BILL ANALYSIS Ó
AB 958
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Date of Hearing: April 29, 2015
ASSEMBLY COMMITTEE ON AGRICULTURE
Henry T. Perea, Chair
AB 958
(Committee on Agriculture) - As Amended April 22, 2015
SUBJECT: California Salmon Marketing and Development Act.
SUMMARY: Requires the Secretary (Secretary) of the California
Department of Food and Agriculture (CDFA) to conduct a
referendum to increase the participation of salmon handlers
(handlers) on the California Salmon Council (CSC) with
prescribed membership, powers, duties and responsibilities.
Requires a positive referendum vote by handlers to activate.
Specifically, this bill:
1)Clarifies the definition of handlers to not include commercial
salmon vessel operators (CSVO) who sell directly to another
person.
2)Changes from nine to 11 the number of CSC voting members and
their alternates and from five to three the number of
non-voting members.
a) Changes from two to three handlers who are receivers or
processors or their representatives, and their alternates;
b) Changes from one to two representatives of a handler who
is an exporter or a wholesaler, and their alternates; and,
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c) Requires that if handlers become part of CSC, as
specified, officers and other members of the executive
committee are equally divided between CSVO and handlers.
3)Requires handlers subject to CSC to pay the fees specified in
existing law and regulations to the Secretary of CDFA.
a) Requires if the fees exceed 7 cents ($0.07), CSC will
conduct a vote of all eligible CSVO and handlers.
4)Requires the Secretary, on or before a date not specified, to
establish a list of handlers eligible for a referendum vote,
as specified.
a) Allows the Secretary to require handlers to provide
receipts from CSVO from the previous season and request
assistance from the Department of Fish and Wildlife (CDFW)
in compiling the list, as specified;
b) Allows any handlers who are not on the list, but want to
be on the list, to file a statement with the Secretary;
and,
c) Provides that failure to be on the list does not exempt
a handler from paying CSC fees, if the referendum passes.
5)Requires the Secretary to establish a period to conduct the
referendum not to exceed 60 days.
6)Requires for the referendum to pass, it must meet the
following criteria:
a) At least 40% by number of the total number of handlers
from the list must participate in the vote and either of
the following must occur:
i) 65% of the handlers voted in favor of the referendum
and the handlers so voting represent a majority of salmon
landed in the previous season by all handlers voting; or,
ii) A majority of handlers voted in favor of the
referendum and those handlers so voting handled 65% of
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salmon landed in the previous season in the preceding
marketing year by all handlers voting.
7)Prior to the referendum, the proponents of the referendum
shall deposit funds to cover the cost of the referendum with
the Secretary.
a) Requires unused referendum funds to be returned to the
proponents; and,
b) Allows CSC to reimburse proponents who funded the
referendum.
8)Requires the Secretary, depending on the outcome of the
referendum vote, to certify a favorable vote and give notice
to the handlers as specified, or certify an unfavorable vote
and declare this article inoperative.
9)Provides, upon a favorable vote, methods for continuation or
suspension or termination of the Commission including
requiring the Secretary, starting in January 2019 and every
five years after implementation, to hold a hearing to
determine whether it should continue, which may prompt another
referendum among all CSVOs and handlers, or by a 2/3 vote of
the CSC to terminate this chapter; CSC may recommend
suspension of CSC to the Secretary.
10)Makes numerous technical, clarifying, corrective and
conforming changes.
EXISTING LAW:
1)Establishes the California CSC with nine voting members, whose
duties include assisting CDFW in implementing and enforcing
law regulating the commercial salmon fishing industry, and,
promoting education, research and public information about
California salmon.
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2)Requires CSVO who sell salmon to pay a fee on each pound of
salmon sold for the purpose of supporting CSC in its duties.
3)Authorizes over 50 different Marketing Orders, Agreements,
Councils and Commissions under the California Marketing Act of
1937 for various commodities with various authorizations
covering promotion, advertising, education, production or
post-harvest research, and quality standards and inspections.
FISCAL EFFECT: Unknown. This bill is keyed Fiscal by
Legislative Counsel.
COMMENTS: CSC is comprised of nine voting members appointed by
CDFA with consultation with CDFW for a three year term. The
nine voting members are broken down to five commercial salmon
vessel operators, two handlers who are receivers or processors,
one handler who is an exporter or wholesaler, and one public
member. CSC was authorized by the Legislature in 1988 and
formed in 1989 to promote the marketing of California salmon and
salmon products. CSC may, at the direction of CDFA, conduct
programs of education, research, or public information to
promote and improve California salmon.
CSC has always been a small budget program. The CDC board
consists of five CSVO member/alternate positions, three handler
member/alternate positions and one public member/alternate.
According to supporters, the handlers expressed a desire to pay
an equal portion as CSVO, thereby doubling the budget. Under
the current law, the handlers can vote, but they are not
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assessed. The handlers have benefited from the promotion,
research and good will CSC provides, and now want to join fully
to help increase the promotion and education of the public on
the sustainability and excellent nutrition of our local fish.
Supporters point out this bill does not mandatorily require
handlers to pay CSC's assessments; it merely authorizes CDFA to
schedule an industry wide referendum. The industry handlers
will have the opportunity to decide if they wish to assess
themselves and match the funds collected from CSVO.
If this bill is not passed, or if it does pass and a referendum
does not pass, CSC stays the same as it currently.
The bill does not currently have a time table for a referendum.
Typically, councils or commissions when forming have a time
frame after becoming law, such as 15, 30, or 60 days, or a set
day based on the beginning of the next season to hold a
referendum. The committee may wish to consider adding a date or
timeframe for the referendum.
Marketing Advisory and Promotional Councils (councils) and
Commissions (commissions) are created through commodity specific
legislation. California has over 20 commissions and three
councils under the preview of CDFA. Commissions commonly have a
greater scope of authority and more independence from CDFA than
councils. Councils, for example, are advisory to CDFA and all
actions of the councils are subject to CDFA approval.
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Commissions generally are not advisory to CDFA. With a few
exceptions, CDFA must concur with a commission's budget and
annual activities statement. CDFA has cease and desist
authority over actions of commissions that CDFA deems not in the
public interest.
REGISTERED SUPPORT / OPPOSITION:
Support
California Salmon Council
California Fisheries & Seafood Institute
Pacific Coast Federation of Fishermen's Associations
Opposition
None on file
Analysis Prepared by:Victor Francovich / AGRI. / (916) 319-2084
AB 958
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