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