, any producers
may deduct such producer assessments from any money which is owed by
such handlers to such producers.

58883. A marketing order may contain provisions for limiting the
total quantity of any commodity, or of any grade, size, or quality of
it, which may be marketed by producers, or processed, distributed,
or otherwise handled within this state during any specified period by
any and all persons that are engaged in such producer marketing,
processing, distributing, or handling. Any such limitation shall be
applied under a uniform rule which is applicable to all such persons
so regulated. The total quantity of any such commodity which is so
regulated and permitted to be marketed by producers, processed,
distributed, or otherwise handled, shall not be less than the
quantity which the director finds is reasonably necessary to supply
the market demands of consumers of such commodity.
The marketing of green ripe olives is not, however, subject to any
provisions of a marketing order which limits the total quantity of
such commodity which may be marketed.

58884. A marketing order may contain provisions for allotting the
quantity of any commodity, or of any grade, size, or quality of it,
which each handler may purchase or acquire from, or handle on behalf
of, any and all producers of the commodity, within this state during
any specified period under a uniform rule, which is applicable to all
handlers that are so regulated based upon the amounts produced or
sold by such producers in a prior period which the director finds to
be representative, or upon the current season's production or sales
of such producers, or both, to the end that the total quantity of
such commodity, or of any grade, size, or quality of it, which is so
purchased or handled within this state is apportioned equitably among
the producers of the commodity.

58885. A marketing order may contain provisions for allotting the
quantity of any commodity, or of any grade, size, or quality of it,
which each handler may process, distribute, or handle within this
state under a uniform rule, which is applicable to all handlers that
are so regulated, which is based upon the quantities of such
commodity, or of any grade, size, or quality of it, of the current
season's crop which each such handler has available for such
processing, distribution, or handling, or upon the quantities of such
commodity, or of any grade, size, or quality of it, which is so
processed, distributed, or handled by each such handler in a prior
period which the director finds to be representative, or based upon
both, to the end that the total quantity of such commodity, or any
grade, size, or quality of it, processed, distributed, or handled
within this state during any specified period is equitably
apportioned among all such handlers of the commodity.

58886. A marketing order may contain provisions which regulate the
period during which any commodity, or any grade, size, or quality of
such commodity, may be processed, distributed, or otherwise marketed
within this state by any and all persons that are engaged in such
processing, distributing, or marketing within this state. The total
quantity of such commodity which is so regulated and permitted to be
processed, distributed, or otherwise marketed during such period,
shall not, however, be less than the quantity which the director
finds is necessary to reasonably supply the needs of consumers of
such commodity.

58887. A marketing order may contain provisions for the
establishment of surplus, stabilization, or byproduct pools for any
commodity, or of any grade, size, quality, or condition of it, and
providing for the sale of the commodity in any such pool and for the
equitable distribution among the persons that are participating in
the pool of the net returns which are derived from the sale of such
commodity. The marketing of green ripe olives is not, however,
subject to any provisions of a marketing order which relate to the
establishment and operation of surplus pools.
If the marketing order authorizes the establishment of any such
pool, the advisory board may receive such commodity from each
producer or handler and handle it according to the grade, size,
quality, or condition of the commodity and account to each producer
or handler that is participating in the pool upon a pro rata basis
for the net proceeds derived from the sale of the commodity.
The contents of any surplus pool shall not be marketed by the
advisory board in any form which would compete directly with that
portion of the commodity which is marketed in regular channels of
trade. However, any portion of any surplus pool may be transferred by
the advisory board upon any gratuitous basis to charitable
organizations and other similar agencies under proper safeguards to
insure that none of such commodity shall compete directly with the
unrestricted portion of such commodity.
The advisory board may dispose of the contents of a stabilization
pool in the regular marketing channels in such manner and at such
times as it deems advisable, consistent with the maintenance of
stabilized marketing conditions for such commodity. The advisory
board may dispose of the contents of any byproduct pool only for
byproducts or for other similar purposes under proper safeguards to
prevent such portion of the commodity so disposed of from directly
competing with that part of the commodity which is marketed in the
usual form or in the regular channels of trade.
If the marketing order authorizes the establishment of a surplus,
stabilization, or byproduct pool, the advisory board may do any of
the following:
(a) Arrange for and operate any necessary facilities for the
storing, financing, grading, packing, servicing, processing,
preparing for market, selling, and disposing of the contents of any
pools which are provided for in this chapter. The board shall not,
however, engage in commercial warehousing.
(b) Pledge all of the commodity in any such pools with banks or
other lending agencies for the purpose of obtaining loans upon it.
The board shall have title, for the purpose of financing and
handling, to all of the commodity in any such pools.
(c) Create, by a uniform assessment upon producers, or upon some
other uniform and equitable basis, maintain, and disburse an
equalization fund to be used for the removal of any inequalities
between producers or handlers that are participating in any pool
which result from errors in estimating production or surplus or for
indemnifying producers whose production, in whole or in part, is
diverted in green form or otherwise from normal marketing outlets or
diverted to byproducts, relief, or other noncompetitive purposes
pursuant to the provisions of the marketing order.

58888. A marketing order may contain provisions which establish, or
provide for the establishment, with respect to any commodity, either
as delivered by producers to handlers or processors, or as handled,
processed, or otherwise prepared for market, or as marketed by
producers, handlers, or processors, both of the following:
(a) Grading standards of quality, condition, size, maturity, or
pack, which standards may include minimum standards. The standards so
established shall not, however, be established below any minimum
standards which are prescribed by law for such commodity.
(b) Uniform inspection and grading of such commodity in accordance
with the standards which are so established.

58889. (a) A marketing order may contain provisions for the
establishment of plans for advertising and sales promotion to
maintain present markets or to create new or larger markets for any
commodity that is grown in this state, or for the prevention,
modification, or removal of trade barriers that obstruct the free
flow of any commodity to market. The secretary may prepare, issue,
administer, and enforce plans for promoting the sale of any
commodity.
(b) Any plan shall be directed toward increasing the sale of the
commodity without reference to any private brand or trade name that
is used by any handler with respect to the commodity regulated by the
marketing order, except the use of wine if other than private brands
or private trade names are unavailable, and except that marketing
orders that provide for the advertising and sales promotion of
raisins, prunes, and walnuts may allow those plans to credit the pro
rata assessment obligations of a handler with all or any portion of
that handler's direct expenditures for the marketing promotion that
may include private brand or trade name advertising performance
allowances, sales promotions, couponing, and in-store promotion
programs and materials.
(c) (1) Notwithstanding any provision of this section, any
marketing order for fluid milk may contain in its advertising and
sales promotion plan provisions to allocate funds for promotions of
cheese, ice cream, or butter products made with California milk,
including promotions in which brand or trade names are used, but only
if the use is incidental to the promotion of the California milk
product and not in direct promotion of the brand or trade name, and
if the allocation of funds is made available on a nondiscriminatory
basis to all retailers and manufacturers of butter, ice cream, or
cheese utilizing milk produced in California. Permissible private
brand or trade name marketing promotions may include advertising,
performance allowances, sales promotions, couponing subject to
Section 61375 and in-store promotion programs and materials, and
other marketing communication tools.
(2) For purposes of this subdivision, "butter" means the product
made by gathering the fat of fresh or ripened milk or cream into a
mass, which also contains a small portion of other milk constituents.
(3) This subdivision shall not become operative unless approved as
set forth in subdivision (c) of Section 58993.
(d) No advertising or sales promotion program shall be issued by
the secretary that makes use of false or unwarranted claims in behalf
of any product, or disparages the quality, value, sale, or use of
any other commodity.

58889.1. Notwithstanding Section 58889, any marketing order for
processed fruits, nuts, or vegetables may contain in its advertising
and sales promotion plan provisions to allocate funds to promote
private brands or trade names.

58889.3. Notwithstanding subdivision (b) of Section 58889,
effective immediately, a marketing order may contain provisions for
the establishment of plans for advertising and sales promotion,
including any private brand or trade name, to maintain present
international foreign markets or to create new or larger
international foreign markets for any commodity which is grown in
this state, provided that effective January 1, 1978, such advertising
and sales promotion plans require that each individual commodity
package label indicate the commodity is of California origin in
English or other appropriate language.

58890. A marketing order may contain provisions which relate to the
prohibition of unfair trade practices. In addition to the unfair
trade practices now prohibited by law, applicable to the processing,
distribution, or handling of any commodity within this state, the
director may include in any marketing order which is issued
provisions that are designed to correct any trade practice which
affects the processing, distributing, or handling of any commodity
within this state which the director finds, after a hearing upon the
marketing order in which all interested persons are given an
opportunity to be heard, is unfair and detrimental to the
effectuation of the declared purposes of this chapter.

58891. A marketing order may contain provisions for the application
for, review, certification, and equitable payment of, production
adjustment benefits to growers from funds which are collected for
such purpose on a uniform basis from all commercial growers of any
commodity in the state, for which production adjustment payments are
made. Such funds may be supplemented by funds, if any, which are
received from federal, state, or other agencies for such purpose.

58892. (a) A marketing order may contain provisions for carrying on
research studies in the production, processing, or distribution of
any commodity and for the expenditure of moneys for these purposes.
Prior to the implementation of a research program authorized by this
section that will extend beyond the next reapproval date of the
marketing order pursuant to Section 59086, the director shall call a
public hearing pursuant to Article 6 (commencing with Section 58771)
to receive testimony regarding support for the research program by
persons directly affected by the marketing order. After the hearing,
the director shall find and determine, based upon the evidence
received, whether or not to conduct a referendum pursuant to
subdivision (c) of Section 58993 prior to approval of the proposed
research program in order to evaluate with greater certainty the
support for the program by the persons directly affected by the
marketing order.
(b) In carrying out this section, an advisory board may, subject
to the approval of the director, establish a trust account to fund
research programs on an ongoing basis. These programs may extend
beyond the termination date of the marketing order. For any program
designed to last more than one year, funding shall be provided for
from the trust account during the initial year.
(c) In any research in production or processing which is carried
on pursuant to this section, the Vice President for Agricultural
Sciences of the University of California and the advisory board which
is provided for in Article 8 (commencing with Section 58841) shall
cooperate in selecting the research program which is to be carried on
from time to time. Insofar as practicable, the programs shall be
carried out by the University of California, but if the vice
president and the advisory board determine that the university has no
facilities for a particular program, or that some other research
agency has better facilities for it, the program may be carried out
by any other research agency which is selected by the vice president
and the advisory board.
(d) In carrying out this section, an advisory board may carry out
research programs for the purpose of developing and testing new
products in selected markets. The proposed programs shall be
submitted to the director for his or her approval prior to the
expenditure of funds for the program. The proposal submitted shall
include, among other things, a description of the new products, the
test market to be utilized, and the duration of the program.

58892.1. A marketing order may contain provisions for research
studies concerning the health, food, nutritional, therapeutic,
dietetic or such qualities of other food products, for the
development of new food products, or for the development of new uses
for agricultural products.

58892.2. No marketing order for milk shall be issued by the
director unless he finds that such marketing order does not conflict
with the provisions of Chapter 2 (commencing with Section 61801) or
Chapter 3 (commencing with Section 62700) of Part 3 of Division 21.

58893. A marketing order may contain provisions which establish, or
provide authority for establishing, for any commodity, either as
such commodity is produced or is delivered by producers to handlers,
or as handled or otherwise prepared for market, or as marketed by
producers or handlers, an educational program which is designed to
acquaint producers, handlers, consumers or other interested persons
with quality improvement and nutritional values, including sanitation
practices, procedures, or methods as applied to such commodity.

58894. A marketing order may contain provisions which establish, or
provide authority for establishing, and for regulating the
permissive use of an official board brand, trade name, or label, or
other distinctive designation of grade, quality, or condition, except
the grade or quality designations in effect pursuant to state or
federal grade standards, for any commodity, other than wine, either
as such commodity is produced or is delivered by producers to
handlers, or as handled or otherwise prepared for market, or marketed
by producers or handlers. As provided in Section 59236, the
permissive use of any such official board brand, trade name, or label
or other distinctive designation of quality shall be limited to
producers and handlers of the commodity that are participating in the
marketing agreement or order, and that are in compliance with its
provisions and with any regulation, or rule and regulation, which is
adopted under it. Any official brand or trade name which is
established pursuant to this section shall not be construed as a
private brand or trade name with respect to Section 58889.

58895. A marketing order may contain provisions to detect, control,
prevent damage by or to eradicate insects, predators, diseases, or
parasites with respect to any commodity or group of commodities. The
advisory board may recommend and the director may approve measures to
assist in the prevention or reduction of losses to crops or
livestock caused by predators, insects, disease or parasite
infestations, including the establishment and operation of detection,
inspection, spraying, dusting, fumigating or other control measures.
For the purposes of this section, (1) assessments established
pursuant to Article 10 (commencing with Section 58921) of this
chapter may include an assessment for nonbearing acreage as well as
bearing acreage of the commodity affected by such predators, insects,
disease, or parasite, and (2) the director may use both the bearing
and nonbearing acreage of such commodity as a measure of production
for assent or referendum purposes in relation to such assessments.
As used in this section, "nonbearing acreage" means acreage
planted to produce the particular commodity covered by the marketing
order during the marketing season on which no quantity of the product
is produced for marketing or is anticipated will be produced for
market during such marketing season.

58896. A marketing order may contain provisions for the gathering
and dissemination of weather data to producers of any commodity, and
to any persons providing services relating to production of a
commodity, when the data is necessary to aid in any manner in the
production or harvesting of that commodity.

58897. To address catastrophic events, a marketing order may
contain provisions for the establishment and operation of an
indemnity trust fund to cover livestock and livestock product losses
due to disease, natural disaster, or accidents.