BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 2695| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 2695 Author: Hernandez (D), et al Amended: 8/2/10 in Senate Vote: 21 SENATE FOOD AND AGRICULTURE COMMITTEE : 4-1, 6/15/10 AYES: Florez, Emmerson, Hancock, Wolk NOES: Hollingsworth SENATE APPROPRIATIONS COMMITTEE : 9-1, 6/28/10 AYES: Kehoe, Cox, Alquist, Corbett, Denham, Leno, Price, Wolk, Yee NOES: Walters NO VOTE RECORDED: Wyland ASSEMBLY FLOOR : 58-18, 6/1/10 - See last page for vote SUBJECT : California Nursery Producers Commission SOURCE : Author DIGEST : This bill creates, subject to approval by an industry referendum, the 16-member California Nursery Producers Commission, within the Department of Food and Agriculture, to serve the marketing and research interests of the nursery industry in the state. ANALYSIS : Existing law allows for the establishment of commissions and councils to advance the interests of California agriculture and seafood industries. Commission CONTINUED AB 2695 Page 2 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. This bill: 1. Creates the California Nursery Producers Commission and specifies the powers, duties, and responsibilities of the Commission. 2. Authorizes the Commission to levy an annual assessment, not to exceed $0.0006 per dollar of sales, on producers of nursery products and authorizes the expenditure of these funds for purposes of implementing and administering the bill's provisions. 3. Does not become effective until eligible producers, by referendum, vote in favor of these provisions. 4. Authorizes the Commission to levy a civil penalty not to exceed $1,000 on a person who willfully renders or furnishes false information, as specified, and also authorizes the Commission to bring civil actions and other remedies to enforce the bill's provisions and regulations adopted pursuant to these provisions. 5. Provides for the continuation and suspension of the operation of its provisions and for concluding the operations of the Commission. AB 2695 Page 3 Comments Supporters state this bill creates the first nursery commission in California to promote and represent the interests of the second largest commodity in the state. California nurseries provide $4 billion in farm gate value, producing nursery crops in 55 of California's 58 counties. The California nursery industry faces numerous regulatory, research, and marketing challenges in California. The establishment of a commission would address the need within the nursery industry for a unified voice from the nursery industry to the public and regulatory agencies on the importance of California's nursery industry. A nursery commission would help the industry with improved marketing of California nursery products. California nurseries are under increasing pressure from invasive pests, causing increased costs and challenges transporting nursery products. A commission would help the industry respond to the pressures of invasive pests, help educate the public, and be an industry asset in combating current and future invasive pest threats. FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes Local: No According to the Senate Appropriations Committee: Fiscal Impact (in thousands) Major Provisions 2010-11 2011-12 2012-13 Fund New marketing commission - administration Up to $40 $20-$30 ongoingSpecial* - revenues Up to ($3,000**) annually Special* * Industry assessment deposited in the Department of Food and Agriculture Fund **Based on one-tenth of one cent ($0.001) assessment rate which is capped at six-tenths of one cent AB 2695 Page 4 SUPPORT : (Verified 7/26/10) California Association of Nurseries and Garden Centers California Association of Pest Control Advisors ASSEMBLY FLOOR : AYES: Ammiano, Arambula, Bass, Beall, Bill Berryhill, Block, Blumenfield, Bradford, Brownley, Buchanan, Caballero, Charles Calderon, Carter, Chesbro, Conway, Coto, Davis, De La Torre, De Leon, Eng, Evans, Feuer, Fong, Fuentes, Fuller, Furutani, Galgiani, Garrick, Gilmore, Harkey, Hayashi, Hernandez, Hill, Huffman, Jones, Lieu, Bonnie Lowenthal, Ma, Mendoza, Monning, Nava, Nielsen, V. Manuel Perez, Portantino, Ruskin, Salas, Saldana, Silva, Skinner, Solorio, Swanson, Torlakson, Torres, Torrico, Tran, Villines, Yamada, John A. Perez NOES: Adams, Anderson, Blakeslee, Cook, DeVore, Emmerson, Fletcher, Gaines, Hagman, Huber, Jeffries, Knight, Logue, Miller, Nestande, Niello, Norby, Smyth NO VOTE RECORDED: Tom Berryhill, Hall, Audra Strickland, Vacancy TSM:mw 8/2/10 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****