California Food and Agricultural Code - Division 1: State Administration - Part 1: The Department of Food and Agriculture - Chapter 2: Fiscal Duties and Powers (secs. 201 - 306)

1 FOOD AND AGRICULTURAL CODE - FAC DIVISION 1. STATE ADMINISTRATION [101 - 1501] ( Division 1 enacted by Stats. 1967, Ch. 15. ) PART 1. THE DEPARTMENT OF FOOD AND AGRICULTURE [101 - 894] ( Heading of Part 1 amended by Stats. 1976, Ch. 1079. ) CHAPTER 2. Fiscal Duties and Powers [201 - 306] ( Chapter 2 enacted by Stats. 1967, Ch. 15. ) ARTICLE 1. General Provisions [201- 201.] ( Article 1 enacted by Stats. 1967, Ch. 15. ) 201. The department may expend in accordance with law all money which is made available for its use. (Enacted by Stats. 1967, Ch. 15.) ARTICLE 2. Department of Food and Agriculture Fund [221 - 227] ( Heading of Article 2 amended by Stats. 1982, Ch. 454, Sec. 24. ) 221. (a) The “Department of Food and Agriculture Fund,” which is a special fund, is continued in existence. Any moneys that are directed by law to be paid into the fund shall be paid into it and, unless otherwise specifically provided, shall be expended solely for the enforcement of the law under which the moneys were derived. The expenditure from the fund for the enforcement of any law shall not, unless otherwise specifically provided, exceed the amount of moneys that is credited to the fund pursuant to the law. (b) Notwithstanding Section 13340 of the Government Code, all moneys deposited in the fund under the provisions enumerated in subdivision (c) are hereby continuously appropriated to the department without regard to fiscal years for expenditure in carrying out the purposes for which the moneys were deposited and for making the refunds authorized by Section 302. (c) All moneys deposited in the fund under the provisions enumerated below are hereby exempted from Sections 13320 to 13324, inclusive, of the Government Code: (1) Article 7 (commencing with Section 5821) and Article 7.5 (commencing with Section 5850) of Chapter 8 of Part 1 of Division 4, Chapter 1 (commencing with Section 6701) of Part 3 of Division 4, and Chapter 5 (commencing with Section 53301) of Division 18. (2) Article 5 (commencing with Section 6001) of Chapter 9 of Part 1 of Division 4. (3) Article 8.5 (commencing with Section 6047.1) of Chapter 9 of Part 1 of Division 4. (4) Article 5 (commencing with Section 6981) of Chapter 2 of Part 3 of Division 4. (5) Chapter 4 (commencing with Section 14200), Chapter 5 (commencing with Section 14501), and Chapter 6 (commencing with Section 14901) of Division 7. javascript:submitCodesValues('201.','2.1.2.1','1967','15','',%20'id 306ee8f3-291f-11d9-9fa8-93d6a7ed919f') javascript:submitCodesValues('221.','2.1.2.2','2013','398','3',%20'id dde19dc7-6f34-11e3-83ef-cbcb5662ec34') 2 (6) Part 1 (commencing with Section 16301) and Part 2 (commencing with Section 17401) of Division 9. (7) Sections 19225, 19227, 19312, and 19315. (8) Division 10 (commencing with Section 20001). (9) Division 11 (commencing with Section 23001). (10) Part 4 (commencing with Section 27501) of Division 12. (11) Division 16 (commencing with Section 40501). (12) Chapter 9 (commencing with Section 44971) of Division 17. (13) Chapter 1 (commencing with Section 52001) of Division 18. (14) Chapter 2 (commencing with Section 52251) of Division 18. (15) Chapter 3 (commencing with Section 52651) of Division 18. (16) Chapter 4 (commencing with Section 52851) of Division 18. (17) Chapter 6 (commencing with Section 55401), Chapter 7 (commencing with Section 56101), and Chapter 7.5 (commencing with Section 56701) of Division 20. (18) Section 58582. (19) Chapter 1 (commencing with Section 61301), Chapter 2 (commencing with Section 61801), and Chapter 3 (commencing with Section 62700) of Part 3 of Division 21. (20) Division 24 (commencing with Section 81000). (21) Chapter 5.5 (commencing with Section 12531) of Division 5 of the Business and Professions Code. (22) Chapter 7 (commencing with Section 12700) of Division 5 of the Business and Professions Code. (23) Chapter 14 (commencing with Section 13400) and Chapter 15 (commencing with Section 13700) of Division 5 of the Business and Professions Code. (Amended by Stats. 2013, Ch. 398, Sec. 3. (SB 566) Effective January 1, 2014. Amendment operative January 1, 2017, pursuant to Section 81010 as amended November 8, 2016, by Prop. 64.) 221.1. Notwithstanding Section 221, the department shall establish all permanent positions with the Controller’s office, pursuant to standard state administrative practices. (Amended by Stats. 2011, Ch. 97, Sec. 1. (AB 222) Effective January 1, 2012.) 222. The director shall keep a separate record of the classes and sources of income which are credited to, and disbursed from, the Department of Food and Agriculture Fund. (Amended by Stats. 1984, Ch. 144, Sec. 31.) 223. A sum not to exceed twenty-five thousand dollars ($25,000) may, upon approval of the Department of Finance, be withdrawn from the Department of Food and javascript:submitCodesValues('221.1.','2.1.2.2','2011','97','1',%20'id 9c4c8faa-29e8-11e1-bf04-bc76aca25ab5') javascript:submitCodesValues('222.','2.1.2.2','1984','144','31',%20'id 32ea975b-291f-11d9-9fa8-93d6a7ed919f') javascript:submitCodesValues('223.','2.1.2.2','1982','454','25',%20'id 32ea975d-291f-11d9-9fa8-93d6a7ed919f') 3 Agriculture Fund to be used as a revolving fund by the department for the purposes for which the Department of Food and Agriculture Fund may be used. (Amended by Stats. 1982, Ch. 454, Sec. 25.) 224. Moneys transferred by the Controller to the Department of Food and Agriculture Fund from the Motor Vehicle Fuel Account pursuant to Section 8352.5 of the Revenue and Taxation Code shall be expended by the Secretary of Food and Agriculture as follows: (a) Of the amount transferred each fiscal year, nine million dollars ($9,000,000) is hereby appropriated to the Department of Food and Agriculture for payment to the counties for pesticide use enforcement programs supervised by the Director of Pesticide Regulation. Reimbursement shall be apportioned to the counties in relation to each county’s expenditures to the total amount expended by all counties for the preceding fiscal year for pesticide use enforcement programs, as determined by the director, or with the collective agreement of the agricultural commissioners, disbursement to counties for a current fiscal year according to criteria developed in work plans, or any combination of reimbursement and disbursement as agreed upon by the director and the agricultural commissioners. The amount to be transferred to any county for a fiscal year may be increased or decreased by the director to compensate for incorrect previous transfers to that county, or adjusted based on evaluations of annual county Pesticide Enforcement Workplans conducted by the Department of Pesticide Regulation. (b) Of the amount transferred each fiscal year, two hundred fifty thousand dollars ($250,000) is hereby appropriated to the Department of Food and Agriculture for state and county liaison activities and for departmental expenses directly related to administration of this section. (c) Of the amount transferred each fiscal year, one million five hundred thousand dollars ($1,500,000) is hereby appropriated to the Department of Food and Agriculture for divisional and departmental overhead charges to the Department of Food and Agriculture. (d) Of the amount transferred each fiscal year in excess of the amount transferred in the 2006–07 fiscal year, 7 percent is hereby appropriated to the Department of Food and Agriculture for full disbursement to the California Agricultural Commissioners and Sealers Association, as specified in Section 2003, and individual counties. The funds dispersed to individual counties, pursuant to subdivision (g), shall be in a proportion to offset expenses associated with programs, personnel, and materials that ensure the uniform application of state agricultural policy or administer programs supervised by the secretary. (e) Notwithstanding any other law, of the amount transferred each fiscal year, three million dollars ($3,000,000) is hereby appropriated for distribution to counties in a manner prescribed by the secretary for pest detection or trapping programs. These funds are intended to supplement funds available for pest detection or trapping in the annual Budget Act. As a condition of receiving these funds, counties shall not reduce their level of support from any other funds for pest detection or trapping programs. If a county declines to participate in a pest detection or javascript:submitCodesValues('224.','2.1.2.2','2017','144','1',%20'id e6df7d36-dac8-11e7-8ae0-bddf6e708bba') 4 trapping program, or fails to conduct the program to the state’s satisfaction, the secretary shall reduce, by the amount that would otherwise be allocated to the county, funds available pursuant to this subdivision and any state allocations from the annual Budget Act. Those forfeited funds are hereby appropriated to the Department of Food and Agriculture for purposes of operating the pest detection or trapping programs in those counties. (f) (1) Of the amount transferred each fiscal year, three million dollars ($3,000,000) is hereby appropriated to the Department of Food and Agriculture to be used for emergency detection, investigation, or eradication of agricultural plant or animal pests or diseases during the fiscal year, upon approval of the Director of Finance. At the end of each fiscal year, any unencumbered balance of these funds shall be carried over to the next fiscal year, or at the discretion of the secretary, may be used for planning and research involving detection, investigation, eradication, and methods of quarantine compliance for agricultural plant or animal pests or diseases. (2) The department shall develop policies, in consultation with the agricultural commissioners and in compliance with any requirements of the annual Budget Act, to guide the ongoing use of these funds. (g) The total amount transferred during each fiscal year less the amounts provided in subdivisions (a) to (f), inclusive, is hereby appropriated to be paid to the counties for agricultural programs authorized by this code that are supervised by the Department of Food and Agriculture and administered by agricultural commissioners. Reimbursement shall be apportioned to the counties in relation to each county’s expenditures to the total amount expended by all counties for the preceding fiscal year for agricultural programs, as determined by the secretary, or with the collective agreement of the agricultural commissioners, disbursement to counties according to criteria developed in work plans for a current fiscal year, or any combination of reimbursement and disbursement as agreed upon by the secretary and the agricultural commissioners. The amount to be transferred to any county for a fiscal year may be increased or decreased by the secretary to provide that, insofar as those transferred unclaimed refundable gas tax funds for apportionment to the counties are available, no county shall receive smaller combined apportionments of gas taxes and unclaimed refundable gas taxes than that county would have received had the gas taxes been apportioned without the transfer required by Section 8352.5, as determined by the secretary, except that the amount of unclaimed refundable gas tax funds to be transferred to any county for a fiscal year may be increased or decreased by the secretary to compensate for incorrect previous transfers to that county, and to account for any failure to meet the criteria listed in Section 224.5. (Amended by Stats. 2017, Ch. 144, Sec. 1. (AB 933) Effective January 1, 2018.) 224.5. (a) In order to be eligible for the transfer specified in subdivision (g) of Section 224, counties must meet all of the following criteria, as determined by the secretary: (1) Currently employ or contract with a licensed agricultural commissioner. javascript:submitCodesValues('224.5.','2.1.2.2','2007','421','3',%20'id 937232ba-a26a-11dc-acb5-9a6c6381fe29') 5 (2) Submit annual agricultural expenditure reports to the department in a timely manner. (3) Maintain county general fund support for agricultural commissioner services at least equal to the average amount expended for the five preceding fiscal years, unless the county is facing unusual economic hardship that precludes that support. (b) In the event that a county does not meet the criteria listed in subdivision (a) in a timely fashion, nothing shall preclude the secretary from completing transfers only to those counties that have met the criteria, while reserving funds for distribution to counties that may later be determined to have met them, or to set a date certain each fiscal year by which all available funds will be distributed to the counties that have met the criteria. (c) This section shall become operative on July 1, 2008. (Added by Stats. 2007, Ch. 421, Sec. 3. Effective January 1, 2008. Section operative July 1, 2008, by its own provisions.) 225. Notwithstanding any other provision of law, on all funds transferred from the Department of Food and Agriculture Fund and the Acala Cotton Fund for any purpose other than to carry out or enforce the law directly relating to the source of those funds, interest shall be paid to the Department of Food and Agriculture Fund or the Acala Cotton Fund which otherwise would have been earned if the funds had not been transferred. (Added by Stats. 1984, Ch. 1041, Sec. 1.) 226. (a) Notwithstanding Section 11044 of the Government Code, the sum of one hundred thousand dollars ($100,000) is hereby continuously appropriated from the Department of Food and Agriculture Fund in each fiscal year to the department for litigation expenses incurred by the Bureau of Market Enforcement. (b) At any time in a given fiscal year that the one hundred thousand dollars ($100,000) appropriated for litigation costs in subdivision (a) is completely expended, the Department of Food and Agriculture Fund and the General Fund shall share additional litigation costs on a basis of 20 percent paid by the Department of Food and Agriculture Fund and 80 percent paid by the General Fund. These additional funds are to be used only when the bureau or the department is a defendant, or becomes a cross-defendant, in an action relating to market enforcement. (c) If a legal action is carried from one fiscal year to the next, the costs incurred in the following year shall not be charged against the one hundred thousand dollars ($100,000) annually allocated pursuant to subdivision (a) to the bureau, but instead shall continue to be funded in the following years with 80 percent being paid by the General Fund and 20 percent being paid by the Department of Food and Agriculture Fund. (d) In civil actions in which the bureau is a party, the prevailing party may be awarded court costs and attorneys fees. javascript:submitCodesValues('225.','2.1.2.2','1984','1041','1',%20'id 32ea9761-291f-11d9-9fa8-93d6a7ed919f') javascript:submitCodesValues('226.','2.1.2.2','1997','696','1',%20'id 32ec1d03-291f-11d9-9fa8-93d6a7ed919f') 6 (Amended by Stats. 1997, Ch. 696, Sec. 1. Effective January 1, 1998.) 227. (a) Notwithstanding any other provision of law, in order to avoid unnecessary charges and to provide for efficient program implementation, the fees and assessments required by law to be paid to the director or the Department of Food and Agriculture Fund to support the agricultural programs specified in subdivision (b) of Section 230, except those specified in Article 5 (commencing with Section 6001) of Chapter 9 of Part 1 of Division 4, Article 8.5 (commencing with Section 6047.1) of Chapter 9 of Part 1 of Division 4, and Chapter 9 (commencing with Section 44971) of Division 17, may be deposited in the Department of Food and Agriculture Fund, or with an entity that is (1) a bank or other depository approved by the Department of Finance, (2) a marketing order board or commission created pursuant to this code, or (3) another state agency, designated by the agricultural program’s advisory body, if any. The fees and assessments required by law to be paid to the Department of Food and Agriculture Fund in Article 8.5 (commencing with Section 6047.1) of Chapter 9 of Part 1 of Division 4 may be deposited in the Department of Food and Agriculture Fund, or with an entity that is a bank or other depository approved by the Department of Finance. The director may designate that entity if an advisory body has not been created by statute for an agricultural program. All unencumbered funds in the Department of Food and Agriculture Fund and the Agriculture Trust Fund, including income therefrom, that have been collected pursuant to the agricultural program may also be deposited with the designated entity. (b) The funds deposited with the designated entity shall be expended exclusively for the purpose of implementing and continuing the agricultural program for which they were collected. (c) Prior to the deposit of any funds with an entity designated pursuant to subdivision (a), the entity shall enter into an agreement with the department that shall include, but not be limited to, all of the following requirements: (1) The entity shall serve as custodian for the safekeeping of the funds. (2) Funds deposited with the entity shall be encumbered for the exclusive purpose of implementing and continuing the agricultural program for which they were collected. (3) Funds deposited with the entity shall be subject to an audit at least once every two years by an auditor selected by the director. A copy of the audit shall be provided to the director within 30 days of completion of the audit. (4) The department shall be reimbursed for all expenses it incurs that are reasonably related to implementing and continuing the agricultural program for which the funds were collected in accordance with the agreement. With respect to the agricultural program created in Article 8.5 (commencing with Section 6047.1) of Chapter 9 of Part 1 of Division 4, the department shall be limited to those expenditures permitted under Section 6047.12. When practicable, as determined by the department, the designated entity shall deposit advance payments for these expenses with the department. javascript:submitCodesValues('227.','2.1.2.2','2001','103','2',%20'id 32ec1d05-291f-11d9-9fa8-93d6a7ed919f') 7 (5) The entity shall maintain a reserve in an amount sufficient to pay for costs arising from unanticipated occurrences associated with the administration of the program. Provided that, with respect to the agricultural program created in Article 8.5 (commencing with Section 6047.1) of Chapter 9 of Part 1 of Division 4, the reserve shall include only an amount sufficient to pay for costs associated with the administrative expenditures described in Section 6047.12, and may be expended annually for those purposes. (d) In transferring funds from the department to any entity pursuant to subdivision (a), the director shall not be personally liable in any way for errors in judgment, mistakes, or other acts, either by commission or omission, except for his or her own individual acts of dishonesty or crime. (Amended by Stats. 2001, Ch. 103, Sec. 2. Effective July 25, 2001.) ARTICLE 2.5. Agriculture Trust Fund [230 - 240.5] ( Article 2.5 added by Stats. 1993, Ch. 872, Sec. 2. ) 230. As used in this article: (a) “Advisory body” means the advisory body for each individual agriculture program. (b) “Agriculture programs” means the programs specified in Section 221, Chapter 5 (commencing with Section 5301) of Division 4, Sections 6037, 6038, and 9641.5, Chapter 1 (commencing with Section 29001) of Division 13, Division 15 (commencing with Section 32501), Article 6.5 (commencing with Section 42801) of Chapter 2 of Division 17, and Chapter 10 (commencing with Section 46000) of Division 17. (c) “Trust fund” means the Agriculture Trust Fund created pursuant to Section 232. (Added by Stats. 1993, Ch. 872, Sec. 2. Effective January 1, 1994.) 231. The Legislature finds and declares that the maintenance of agriculture funded programs described in subdivision (b) of Section 230 is necessary to ensure the consuming public of a continuous and safe supply of food and fiber and is affected with a public interest. This article is enacted in the exercise of the police power of this state for the purpose of protecting the health and welfare of the people of this state. (Added by Stats. 1993, Ch. 872, Sec. 2. Effective January 1, 1994.) 232. The Agriculture Trust Fund is hereby created. The trust fund is not a fund of the State Treasury. Transfers to the trust fund may be deposited in the State Treasury, or in a bank or other depository approved by the Department of Finance. Funds that are so transferred are exempt from Sections 11270 and 11272 of the javascript:submitCodesValues('230.','2.1.2.3','1993','872','2',%20'id 32eda3a9-291f-11d9-9fa8-93d6a7ed919f') javascript:submitCodesValues('231.','2.1.2.3','1993','872','2',%20'id 32eda3ab-291f-11d9-9fa8-93d6a7ed919f') javascript:submitCodesValues('232.','2.1.2.3','1994','146','47',%20'id 32eda3ad-291f-11d9-9fa8-93d6a7ed919f') 8 Government Code and shall be deposited and disbursed only to pay for attorney’s fees and other costs incurred in litigation involving the trust fund, expenses generated by the auditing requirement imposed by Section 239, and the costs set forth in Section 240. (Amended by Stats. 1994, Ch. 146, Sec. 47. Effective January 1, 1995.) 233. (a) The trust fund consists of moneys transferred by the director from the Department of Food and Agriculture Fund, including all income therefrom. The amount of funds, excluding interest earned thereon, contained in the trust fund shall be determined by the director, and shall be the same percentage for all agricultural programs, but shall not exceed 10 percent of the annual operating budgets of each agricultural program. Funds in excess of 10 percent of the annual operating budgets of each agricultural program that are in the trust fund, or such other lesser percentage as the director may determine, may be returned to the Department of Food and Agriculture Fund. (b) The director shall establish separate accounts in the trust fund for the money transferred to the fund from each of the agricultural program accounts in the Department of Food and Agriculture Fund. The trust accounts shall be used by the Department of Food and Agriculture Fund for expenditure when necessary for the exclusive purpose of implementing and continuing any of the agriculture programs with money contained in the trust fund. (Added by Stats. 1993, Ch. 872, Sec. 2. Effective January 1, 1994.) 234. The trust fund is created for the exclusive purpose of implementing and continuing the agricultural programs for which the funds were collected. (Added by Stats. 1993, Ch. 872, Sec. 2. Effective January 1, 1994.) 235. Each agricultural program specified in subdivision (b) of Section 230 with funds contained in the Department of Food and Agriculture Fund shall participate in the trust fund unless an entity is designated pursuant to subdivision (a) of Section 227 or Section 6005 or 45021. (Amended by Stats. 1994, Ch. 146, Sec. 48. Effective January 1, 1995.) 236. The beneficiaries of the trust are the agricultural programs with money contained in the trust fund. (Added by Stats. 1993, Ch. 872, Sec. 2. Effective January 1, 1994.) javascript:submitCodesValues('233.','2.1.2.3','1993','872','2',%20'id 32eda3af-291f-11d9-9fa8-93d6a7ed919f') javascript:submitCodesValues('234.','2.1.2.3','1993','872','2',%20'id 32ef2a51-291f-11d9-9fa8-93d6a7ed919f') javascript:submitCodesValues('235.','2.1.2.3','1994','146','48',%20'id 32ef2a53-291f-11d9-9fa8-93d6a7ed919f') javascript:submitCodesValues('236.','2.1.2.3','1993','872','2',%20'id 32ef2a55-291f-11d9-9fa8-93d6a7ed919f') 9 237. The trust fund shall continue in existence for as long as any of the agricultural programs specified in subdivision (b) of Section 230 continues to exist. Upon termination of any of those agricultural programs, all of that program’s remaining funds, exclusive of all financial obligations of that program, shall be returned on a pro rata basis to all persons from whom assessments or fees were collected for purposes of that program in the immediately preceding marketing season. However, if the director finds that the amounts returnable are so small as to make impractical the computation and remitting of a pro rata refund to those persons, any funds remaining after payment of all expenses shall be paid to any existing state or federally authorized agricultural program relating to the same industry. If no such program exists, any remaining money shall be paid to the Department of Food and Agriculture Fund. If the account of a terminating agricultural program is insufficient to meet all financial obligations, the director may borrow a pro rata share from all other accounts in the trust fund to pay those obligations. The director shall collect a supplemental assessment from all persons from whom assessments or fees were collected for the purposes of the program being terminated in the immediately preceding marketing seasons to reimburse the trust fund. Upon the termination of all the agricultural programs specified in subdivision (b) of Section 230, the trustee shall transfer the remaining funds to the Department of Food and Agriculture Fund. (Added by Stats. 1993, Ch. 872, Sec. 2. Effective January 1, 1994.) 238. It is hereby declared, as a matter of legislative determination, that the advisory body for each of the identified agricultural programs is intended to represent and further the interest of a particular agricultural industry concerned, and that this representation and furtherance is intended to serve the public interest. Accordingly, the Legislature finds that, with respect to persons who are appointed to any advisory body, the particular agricultural industry concerned is tantamount to, and constitutes, the public generally within the meaning of Section 87103 of the Government Code. (Added by Stats. 1993, Ch. 872, Sec. 2. Effective January 1, 1994.) 238.5. The chairperson of each advisory body shall advise the director on the administration of the trust fund, including, but not limited to, the amount of the fund to be applied to program closures, unanticipated occurrences, and replenishment. (Added by renumbering Section 239 by Stats. 1994, Ch. 146, Sec. 49. Effective January 1, 1995.) javascript:submitCodesValues('237.','2.1.2.3','1993','872','2',%20'id 32ef2a57-291f-11d9-9fa8-93d6a7ed919f') javascript:submitCodesValues('238.','2.1.2.3','1993','872','2',%20'id 32f0b0f9-291f-11d9-9fa8-93d6a7ed919f') javascript:submitCodesValues('238.5.','2.1.2.3','1994','146','49',%20'id 32f0b0fb-291f-11d9-9fa8-93d6a7ed919f') 10 239. All trust fund activities shall be subject to an audit at least once every two years by an auditing firm selected by the director in accordance with Chapter 2 (commencing with Section 10290) of Part 2 of Division 2 of the Public Contract Code. A copy of the audit shall be delivered to the director within 30 days after completion. (Added by renumbering Section 240 by Stats. 1994, Ch. 146, Sec. 50. Effective January 1, 1995.) 239.5. Any money that is deposited pursuant to Section 232, which the director determines is available for investment, may be invested or reinvested in any of the securities described in Article 1 (commencing with Section 16430) of Chapter 3 of Part 2 of Division 4 of Title 2 of the Government Code. (Added by renumbering Section 241 (as added by Stats. 1993, Ch. 872) by Stats. 1994, Ch. 146, Sec. 51. Effective January 1, 1995.) 240. The moneys in the trust fund shall be disbursed only to pay for costs arising from unanticipated occurrences associated with administering self-funded programs. These costs shall include, but are not limited to: attorney costs related to litigation; workers’ compensation costs; unemployment costs; phaseout costs of existing programs; and temporary funding for programs that are implementing a fee increase. Any program using the moneys from the trust fund shall repay the trust fund based on a schedule approved by the director. In addition to the costs specified above, the director may impose a charge in the amount necessary to cover the department’s costs in administering this article. (Added by renumbering Section 242 (as added by Stats. 1993, Ch. 872) by Stats. 1994, Ch. 146, Sec. 52. Effective January 1, 1995.) 240.5. This article shall be liberally construed. If any provision of this article or the application thereof to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of the article that can be given effect without the invalid provision or application, and to this end the provisions of this article are severable. (Added by renumbering Section 243 (as added by Stats. 1993, Ch. 872) by Stats. 1994, Ch. 146, Sec. 53. Effective January 1, 1995.) javascript:submitCodesValues('239.','2.1.2.3','1994','146','50',%20'id 32f0b0fd-291f-11d9-9fa8-93d6a7ed919f') javascript:submitCodesValues('239.5.','2.1.2.3','1994','146','51',%20'id 32f0b0ff-291f-11d9-9fa8-93d6a7ed919f') javascript:submitCodesValues('240.','2.1.2.3','1994','146','52',%20'id 32f0b101-291f-11d9-9fa8-93d6a7ed919f') javascript:submitCodesValues('240.5.','2.1.2.3','1994','146','53',%20'id 32f3be43-291f-11d9-9fa8-93d6a7ed919f') 11 ARTICLE 3. Interdepartmental Expenses [241 - 243] ( Article 3 enacted by Stats. 1967, Ch. 15. ) 241. The director may charge any bureau, division, board, or other agency of the department which is supported otherwise than by the appropriations from the General Fund its proportionate share of the administrative expense of the department, or a share in an amount which is computed to reasonably compensate the department for the administative services which are rendered by it. (Enacted by Stats. 1967, Ch. 15.) 242. Apportionment of the expenses shall be made and determined by the director, subject to the approval of the Director of Finance. The proportionate or computed share so charged shall not, however, exceed 5 percent of the collections which are made by the department for the bureau, division, board, or other agency and the share shall further be limited to only those costs for which direct benefits are derived by the programs against which the costs are being charged. (Amended by Stats. 1986, Ch. 464, Sec. 1.) 243. Any money which is charged and received by the department pursuant to this article shall be remitted to the State Treasury for credit to the current appropriation from the General Fund for the support of the department. The sum so remitted shall be available for expenditure for the support of the department. (Enacted by Stats. 1967, Ch. 15.) ARTICLE 4. License and Registration [261 - 263] ( Article 4 enacted by Stats. 1967, Ch. 15. ) 261. Unless otherwise specifically provided in this code, any license or registration which is issued pursuant to this code expires whenever the bond which is required of a licensee or registrant under this code lapses or is canceled. If, however, the bond is canceled as a result of the retirement from business of the bonding company and the director is satisfied that the licensee is solvent, he may continue the license or registration for a period of not to exceed 30 days to enable the licensee or registrant to secure a new bond. (Enacted by Stats. 1967, Ch. 15.) javascript:submitCodesValues('241.','2.1.2.4','1967','15','',%20'id 32f3be47-291f-11d9-9fa8-93d6a7ed919f') javascript:submitCodesValues('242.','2.1.2.4','1986','464','1',%20'id 32f3be49-291f-11d9-9fa8-93d6a7ed919f') javascript:submitCodesValues('243.','2.1.2.4','1967','15','',%20'id 353263ab-291f-11d9-9fa8-93d6a7ed919f') javascript:submitCodesValues('261.','2.1.2.5','1967','15','',%20'id 3533ea4f-291f-11d9-9fa8-93d6a7ed919f') 12 262. Notwithstanding any provision of law, a license, registration, certificate, permit, exception, or other indicia of authority issued by the department under any provision of this code is forfeited by operation of law prior to its expiration date when one of the following events occurs: (a) The holder surrenders the indicia to the department. (b) The holder dies. (c) The partnership holder dissolves. (d) The holder of a significant financial interest in a corporation transfers his or her interest to another person or entity, regardless of relationship. The secretary shall determine what constitutes a “significant financial interest” for the purposes of this subdivision. (Added by Stats. 1997, Ch. 238, Sec. 1. Effective January 1, 1998.) 263. Notwithstanding any provision of law, the department may deny an application for, or may condition, suspend, or revoke, any license, registration, certificate, permit, exception, or other indicia of authority issued by the department under any provision of this code upon any of the following grounds: (a) Violation by the holder or applicant of any section of this code, or any rule or regulation promulgated under this code, that expressly applies to the license, registration, certificate, permit, exception, or other indicia of authority denied, conditioned, suspended, or revoked. (b) Violation by a holder’s or applicant’s agent, employee, or contractor, or by an organization or entity in which the holder or applicant holds a significant financial interest, of any section of this code, or any rule or regulation promulgated under this code, that expressly applies to the license, registration, certificate, permit, exception, or other indicia of authority denied, conditioned, suspended, or revoked, under circumstances in which the licensee knew or should have known of and failed to take reasonable measures to prevent, the violation, or failed to report the violation to the department upon learning of it. (c) The conviction of the holder or applicant of a crime that includes as one of its elements the financial victimization of another. (d) A false or misleading statement by a holder or applicant that the holder or applicant knew or should have known to be false or misleading, directed to any official of any government concerning the scope of the license, registration, certificate, permit, exception, or other indicia of authority, the standards under which it was issued, or the contents of the application for licensure, registration, certification, the permit, exception, or other indicia of authority. (e) The department may also temporarily suspend any license, registration, certificate, permit, exception, or other indicia of authority prior to hearing, if the department has prima facie evidence that the health and safety of persons, growing crops, or livestock are in imminent danger. (Added by Stats. 1997, Ch. 238, Sec. 2. Effective January 1, 1998.) javascript:submitCodesValues('262.','2.1.2.5','1997','238','1',%20'id 3533ea51-291f-11d9-9fa8-93d6a7ed919f') javascript:submitCodesValues('263.','2.1.2.5','1997','238','2',%20'id 3533ea53-291f-11d9-9fa8-93d6a7ed919f') 13 ARTICLE 5. Collection [281 - 284] ( Article 5 enacted by Stats. 1967, Ch. 15. ) 281. The director may direct suit in the name of the people of the state, as plaintiff, to be brought for the recovery of any license or other fee against any person required to take out a license or pay any fee pursuant to this code that fails, neglects, or refuses to take out such license or pay such fee, or that, without such license or payment of such fee, carries on or attempts to carry on the business or do any act for which such license or payment of such fee is required. Notwithstanding Section 483.010 of the Code of Civil Procedure, in such case a writ of attachment may be issued in the manner provided by Title 6.5 (commencing with Section 481.010) of Part 2 of the Code of Civil Procedure. (Amended by Stats. 1974, Ch. 1516. Note: See this section as modified on July 17, 1991, in Governor's Reorganization Plan No. 1 of 1991.) 282. In cases where the director may perform sampling, grading, testing, inspection, or certification services in relation to any agricultural product, or identification services in relation to root or top stock of any fruit or nut trees, and fix reasonable fees to pay the costs necessary to perform the services he may collect such fees in advance of performing the services. He need not, however, do so if, in his opinion, the benefit of such services would be lessened by advance payment. (Enacted by Stats. 1967, Ch. 15.) 283. In lieu of collecting fees in advance pursuant to Section 282, the director may, if he deems it necessary, accept a bond which guarantees payment of the fees. The bond shall be satisfactory to the director. (Enacted by Stats. 1967, Ch. 15.) 284. If the director finds that any amount not in excess of five dollars ($5) which is due pursuant to this code is so small as not to justify the cost of its collection or believes that its collection is improbable, he may remove the amount which is due from the records of the department. He shall not, thereafter, be held accountable for its collection. (Amended by Stats. 1971, Ch. 82.) javascript:submitCodesValues('281.','2.1.2.6','1974','1516','',%20'id 353570f7-291f-11d9-9fa8-93d6a7ed919f') javascript:submitCodesValues('282.','2.1.2.6','1967','15','',%20'id 353570f9-291f-11d9-9fa8-93d6a7ed919f') javascript:submitCodesValues('283.','2.1.2.6','1967','15','',%20'id 353570fb-291f-11d9-9fa8-93d6a7ed919f') javascript:submitCodesValues('284.','2.1.2.6','1971','82','',%20'id 3536f79d-291f-11d9-9fa8-93d6a7ed919f') 14 ARTICLE 6. Refunds [301 - 306] ( Article 6 enacted by Stats. 1967, Ch. 15. ) 301. As used in this article, “fee” includes, but is not limited to, any application fee, license fee, permit fee, inspection fee, certification fee, registration fee, identification fee, analysis fee, or certificate fee. (Enacted by Stats. 1967, Ch. 15.) 302. Notwithstanding any other provision of law, the director may authorize the refund of any money which is received or collected by the department in the payment of any fee, assessment, or tax. (Amended by Stats. 1989, Ch. 519, Sec. 1.) 303. A refund may be made in whole or in part in any of the following instances: (a) The purpose for a fee cannot lawfully be accomplished for the person that paid the fee through no fault of such person. (b) A refund of a fee is requested by the payer before any examination or inspection has been performed or service rendered by the department for the payer. (c) The payment of a fee, assessment, or tax represents an overpayment, payment in duplicate, payment in error in law, or payment through error of the payer or the department. (Enacted by Stats. 1967, Ch. 15.) 304. The fiscal officer of the department shall make payment of any refund pursuant to this article if the director prepares a voucher which sets forth the facts which pertain to the refund and authorizes its payment. (Enacted by Stats. 1967, Ch. 15.) 305. If any money which is to be refunded has been deposited in the State Treasury, the State Controller, upon receipt of a claim which is filed by the department, shall draw his warrant for the payment of the refund from the fund to which the money was credited. (Enacted by Stats. 1967, Ch. 15.) javascript:submitCodesValues('301.','2.1.2.7','1967','15','',%20'id 3536f7a1-291f-11d9-9fa8-93d6a7ed919f') javascript:submitCodesValues('302.','2.1.2.7','1989','519','1',%20'id 3536f7a3-291f-11d9-9fa8-93d6a7ed919f') javascript:submitCodesValues('303.','2.1.2.7','1967','15','',%20'id 3536f7a5-291f-11d9-9fa8-93d6a7ed919f') javascript:submitCodesValues('304.','2.1.2.7','1967','15','',%20'id 3536f7a7-291f-11d9-9fa8-93d6a7ed919f') javascript:submitCodesValues('305.','2.1.2.7','1967','15','',%20'id 3705eb49-291f-11d9-9fa8-93d6a7ed919f') 15 306. If the director finds that the amount of any refund is less than ten dollars ($10) or an amount established pursuant to Section 16302.1 of the Government Code, the director may retain the amount for use for the same purpose for which the original payment was made, unless demand for the payment of a refund is made within six months after the determination that a refund is due. If a demand is made, the refund shall be paid. (Amended by Stats. 1989, Ch. 519, Sec. 2.) javascript:submitCodesValues('306.','2.1.2.7','1989','519','2',%20'id 3705eb4b-291f-11d9-9fa8-93d6a7ed919f')