BILL ANALYSIS                                                                                                                                                                                                    



                        SENATE FOOD and AGRICULTURE COMMITTEE
                            Senator Dean Florez, Chairman

          BILL NO:    AB 735                    HEARING:  7/7/09
          AUTHOR:   Assembly Agriculture CommitteeFISCAL:  Yes
          VERSION:  4/21/09                     CONSULTANT:  John Chandler
          
                             California Wheat Commission

          BACKGROUND AND EXISTING LAW

          The California Wheat Commission (commission) was established by  
          a referendum vote of wheat growers in 1983 expressly to develop  
          and maintain domestic and international markets for California  
          wheat and support research that improves California wheat  
          quality and marketability.  The Wheat Commission has a board of  
          15 wheat farmers and two handlers, each with an alternate  
          member, and one public member.  Each of the 15 wheat farmers  
          comes from one of the 15 districts across the state.  The  
          commission may change the boundaries of the 15 districts with a  
          two-thirds vote of the commissioners.  A quorum of the  
          commission board requires 10 voting commissioners.  

          The commission may implement an assessment on the wheat industry  
          producers, not to exceed 1% of the total gross dollar value of  
          the year's sale of wheat by all producers and handlers.

          PROPOSED LAW

          AB 735 will:

                 Consolidate the current 15 producer districts into 13  
               districts.  

                 Change the commission board from 15 to 13 producer  
               members, one from each district; add two at-large members;  
               and maintain two handler members and one public member.

                 Define "at-large member" as a person with knowledge,  
               expertise, and interest in wheat production, handling, and  
               research and deemed by CDFA to be of value to the  
               commission.

                 Authorize the commission to change the number of  
               producer districts with a two-thirds vote of the commission  
               board.

                 Change the quorum from 10 voting members to a majority  
               of voting members.




          AB 735 - Page 2






          COMMENTS

          1.Proponents state the changes to the California Wheat  
            Commission in AB 735 reflect the changes in California's wheat  
            industry.  Wheat production in counties like Sacramento and El  
            Dorado has dropped by as much as 60% due to development  
            activities in those areas.  Changing the commission's  
            geographical requirements allows it to better reflect the  
            current California wheat industry.  Further, proponents state  
            that the commission has historically struggled to keep a  
            quorum of 10 members.  Changing it to a majority of the  
            commission will allow smooth operation.

          2.AB 735 changes the quorum requirement for the Wheat Commission  
            from 10 members to a majority present.  With the changes  
            offered in the bill, the commission would still have a total  
            membership of 18 board members.  A majority of the commission  
            would still be 10 members.  The committee may wish to consider  
            that the change of quorum from 10 members to a majority of the  
            members does not change the number of voting members needed  
            for a quorum. 

          PRIOR ACTIONS

          Assembly Floor 78-0
          Assembly Appropriations16-0
          Assembly Agriculture  7-0

          SUPPORT
          
          California Association of Wheat Growers
          California Wheat Commission

          OPPOSITION
          
          None received