BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 914
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 914 (Atkins)
          As Amended  June 13, 2011
          Majority vote
           
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          |ASSEMBLY:  |70-0 |(May 12, 2011)  |SENATE: |37-0 |(August 29,    |
          |           |     |                |        |     |2011)          |
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           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
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           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
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          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 


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