BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1912
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          Date of Hearing:  April 20, 2010

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                  Mike Feuer, Chair
                     AB 1912 (Evans) - As Amended:  April 8, 2010

           SUBJECT  :  CALIFORNIA APIARY RESEARCH COMMISSION

           KEY ISSUE  :  SHOULD THE LEGISLATURE CREATE THE CALIFORNIA APIARY  
          [HONEY BEE] RESEARCH COMMISSION DESIGNED TO PROVIDE THOSE  
          ENGAGED IN BEEKEEPING THE OPPORTUNITY TO AVAIL THEMSELVES OF THE  
          BENEFITS OF COLLECTIVE ACTION IN THE BROAD FIELD OF APIARY  
          RESEARCH AND TO HELP ADDRESS THE CURRENT CRISIS HITTING THE  
          STATE'S HONEY BEE POPULATION?

           FISCAL EFFECT  :  As currently in print this bill is keyed fiscal.

                                      SYNOPSIS

          This non-controversial bill seeks to create the California  
          Apiary [Honey Bee] Research Commission designed to provide those  
          engaged in beekeeping the opportunity to avail themselves of the  
          benefits of collective action in the broad field of apiary  
          research.  According to the author, the establishment of the  
          commission will be very helpful for the efficient creation and  
          management of a research program to protect the health of  
          honeybees, an integrated approach to manage pests and diseases  
          common to honeybees, and to develop more efficient colony  
          management practices.  As a critical component of the  
          agricultural community, honeybees pollinate approximately $6  
          billion worth of crops in California annually, which includes  
          40% of the fruits, vegetables and nuts in our grocery stores.   
          Aside from the lack of bee forage in California due to urban  
          development and the on-going water crisis, Colony Collapse  
          Disorder has tragically reduced the nation's bee population by  
          25 percent in just the past three years.  This massive decline  
          in healthy honey bees, the author notes, has in turn created  
          additional pressures on other agricultural sectors that rely on  
          a healthy honey bee population for pollination of their crops.   
          This bill therefore seeks to establish the California Apiary  
          Research Commission to protect the health of honey bees and help  
          California's agricultural sector and indeed the world's food  
          supply.  It authorizes the new commission to bring certain civil  
          actions and other remedies to enforce the bill's provisions and  
          regulations adopted pursuant to these provisions.  There is no  








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          known opposition to the measure.

           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 than 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  
            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.








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          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 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  
               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  








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               necessary;
             g)   Authorize, 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)   Establish 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  
                 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. 









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          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  
            recommend suspension of CARC to the Secretary.

          18)Authorizes the commission to bring certain civil actions and  
            other remedies to enforce the bill's provisions and  
            regulations adopted pursuant to these provisions.

          19)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.)

           COMMENTS  :  According to the sponsor, California State Beekeepers  








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          Association, 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  
          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.
           
           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.  That measure is set to be heard in this  
          Committee on April 20, 2010.  

           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.








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          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,  
          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  :    Drew Liebert / JUD. / (916) 319-2334