BILL ANALYSIS
AB 2695
Page 1
ASSEMBLY THIRD READING
AB 2695 (Hernandez)
As Amended April 15, 2010
Majority vote
AGRICULTURE 7-0 JUDICIARY 8-2
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|Ayes:|Galgiani, Conway, Fuller, |Ayes:|Feuer, Tran, Brownley, |
| |Hill, Ma, Mendoza, Yamada | |Evans, Jones, Swanson, |
| | | |Monning, Nava |
| | | | |
|-----+--------------------------+-----+--------------------------|
| | |Nays:|Hagman, Knight |
| | | | |
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APPROPRIATIONS 14-3
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|Ayes:|Fuentes, Conway, Ammiano, |
| |Bradford, Charles |
| |Calderon, Coto, Davis, |
| |Monning, Ruskin, Harkey, |
| |Skinner, Solorio, |
| |Torlakson, Torrico |
| | |
|-----+--------------------------|
|Nays:|Miller, Nielsen, Norby |
| | |
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SUMMARY : Creates, subject to approval by an industry
referendum, the 16-member California Nursery Producers
Commission (CNPC) within the Department of Food and Agriculture
(CDFA) to serve the marketing and research interests of the
nursery industry in the state. Specifically, this bill :
1)Provides that CNPC shall be composed of 14 producers, one
public member, and one ex officio member.
2)Requires the Secretary (Secretary) of CDFA, within 60 days of
a request from any producer, to establish a list of producers
eligible to vote on implementation of this legislation.
3)Authorizes an industry assessment of not more than six-tenths
AB 2695
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of one cent per dollar of sales, to cover the costs of the
commission, including workload costs associated with CDFA
administering CNPC.
4)Establishes procedures for collection, payment, tracking and
reporting, including penalties of 10% for failure to pay, with
an interest rate on unpaid balances of 1.5% per month.
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)
FISCAL EFFECT : According to the Assembly Appropriations
Committee, this bill would cost CDFA $25,000 to $30,000 per
year, paid for by CNPC.
COMMENTS : According to the author, California nurseries face
numerous regulatory, research and marketing issues in
California. The industry sees a need for a unified voice to
educate the public and regulatory entities about the role
California's nursery industry plays in a variety of areas,
including water use, reuse and conservation, pest exclusion,
economic development, land use and trade. A commission will
bring together this diverse industry under a common entity to
assist in accomplishing its goals. According to the sponsor,
there are roughly 600 producers in California, as defined by
this bill.
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.
For accomplishing the purposes stated by the author for this
industry, a commission may be an appropriate entity. Current
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commissions and marketing orders have been successful in
expanding markets, improving product 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 upon
determination of the need, the Secretary may conduct a fiscal
and administrative audit of CNPC.
Pending legislation : AB 1912 (Evans) of 2010 would create the
California Apiary Research Commission (CARC) with prescribed
membership, powers, duties and responsibilities, and require
positive referendum vote by beekeepers, as specified, to
activate.
Analysis Prepared by : Victor Francovich / AGRI. / (916)
319-2084
FN: 0004644