SECTIONS 77498-77500 - California Statutes

FOOD AND AGRICULTURAL CODE

SECTION 77498-77500

77498. Every five years, commencing with the 1999-2000 marketing
season, the director shall hold a hearing to determine whether the
operation of this chapter should be continued. If the director finds
after the hearing that a substantial question exists among the
producers, processors, and shippers assessed under this chapter
regarding whether the operation of this chapter should be continued,
the director shall submit the chapter to a reapproval referendum. If
a reapproval referendum is required, the operation of this chapter
shall be continued in effect if the director finds that a majority of
the eligible producers, processors, and shippers voting in the
referendum voted in favor of continuing this chapter. In finding
whether the commission is continued pursuant to this article, the
vote of any nonprofit agricultural cooperative marketing association
that is authorized by its members to so vote shall be considered as
being the approval or rejection by the individual members of, or the
individual stockholders in, the nonprofit agricultural cooperative
marketing association.
If the director finds after conducting a hearing that no
substantial question exists or that a favorable vote has been given,
the director shall so certify and this chapter shall remain
operative. If the director finds that a favorable vote has not been
given, he or she shall so certify and declare the operation of this
chapter and the commission suspended upon the expiration of the
marketing season ending January 31, 2000. Thereupon, the operations
of the commission shall be concluded and funds distributed in the
manner provided in Section 77499.5. No bond or security shall be
required for any such referendum.

77498.5. Following a hearing, and favorable referendum if required,
conducted prior to January 31, 2000, the process specified in
Section 77498 shall be conducted by the commission every fifth year
thereafter between February 1 and June 30, unless a referendum is
conducted as the result of a petition pursuant to Section 77499. In
that case, the hearing, and referendum if required, shall be
conducted every fifth year following the industry petitioned
referendum.

77499. (a) Upon a finding by a two-thirds vote of the commission
that the operation of this chapter has not tended to effectuate its
declared purposes, the commission may recommend to the director that
the commission be suspended. Any suspension shall not become
effective until the expiration of the current marketing season.
(b) The director shall, upon receipt of a recommendation, or may,
after a public hearing to review a petition filed with him or her
requesting such suspension, signed by 15 percent of the producers,
processors, or shippers by number who produced, processed, or shipped
not less than 15 percent of the volume in the immediately preceding
season, cause a referendum to be conducted among the listed
producers, processors, and shippers to determine if the operations of
the commission shall be suspended. However, the director shall not
hold a referendum as a result of the petition unless the petitioner
shows by the weight of evidence that this chapter has not effectuated
its declared purposes.
(c) The director shall establish a referendum period, which shall
not be less than 10 or more than 60 days in duration. The director
may prescribe additional procedures necessary to conduct the
referendum. At the close of the established referendum period, the
director shall tabulate the ballots filed during the period. If at
least 40 percent of the total number of producers, processors, and
shippers from the list established by the director participate in the
referendum, the director shall suspend the operation of this
chapter, if the director finds either one of the following:
(1) Sixty-five percent or more of the producers, processors, and
shippers who voted in the referendum voted in favor of suspension,
and the producers, processors, and shippers so voting marketed a
majority of the total quantity of strawberries marketed in the
preceding marketing season by all of the producers, processors, and
shippers who voted in the referendum.
(2) That a majority of the producers, processors, and shippers who
voted in the referendum voted in favor of suspension, and that the
producers, processors, and shippers so voting marketed 65 percent or
more of the total quantity of strawberries marketed in the preceding
season by all of the producers, processors, and shippers who voted in
the referendum.

77499.5. After the effective date of suspension of this chapter and
of the commission, the operations of the commission shall be
concluded and all moneys held by the commission, and moneys collected
by assessment and not required to defray the expenses of concluding
and terminating operations of the commission, shall be returned upon
a pro rata basis to all persons from whom assessments were collected
in the immediately preceding current marketing season. However, if
the commission finds that the amounts returnable are so small as to
make impractical the computation and remitting of the pro rata refund
to those persons, any moneys remaining and any moneys remaining
after payment of all expenses of winding up and terminating
operations shall be withdrawn from the approved depository and paid
into an appropriate state or federal program or used to fund
activities related to the subject matter of this chapter.

77500. Upon suspension of the operation of this chapter and of the
commission, the commission shall mail a copy of the notice of
suspension to all producers, processors, and shippers affected by the
suspension whose names and addresses are on file.