BILL NUMBER: AB 2682	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 7, 2012
	AMENDED IN SENATE  MAY 25, 2012
	AMENDED IN ASSEMBLY  MARCH 29, 2012

INTRODUCED BY   Committee on Agriculture

                        MARCH 8, 2012

   An act to amend Sections 4103, 6981,  32513,  61933,
64007, 64101, 64103, 64105,  64305, 64306,  and 77191 of, to
repeal Sections 64107, 64108, and 64109 of, and to repeal and add
Section 64106 of, the Food and Agricultural Code, relating to
agriculture.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2682, as amended, Committee on Agriculture. Agriculture.
   (1) Existing law establishes the Sixth District Agricultural
Association, which is known as the California Science Center, and
authorizes it to establish a space-age museum at its building in
Exposition Park in the City of Los Angeles.
   This bill would instead authorize the California Science Center to
establish an air and space center at that location.
   (2) Existing law imposes an annual assessment of 1% on the gross
sales of all deciduous pome and stone fruit trees, nut trees, olive
trees, and grapevines, including seeds, seedlings, rootstocks, and
topstock, including ornamental varieties of apple, apricot,
crabapple, cherry, nectarine, peach, pear, and plum, produced and
sold within the state or produced within and shipped from the state
by any licensed nursery dealer. Existing law provides that the
Secretary of Food and Agriculture may exempt from the assessment
certain species of pome and stone fruit, nut trees, olive trees,
grapevines, or ornamental varieties of apple, apricot, crabapple,
cherry, nectarine, olive, peach, pear, and plum if it can be
demonstrated that no benefit is derived by these species from
specified programs established by existing law concerning pome and
stone fruit trees, nut trees, olive trees, and grapevines, as
provided.
   This bill would remove species of olive trees from the plants that
the secretary may exempt from the assessment and instead allow the
secretary to exempt certain varieties of olive trees from the
assessment. The bill would also make a clarifying change. 
   (3) Existing law requires the Secretary of Food and Agriculture to
require inspections at least quarterly of all milk products plants
that pasteurize milk or milk products, manufacture cheese, or
manufacture raw milk cheese, and requires that the inspection
procedures include specified elements, including a review of all
pasteurization records. Existing law defines "milk products plant"
and excludes from that definition a retail establishment that
packages dairy products in the presence of the consumer.  
   This bill would exclude from the definition of "milk products
plant" a properly licensed retail food facility that cuts, wraps, and
packages cheese, excluding cottage cheese, purchased from a licensed
manufacturer of milk products, labels the products pursuant to all
applicable state and federal laws, and sells the product only to
consumers on the premises of the retail food facility.  

   (3) 
    (4)  Existing law empowers the Secretary of Food and
Agriculture to formulate a stabilization and marketing plan which
includes, among other things, establishing the price to be paid by
milk handlers for various classes of market milk. Class 2 market milk
consists of, among other milk products, any market milk, market skim
milk, or market cream used in the manufacture of market cream,
homogenized market cream, sour cream, sour cream dressing, sour
half-and-half or light sour cream, uncreamed, creamed, or partially
creamed cottage cheese, soft fresh cheese (fromage frais),
buttermilk, and yogurt. A violation of any provision regarding the
stabilization and marketing of market milk, or any provision of any
stabilization and marketing plan, is a misdemeanor.
   This bill would add kefir to those products that are class 2
market milk. Because this bill would expand the scope of a crime, it
would create a state-mandated local program. 
   (4) 
    (5)  Existing law, the Dairy Council of California Law,
establishes the Dairy Council of California within state government,
comprised of 12 producer members, 12 handlers or producer handlers,
and one member who is neither a producer, handler, or producer
handler of milk. Existing law requires the secretary to prepare and
mail nomination forms to all producers, producer handlers, and
handlers of milk for the purpose of receiving nominations of members
of the council, and to fill vacancies in the council pursuant to the
council's nominees. Existing law provides that the 12 producer
members of the council may include persons that represent producers.
 Under existing law, the dairy council is financed through fees
paid by producers, producer-handlers, and handlers. Existing law
authorizes the secretary to collect these fees and to add a penalty
of 10% to unpaid fees. 
   This bill would require all members of the council to be appointed
by the secretary and would specify that the members hold office at
the pleasure of the secretary. The bill would delete the provisions
providing for the nomination of members of the council by producers,
producer handlers, and handlers of milk and instead would require
members of the council to be nominated and appointed pursuant to
procedures recommended by the council and approved by the secretary.
The bill would authorize that the secretary to consider
recommendations from the remaining members of the council to fill
vacancies. The bill would delete the provision allowing for
representatives of producers to be appointed as producer members of
the council. The bill would define "handler" to include persons who
secure custom processing services on an ongoing basis.  The bill
would also authorize the secretary to enforce as well as collect the
fees and to assess interest of 1% of the unpaid balance for each 30
days the fees are unpaid.  
   (5) 
    (6)  Existing law establishes the California Walnut
Commission, and requires that the commission become inoperative at
the end of any marketing year in which targeted export assistance
funds provided by the federal government have been permanently
terminated, unless a referendum vote conducted among walnut producers
approves the continuation of the commission. Existing law provides
that funds are considered to be permanently terminated when the
federal government does not provide targeted export assistance funds
in 2 consecutive budget years.
   This bill would change when funds are considered to be permanently
terminated to when the federal government does not provide targeted
export assistance funds in 3 consecutive budget years. 
   (6) 
    (7)  The California Constitution requires the state to
reimburse local agencies and school districts for certain costs
mandated by the state. Statutory provisions establish procedures for
making that reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 4103 of the Food and Agricultural Code is
amended to read:
   4103.  The California Science Center may establish an air and
space center in its building at Exposition Park in the City of Los
Angeles.
  SEC. 2.  Section 6981 of the Food and Agricultural Code is amended
to read:
   6981.  (a) An annual assessment of 1 percent shall be levied on
the gross sales of all deciduous pome and stone fruit trees, nut
trees, olive trees, and grapevines, including seeds, seedlings,
rootstocks, and topstock, including ornamental varieties of apple,
apricot, crabapple, cherry, nectarine, olive, peach, pear, and plum,
produced and sold within the state or produced within and shipped
from the state by any licensed nursery dealer. For packaged or
containerized stock, the assessment shall be levied on the producer's
bareroot price of the plants.
   (b) The secretary, as appropriate, and on the recommendation of
the board established pursuant to Section 6988, may exempt from the
assessment certain species of pome and stone fruit, nut trees,
grapevines, or varieties of olive trees, or ornamental varieties of
apple, apricot, crabapple, cherry, nectarine, olive, peach, pear, and
plum if it can be demonstrated that no benefit is derived by these
species or varieties from programs described in subdivision (d).
   (c) The assessment shall be applied at the point of sale where the
nursery stock is sold by a producer to persons other than California
producers of nursery stock that is subject to assessment under
subdivision (a).
   (d) The secretary may set the assessment at a lower percent to
cover the costs necessary to implement and carry out all department
programs established pursuant to Article 7 (commencing with Section
5821) of Chapter 8 of Part 1 concerning the registration and
certification of pome and stone fruit trees, nut trees, olive trees,
and grapevines; the University of California foundation plant
materials service activities concerning pome and stone fruit trees,
nut trees, olive trees, and grapevines; and other activities related
to the development of planting materials for pome and stone fruit
trees, nut trees, olive trees, and grapevines.
   SEC. 3.    Section 32513 of the   Food and
Agricultural Code   is amended to read: 
   32513.  "Milk products plant" means any place in which a person
engages in the business of handling, receiving, manufacturing,
freezing, processing, or packaging milk, or any product of milk or
engages in the business of manufacturing, freezing, or processing
imitation ice cream or imitation ice milk.  However, "milk
products plant" does not include any retail establishment which
packages dairy products in the presence of the consumer. 
 "Milk products plant" does not include a properly licensed
retail food facility that does either of the following:  
   (a) Packages dairy products in the presence of the consumer. 

   (b) Cuts, wraps, and packages cheese, excluding cottage cheese,
that is purchased from a licensed manufacturer of milk products,
labels the products pursuant to all applicable state and federal
laws, and sells the product only to consumers on the premises of the
retail food facility. 
   SEC. 3.   SEC. 4.   Section 61933 of the
Food and Agricultural Code is amended to read:
   61933.  Class 2 comprises any market milk, market skim milk, or
market cream used in the manufacture of market cream, homogenized
market cream, sour cream, sour cream dressing, sour half-and-half or
light sour cream, uncreamed, creamed, or partially creamed cottage
cheese, soft fresh cheese (fromage frais), buttermilk, kefir, and
yogurt. Class 2 also comprises any market milk, market skim milk, or
market cream used in the manufacture of any product for which a
definition and standard is prescribed in Division 15 (commencing with
Section 32501), except any product that is included in class 1,
class 3, class 4a, or class 4b.
   SEC. 4.   SEC. 5.   Section 64007 of the
Food and Agricultural Code is amended to read:
   64007.  "Handler" means any person that, as owner, agent, or
broker, purchases, or otherwise acquires from a producer,
producer-handler, or another handler, possession or control of milk,
skim milk, or cream, in the form of unprocessed milk, skim milk, or
cream, or in any other unprocessed form, for the purpose of
processing it, and includes any person who secures custom processing
services on an ongoing basis.
   SEC. 5.   SEC. 6.   Section 64101 of the
Food and Agricultural Code is amended to read:
   64101.  There is in the state government the Dairy Council of
California which shall consist of not less than 24, nor more than 25
members. All members of the council shall be appointed by the
secretary and may hold office at the pleasure of the secretary. The
membership of the council shall be as follows:
   (a) There shall be 12 members that are actually engaged in the
production of milk. These 12 members are the producer members of the
council.
   (b) There shall be 12 members that are handlers or
producer-handlers of dairy products. These 12 members are the handler
members of the council.
   (c) Upon the recommendation of the council, the secretary may
appoint one person who is neither a producer, handler, or
producer-handler, and who shall represent the public generally.
   SEC. 6.   SEC. 7.   Section 64103 of the
Food and Agricultural Code is amended to read:
   64103.  Officials or members, otherwise qualified, of
corporations, associations, and other business units, which are
actually engaged in business as producers, handlers, or
producer-handlers of dairy products, are eligible to be members of
the council.
   SEC. 7.   SEC. 8.   Section 64105 of the
Food and Agricultural Code is amended to read:
   64105.  Any vacancy occurring during the unexpired term may be
filled by the secretary for the unexpired term. In filling a vacancy,
the secretary may consider recommendations from the remaining
members of the council. The director may remove any member of the
council for cause deemed sufficient by him and upon such removal
there shall be a vacancy which shall be filled in the manner as
provided in this section for the unexpired term.
   SEC. 8.   SEC. 9.   Section 64106 of the
Food and Agricultural Code is repealed.
   SEC. 9.   SEC. 10.   Section 64106 is
added to the Food and Agricultural Code, to read:
   64106.  Members of the council shall be nominated and appointed
pursuant to procedures recommended by the council and approved by the
secretary. The procedures may include, but are not limited to,
nominations, preference voting, and district representation.
   SEC. 10.   SEC. 11.   Section 64107 of
the Food and Agricultural Code is repealed.
   SEC. 11.   SEC. 12.   Section 64108 of
the Food and Agricultural Code is repealed.
   SEC. 12.  SEC. 13.   Section 64109 of
the Food and Agricultural Code is repealed.
   SEC. 14.    Section 64305 of the   Food and
Agricultural Code   is amended to read: 
   64305.  Fees established and assessed under this chapter may be
 enforced and  collected by the  director 
 secretary  through direct payment or through pool
accounting procedures established by the  director 
 secretary  under Chapter 3 (commencing with Section 62700).

   SEC. 15.    Section 64306 of the   Food and
Agricultural Code   is amended to read: 
   64306.  To the amount of fees which are unpaid when due, the
 director   secretary  may add a penalty of
10 percent.  In addition, the secretary may assess interest at a
rate of 1 percent of the unpaid balance for each 30 days the
assessment is unpaid. 
   SEC. 13.   SEC. 16.   Section 77191 of
the Food and Agricultural Code is amended to read:
   77191.  This chapter shall become inoperative at the end of any
marketing year in which targeted export assistance funds provided by
the federal government have been permanently terminated, unless,
pursuant to the procedures described in Section 77193, the producers
approve the continuation of the commission. Funds are permanently
terminated within the meaning of the previous sentence when the
federal government does not provide targeted export assistance funds
in three consecutive budget years.
   SEC. 14.   SEC. 17.   No reimbursement
is required by this act pursuant to Section 6 of Article XIII B of
the California Constitution because the only costs that may be
incurred by a local agency or school district will be incurred
because this act creates a new crime or infraction, eliminates a
crime or infraction, or changes the penalty for a crime or
infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIII B of the California Constitution.