aside for town sites or public purposes, shall be sold either as farm allotments, each of which shall have a value not exceeding, without improvements, fifteen thousand dollars, or as a farm laborer's allotments, each of which shall have a value not exceeding, without improvements, four hundred dollars. Before any part of an area is thrown open for settle. ment there shall be public notice thereof for thirty days 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.

§ 15. Who may apply. Limit. Fitness to cultivate. 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 fifteen thousand dollars, 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.

§ 16. Applications considered. Within ten 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.

§ 17. Selling prices. The selling prices of the several allotments into which lands purchased under this act are subdivided, other than those set aside for town site and public purposes, shall be fixed by the board, so as to render such allotments as nearly as possible equally attractive, and calculated to return to the state the original cost of the land, together with a sufficient sum added thereto to cover all expenses and costs of surveying, improving, subdividing, and selling 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 as shall on subdivision be used for roads and other public purposes, and also such sum as shall be deemed necessary to meet unforeseen contingencies.

§ 18. Contract of purchase. Cash deposit. Loan from federal farm loan bank. Balance paid in amortizing payments. Every approved applicant shall enter into a contract of purchase with the board, which contract shall among other things provide that the purchaser shall pay as a cash deposit a sum equal to five per cent of the sale price of the allotment and in addition not less than ten per cent of the cost of any improvements made thereon, and, unless prepared to pay one-half of the purchase price in cash, such applicant shall enter into an agreement to make an immediate application for a loan from the federal farm loan bank under the provisions of the federal farm loan act for an amount equal to fifty per cent of the appraised value of the land and twenty per cent of the value of the improvements thereon, and shall pay the amount of any loan so made to the board 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 forty years, together with interest therefor at the rate of five 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 twenty years, together with interest thereon at the rate of five per cent per annum. The repayment of loans made on livestock 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 after five years from the first payment, but not before, to pay any or all installments still remaining unpaid.

§ 19. Calculation of installments. 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.

§ 20. Cultivation of land. insurance. 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 such amount or amounts and in such insurance companies as may be prescribed by the board.

§ 21. Consent to transfer allotment. Cancellation of contract. No allotment sold under the provisions of this act shall be transferred, assigned, mortgaged, or sublet in whole or in part, within five years after the date of such contract without the consent of the board given in writing. At the expiration of five years after the purchase of an allotment, if the board is satisfied that all covenants and conditions of the contract covering such allotment purchase have been complied with, the purchaser may, with the written consent of the board, transfer, assign. mortgage, sublet, or part with the possession of the whole or any part of the allotment covered by such contract.

In the event of a failure 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 failure of the board or the state to exercise any option to cancel for any default shall not be deemed as a waiver of the right to exercise the option to cancel 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 pro. vided. 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.

§ 23. Residence. 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 ten 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.

§ 24. Condemnation of water rights and rights of way. Appropriation of water. 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.

ex

§ 25. Appropriation. "Land settlement fund." Administrative penses. For the purpose of carrying out the provisions of this act the sum of two hundred sixty thousand dollars is hereby appropriated out of any moneys in the state treasury not otherwise appropriated. Of this amount, the sum of two hundred fifty thousand dollars 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 four per cent per annum within a period of fifty years from the date of the passage of this act. The remaining ten thousand dollars 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. 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.

§ 26. Advances by board of control. The state board of control is hereby authorized to provide for advances of money to the board needed to meet contingent expenses to such an amount, not exceeding five thousand dollars as the said board of control shall deem necessary.

§ 27. Payments by settlers, disposition of. 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 for the following purposes:

(a) Making improvements on land being prepared for settlement; (b) Making advances to settlers; and

(c) Completing payments on lands purchased; provided, that when these expenditures on an area of ten thousand acres shall have been completed, then all moneys received shall be paid into the state treasury and used to reimburse the state for the land settlement fund created by this act.

§ 28. Rules and regulations. The board with the approval of the governor shall have authority to make all needed rules and regulations for carrying out the provisions of this act.

§ 29. Investigation of land settlement conditions. 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.

§ 30. Stats. 1915, p. 475, repealed. 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. This act may be known and cited as the "land settle

§ 31. Title. ment act."

An act for the relief of purchasers of school lands.

[Approved June 3, 1913. Stats. 1913, p. 376.]

Amended 1917; Stats. 1917, p. 62.

The amendment of 1917 follows:

§ 1. Relief of school land purchasers. When application has been made to purchase lands from this state and payment of twenty per cent of the purchase price has been made to the treasurer of the proper county

for the same and a certificate of purchase was issued on or after May 1, 1911, to the applicant therefor, and such applicant has failed to pay the interest on the unpaid balance of the purchase price of such land, said certificate shall be in full force and effect; provided, all interest due on the balance of the purchase price is paid to the proper county treasurer on or before December 31, 1917, together with a penalty of ten per centum of the amount of all interest on the unpaid portion of the purchase price of said lands for each year that the annual interest on the balance of the purchase price of said lands has not been paid since the date of the issuance of the certificate of purchase; and provided, further, that the lands described in said certificate of purchase are open to entry and sale under any law of this state at the time this act shal! take effect.

ACT 3847.

TITLE 534a.

STATE MARKET COMMISSION.

An act to provide for the creation of the "state market commission" and the organization thereof; to define its other duties and powers; to create the position of state market director; to define his duties and powers; to create the state market commission fund, and a revolving fund; and repealing that act known as "state commission market act," approved June 10, 1915, chapter seven hundred thirteen of the statutes of 1915, and all other acts and parts of acts in conflict with the provisions of this act.

[Approved June 1, 1917. Stats. 1917, p. 1669.]

§ 1. "State market commission" created. Purposes. There is hereby created the "state market commission," a state organization for the following purposes, to wit:

First-To act as adviser for producers and distributors when requested, assisting them in economical and efficient distribution of any such products at fair prices.

Second-To gather and disseminate impartial information concerning supply, demand, prevailing prices and commercial movements, including common and cold storage of any such products.

Third-To promote, assist and encourage the organization and operation of co-operative and other associations and organizations for improving the relations and services among producers, distributors and consumers of any such products, and to protect and conserve the interests of the producers and consignors of such products.

Fourth-To foster and encourage co-operation between producers and distributors of any such products, in the interest of the general public. Fifth-To foster and encourage the standardizing, grading, inspection, labeling, handling, storage and sale of any such products.

Sixth-To act as a mediator or arbitrator, when invited by both parties, in any controversy or issue, that may arise between producers and distributors of any such products.

Seventh-To certify, for the protection of owners, buyers or creditors, when so requested, warehouse receipts for any such products, verifying