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