SECTIONS 78720-78725 - California Statutes

FOOD AND AGRICULTURAL CODE

SECTION 78720-78725

78720. Every five years, commencing with the 2001-02 marketing
season, the secretary shall hold a hearing to determine whether the
operation of this chapter should be continued. If the secretary finds
after the hearing that a substantial question exists among eligible
persons regarding whether the operation of this chapter should be
continued, the secretary 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 secretary finds that
a majority of the eligible persons 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.

78721. If the secretary finds after conducting a hearing that no
substantial question exists or that a favorable vote has been given,
the secretary shall so certify and this chapter shall remain
operative. If the secretary 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 the last day of February 2002. Thereupon, the
operations of the commission shall be concluded and funds
distributed in the manner provided in Section 78724. No bond or
security shall be required for any such referendum.

78722. Following a hearing, a favorable referendum if required,
conducted prior to the last day of February 2002, the process
specified in Section 78720 shall be conducted by the commission every
fifth year thereafter between March 1 and February 28, unless a
referendum is conducted as the result of a petition pursuant to
Section 78723. In that case, the hearing, and the referendum if
required, shall be conducted every fifth year following the industry
petitioned referendum.

78723. (a) Upon a finding by a two-thirds vote of the membership of
the commission that the operation of this chapter has not tended to
effectuate its declared purposes, the commission may recommend to the
secretary that the operation of this chapter be suspended. However,
any suspension shall not become effective until the expiration of the
current marketing season.
(b) The secretary shall, upon receipt of the recommendation, or
may, after a public hearing to review a petition filed with him or
her requesting a suspension signed by 20 percent of the producers and
handlers by number who sold or handled not less than 20 percent of
the total quantity of tomatoes in the immediately preceding marketing
season, hold a referendum among the producers and handlers to
determine if the operations of the commission shall be suspended.
However, the secretary 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 tended to effectuate its declared purposes.
(c) The secretary shall establish a referendum period, which shall
not be less than 10 days or more than 60 days in duration. The
secretary may prescribe additional procedures as may be necessary to
conduct the referendum. At the close of the established referendum
period, the secretary shall tabulate the ballots filed during the
period. If at least 40 percent of the total number of producers and
handlers from the list established by the secretary participate in
the referendum, the secretary shall suspend the operation of this
chapter if he or she finds either one of the following has occurred:
(1) Sixty-five percent or more of the producers and handlers who
voted in the referendum voted in favor of suspension, and the
producers and handlers so voting sold or handled a majority of the
total quantity of tomatoes in the preceding marketing season by all
of the producers and handlers who voted in the referendum.
(2) A majority of the producers and handlers who voted in the
referendum voted in favor of suspension, and the producers and
handlers so voting sold or handled 65 percent or more of the total
quantity of tomatoes in the preceding marketing season by all of the
producers and handlers who voted in the referendum.

78724. After the effective date of suspension of this chapter, the
operation of the commission shall be concluded and all moneys held by
the commission not required to defray the expenses of concluding and
terminating operations of the commission shall be returned on a pro
rata basis to all persons from whom assessments were collected in the
immediately preceding marketing season. However, if the commission
finds that the amounts returnable are so small as to make impractical
the computation and remitting of the prorate refund to these
persons, any funds 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
conducted or used to fund activities related to the subject matter of
this chapter.

78725. Upon suspension of the operation of this chapter, the
commission shall mail a copy of the notice of suspension to all
eligible persons affected by the suspension whose names and addresses
are on file.