BILL ANALYSIS Ó AB 914 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 914 (Atkins) As Amended June 13, 2011 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |70-0 |(May 12, 2011) |SENATE: |37-0 |(August 29, | | | | | | |2011) | ----------------------------------------------------------------- Original Committee Reference: AGRI. SUMMARY : Makes changes to the Cut Flower Commission (CFC) and the California Avocado Commission (CAC) as specified. Specifically this bill : 1)Requires the CFC to annually collect information relating to the type and varieties of cut flower's market price information based on sales to prevent unfair trade practices. 2)Authorizes CAC to utilize the information provided to CAC for specified purposes, including food safety and communications. This bill also revises the provision requiring CAC to reapportion those districts every five years by determining the average number of pounds of fruit produced in each ZIP Code area in the five, rather than two, crop years prior to a specified referendum. The Senate amendments : 1)Add provisions to CAC that adjust the rules for reapportioning the five CAC districts. 2)Require avocado producers to provide information as determined by CAC, pertaining to the locations at which avocados are produced and the annual volume of avocados produced at each location. 3)Allow CAC to use information for the purposes of food safety, communications, reapportionment of districts, and the conduct of elections and referenda. AB 914 Page 2 EXISTING LAW : 1)Creates CFC with specified powers and duties, including, but not limited to, conducting, and contracting with others to conduct, production research, including the study, analysis, accumulation, and dissemination of information obtained from that research. 2)Allows several marketing commissions to collect sales information on commodities. 3)Establishes CAC as specified, to, among other duties, promote the sale of avocados. 4)Requires CAC to establish five districts within the state, according to specified procedures, including by determining the average number of pounds of fruit produced in each ZIP Code area in the two crop years prior to a specified referendum. 5)Makes it a misdemeanor to willfully fail to render or furnish a report, statement, or record required by CAC. AS PASSED BY THE ASSEMBLY , this bill was substantially similar to the version approved by the Senate. FISCAL EFFECT : According to the Assembly Appropriations Committee, there are no additional costs to the CFC to collect the additional data. Fiscal effect on the CAC is unknown. COMMENTS : According to the author, CFC needs the authority given by this bill to help prevent unfair trade practices within California. The author states that by providing relevant market price information, CFC will be able to address and track misinformation about commodity values, which can have a negative financial impact on the growers who produce a specific commodity. Supporters state that in an industry dominated with AB 914 Page 3 cheap imported flowers, this bill would allow the market to fluctuate on credible information, providing the opportunity for California's growers to receive fair market value for their California grown flowers. According to supporters, increasing the time for CAC to determine the average pounds of avocados produced to five years will help CAC look at production for the entire period prior to the five-year reapportionment of the producer districts. Requiring avocado producers to provide the location and annual volume produced will aid CAC in the reapportionment process. This bill enhances the timeliness and provides a better edge for CAC to address a food safety issue with location and production information of California avocados. According to the California Department of Food and Agriculture, 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, maintenance of quality standards, and gathering information on commodities sales. Commissions provide a structure for solving problems and also provide a vehicle for collecting funds to support activities. Analysis Prepared by : Victor Francovich / AGRI. / (916) 319-2084 FN: 0001729