BILL NUMBER: AB 1304 CHAPTERED 08/01/03 CHAPTER 145 FILED WITH SECRETARY OF STATE AUGUST 1, 2003 APPROVED BY GOVERNOR JULY 31, 2003 PASSED THE SENATE JULY 21, 2003 PASSED THE ASSEMBLY MAY 29, 2003 AMENDED IN ASSEMBLY APRIL 30, 2003 INTRODUCED BY Committee on Agriculture (Matthews (Chair), Maldonado (Vice Chair), Berg, Cogdill, Maddox, Maze, Oropeza, Parra, Reyes, Salinas, Vargas, and Wiggins) FEBRUARY 21, 2003 An act to add Section 54451.5 to, and to amend Sections 54452 and 54453 of, the Food and Agricultural Code, relating to cooperative associations. LEGISLATIVE COUNSEL'S DIGEST AB 1304, Committee on Agriculture. Cooperative bargaining associations: conciliation. Existing law creates an advisory committee to study and report on various issues related to collective bargaining associations for farmers. Under existing law, the Department of Food and Agriculture is required to order conciliation between any cooperative bargaining association and specified processors if it determines after receiving a request from these parties that conciliation will materially assist the parties in negotiating an agreement. This bill would require the advisory committee to recommend to the department a conciliation service to be appointed by the department in the event that the above parties cannot agree on a conciliator. Existing law requires the department to follow specified procedures upon receipt of a request for conciliation. Among those procedures, the department is required to notify the American Arbitration Association that conciliation may be ordered. This bill would require that the department notify the conciliation service designated by the department pursuant to the above advisory committee that conciliation may be ordered. Under existing law, if conciliation is ordered, the department is required to, on the day it determines that conciliation shall be conducted, notify both parties that the conciliation will take place and direct the American Arbitration Association to commence the conciliation process in accordance with its Commercial Mediation Rules for use in California, as specified. This bill would require that the department notify the conciliator agreed to by the parties to commence the conciliation process in accordance with their applicable mediation rules or, if the parties have not agreed upon a conciliator, the department would be required to notify the conciliation service designated by the department pursuant to the advisory committee and direct the conciliation service to commence the conciliation process. This bill would make other conforming changes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 54451.5 is added to the Food and Agricultural Code, to read: 54451.5. The advisory committee established pursuant to Section 54442 shall recommend to the department a conciliation service to be appointed by the department in the event that the parties cannot agree on a conciliator. SEC. 2. Section 54452 of the Food and Agricultural Code is amended to read: 54452. The following procedure shall be used upon receipt by the department of a request for conciliation: (a) The request from one of the parties to the negotiation, referred to as the requesting party, shall be presented on a form prescribed by the department. (b) The requesting party shall submit, along with the request, the last offer made to the other party, referred to as the responding party, reasons for rejection of the responding party's last offer, and an indication as to what the requesting party believes would be required to reach an agreement. A copy of the request, as well as any information required pursuant to this subdivision, shall be express mailed to the responding party on the same day that the request is submitted to the department. (c) On the next business day after receiving the request for conciliation, the department shall notify the responding party that a request for conciliation has been received. The responding party shall be required to respond to the department within three business days after receipt of notification that conciliation has been requested. The response from the responding party shall include the last offer made to the requesting party, reasons for rejection of the requesting party's last offer, and an indication as to what the responding party believes would be required to reach an agreement. The responding party's response shall be made on a form prescribed by the department. A copy of the response, as well as any information required pursuant to this subdivision, shall be express mailed to the requesting party on the same day that the response is submitted to the department. (d) On the same day that the responding party is notified by the department that a request for conciliation has been made, the department shall notify the conciliation service designated by the department pursuant to Section 54451.5 that conciliation may be ordered. (e) On the date that the department notifies the responding party that a conciliation has been requested, the department may also request additional information from either party and the department shall notify both parties of their right to use a conciliator agreed upon by the parties if the parties notify the department of their agreement before conciliation is ordered. (f) Both parties have three business days after the date of the request made pursuant to subdivision (e) in which to respond to the request for additional information. (g) Within three business days after final receipt from the parties of all information requested by the department, the department shall determine whether conciliation shall be conducted. SEC. 2. Section 54453 of the Food and Agricultural Code is amended to read: 54453. (a) If conciliation is ordered, the department shall, on the day the department determines that conciliation shall be conducted, notify both parties that the conciliation will take place and direct the conciliator agreed to by the parties to commence the conciliation process in accordance with its commercial mediation rules. If the parties have not agreed upon a conciliator, the department shall appoint the conciliation service designated by the department pursuant to Section 54451.5, and direct that conciliation service to commence the conciliation process in accordance with its commercial mediation rules. However, this article prevails if there is any conflict between those rules and this article. (b) Confidential information disclosed to a conciliator by the parties or by any other person in the course of the conciliation shall not be divulged by the conciliator. All statements, oral or written, records, reports, or other documents received or made by a conciliator while serving in that capacity, or by any other person, shall be confidential. The conciliator shall not be compelled to divulge the information or to testify in regard to the conciliation in any proceeding or judicial forum. The parties shall maintain the confidentiality of the conciliation, and shall not rely on, or introduce as evidence in any proceeding or forum, any of the following: (1) Views expressed or suggestions made by any party in the course of conciliation proceedings with respect to a possible settlement of the dispute. (2) Admissions by any party in the course of conciliation proceedings. (3) Proposals made or views expressed by the conciliator. (4) The fact that any party in the course of conciliation proceedings had or had not indicated willingness to accept a proposal for settlement made by the conciliator or other party.