Current through Register 2024 Notice Reg. No. 38, September 20, 2024
Project 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.
(D) Advertising
costs.
(E) Rent for facilities in
foreign countries.
(F) In-store
demonstrations.
(G) Participation
in approved trade fairs, exhibits, etc.
(H) Merchandising costs.
(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.
(11) Gift items.
(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.
Note: Authority cited: Sections
407,
58563
and
58574,
Food and Agricultural Code. Reference: Sections
58563
and
58574,
Food and Agricultural Code.
