BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           2240 (Ma)
          
          Hearing Date:  8/2/2010         Amended: 6/21/2010
          Consultant:  Bob Franzoia       Policy Vote: Food and Ag 3-1
          _________________________________________________________________ 
          ____
          BILL SUMMARY: AB 2240 would raise certain fees and delete the  
          outdated fee structure and reporting provisions of the  
          Department of Food and Agriculture's Market Enforcement Branch.   
          This bill would:
          - Increase from $60 to $100, the filing fee paid by a grower or  
          licensee, with a complaint not subject to certain federal laws,  
          seeking resolution of the complaint.
          - Increase from $35 to $55, the license fee paid by agents of  
          produce dealers and food processors.
          - Increase from $100 to $136, the lowest tier of four, the fee  
          paid by produce dealers and food processors.
          This bill would authorize the secretary to appoint an advisory  
          committee of producers and licensees to provide guidance in  
          establishing those fees or to rely on input from any similar  
          advisory committee already assembled by the secretary.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
           Revised fee structure  Estimated ($270) annually,  
          ongoingSpecial*                                         
          * Department of Food and Agriculture Fund
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          ____

          STAFF COMMENTS: The Market Enforcement Branch licenses dealers,  
          brokers, commission merchants, cash buyers, and processors that  
          handle California farm products for the purpose of resale or  
          processing.  The branch processes complaints filed by producers  
          or licensees which generally are for failure to pay in full,  
          failure to render a true and complete account of sales, and  
          failure to comply with the provisions of a written agreement.  
          Complaints involving fruits and vegetables moving in interstate  
          commerce must first be filed with the United States Department  
          of Agriculture.  The branch has recently been confronted with a  
          growing workload from complaints against unlicensed processors  










          and produce dealers.  In 2009, the branch investigated  
          approximatley $12 milion worth of compliants.

          Approximately 6389 produce dealer agents, 2507 food processor  
          agents, and 802 conjunctive applicants would be an increased fee  
          of $20.

          Approximately 720 food processors, 1390 produce dealers and 28  
          conjunctive applicants would pay an increased fee of $36.  Staff  
          notes the current cost to process applicants is $136.  The  
          revised fee structure would not increase fees on food processors  
          or produce dealers purchasing farm products of values between  
          $20,000 and $50,000, between $50,000 and $2,000,000 and over  
          $2,000,000.  Those fees would remain at $200, $300, and $400  
          respectively.