BILL ANALYSIS                                                                                                                                                                                                    Ó


          |SENATE RULES COMMITTEE            |                       AB 1389|
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                                    THIRD READING

          Bill No:  AB 1389
          Author:   Assembly Agriculture Committee
          Amended:  6/10/13 in Senate
          Vote:     21

           SENATE AGRICULTURE COMMITTEE  :  4-0, 7/2/13
          AYES:  Galgiani, Cannella, Berryhill, Wolk
          NO VOTE RECORDED:  Lieu
          SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8
          ASSEMBLY FLOOR  :  74-0, 5/23/13 (Consent) - See last page for  

           SUBJECT  :    Agriculture

           SOURCE  :     Author

           DIGEST  :    This bill amends the number of members appointed to  
          the Shell Egg Advisory Committee (SEAC) and allows for the San  
          Joaquin Valley Quality Cotton District (District) to become  
          inoperative, as specified.  This bill also amends the California  
          Asparagus Commission (CAC) to remove the use of geographical  
          districts, consecutive term limits for members, and deletes  
          provisions allowing the CAC to function as a corporation.

           ANALYSIS  :    SEAC was established in 1972 to advise the  
          Secretary of the Department of Food and Agriculture (DFA) on  
          matters pertaining to standards for shell eggs including  
          quality, sampling, inspection, fees, and enforcement of all  


                                                                   AB 1389

          related laws and regulations.  In 2002, AB 2981 (Assembly  
          Agriculture Committee, Chapter 535, Statutes of 2002) 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 DFA, United States Department of  
          Agriculture, University of California Cooperative Extension and  
          several other state and federal government entities.

          The 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.  DFA and county agricultural commissioners are  
          responsible for enforcement of these provisions and related  
          regulations, which are funded by industry assessment fees.

          Marketing programs provides for the creation of marketing  
          programs within the California Food and Agriculture 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  
          DFA.  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 CAC was established in 1991 to engage in the production and  
          marketing of asparagus in California through advertising,  
          promotion, and research.  The CAC 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.  

          This bill:



                                                                    AB 1389

          1. Increases to 10 the number of appointed members of the SEAC.   
             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.

          2. Adds provisions to allow the District to become inoperative,  
             on or after January 1, 2014, unless a resolution is approved  
             or the Secretary of DFA 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.

          3. Authorizes the Secretary to establish a cotton advisory  
             committee.  The committee shall be composed of cotton  
             growers, handlers, and representatives of cotton ginning  

          4. 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.

          5. Removes the use of "districts" within the CAC and allows the  
             CAC to reduce the number of producers who serve on CAC with a  
             two-thirds vote.

          6. Removes the limit on consecutive terms for CAC members.

          7. Deletes provisions allowing CAC to function as a corporate  

          8. Makes technical and conforming changes.

           Prior Legislation
          AB 2981 (Assembly Agriculture Committee, Chapter 535, Statutes  
          of 2002) allows the SEAC to advise the Secretary of DFA 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 District.



                                                                    AB 1389

          AB 1913 (Fuller, Chapter 189, Statutes of 2008) reduces the  
          number of board members for the District, defines cotton  
          growers, and makes other technical and conforming changes.

          AB 3099 (Waters, Chapter 1058, Statutes of 1990) creates the CAC  
          with prescribed membership, powers, duties, and responsibilities  
          of the commission.  Authorizes the CAC to engage in development,  
          maintenance, and expansion of markets, marketing research,  
          advertising, promotion, and research relating to asparagus.

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes    
          Local:  No

           SUPPORT  :   (Verified  8/9/13)

          California Asparagus Commission
          California Cotton Ginners Association
          California Cotton Growers Association
          Pacific Egg and Poultry Association

           ARGUMENTS IN SUPPORT  :    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."  

           ASSEMBLY FLOOR  :  74-0, 5/23/13
          AYES:  Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,  
            Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown,  
            Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway,  
            Cooley, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,  
            Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gordon, Gorell,  
            Gray, Hagman, Hall, Harkey, Roger Hernández, Jones-Sawyer,  
            Levine, Linder, Logue, Lowenthal, Maienschein, Mansoor,  



                                                                    AB 1389

            Medina, Melendez, Mitchell, Morrell, Mullin, Muratsuchi,  
            Nazarian, Nestande, Olsen, Pan, Patterson, Perea, V. Manuel  
            Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone,  
            Ting, Wagner, Weber, Wieckowski, Wilk, Williams, Yamada, John  
            A. Pérez
          NO VOTE RECORDED:  Grove, Holden, Jones, Waldron, Vacancy,  

          JL:k  8/13/13   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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