BILL ANALYSIS Ó
SENATE COMMITTEE on AGRICULTURE
Senator Cathleen Galgiani, Chair
BILL NO: AB 1389 HEARING: 07/02/13
AUTHOR: Assembly Agriculture CommitteeFISCAL: Yes
VERSION: 06/10/13 CONSULTANT: Anne Megaro
Agriculture.
SUMMARY :
This bill amends the number of members appointed to the Shell
Egg Advisory Committee and allows for the San Joaquin Valley
Quality Cotton District to become inoperative, as specified.
This bill also amends the California Asparagus Commission to
remove the use of geographical districts, consecutive term
limits for members, and deletes provisions allowing the
commission to function as a corporation.
BACKGROUND AND EXISTING LAW :
The Shell Egg Advisory Committee (SEAC) was established in 1972
to advise the secretary of the California Department of Food and
Agriculture (CDFA) on matters pertaining to standards for shell
eggs including quality, sampling, inspection, fees, and
enforcement of all related laws and regulations. In 2002, AB
2981 (Agriculture) amended the duties of the SEAC to include
components of the Egg Quality Assurance Plan, a voluntary,
industry-driven food safety program developed in cooperation
with CDFA, USDA, UC Cooperative Extension and several other
state and federal government entities.
The San Joaquin Valley Quality Cotton District (formerly known
as the One-Variety Cotton District) was established in 1926 to
promote, encourage, aid, and protect the planting and growing of
high-quality cotton in the state of California. Only two
varieties of cotton may be grown, Pima and Acala, to avoid
cross-pollination in the field that could degrade the quality of
cotton grown in the district. The district consists of Fresno,
Madera, Merced, Kern, Kings, and Tulare counties. CDFA and
county agricultural commissioners (CACs) are responsible for
enforcement of these provisions and related regulations, which
are funded by industry assessment fees.
Marketing Programs: Existing law provides for the creation of
marketing programs within the California Food and Agriculture
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Code, Division 22. The Legislature "finds and declares that the
agricultural and seafood industries are vitally important
elements of the state's economy and are supported by state
established commissions and councils specified in this division
that are mandated to enhance and preserve the economic interests
of the State of California."
There are currently 16 active commissions in California, all of
which are governed by boards of directors and overseen by the
California Department of Food and Agriculture (CDFA). These
commissions were created to enhance their industries by
investing in promotion, advertising, education, marketing
research, scientific research, and the creation and regulation
of quality standards.
The California Asparagus Commission was established in 1991 to
engage in the production and marketing of asparagus in
California through advertising, promotion, and research. The
commission is divided into two districts which separate northern
and southern counties to ensure proper representation by
producers when electing commission members. An assessment fee
is collected from growers to fund operating and enforcement
costs of these provisions.
PROPOSED LAW :
This bill:
Increases to 10 the number of appointed members of the
Shell Egg Advisory Committee. Eight members shall be
representatives of the egg industry, one nonvoting member
from the California Agricultural Commissioners and Sealers
Association, and one shall be a public member.
Adds provisions to allow the San Joaquin Valley Quality
Cotton District to become inoperative unless a resolution
is approved or the secretary receives a petition from
members of the cotton industry and determines that
continued operation of specified provisions of this chapter
is in the best interest of the industry and the state.
Authorizes the secretary of CDFA to establish a cotton
advisory committee. The committee shall be composed of
cotton growers, handlers, and representatives of cotton
ginning organizations.
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Provides that the secretary shall not be required to
administer any provision of this chapter unless sufficient
funds generated for purposes of this chapter are available.
Removes the use of "districts" within the California
Asparagus Commission and allows the commission to reduce
the number of producers who serve on the commission with a
two-thirds vote.
Removes the limit on consecutive terms for commission
members.
Deletes provisions allowing the commission to function
as a corporate body.
Makes technical and conforming changes.
COMMENTS :
Stated need for this bill: According to the author, "Cotton
acreage over the last 20 years has dropped from over 1.1 million
acres to less than 200,000 acres. With less acreage, the
potential for cross contamination has been reduced and the need
for the District statutes lessened? Due to prudent budgeting and
reserves, the District has sufficient funds to operate at this
reduced acreage level for several years. Therefore, making the
statute inoperative should not create problems in the District
while reducing the financial burden on cotton producers."
In regards to the Shell Egg Advisory Committee , the author
states that this bill would "increase the number of industry
members from six to eight, with the goal to represent facets of
the industry not currently represented such as out of state egg
handlers and egg product producers."
The California Asparagus Commission also requires amendments to
address industry changes. In 2011, California asparagus was
valued at $57.2 million, making California the top grower of
asparagus in the U.S. However, over the last decade, growers
have reduced asparagus production by two-thirds, from 36,000
acres to 11,500 acres. The author argues that due to the
reduction in planted acres, "the loss of a number of involved
growers and term limits has resulted in board vacancies in both
Districts. To maintain an active, productive board, the
Commission wishes to remove the District designations, board
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term limits as well as gain the right to change the number of
board positions if necessary."
RELATED LEGISLATION :
AB 2981 (Agriculture), Chapter 535, Statutes of 2002. Allows
the Shell Egg Advisory Committee to advise the secretary of CDFA
on components of the Egg Quality Assurance Plan.
SB 565 (Florez), Chapter 236, Statutes of 2003. Increases the
maximum assessment fee on cottonseed delinted for planting
purposes from $4 to $6 per hundredweight. These funds are used
to support the activities of the San Joaquin Valley Cotton
District.
AB 1913 (Fuller), Chapter 189, Statutes of 2008. Reduces the
number of board members for the San Joaquin Valley Cotton
District, defines cotton growers, and makes other technical and
conforming changes.
AB 3099 (Waters), Chapter 1058, Statutes of 1990. Creates the
California Asparagus Commission with prescribed membership,
powers, duties, and responsibilities of the commission.
Authorizes the commission to engage in development, maintenance,
and expansion of markets, marketing research, advertising,
promotion, and research relating to asparagus.
PRIOR ACTIONS :
Assembly Floor 74-0
Assembly Appropriations 17-0
Assembly Agriculture 7-0
SUPPORT :
California Asparagus Commission
California Cotton Ginners Association
California Cotton Growers Association
Pacific Egg & Poultry Association
OPPOSITION :
None received
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