BILL NUMBER: AB 1612 CHAPTERED 10/04/01 CHAPTER 510 FILED WITH SECRETARY OF STATE OCTOBER 4, 2001 APPROVED BY GOVERNOR OCTOBER 4, 2001 PASSED THE ASSEMBLY SEPTEMBER 14, 2001 PASSED THE SENATE SEPTEMBER 12, 2001 AMENDED IN SENATE SEPTEMBER 7, 2001 AMENDED IN SENATE SEPTEMBER 4, 2001 AMENDED IN SENATE AUGUST 29, 2001 AMENDED IN ASSEMBLY APRIL 16, 2001 INTRODUCED BY Assembly Member Matthews (Coauthor: Senator Costa) FEBRUARY 23, 2001 An act to amend Sections 63901 and 63902 of, and to add Sections 63901.3, 63901.4, and 63905 to, the Food and Agricultural Code, relating to agricultural and seafood industries. LEGISLATIVE COUNSEL'S DIGEST AB 1612, Matthews. Agricultural and seafood industries. Existing law provides various declarations and findings regarding the commitment and support furnished by the State of California with respect to the state's agricultural and seafood industries, the success of which is attributed to state-established commissions and councils. This bill would authorize any commission or council to petition the Secretary of the Department of Food and Agriculture to adopt and administer any activity authorized pursuant to the California Marketing Act of 1937. The bill would make related findings. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 63901 of the Food and Agricultural Code is amended to read: 63901. The Legislature hereby finds and declares that the agricultural and seafood industries are vitally important elements of the state's economy and are supported by state established commissions and councils specified in this division that are mandated to enhance and preserve the economic interests of the State of California and are intended to do all of the following: (a) Implement public policy through their expressive conduct. The programs conducted by these commissions and councils are among the broad range of state-mandated regulatory programs that are funded by the public through user fees assessed in accordance with each person' s relationship to a particular program. (b) Reflect a continuing commitment by the State of California to its agricultural and seafood industries that are integral to its economy. These industries are a source of substantial employment for the state's citizens, produce needed tax revenues for the support of state and local government, encourage responsible stewardship of valuable land and marine resources, and produce substantial necessary food and fiber for the state, nation, and world. (c) Represent a policy of support for persons engaged in the agricultural and seafood industries, which are critically important elements of the state's economy. These commissions and councils are particularly important for the continued success of California's unique agricultural and seafood industries which tend to be decentralized with many small entities operating in diverse locations. (d) Provide benefit to the entire industry and all of the people of this state. The commissions and councils are not enacted, and are not intended to produce measurable benefit, on an individual basis, and their successes should be evaluated by analyzing the extent to which they have improved the overall conditions for the particular commodity subject to the commission's or council's jurisdiction with resulting benefit to the overall economy of the state. (e) Enhance the image of California agricultural and seafood products to increase the overall demand for these commodities. In this fashion, the Legislature intends that the commissions and councils operate primarily for the purpose of creating a more receptive environment for the commodity and for the individual efforts of those persons in the industry, and thereby compliment individual, targeted, and specific activities. SEC. 2. Section 63901.3 is added to the Food and Agricultural Code, to read: 63901.3. The Legislature further finds and declares that commission and council activities are essential to the goals and interests of the State of California that include, but are not limited to, all of the following: (a) Research, including, but not limited to, production research, food safety research, marketing research and trends analysis, and research relating to crop protection and production materials. (b) Elimination of tariff and nontariff trade barriers. (c) Consumer education relating to the health and other benefits of using and consuming agricultural and seafood products. (d) Consumer education relating to environmental protection and conservation. (e) Demand-side regulation that stabilizes the flow of product to market through promotion. (f) Analysis of the impact of federal, state and foreign regulation. (g) Cooperative crisis resolution that impacts public health and safety and the continued stability of the industry. (h) Participation with state and federal agencies in negotiating with other governments relating to market access issues such as phytosanitary issues, shipping protocols, crop protection residues, packaging, labeling, and other issues raised by countries imposing trade barriers on the import of agricultural and seafood products into their markets. (i) Industry self-regulation to establish and maintain grade, size, and maturity standards and to stabilize the flow of product to market. SEC. 3. Section 63901.4 is added to the Food and Agricultural Code, to read: 63901.4. The Legislature further finds and declares that mandated cooperative efforts engaged in by the commissions and councils have proven to be effective methods to avoid economic waste and maintain stable agricultural markets. These cooperative efforts are intended to work subject to, and together with, the constraints placed on the agricultural industry by state and federal statutes and regulations and international restrictions. SEC. 4. Section 63902 of the Food and Agricultural Code is amended to read: 63902. In addition to any specific provisions regarding grievance procedures, and consistent with the nature of the commissions and councils established pursuant to Part 2 (commencing with Section 64001) and the desire to resolve conflicts in the most timely and cost-effective manner, any person subject to this division shall file a grievance with the appropriate commission or council, and exhaust all administrative remedies prior to the initiation of any litigation based on a claim, express or implied, that the activities undertaken by the commission or council do not directly or materially advance the interests of the State of California as set forth in this part. SEC. 5. Section 63905 is added to the Food and Agricultural Code, to read: 63905. (a) Any commission or council may petition the secretary to adopt and administer any activity authorized pursuant to the California Marketing Act of 1937 (Chapter 1 (commencing with Section 58601) of Part 2 of Division 21) relating to the commodity that is covered by any commission or council. Adoption and administration of the activity by any commission or council shall be in accordance with the act. (b) As determined by the secretary, the governing body of the commission or council may serve as the advisory board with respect to any activity recommended and approved pursuant to this section.