BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2240
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 2240 (Ma)
          As Amended  June 21, 2010
          Majority vote
           
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          |ASSEMBLY:  |58-11|(May 6, 2010)   |SENATE: |25-6 |(August 11,    |
          |           |     |                |        |     |2010)          |
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           Original Committee Reference:    AGRI.  

           SUMMARY  :  Makes permissive the re-evaluation of fees for the  
          Market Enforcement Branch (MEB); deletes outdated MEB fee  
          structures and required reporting language; increases the base  
          fees for licenses and complaints of purchasers of agricultural  
          commodities for processing and those as a dealer/broker; permits  
          the Secretary of the California Department of Food and  
          Agriculture to appoint a MEB advisory committee of producers and  
          licensees to provide guidance in establishing the fees; and,  
          makes technical and conforming changes.  

           The Senate amendments  reduce the license fee for buyers and  
          processors with annual volumes of $20,000 or less, from $150 to  
          $136, and make technical changes.

          AS PASSED BY THE ASSEMBLY  , this bill was substantially similar to  
          the version passed by the Senate. 

           FISCAL EFFECT  :  According to the Senate Appropriations Committee,  
          the new fee schedule in this bill is estimated to generate  
          $270,000 annually and ongoing.

           COMMENTS  :  The statutes for MEB, many of which were established  
          in the 1920s, have had few significant changes until SB 1198  
          (Costa), Chapter 696, Statutes of 1997, that recast the  
          provisions for MEB operations.  There are two federal programs,  
          the Perishable Agricultural Commodities Act (PACA) and the  
          Packers and Stockyards Act (PASA), both dealing with similar  
          commodities as MEB.  SB 1198 conformed MEB to the federal  
          processes where possible, giving both PACA and PASA first  
          responsibility to handle claims.  Those commodities not covered  
          by either federal program, or that the federal programs denied  
          action on, become the jurisdiction of MEB.









                                                                  AB 2240
                                                                  Page  2

          The operating revenues of MEB have been reduced as expenditures  
          have increased over the past several years.  MEB's current year  
          proposed budget estimates a year-end deficit, causing their  
          advisory board to recommend a draw from their reserves in order  
          to balance their budget.  Without the proposed increases in  
          license fees in AB 2240, deficits will continue.  That stated,  
          the Senate amendments, reducing two license fees by $14 each, may  
          continue to cause shortfalls and further legislation may be  
          necessary to address funding for MEB.
           

          Analysis Prepared by  :    Jim Collin / AGRI. / (916) 319-2084 


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