BILL ANALYSIS AB 1912 Page 1 Date of Hearing: April 14, 2010 ASSEMBLY COMMITTEE ON AGRICULTURE Cathleen Galgiani, Chair AB 1912 (Evans) - As Amended: April 8, 2010 SUBJECT : California Apiary Research Commission. SUMMARY : Creates the California Apiary Research Commission (CARC) with prescribed membership, powers, duties and responsibilities, and requires positive referendum vote by producers, as specified, to activate. Specifically, this bill : 1)Provides declarations and general provisions for CARC, including stating that CARC is necessary for efficient management and creation of research programs relating to honey bee health, pest and disease management, colony management practices and education programs. 2)Provides definitions including defining a producer as an individual beekeeper or business that owns and/or operates more then 50 bee colonies in California, defining an out-of-state beekeeper as a producer whose principal residence is in an area outside of California, and defines four CARC districts as follows: a) District 1 consists of the California Counties (counties) of Marin, Sonoma, Napa, Solano, Sacramento, El Dorado, and all counties north of these counties; b) District 2 consists of the counties of San Luis Obispo, Kern, Inyo and all counties north of these counties up to the southern boundary of District 1; c) District 3 consists of all counties south of District 2; and, d) District 4 consists of all areas not in California. 3)Establishes CARC, composed of six assessment paying producers, one public member, and ex officio members. Each district shall have at least one producer member whose principle resident is in that district. The public member is to be appointed by the Secretary (Secretary) of the California Department of Food and Agriculture (CDFA) from nominees AB 1912 Page 2 recommended by CARC. 4)Provides that the Secretary and other appropriate members as determined by CARC shall be ex officio members. 5)Permits the Secretary to correct or cease the activities or functions of CARC when it is determined they are not in the public interest or in violation of this chapter, by specified procedures. 6)Requires CARC to reimburse the Secretary for all expenditures incurred in carrying out this Chapter. 7)Provides each member, except for ex officio members, shall have an alternate elected in the same fashion as the member. Vacancies are to be filled by appointment for the unexpired term of office, by a majority vote of CARC. Designates a quorum as a majority CARC members, while a majority vote of members present at a meeting, at which a quorum is present, constitutes an act of CARC. 8)Requires the Secretary, on decisions needing concurrence, to respond within 15 working days of notification. 9)Requires all proceeds from assessments be deposited in designated banks and disbursement ordered by CARC be by designated agents of CARC. 10)Establishes that the state is not liable for acts of CARC or its agents, and that no CARC member, alternate member, or employees of CARC shall be personally liable or individually responsible for errors, omissions, or acts of CARC, except for their own individual acts of dishonesty or crime. 11)Establishes CARC's duties and powers to include, but not be limited, to the following: a) Adopt, alter, rescind, modify and amend bylaws rules, regulations and orders to carryout this Chapter. Includes rules for appeals; b) Administer, enforce, perform all acts and exercise all powers incidental to the purpose of this Chapter; c) Appoint officers with powers and duties delegated to AB 1912 Page 3 them by CARC; d) Hire personnel to manage and carry out the functions of CARC, including compensation; e) Appoint committees of CARC members and non-members to advise CARC; f) Establish offices, enter into contracts and agreements, create liabilities, borrow funds, keep accurate books, records and accounts subject to annual audits, which are to be part of the annual report and be submitted to the Legislature. Further, permits the Secretary to conduct a fiscal and compliance audit when determined to be necessary; g) Authorizes, in regards to matters affecting the health and welfare of honey bees and beekeeping industry, education and instruction of beekeepers and the public; market surveys; negotiations with state, federal and foreign agencies; scientific research; acceptance of private, state and federal funds for such; and, h) Establishes an assessment to defray operating costs and an annual budget, that is concurred in by the Secretary, plus an annual statement of contemplated activities. 12)Requires the Secretary, within 180 days of the effective date of this bill, to establish a list of local and out of state producers eligible for a referendum vote, but the chapter is not operative except for the referendum vote. For the referendum to pass, it must meet the following criteria: a) At least 30% by number of the total producers from the list must participate in the vote and either of the following must occur: i) 65% of the producers who voted in the referendum voted in favor of this Chapter, and the producers so voting owned or operated a majority of the total quantity of colonies maintained in the preceding marketing season by all of the producers voting in the referendum; or, ii) A majority of the producers who voted in the referendum voted in favor of this Chapter, and the AB 1912 Page 4 producers so voting owned or operated 65% or more of the total quantity of colonies maintained in the preceding marketing season by all of the producers voting in the referendum. 13)Provides that prior to the referendum, the proponents of the referendum shall deposit funds to cover the cost of the referendum with the Secretary. 14)Requires CARC to establish an assessment for the following marketing season no later then March 1 of each year. The annual assessment may not be greater then one dollar per colony. Establishes procedures for collection, payment, and tracking and reporting, including penalties of 10% for failure to pay with an interest rate on unpaid balances of 1.5% per month. 15)Requires every producer, including beekeepers exempt from the payment of the assessment, to keep records of their total number of colonies used for commercial use. Requires the records to be kept for five years and made available to CARC upon written demand. Proprietary information collected shall be confidential and not made public unless under court order. a) Information required for reports to governments, financial reports to CARC or aggregate sales and inventory information, if stripped of an individual's information, may be disclosed by CARC. 16)Establishes a civil violation of $1000.00 for the following: a) Willfully render or furnish a false report, statement, or record required by CARC; b) Fail to render or furnish a report, statement, or record required by the CARC; or, c) Secrete, destroy, or alter records required to be kept under this chapter. 17)Provides methods for continuation or suspension or termination of CARC, including requiring the Secretary, after five years of implantation, to hold a hearing to determine whether it should continue, which may prompt another referendum, or CARC, with a 2/3 vote of the board, may AB 1912 Page 5 recommend suspension of CARC to the Secretary. 18)Makes a legislative declaration that information required to be submitted to CARC that is personal or sensitive business information is protected as confidential information. EXISTING LAW authorizes various marketing and promotion commissions (commissions) to promote the production and marketing of California agricultural commodities. Commissions have a variety of powers covering promotion, advertising, education, production or post-harvest research, and quality standards and inspections. Commissions cover a variety of commodities. (Food and Agriculture Code Section 64001-79304) FISCAL EFFECT : This bill is keyed fiscal by Legislative Counsel. COMMENTS : According to the sponsor, honey bees are a critical component of the Agricultural community. Honey bees pollinate approximately $6 billion worth of crops in California. Urban development and the on-going water crisis have diminished bee food supplies. Colony Collapse Disorder has reduced the nation's bee population by 25% in the past three years. The decline of honey bees has created issues for other agricultural sectors that rely on honey bees for pollination of crops. The sponsor believes there is a need for organized research to protect the health of honey bees to avoid an imbalance for our agricultural food supply. According to CDFA, the purpose of marketing programs is to provide agricultural producers and handlers an organizational structure, operating under government sanction, which allows them to solve production and marketing problems collectively that they could not address individually. Current marketing programs' activities include commodity promotion, research, and maintenance of quality standards. Commissions provide a structure for solving problems and also provide a vehicle for collecting funds to support activities. There are 20 active commissions under current law. For accomplishing the purposes stated by the author for the beekeeping industry, a commission may be an appropriate entity. Current commissions and marketing orders have been successful in expanding markets, improving the quality, and providing more research for pests and disease prevention. In recent years, one AB 1912 Page 6 commission was terminated by the industry and another had an audit by the Secretary, which revealed potential misuse of funds. This bill has language requiring annual audits and that the Secretary may conduct, upon determination of the need, a fiscal and administrative audit of CARC. On page 4, line 33, this bill defines District 4 as "all areas outside California". There are many beekeepers and businesses whose primary residences are outside of California, but operate more than 50 colonies in California during pollination season. The out of state beekeepers (OSB), under this bill, will be assessed and be voting member with at least one seat guaranteed on the CARC. There are no commissions within California with out of state producers or handlers on the board. The committee may wish to consider if allowing OSB to participate on a commission which exercises the power of state in it daily operations is in the public interest or if the uniqueness of this industry warrants the change in public policy. PENDING LEGISLATION : AB 2695 (Hernandez) of 2010 creates the California Nursery Producers Commission with prescribed membership, powers, duties and responsibilities, and requires positive referendum vote by nursery product producers, as specified, to activate. PREVIOUS 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, as specified, to activate. SB 303 (Chesbro), Chapter 597, Statutes of 2005, authorized the Mendocino County Winegrape and Wine Commission (MCWWC), and provided that, upon approval of a referendum of producers and processors, MCWWC may establish and collect an assessment from Mendocino winegrape producers and processors in order to further research and facilitate the successful and orderly marketing of Mendocino County winegrapes. SB 1540 (Alpert), Chapter 973, Statutes of 2002, created the California Sea Urchin Commission (CSUC) with a prescribed membership, and specified the powers, duties and responsibilities of CSUC, which is authorized to carry out programs of education, promotion, marketing, and research relating to sea urchins. Authorized CSUC to levy an assessment, AB 1912 Page 7 as specified, on sea urchin divers and handlers and authorized the expenditure of those funds for the purpose of carrying out the provisions of CSUC. REGISTERED SUPPORT / OPPOSITION : Support California State Beekeepers Association (sponsor) Opposition None on file. Analysis Prepared by : Victor Francovich / AGRI. / (916) 319-2084