BILL NUMBER: AB 85 CHAPTERED 09/06/05 CHAPTER 180 FILED WITH SECRETARY OF STATE SEPTEMBER 6, 2005 APPROVED BY GOVERNOR SEPTEMBER 6, 2005 PASSED THE ASSEMBLY AUGUST 22, 2005 PASSED THE SENATE AUGUST 18, 2005 AMENDED IN SENATE JUNE 15, 2005 AMENDED IN SENATE MAY 24, 2005 AMENDED IN ASSEMBLY MARCH 29, 2005 INTRODUCED BY Assembly Member Maze JANUARY 6, 2005 An act to amend Sections 48000, 48001, and 48002 of, and to repeal and add Section 48002.5 of, the Food and Agricultural Code, relating to citrus fruit crops, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST AB 85, Maze Citrus fruit crops. Existing law provides that there is within the Department of Food and Agriculture the Navel and Valencia Orange Advisory Committee which oversees an inspection program in specified counties pertaining to standards for orange maturity and freeze damage. This bill would expand these provisions to also include lemons and mandarin citrus varieties. This bill would change the name of the advisory committee to the California Citrus Advisory Committee. This bill would include among the topics upon which the committee makes recommendation procedures for implementing a state crop estimating service and acreage survey. Existing law provides that producers in specified counties shall pay an assessment not exceeding $0.009 per carton of navel oranges shipped and $0.004 per carton of Valencia oranges shipped to fund the inspection program and to establish a reserve to fund the frost inspection program, and an additional assessment of $0.002 per carton, as specified, to fund a state crop estimating service and an acreage survey. This bill would instead repeal the additional assessment and provide that a single assessment shall be paid by producers of navel oranges in the amount of $0.011 per carton, by producers of lemons in the amount of $0.005 per carton, and by producers of Valencia oranges and mandarin citrus in the amount of $0.006 per carton which shall be used for all of the purposes listed above. This bill would provide that the committee may recommend to the Secretary of Food and Agriculture that no assessment be collected if no inspection program or crop survey exists, as specified. This bill would remove provisions that provide that the amount of the frost inspection fund shall not exceed the average annual expenditure for the program. Because this bill would increase the assessments deposited into the Department of Food and Agriculture Fund, a continuously appropriated fund, this bill would make an appropriation. This bill would declare that it is to take effect immediately as an urgency statute. Appropriation: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 48000 of the Food and Agricultural Code is amended to read: 48000. The handling and marketing of California citrus is affected with the public interest. The provisions of this chapter are enacted for the protection of the industry and for the purposes of protecting the health and general welfare of the people of this state. SEC. 2. Section 48001 of the Food and Agricultural Code is amended to read: 48001. (a) There is in the department the California Citrus Advisory Committee. (b) The committee shall be comprised as follows: (1) Eight producers. (A) Five producer members shall be engaged in the production of navel or Valencia oranges; four of which shall be engaged in the production of navel or Valencia oranges in the San Joaquin Valley, and two of the four members shall be engaged in the production of navel or Valencia oranges in Tulare County. (B) Two producer members shall be engaged in the production of lemons, one of which is engaged in the production of lemons in Ventura County. (C) One of the members shall be engaged in the production of mandarin citrus. (2) Four handlers, which have their principal place of business located in one of the following counties: Fresno, Kern, Madera, Orange, Riverside, San Bernardino, Santa Clara, Tulare, and Ventura. (A) Two handler members shall be located in the San Joaquin Valley. (B) One handler member shall be engaged in the handling of lemons in Ventura County. (c) The committee shall be appointed by the secretary from nominations submitted to the secretary by members of the navel orange, Valencia orange, lemon, and mandarin citrus industries group. (d) Committee members may be compensated for reasonable expenses actually incurred in the performance of their duties, as determined by the committee and concurred in by the secretary. (e) The committee shall meet at the request of the secretary, the committee chairperson, or upon the request of three committee members. (f) The committee shall appoint a chairperson, one or more vice chairpersons, and any other officers it deems necessary. (g) The committee shall develop and make recommendations to the secretary on all matters regarding the implementation of this chapter including: (1) Procedures for implementing an inspection program that shall include, but not be limited to, the following: (A) The minimum number of inspections to be conducted, and the duration of each inspection period. (B) The minimum number of samples to be taken. (C) Statistical analysis of compliance levels and determination of an acceptable level of compliance. (D) Documentation of inspection data including the number of inspectors, number of inspections performed, and budget information relating to expenses of personnel, mileage, and overhead costs. (E) Monitoring and postevaluation of program effectiveness by the secretary. (F) Development of a single memorandum of understanding between the department and all county agricultural commissioners for the counties specified in subdivision (b). (2) Determinations as to which counties have met the inspection requirements. (3) Procedures for implementing a state crop estimating and acreage survey. (h) The secretary shall accept the recommendations of the committee if he or she determines that the recommendations are practicable and in the interest of the industry and the public. The secretary shall provide the committee within 30 days of receipt of the recommendations with a written statement of reasons if he or she does not accept any of the recommendations. SEC. 3. Section 48002 of the Food and Agricultural Code is amended to read: 48002. (a) In addition to any other assessment, fees, or charges that may be required pursuant to this code, producers of navel oranges, Valencia oranges, lemons or mandarin citrus varieties grown in this state and prepared for fresh market in the Counties of Fresno, Kern, Madera, Orange, Riverside, San Bernardino, Santa Clara, Tulare, and Ventura shall pay an assessment that shall not exceed 11 mills ($0.011) per carton for navel oranges, 5 mills ($0.005) per carton for lemons, and 6 mills ($0.006) per carton for Valencia oranges and mandarin citrus. The assessment shall be: (1) Based on the number of cartons shipped. (2) Used to reimburse agricultural commissioners, pursuant to a contract between the department and the commissioners, in the counties specified in this section, who meet the requirements of the inspection program as determined by the committee and concurred in by the secretary. (3) Used to establish a reserve to fund the frost inspection program. The reserve amount shall be determined by the advisory committee. (4) Used to fund a program within the department to provide the industry with a state crop estimating service and an acreage survey. (5) Collected from the producer by the first handler. For the purposes of this chapter, "producer" means a grower of navel oranges, Valencia oranges, lemons, or mandarin citrus and "handler" means a person or entity who receives navel oranges, Valencia oranges, lemons, or mandarin citrus from a producer and who prepares the oranges, lemons, or mandarin citrus for fresh market. If a producer prepares the oranges, lemons, or mandarin citrus for market, the producer shall be deemed the handler. (6) Remitted to the department by the first handler, along with an assessment form, at the end of each month during the marketing season. (7) Deposited in the Department of Food and Agriculture Fund or, upon the recommendation of the committee, deposited in accordance with Section 227 or Article 2.5 (commencing with Section 230) of Chapter 2 of Part 1 of Division 1. (b) In no case shall: (1) The total amount reimbursed to all counties exceed the total amount collected from the producers in all counties, unless reserve moneys are required for the frost inspection program. However, the authorized expenditures shall not exceed the combined total of reserve moneys and revenue received in that fiscal year. (2) The reimbursement to any county exceed the amount approved by the committee and concurred in by the secretary. (c) If the inspection program is terminated and there are insufficient funds to cover the cost of terminating the inspection program, the assessment shall continue until all those costs are recovered. (d) The committee may recommend to the secretary that no assessment be collected from growers of navel oranges, Valencia oranges, lemons, or mandarin citrus varieties if no inspection program or crop survey exists for that particular orange or citrus variety. If no assessment is collected from an orange or citrus variety that has a representative on the committee, the secretary may designate a representative to the committee from an orange or citrus variety that is assessed. SEC. 4. Section 48002.5 of the Food and Agricultural Code is repealed. SEC. 5. Section 48002.5 is added to the Food and Agricultural Code, to read: 48002.5. For purposes of this chapter, "mandarin citrus" means mandarins, including tangerines and mandarin hybrids. SEC. 6. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: Because the fiscal year begins in October, an urgency statute is necessary in order to avoid lengthy delay in implementing the provisions of this measure.