BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
604 (Fuller)
Hearing Date: 8/27/2009 Amended: 5/5/2009
Consultant: Bob Franzoia Policy Vote: F&A 4-1
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BILL SUMMARY: AB 606 would suspend the San Joaquin Valley
Quality Cotton District by January 1, 2010 with the exception of
specified provisions of the Food and Agriculture Code (FAC)
including those establishing the San Joaquin Valley Cotton
Board. This bill would authorize the board, with the
concurrence of the Secretary of Food and Agriculture, to
periodically determine that provisions made inoperative become
operative for a specified period of time. The board would be
required to report annually and to notify eligible growers and
industry members of any actions proposed to be taken, which
could only be taken only at a public hearing of the board. This
bill would authorize the board to make refunds or transfers of
money deposited in the Food and Agriculture Fund. Because this
bill would authorize the use of these funds for a new purpose,
this bill would make an appropriation.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Elimination of board Minor, if any, state costs ongoingSpecial
assessment authority
* Food and Agriculture Fund
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STAFF COMMENTS: SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
The board was created to encourage the uniformity, quality, and
marketability of valley cotton in order to bring the best
monetary returns to growers. The board's programs are fully
funded by an annual industry assessment not to exceed one half
of one percent of each grower's gross dollar value from the
previous year's cotton crop. Persons who have cotton delinted
for planting purposes shall pay an assessment not to exceed
$6.00 per hundred weight on the unlinted weight of the
cottonseed. In 2007, cotton was farmed on 460,000 acres. In
2008, acreage dropped to approximately 300,000 acres.
The proposed amendments are:
Amendment 1:
On Page 2, delete lines 1 to 22 and on page 3, delete lines 1 to
21, inclusive. (This amendment strikes all provisions of the
current version of this bill.)
Amendment 2:
Repeal FAC 52879 (permits the board to sue and be sued).
Amendment 3:
Amend FAC 52891 as follows:
Page 2
AB 604 (Fuller)
52891. The powers and duties of the board shall include, but
not be limited to, all of the following:
(a) Establish a separate Acala and Pima quality standard.
When determining each standard, the board shall consider fiber
length, strength, uniformity, micronaire, seed quality,
productivity, resistance to disease, including verticillium
wilt, and spinning
characteristics.
(b) Annually Periodically review test data and approve for
release and planting within the district, cotton varieties that
meet the existing Acala or Pima quality standard but are
superior in some meaningful respect, as determined by the board,
and that have qualities generally recognized by the cotton
industry to be essential factors in producing that cotton within
the district, or significant area within the district.
(c) Conduct or commission tests for cotton production and
quality evaluation in accordance with procedures to be adopted
pursuant to Section 52902, and assess fees necessary for
administering those tests.
(d) Conduct periodic referendums, as specified in this
chapter, regarding the continuation of the district. A
referendum shall also be conducted whenever the board proposes
substantive changes in the Acala or Pima quality standard.
(e) Require all cotton varieties approved for release for
planting, and produced in the district, to contain the word
"Acala" or "Pima" in labeling and all lint to be marketed as
"SJV Acala" or "SJV Pima."
(f) Recommend to the secretary on all matters pertaining to
this chapter including, but not limited to, the program for
enforcing this chapter and the setting of an appropriate seed
assessment rate necessary for the administration of this
chapter.
Amendment 4:
Repeal FAC 52951 (authorizes an annual assessment on growers in
the district).
Amendment 5:
Repeal FAC 52952 (specifies that assessments shall be used for
promotion, research, and related administrative expenses).
Amendment 6:
Repeal FAC 529523 (authorizes the board to develop a procedure
for collecting assessments).
Staff notes that with the above amendments, the board would no
longer be authorized to collect an annual assessment and would
continue in operation until assessment moneys on hand are
exhausted.