BILL ANALYSIS AB 977 Page 1 Date of Hearing: April 25, 2007 ASSEMBLY COMMITTEE ON AGRICULTURE Nicole Parra, Chair AB 977 (Ma) - As Introduced: February 22, 2007 SUBJECT : Agriculture: market orders and commissions. SUMMARY : Requires the California Research Bureau (CRB), part of the California State Library, to prepare a study of the voting structures of the agricultural commissions and marketing orders assessment processes. EXISTING LAW provides authority under the 1937 Marketing Act for the Secretary (Secretary) of the California Department of Food and Agriculture (CDFA) to create marketing orders with specifies powers, voting and assessment requirements, and definitions (Food and Agricultural Code (FAC) 58601 et. seq.). Councils and Commissions are statutorily authorized for specific commodities with various powers, authorities, assessment levels, and voting structures (FAC 64001 et. seq.). FISCAL EFFECT : Unknown. This bill is keyed "fiscal" by Legislative Counsel. COMMENTS : Marketing orders, councils and commissions are all subject to a vote by those that are to be assessed and must be reauthorization every five years by a vote or public hearing. The vote requirements are statutorily stated for all three structures. The assessment levels are also statutorily stated for councils and commissions and marketing orders must have a maximum level of assessment that is included in the petition to the Secretary of CDFA and reflected in the referendum information distributed to the voters. The most recent extension referendum for the Pistachio Commission at the end of 2006 did not meet the required vote levels to be extended. CDFA has began an audit of the commissions with the first one being on the California Tomato Commission (CTC), which caused the Secretary to put a cease and desist order on the commission's activities. The CTC is reviewing the audit and findings to determine if they will challenge the audit and the order. As written, AB 977 will require two reports, one on the voting AB 977 Page 2 structures of agricultural commodity commissions, and a second on the assessment processes for marketing orders. All of this information is available within the statutes or upon the request of CDFA. The committee may wish to consider redirecting the study by CRB to develop a summary of literature on the effectiveness of the commodity commissions and provide a date for the report to be completed. Since this is a one time activity and is dealing with the Legislature rather than CDFA, it may be better policy to place this request in as a non-codify section. REGISTERED SUPPORT / OPPOSITION : Support Roll International Corporation Opposition None received. Analysis Prepared by : Jim Collin / AGRI. / (916) 319-2084