BILL NUMBER: SB 866 CHAPTERED 09/12/01 CHAPTER 291 FILED WITH SECRETARY OF STATE SEPTEMBER 12, 2001 APPROVED BY GOVERNOR SEPTEMBER 10, 2001 PASSED THE SENATE AUGUST 28, 2001 PASSED THE ASSEMBLY AUGUST 20, 2001 AMENDED IN ASSEMBLY JULY 20, 2001 AMENDED IN SENATE APRIL 16, 2001 INTRODUCED BY Senator Costa FEBRUARY 23, 2001 An act to amend Sections 64591, 64593, 64600, 64601, 64605, 64662, 64663, 64691, 64691.5, and 64702 of the Food and Agricultural Code, relating to the California Beef Council. LEGISLATIVE COUNSEL'S DIGEST SB 866, Costa. California Beef Council. (1) Existing law establishes the California Beef Council, and specifies the entities eligible for membership on the council. This bill would change references from "slaughterers" to "packers and processors." The bill would eliminate a provision for a $10 per diem payment, and would prohibit members of the council from receiving compensation, as specified. (2) Existing law prohibits the expenditure of beef council funds for the advertising of brand name beef products. This bill would permit the advertising expenditures if approved by a 2/3 vote of the council with the concurrence of the secretary. (3) Existing law provides that a fee of $1 per head shall be paid on each sale of cattle and calves, except as specified. This bill would make an additional exception to this fee for the sale of any calves weighing less than 300 pounds. (4) Existing law provides that a fee greater than $1 per head on the sale of cattle and calves shall not be charged unless the secretary finds, as specified, that the producers in this state have approved the greater fee. This bill would specify that the secretary shall find that the producers in this state have approved the greater fee if he or she finds that 60% of the producers voting in the referendum voted in favor of charging the greater fee. The bill would make a conforming change to a related provision. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 64591 of the Food and Agricultural Code is amended to read: 64591. There is in the state government the California Beef Council which consists of 20 members and 20 alternates, all of whom shall be citizens and residents of this state and producers, packers, or processors. The secretary shall appoint to the council six range cattlemen, six cattle feeders, and six dairymen nominated as producers and two packers or processors as hereinafter provided for, giving due regard to proper geographic distribution. This requirement shall not, however, operate to remove from office any member of the council. Subject to the provisions of this section and of Section 64592, present members of the council shall be eligible for reappointment. SEC. 2. Section 64593 of the Food and Agricultural Code is amended to read: 64593. With or without recommendations or other nominations from the council or otherwise, during September and October of each year, the secretary may, if deemed appropriate or necessary by him or her, provide notice of, and hold, producer nomination meeting or meetings or may prepare and mail nomination forms to producers, for the purpose of receiving nominations for producer membership on the council. When nomination forms are mailed, the secretary shall utilize existing department lists of producers, packers, or processors. The secretary may also provide notice of, and hold, packer or processor nomination meeting or meetings or otherwise receive nominations for packers or processors, as deemed appropriate by him or her, including, but not necessarily limited to, nominations received by mailing similar nomination forms to the packers or processors on existing department lists. Notwithstanding other provisions of this section, the secretary may, whenever and in any manner deemed necessary and appropriate by him or her, obtain nominations of producers, packers, or processors for membership on the council. SEC. 3. Section 64600 of the Food and Agricultural Code is amended to read: 64600. The members of the council shall be reimbursed for necessary traveling and other expenses incurred in the performance of their official duties. SEC. 4. Section 64601 of the Food and Agricultural Code is amended to read: 64601. No member of the council shall receive compensation. SEC. 5. Section 64605 of the Food and Agricultural Code is amended to read: 64605. It is hereby declared, as a matter of legislative determination, that producers, packers, or processors appointed to the council pursuant to this article are intended to represent and further the interest of a particular agricultural industry concerned, and that such representation and furtherance is intended to serve the public interest. Accordingly, the Legislature finds that, with respect to persons who are appointed to such council, the particular agricultural industry concerned is tantamount to, and constitutes, the public generally within the meaning of Section 87103 of the Government Code. SEC. 6. Section 64662 of the Food and Agricultural Code is amended to read: 64662. No program or activity which is conducted or sponsored pursuant to this chapter shall make false or unwarranted claims, or disparage the quality, value, use, or sale of any commodity authorized by law to be marketed in this state, nor shall any such program be conducted with reference to a private brand or trade name which refers to beef or a beef product, except as provided for in Section 64663. SEC. 7. Section 64663 of the Food and Agricultural Code is amended to read: 64663. The council shall not expend beef council funds for the advertising of brand name beef products, unless the expenditures are approved by a two-thirds vote of the council with the concurrence of the secretary. The council may expend beef council funds to conduct cost-sharing advertising with nonbeef brand name products. SEC. 8. Section 64691 of the Food and Agricultural Code is amended to read: 64691. (a) In order to carry out the programs and administer the activities which are conducted pursuant to this chapter, except as specified in Sections 64691.5 and 64702, a fee of one dollar ($1) per head shall be paid on each sale of cattle and calves as specified in Section 64691.7. The fee shall be charged on all cattle and calves, except the following: (1) Hides, skins, or reduction animals. (2) Any cattle that are transported for purposes other than for sale or slaughter and without a change of ownership. (3) Any cattle custom slaughtered exclusively for the owner, members of the owner's household, or the owner's nonpaying guests or employees. (4) Any calves weighing less than 300 pounds. (b) The fee shall not be charged or collected more than once from each owner upon the same animal and is nonrefundable. SEC. 9. Section 64691.5 of the Food and Agricultural Code is amended to read: 64691.5. A fee greater than one dollar ($1) per head on cattle and calves prescribed by Section 64691 shall not be charged pursuant to that section under a mandatory fee payment program, unless and until the greater fee is approved by the producers in this state, by a referendum to be submitted to the producers by the secretary. The secretary shall find that the producers have approved any greater fee, if he or she finds that 60 percent of the producers voting in the referendum voted in favor of charging the greater fee. Ballots shall be provided to producers from a list provided by the council and approved by the secretary, and to other producers who request a ballot that provide proof of eligibility. SEC. 10. Section 64702 of the Food and Agricultural Code is amended to read: 64702. The following shall apply to this chapter so long as the federal Beef Promotion and Research Act of 1985 (7 U.S.C. Sec. 2901 et seq.) and any resulting regulations are in effect. If the federal act is terminated by subsequent statute or in the manner specified in the act, this fact shall be certified by the secretary and this section shall be void and have no force and effect. (a) A fee shall not be collected pursuant to this chapter on the sale of cattle or calves that originated from out of state and for which a federal assessment was paid in the originating state in accordance with the requirements of the federal act. When no federal assessment on the sale was paid in the originating state, the secretary shall ensure that any federal assessment due is paid. This subdivision shall not prevent the collection of fees by the secretary on subsequent sales of the cattle or calves. (b) No fee shall be collected on the sale of cattle or calves if the sale is exempt from the federal act and regulations adopted pursuant thereto. (c) (1) No person shall be liable for more than a total of one dollar ($1) per head per sale of cattle or calves under this chapter and the federal act. (2) This subdivision does not apply to any fee increases approved by the secretary pursuant to Section 64691.5.