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 AB 1912 - Page 2 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 AB 1912 - Page 3 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. AB 1912 - Page 4 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; AB 1912 - Page 5 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 AB 1912 - Page 6 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 AB 1912 - Page 7 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