Three members of the board shall constitute a quorum and such quorum may exercise all the power and authority conferred on the board by this act.

SEC. 4. For the purposes of this act, the board may acquire on behalf of the State by purchase, gift, of the exercise of the power of eminent domain, all lands, water rights, and other property needed for the purposes hereof, and may take title in trust and shall without delay improve, subdivide and sell such land, water rights, and other property with appurtenances and rights to approved bona fide settlers; the board shall have the authority to set aside for townsite purposes a suitable area purchased under the provisions of this act and to subdivide such area and sell or lease the same for cash, in lots of such size, and with such restrictions as to resale, as they shall deem best: And provided further, That the board shall have authority to set aside and dedicate to public use such area or areas as it may deem desirable for roads, schoolhouses, churches, or other public purposes.

SEC. 5. Whenever the board believes that private land should be purchased for settlement under this act, it shall give notice by publication in one or more newspapers of general circulation in this State, setting forth approximately the area and character of the land desired and the conditions that shall govern the proposed purchase, and inviting owners of land willing to enter into a contract of sale on the conditions proposed to submit such land for inspection.

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SEC. 6. Within 30 days thereafter the bard shall direct an officer or officers in its employ, or one or more persons who may at its request be designated by the dean of the college of agriculture of the University of California, to inspect and report on all tracts of land suitable for closer settlement which are so submitted.

SEC. 7. The board shal give not less than one week's notice of the approximate date when tracts submitted will be inspected and every report of such inspection shall as far as practicable specify the—

(a) Situation and brief description thereof;

(b) Extent and situation of land comprising so much of any tract as it is proposed to acquire;

(c) Names and addresses of the owners thereof;

(d) Character of water rights;

(e) Nature of improvements;

(f) Crops being grown on land;

(g) Appraisement of value of land, water rights and improvements.

SEC. 8. On receiving the reports on all of the land examined the board shall decide which of the areas is best suited to the purposes of this act. Before so deciding the board may examine the land, or it may employ one or more competent valuers to fix the productive value of the land and report the same in writing; the owner or his agent may give evidence as to its value.

SEC. 9. If from the evidence submitted or from the results of its personal inspection, the board is satisfied that one or more of the tracts submitted are suited to intensive, closer settlement and can be acquired at a reasonable price, it shall submit to the governor its report, giving the reasons for recommending the purchase, and on the approval of the governor the board shall be authorized to purchase the same: Provided, That before such purchase is made, the attorney general shall approve the title of such lands and any water rights appurtendent thereto, and the State water commission shall certify in writing as to the sufficiency of any water rights to be conveyed.

SEC. 10. All sales to settlers of land under this act shall be made under such terms and conditions as shall give to the board full control of any subdivisions thereof until all moneys advanced by the State for the purchase, improvement, or equipment of such subdivisions are fully repaid, together with interest thereon as herein provided.

SEC. 11. Immediately upon taking possession of any land purchased as above, and after deducting any areas to be set aside for townsites or public purposes in accordance with section 4 of this act, the board shall subdivide it into areas suitable for farms and farm laborer's allotments, and lay out, and where necessary, construct roads, ditches, and drains for giving access to and insuring the proper cultivation of the several farms and allotments. The board, prior to disposing of it to settlers, or at any time after such land has been disposed of, but not after the end of the fifth year from the commencement of the term of the settler's purchase contract, may

(a) Prepare all or any part of such land for irrigation and cultivation : (b) Seed, plant, or fence such land, and cause dwelling houses and outbuildings to be erected on any farm alloment or make any other improvements not

specified above necessary to render the allotment habitable and productive in advance of or after settlement, the total cost to the board of such dwellings, outbuildings, and improvements not to exceed $1,500 on any one farm allotment;

(c) Cause cottages to be erected on any farm laborer's allotment and provide a domestic water supply, the combined cost to the board of the cottage and water supply not to exceed $800 on any one farm laborer's allotment;

(d) Make loans to approved settlers on the security of permanent improvements, stock, and farm implements, such loans to be secured by mortgage or mortgages, deed or deeds of trust on such permanent improvements, stock, or farm implements, and the total amount of any such loan, together with money spent by the board on improvements as above specified, not to exceed $3,000 on any one farm allotment, or $2,000 on any one farm laborer's allotment.

SEC. 12. Authority is hereby granted to the board, where deemed advisable, to operate and maintain any irrigation works constructed to serve any lands purchased and sold under the provisions of this act. All moneys received in tolls or charges for the operation and maintenance of any works or for any water supplied therefrom, shall be deposited in the land-settlement fund created by this act and shall become available for the payment of any costs, expenses, or other charges authorized in this act to be paid from said land-settlement fund.

SEC. 13. After the purchase of land by the board under the provisions of this act and before its disposal to approved bona fide applicants the board shall have authority to lease such land or a part thereof on bonded or secured lease on such terms as it shall deem fit.

SEC. 14. Lands disposed of under this act, other than lands set aside for townsites or public purposes, shall be sold either as farm allotments, each of which shall have a value not exceeding, without improvements, $15,000, or as farm laborers 'allotments, each of which shall have a value not exceeding, without improvements, $1,000. Before any part of an area is thrown open for settlement there shall be public notice thereof once a week for four weeks in one or more daily newspapers of general circulation in the State, setting forth the number and size of farm allotments or farm laborer's allotments, or both, the prices at which they are offered for sale, the minimum amount of capital a settler will be required to have, the mode of payment, the amount of cash payment required, and such other particulars as the board may think proper and specifying a definite period within which applications therefor shall be filed with the board on forms provided by the board. The board shall have the right in its uncontrolled discretion to reject any or all applications it may see fit and may readvertise as aforesaid as often as it sees fit until it receives and accepts such number of applications as it may deem necessary.

If no applications satisfactory to the board are received for any farm allotment or farm laborer's allotment following such advertising, the board at any time prior to readvertising, may sell any such farm allotment or farm laborer's allotment at the prices at which they were so offered for sale, without the necessity of readvertising.

The board shall also have the power in dealing with any such farm allotments or farm laborer's allotments for which there has been no such application satisfactory to the board. to subdivide or amalgamate any one or more of such allotments as it may see fit, and fix the prices thereon, provided that the limitations of $15,000 for a farm allotment and $1,000 for the farm laborer's allotment, as in this section set forth, are not violated. Such subdivision or amalgamation may be had without the necessity of readvertising.

The board may also sell at public auction, under such conditions of sale and notice thereof as the board may prescribe, any areas which the board may determine are not suitable for farm allotments or farm laborer's allotments, whether or not included in any subdivision into farm allotments or farm laborer's allotments: Provided, That if such area has been included in such a farm allotment or farm laborer's allotment, then such sale at public auction can be made only after a failure to receive any application satisfactory to the board after the advertising thereof, as required by the terms of this section.

SEC. 15. Any citizen of the United States, or any person who has declared his intention of becoming a citizen of the United States, and who is not the holder of agricultural land or of possessory rights thereto to the value of $15,000, and who by this purchase would not become the holder of agricultural land or of possessory rights thereto exceeding such value, and who is prepared to enter within six months upon actual occupation of the land acquired, may

apply for and become the purchaser of either a farm allotment or a farm laborer's allotment; Provided, That no more than one farm allotment or more than one farm laborer's allotment shall be sold to any one person; Provided, further, That no applicant shall be approved who shall not satisfy the board as to his or her fitness successfully to cultivate and develop the allotment applied for.

The board may, in offering for sale farm allotments or farm laborer's allotments, cooperate or contract with the duly authorized representatives of the United States Government and other public corporations or agencies generally. The board is hereby authorized to perform all acts necessary to cooperate fully with the agencies of the United States engaged in work of similar character, and with similar boards and agencies of other States. In any such sales made in cooperation with such representatives or agencies of the United States Government preference must be given to soldiers, sailors, marines, and others who have served with the armed forces of the United States in the European war or other wars of the United States, including former American citizens who served in Allied Armies against the Central Powers, and have been repatriated, and who have been honorably discharged. The board may likewise, whether or not acting in cooperation with the duly authorized representatives of the United States Government, give such preference to any of such citizens of California, who as soldiers, sailors, marines, and others have served with the armed forces of the United States, as in this section decribed.

SEC. 16. Within 10 days after the final date set for receiving applications for either farm allotments or farm laborer's allotments the board shall meet to consider the applications, and may request applicants to appear in person: Provided, That the board shall have the power and the uncontrolled discretion to reject any or all applications.

SEC. 17. The selling prices of the several allotments into which lands purchased under this act are subdivided, other than those set aside for townsite and public purposes, shall be fixed by the board, so as to render such allot ments as nearly as possible equally attractive, and calculated to return to th State the original cost of the land, together with a sufficient sum added theret to cover all expenses and costs of surveying, improving, subdividing, and sellin such lands, including the payment of interest, and all costs of engineering, superintendence, and administration, including the cost of operating any works built, directly chargeable to such land, and also the price of so much land ar shall on subdivision be used for roads and other public purposes, and also suc sum as shall be deemed necessary to meet unforeseen contingencies.

SEC. 18. Every approved applicant shall enter into a contract of purchase with the board, which contract shall among things provide that the purchaser shall pay as a cash deposit a sum equal to 5 per cent of the sale price of the allo ment and in addition not less than 10 per cent of the cost of any improvementTM made thereon, and such applicant shall, if required by the board, enter into a agreement to apply for a loan from the Federal land bank under provisions of the Federal farm-loan act for an amount to be fixed by the board, and shall pay to the board the amount of any loan so made as a partial payment on such land and improvements. The balance due on the land shall be paid in amortizing payments extending over a period to be fixed by the board, not exceeding 40 years, together with interest thereon at the rate of 5 per cent per annum. The amount due on improvements shall be paid in amortizing payments extending over a period to be fixed by the board not exceeding 20 years, together with interest thereon at the rate of 5 per cent per annum. The repayment of loans made on live stock or implements shall extend over a period to be fixed by the board not exceeding five years; Provided, however, In each case, that the settler shall have the right, on any installment date, to pay any or all installments still remaining unpaid.

SEC. 19. The number and amount of yearly or half yearly installments of principal and interest to be paid to the board under contracts of purchase shall be calculated according to any table adopted or approved by the Federal Farm Loan Board.

SEC. 20. Every contract entered into between the board and an approved purchaser shall contain among other things provisions that the purchaser shall cultivate the land in a manner to be approved by the board and shall keep in good order and repair all buildings, fences, and other permanent improvements situated on his allotment, reasonable wear and tear and damage by fire excepted. Each settler shall, if required, insure and keep insured against fire all buildings on his allotment, the policies therefor to be made out in favor of the

board and to be in such amount or amounts and in such insurance companies as may be prescribed by the board.

The board shall have power in its own name to insure and keep insured against fire all buildings or other improvements on any of the lands under the control of the board, and any contract of insurance heretofore made by the board is hereby ratified and confirmed. The board shall likewise have the power in any contract of purchase under which the board purchases lands as authorized in this act, to provide for the return by the board to the owner so selling to the State of any insurance premiums or taxes which may have been paid on said property by such owner, or for which such owner may have become obligated to pay, and any such agreement or contract of purchase heretofore made by the board is hereby ratified and confirmed.

SEC. 21. No allotment sold under the provisions of this act shall be transferred, assigned, mortgaged, or sublet in whole or in part, without the consent of the board given in writing, until the settler has paid for his farm allotment or farm laborer's allotment in full and complied with all of the terms and conditions of his contract of purchase.

SEC. 22. In the event of a faiure of a settler to comply with any of the terms of his contract of purchase and agreement with the board, the State and the board shall have the right at, its option, to cancel the said contract of purchase and agreement and thereupon shall be released from all obligation in law or equity to convey the property, and the settler shall forfeit all right thereto and all payments theretofore made shall be deemed to be rental paid for occupancy. The board may require of the settler such mortgage or deed of trust or other instrument as may be necessary under the terms and conditions of the contract of purchase in order to adequately protect and secure the board. There may be included in such contract of purchase, mortgage, deed of trust, or other instrument any conditions with reference to sale of the property or reconveyance back to the board or notice of such sale or reconveyance as may in the discretion of the board be required to be so included in such contract of purchase, mortgage, deed of trust, or other instrument, in order to so adequately protect the said board in the premises; and any such contracts of purchase, mortgages, deeds of trust, or other instruments heretofore executed are hereby confirmed. The failure of the board or of the State to exercise any option to cancel, or other privilege under the contract of purchase for any default shall not be deemed as a waiver of the right to exercise the option to cancel or other privilege under the contract of purchase for any default thereafter on the settler's part. But no forfeiture so occasioned by default on the part of the settler shall be deemed in any way, or to any extent, to impair the lien and security of the mortgage or trust instrument securing any loan that it may have made as in this act provided. The board shall have the right and power to enter into a contract of purchase for the sale and disposition of any land forfeited as above provided, because of default on the part of a settler, and this right may be exercised indefinitely without the necessity of advertising. SEC. 23. Actual residence on any allotment sold under the provisions of this act shall commence within six months from the date of the approval of the application and shall continue for at least eight months in each calendar year for at least 10 years from the date of the approval of the said application, unless prevented by illness or some other cause satisfactory to the board: Provided, That in case any farm allotment disposed of under this act is returned to and resold by the State, the time of residence of the preceding purchaser may in the discretion of the board be credited to the subsequent purchaser.

SEC. 24. The power of eminent domain shall be exercised by the State at the request of the board for the condemnation of water rights and rights of way for roads, canals, ditches, dams, and reservoirs necessary or desirable for carrying out the provisions of this act; and on request of the board the attorney general shall bring the necessary and appropriate proceedings authorized by law for such condemnation of said water rights or rights of way, and the cost of all water rights or rights of way so condemned shall be paid out of the land settlement fund hereinafter provided for. The board shall have full authority to appropriate water under the laws of the State when such appropriation is necessary or desirable for carrying out the purposes of this act.

SEC. 25. For the purpose of carrying out the provisions of this act the sum of $260,000 is hereby appropriated out of any moneys in the State treasury not otherwise appropriated. Of this amount, the sum of $250,000 shall constitute a revolving fund to be known as the "land-settlement fund," which is calculated to be returned to the State with interest at the rate of 4 per cent per

I annum within a period of 50 years from the date of the passage of this act, on the daily balances representing the amounts drawn out of such fund and thus depleting the fund to an amount less than said sum of $250,000, which said daily balances shall be so calculated only on the amounts so drawn out of such fund, from the date of the passage of this act. The remaining $10,000 shall constitute a fund available for the payment of administrative expenses alone until such time as other moneys are available for such purposes from the sales of land as provided for in this act.

SEC. 26. The State board of control is hereby auhtorized to provide for advances of money to the board needed to meet contingent expenses to such an amount, not exceeding $5,000, as the said board of control shall deem necessary.

SEC. 27. The money paid by settlers on lands, improvements, or in the repayment of advances shall be deposited in the land-settlement fund and be available under the same conditions as the original appropriation.

SEC. 28. The board shall have authority to make all needed rules and regulations for carrying out the provisions of this act.

SEC. 29. The board is hereby authorized to investigate land settlement conditions in California and elsewhere and to submit recommendations for such legislation as may be deemed by it necessary or desirable.

The board shall render an annual report to the governor and a copy thereof to the Secretary of the Interior, which report shall be filed and printed as required by sections 332, 333, 334, 336, and 337 of the Political Code, with the exception that they shall be so filed and printed annually instead of biennially, as provided in said sections.

SEC. 30. The act of the legislature entitled "An act providing for the appointment of a commission to investigate and report at the forty-second session of the legislature relative to the adoption of a system of land colonization and rural credits and making an appropriation therefor," approved May 17, 1915, is hereby repealed.

SEC. 31. This act may be known and cited as the "land settlement act." For the purpose of carrying out the provisions of this act and of the act amended by this act the sum of $1,000,000 is hereby appropriated out of any moneys in the State treasury not otherwise appropriated, which sum of $1,000,000 is calculated to be returned to the State within a period of 50 years from the date of this appropriation of $1,000,000 going into effect, with interest at the rate of 4 per cent per annum on the daily balances representing the amounts drawn out of such appropriation, and thus depleting the approriation to an amount less than said sum of $1,000,000. The State controller is hereby authorized and directed to draw warrants upon such funds from time to time upon requisition of the board approved by the State board of control, and the State treasurer is hereby authorized and directed to pay such warrants.

The following communications were referred to the committee and made part of the record:

Hon. MOSES P. KINKAID,

Chairman Arid Lands Committee,

IMPERIAL IRRIGATION DISTRICT,

El Centro, Calif., November 28, 1919.

333 House Office Building, Washington, D. C.

DEAR SIR: A committee of five members has been appointed by the Imperial Irrigation District to go to Washington on behalf of the district to urge the passage of Kettner bill (H. R. 6044), and to supplement the work done by the former committee.

The substitution of new members to the committee for those having served last summer is not significant of a change in policy of the work outlined by the former committee, but merely a means of equalizing the responsibility and burden attached to such work. The time given to this work by the members is gratis, and their personal business affairs would not permit the unlimited time required.

Certain amendments will be presented to the Arid Land Committee affecting the disposal of public lands under the principle of State and soldier land settlement and to provide sufficient waters therefor.

This status of principles of the latter committee is identical with those of the former, including the amendments mentioned, and at the request of Mr. Libert take this occasion to so inform you.