BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1389
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          Date of Hearing:   May 15, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

             AB 1389 (Committee on Agriculture) - As Amended:  April 24,  
                                        2013 

          Policy Committee:                              AgricultureVote:7  
          - 0 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill makes the statutes and regulations governing the San  
          Joaquin Valley Quality Cotton District inoperative effective  
          January 1, 2014, with the exception of the statutes dealing with  
          certified cottonseed and colored cotton, until either of the  
          following occurs:

          1)A resolution is approved by the San Joaquin Valley Cotton  
            Board and Secretary of the California Department of Food and  
            Agriculture (CDFA) that calls for a referendum vote of the San  
            Joaquin Valley cotton growers.

          2)The CDFA Secretary receives a petition from members of the San  
            Joaquin Valley cotton industry, and determines that due to  
            industry circumstances, it is in the best interest of the  
            state and industry that specific sections of the district's  
            statutes be reactivated.  If CDFA makes such a determination,  
            they may establish an advisory committee, made up of cotton  
            growers, handlers of whole cottonseed, handlers of raw cotton  
            fiber, and representatives of cotton ginning organizations.

           FISCAL EFFECT  

          CDFA estimates that it will cost about $50,000 per year to  
          continue operating the quality enforcement program as it  
          pertains to the certification of cotton seeds and colored  
          cotton.  The program has a reserve of approximately $150,000.   
          It is unknown what the funding source will be after program  
          funds are fully expended. The funds could be provided by the  
          California Cotton Ginners and Growers Association or some other  








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          cotton industry organization, or the San Joaquin Valley Cotton  
          Board (SJVCB) could petition the CDFA Secretary for an  
          assessment.  

           COMMENTS  

           1)Purpose  . As a result of the improved higher quality cotton  
            varieties that can now be grown outside the San Joaquin  
            Valley, reduced market prices, and water shortages, the  
            valley's planted cotton acreage has declined over the last two  
            decades.  While cotton hit a high of over 1.6 million acres  
            planted in 1979, in 2013 it is estimated to be planted on  
            300,000 acres, down 37% from last year.  This greatly reduces  
            the concerns among the valley's cotton growers regarding cross  
            contamination of varieties that could affect the overall  
            quality of cotton grown in the state.

            The industry, in an effort to reduce costs to its producers  
            has asked that the statutes establishing the San Joaquin  
            Valley Cotton district become dormant. However they do ask for  
            ongoing limited enforcement of three specific sections  
            critical to the integrity of cotton varieties and purity.  
             
          2)Background  . This district was created by statute in 1978 and  
            approved by a referendum of growers and industry-related  
            members to promote and protect the planting and growing of  
            pure, high quality cotton varieties.  Due to environmental and  
            economic changes over recent years, the number of acres of  
            cotton planted in the state has declined significantly.   

             
           3)San Joaquin Valley Cotton Board (SJVCB)  . The SJVCB was created  
            by statute in 1925 and its primary purpose was to encourage  
            the uniformity, quality, and marketability of valley cotton in  
            order to bring the best monetary returns to growers.  The  
            board's programs are completely funded by the industry with an  
            annual assessment of less than $1 per acre.  

            The Board is comprised of 11 members elected to serve four  
            year terms:  two growers from each of the major growing  
            counties of Fresno, Tulare, Kings, and Kern; one grower each  
            from the counties of Madera and Merced; six members of the  
            cotton industry at large; and one public member appointed by  
            the Secretary of Food and Agriculture.  Each member has an  
            alternate.  The growers and their alternates are nominated and  








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            elected by growers from their respective county.  
           
           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081