BILL ANALYSIS Ó
AB 1389
Page 1
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
AB 1389
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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