Section 1711 - Cooperator Contributions and State FundsProject funds, both cooperator and third party cooperator contributions and State funds, must be expended on direct foreign market development activities for California agricultural products.
(a) Authorized Uses. Project funds, both cooperator and third party cooperator contributions and State funds, may be used to pay costs which are essential to, and clearly identifiable with, the carrying out of activities specified in the cooperator annual marketing plans, or amendments thereto, approved by the Director. Authorized uses include: (1) A cooperator's own funds and those of a third party cooperator, as stated in the project agreement, may qualify as a contribution if used for foreign agricultural market development activities, and meet the criteria in Section 1710. These activities, for which State funds may also be expended, include, but are not limited to, the following: (A) Transportation and shipping costs of export market development materials.(B) Cost of consumer samples.(C) Cost of displays and promotional materials.(E) Rent for facilities in foreign countries.(F) In-store demonstrations.(G) Participation in approved trade fairs, exhibits, etc.(I) Public relations costs.(J) Introduction of new products.(K) Market research cost.(2) The cost of cooperator personnel employed to work exclusively on foreign agricultural market development projects, or addressing constraints.(b) Unauthorized Uses. Project funds, both cooperator and third party cooperator contributions and State funds, shall not be spent on the following unauthorized uses: (1) The cost of individual salaries of a cooperator's staff or a third party cooperator's staff not exclusively devoted to the foreign agricultural market development project.(2) Except as may otherwise be specifically provided in the Marketing Plan, travel, personal expense, per diem and living costs and value of time of cooperator board or committee members, third party cooperators, or trade team members, participating or attending foreign market development activities.(3) The cost of membership in clubs and professional organizations.(4) Insurance on household goods and personal effects, including privately-owned automobiles, whether overseas or stored in the U.S.(5) Payment of indemnity or fidelity bond costs.(6) Prizes or awards in connection with contests or similar activities. This does not preclude the use of project funds to purchase appropriate trophies to be awarded in connection with an approved activity of the Cooperator.(7) Fees for credit cards.(8) Printing business cards.(9) Purchasing and mailing seasonal greeting cards.(10) Office parking fees.(12) Refreshments for office staff such as coffee, tea, etc., and any related equipment such as coffee pots, cups, glasses, and other such items.(13) Transportation expenses for prospective job applicants.(14) Subscriptions to non-trade related publications or publications which are for the personal convenience of staff.(15) Capital investments such as permanent structures, real estate, office equipment and furniture.(16) Services generated by USDA or the State for which the cooperator made no expenditure of funds.(17) The value of free publicity generated by the cooperator.(18) Giveaways, price off deals or price discounts on the product.(19) Value of time spent by general audiences who attend and observe a cooperator-sponsored conference, workshop, demonstration or trade seminar.Cal. Code Regs. Tit. 3, § 1711
Note: Authority cited: Sections 407, 58563 and 58574, Food and Agricultural Code. Reference: Sections 58563 and 58574, Food and Agricultural Code.