BILL ANALYSIS                                                                                                                                                                                                    




                                                                  AB 1795
                                                                  Page A
          Date of Hearing:   March 24, 2010

                          ASSEMBLY COMMITTEE ON AGRICULTURE
                              Cathleen Galgiani, Chair
            AB 1795 (Committee on Agriculture) - As Introduced:  February  
                                      10, 2010
           
          SUBJECT  :  Agriculture: marketing advisory and promotional  
          councils and commissions.

           SUMMARY  :  Removes term limits for the members of the California  
          Apple Commission (CAC); allows the California Salmon Council  
          (CSC) to present facts and negotiate on matters that affect the  
          "California Salmon Marketing and Development Act" (CSMDA); and,  
          makes technical and conforming changes.  

           EXISTING LAW  establishes CAC, comprised of three apple handlers,  
          nine producers, and, one public member, which may enforce laws  
          relative to apple production, generally promote the sale of  
          apples, and make recommendations to the Secretary (Secretary) of  
          California Department of Food and Agriculture (CDFA), relative  
          to apple maturity standards.  The term of office for CAC members  
          is limited to four consecutive three year terms.  (Food and  
          Agricultural Code Section (FAC)  75501 et seq.)

          Establishes CSC, comprised of five commercial salmon vessel  
          operators, two salmon handlers, one handler who is an exporter  
          or wholesaler, and one member of the public. Allows CSC, with  
          approval of the Secretary, to perform duties that the Secretary  
          delegates to CSC.  CSC duties include the power to make  
          contracts and agreements to promote the marketing of salmon  
          products on a local, state, national or international basis.   
          (FAC  76501 et seq.)

           FISCAL EFFECT  :  This bill is keyed fiscal by Legislative  
          Counsel. 

           COMMENTS  :  Marketing Advisory and Promotional Councils  
          (councils) and Commissions (commissions) are created through  
          commodity specific legislation.  California has 20 commissions  
          and three councils under the preview of CDFA.  Commissions  
          commonly have a greater scope of authority and more independence  
          from CDFA than councils.  Councils, for example, are advisory to  
          CDFA and all actions of the councils are subject to CDFA  
          approval.  Commissions generally are not advisory to CDFA.  With  









                                                                  AB 1795
                                                                  Page B
          the exception of the Avocado and Table Grape Commissions, CDFA  
          must concur with commission's budget and annual activities  
          statement.  CDFA has cease and desist authority over actions of  
          commissions that CDFA deems not in the public interest.

          Membership for councils and commissions vary slightly.  Council  
          members are recommended by industry peers through a nomination  
          process and appointed by CDFA.  Commission members are elected  
          directly by industry peers, without CDFA's appointment.

          The basis structure of a commission is a board made up of  
          producers, handlers, experts and the public, who are authorized  
          by the Secretary to promote specific commodities, enforce  
          standards and collect fees on the specific commodities.  The  
          commissions that have term limits for their boards vary the  
          limits from two to five consecutive terms. 

          CAC was authorized by legislation in 1990 and formed in 1994.   
          According to CAC, since the 1996 growing season the number of  
          apple handlers in California has dropped from 40 to 11.  The  
          reduced pool of potential handler board members is making it  
          more difficult to fill the handler members of the board and  
          alternative members.  By eliminating the four consecutive terms,  
          or 16 years as a board member or alternative, CAC will be better  
          able to fill the board positions.

          Previous legislation repealed term limits for the California  
          Date Commission (CDC) and the California Pepper Commission  
          (CPC), extended the term limits for the CAC, and created  
          commissions.

          The committee may wish to consider if it is appropriate to  
          remove term limits from a marketing commission.  Other  
          alternatives to removing term limits are:
           
          1)An extension of term limits from four to five terms. 

          2)Adjusting the number of board members from 12 to eight, a  
            number that would reflect the current make up of apple  
            producers and handlers.  This could be accomplished by  
            reducing the number of apple producer board members to six and  
            the number of apple handlers to two; and changing the election  
            of apple handler board members from district to at large. 

             a)   If the committee believes reducing CAC's board is the  









                                                                  AB 1795
                                                                  Page C
               proper solution, it may wish to consider removing the CAC  
               authority to expand the board to 15 members, as current law  
               allows.

          CSC, which was authorized by legislation in 1988 and formed in  
          1989, promotes the marketing of salmon and salmon products.  In  
          1988, 1.3 million salmon were caught in California's salmon  
          fishery.  Since that time the California salmon fishery has been  
          decimated due to low salmon runs.  In 2007, 117,000 salmon were  
          caught.  In 2008 and 2009, the California salmon fishery was  
          closed due to poor returns of Sacramento spawning salmon.  The  
          state and the federal government are working to restore  
          California salmon runs.

          According to CSC, over the past few years, CSC has been asked to  
          participate in meetings with federal and state agencies  
          responsible for managing the fishery.  These meetings and  
          discussions have been focused on management of salmon resources  
          and CSC believes this is outside its scope of authority.  This  
          bill, in granting the authority to present facts and negotiate  
          on matters that affect CSMDA, in conjunction with the existing  
          law that CSMDA be construed liberally, would grant broad new  
          powers to CSC.  While this is a departure from the traditional  
          role of councils, CDFA will have to approve any actions taken by  
          CSC.  
           
          The committee may wish to consider if granting new and broad  
          authority to CSC is appropriate and warranted or if it would be  
          appropriate to expand CSC's authority more narrowly. 

           RELATED LEGISLATION  :  AB 606 (Ma), Chapter 366, Statutes of  
          2009, created the California Blueberry Commission with  
          prescribed membership, powers, duties and responsibilities, and  
          required a positive referendum vote by blueberry producers and  
          handlers. This legislation provided for no term limits.  

          AB 1834 (Garcia), Chapter 83, Statutes of 2006, deleted the  
          restriction of four consecutive terms that each member of the  
          board or alternative member may serve on CDC.

          AB 2257 (Salinas), Chapter 167, Statutes of 2004, provided that  
          CPC's marketing year begin in March and end in February of the  
          following year; authorized the commission to re-establish  
          district boundaries by a two-thirds vote in order to ensure  
          proper representation; eliminated provisions relative to the  









                                                                  AB 1795
                                                                  Page D
          three-year term of office for each member; and, made other  
          changes to CPC's operations.

          AB 2761 (Committee on Agriculture), Chapter 399, Statues of  
          1998, permitted councils and commissions to be recognized by the  
          United States Department of Agriculture for the purpose of  
          regulating the handling of agricultural commodities and extended  
          CAC board member's terms from three to four years and extended  
          term limits from two consecutive terms to four consecutive  
          terms. 

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Apple Commission
          California Salmon Commission

           Opposition 
           
          None on file.
           

          Analysis Prepared by  :    Victor Francovich / AGRI. / (916)  
          319-2084