BILL ANALYSIS                                                                                                                                                                                                    



                        SENATE FOOD and AGRICULTURE COMMITTEE
                            Senator Dean Florez, Chairman

          BILL NO:    AB 1912                   HEARING:  6/15/10
          AUTHOR:   Evans                       FISCAL:  Yes
          VERSION:  6/10/10                     CONSULTANT:  John Chandler  

          
                       California Apiary Research Commission.

          BACKGROUND AND EXISTING LAW

          Existing law allows for the establishment of commissions and  
          councils to advance the interests of California agriculture and  
          seafood industries.  Commission law declares that California  
          agriculture and seafood industries are vitally important  
          elements of the state's economy and are supported by  
          state-established commissions and councils mandated to enhance  
          and preserve the economic interests of California. The  
          legislature finds and declares that commissions and councils  
          implement public policy through their express conduct and these  
          programs are among the broad range of state-mandated regulatory  
          programs that are funded by industry, generally through user  
          fees assessed in accordance with each person's relationship to a  
          particular program. The legislature further declares that these  
          commissions and councils are established to reflect a commitment  
          to California agriculture and seafood industries, represent a  
          policy of support for self-help and public-private partnerships,  
          provide a benefit to the entire industry and all Californians,  
          and are intended to enhance the image of California agriculture  
          and seafood products.  

          The goals and objectives of commissions are accomplished through  
          the following activities:

           Research.
           Elimination of tariff and non-tariff trade barriers.
           Consumer education relating to health and other benefits of  
            using and consuming these products.
           Demand-side regulation.
           Analysis of government regulation.
           Cooperative crisis resolution.
           Participation in negotiations with other governments relating  
            to market access issues.
           Industry self-regulation to establish and maintain grade,  
            size, and maturity standards and to stabilize flow of product.

          Each commission and council is established and administered  
          according to its own statutory guidelines.  According to  




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          information provided by the California Department of Food and  
          Agriculture, California has more than 55 advisory boards,  
          councils, and commissions.

          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.  This bill  
          is set to be heard in this committee on June 15, 2010.  

          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.  This committee passed that legislation  
          last year.

          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 wine grapes.  

          SB 1540 (Alpert), Chapter 973, Statutes of 2002, created the  
          California Sea Urchin Commission (CSUC) with a prescribed  
          membership, and specified the powers, and duties and  
          responsibilities of CSUC, which is authorized to carry out  
          programs of education, promotion, marketing, and research  
          relating to sea urchins.  The bill authorized CSUC to levy an  
          assessment, as specified, on sea urchin divers and handlers and  
          authorized the expenditure of those funds for the purposes of  
          carrying out the provisions of CSUC.

          PROPOSED LAW

          AB 1912 creates the California Apiary Research Commission  
          (CARC).  Specifically, this bill: 

                 Provides declarations and general provisions for CARC,  
               including stating that CARC is necessary for efficient  
               management and creation of research programs relating to  
               honeybee health, pest and disease management, colony  
               management practices, and education programs.

                 Provides definitions, including defining a producer as  





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               an individual beekeeper or business that owns and/or  
               operates more than 50 bee colonies in California, and  
               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:

                  o         District 1 consists of the California Counties  
                    (counties) of Marin, Sonoma, Napa, Solano, Sacramento,  
                    El Dorado, and all counties north of these counties;

                  o         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;

                  o         District 3 consists of all counties south of  
                    District 2; and,

                  o         District 4 consists of all areas not in  
                    California. 

                 Establishes CARC, composed of six producers, one public  
               member, and ex officio members.  Each district shall have  
               at least one producer member whose principal residence is  
               in that district. The public member is to be appointed by  
               the Secretary of the 
               California Department of Food and Agriculture (CDFA) from  
               nominees recommended by CARC. 

                 Provides that the secretary and other appropriate  
               members, as determined by CARC, shall be ex officio  
               members.

                 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 are in violation of this chapter, by  
               specified procedures.

                 Requires CARC to reimburse the secretary for all  
               expenditures incurred in carrying out this chapter.

                 Provides that 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 portion of the term of  
               office, by a majority vote of CARC board.  






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                 Designates a quorum as a majority of CARC board members,  
               while a majority vote of members present at a meeting at  
               which a quorum is present constitutes an act of CARC. 

                 Requires the secretary, on decisions needing  
               concurrence, to respond within 15 working days of  
               notification.

                 Requires that all proceeds from assessments be deposited  
               in designated banks and that disbursements ordered by CARC  
               be by designated agents of CARC.

                 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.

                 Establishes CARC's duties and powers to include, but not  
               be limited to, the following:

                  o         Adopt, alter, rescind, modify and amend  
                    bylaws, rules, regulations and orders to carryout this  
                    chapter, including rules for appeals;

                  o         Administer, enforce, and perform all acts and  
                    exercise all powers incidental to the purpose of this  
                    chapter;

                  o         Appoint officers with powers and duties  
                    delegated to them by CARC;

                  o         Hire personnel to manage and carry out the  
                    functions of CARC, including compensation;

                  o         Appoint committees of CARC members and  
                    non-members to advise CARC;

                  o         Establish offices; enter into contracts and  
                    agreements, create liabilities, borrow funds; and 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, permit the secretary to conduct a fiscal and  
                    compliance audit when determined to be necessary;






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                  o         Authorize, in regard to  matters affecting the  
                    health and welfare of honey bees and the beekeeping  
                    industry, the 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,

                  o         Establish an assessment to defray operating  
                    costs and an annual budget, concurred in by the  
                    secretary, plus an annual statement of contemplated  
                    activities.

                 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:

                  o         At least 30% of the total number of producers  
                    from the list must participate in the vote and either  
                    of the following must occur:

                                     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,

                                     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.

                 Provides that, prior to the referendum, the proponents  
               of the referendum shall deposit with the secretary funds to  
               cover the cost of the referendum. 

                 Requires CARC to establish an assessment for the  
               following marketing season no later than March 1 of each  
               year for all producers of 50 colonies or more.   The annual  





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               assessment may not be greater than 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 of 1.5% per month on  
               unpaid balances. 

                 Specifies that the commission has the option whether to  
               collect the assessment on producers of 249 colonies or  
               less.

                 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.

                  o         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.

                 Establishes a misdemeanor punishable by imprisonment or  
               fine up to $1,000 for the following:

                  o         Willfully rendering or furnishing a false  
                    report, statement, or record required by CARC;

                  o         Failing to render or furnish a report,  
                    statement, or record required by CARC; or,

                  o         Secreting, destroying, or altering records  
                    required to be kept under this chapter.

                 Authorizes CARC to commence civil action for collection  
               of assessments, and civil penalties and for obtaining  
               injunctive relief or specific performance.

                 Provides methods for continuation or suspension or  
               termination of CARC, including requiring the secretary,  
               after five years of implementation, 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.

                 Makes a legislative declaration that information  





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               required to be submitted to CARC that is personal or  
               sensitive business information is protected as confidential  
               information.

          COMMENTS

          1.AB 1912 addresses the need for organized research to protect  
            honeybee health with the creation of the California Apiary  
            Research Commission.  Honeybees are critical to California  
            agriculture and the entire United States, pollinating  
            approximately $6 billion in California specialty crops.   
            Recent years have proven challenging for the honeybee  
            industry, battling pests and diseases such as the damaging  
            Varroa mite and Colony Collapse Disorder.  Within the past  
            three years alone Colony Collapse Disorder has reduced the  
            nation's honeybee population by 25 percent.  The loss of a  
            quarter of the national bee population puts stress on other  
            agricultural sectors that rely on healthy bee populations for  
            pollination of their crops.  AB 1912, California Apiary  
            Research Commission, would provide the needed tools for  
            California's bee industry to find solutions to today's and  
            tomorrow's threats to honeybees and ensure a healthy  
            beekeeping industry.


          PRIOR ACTIONS

          Assembly Floor 61-15
          Assembly Appropriations12-5
          Assembly Judiciary    8-2
          Assembly Agriculture  7-0


          SUPPORT
          
          California Beekeepers Association



          OPPOSITION
          
          None received