BILL ANALYSIS Ó
SENATE COMMITTEE ON AGRICULTURE
Senator Cathleen Galgiani, Chair
2015 - 2016 Regular
Bill No: AB 958 Hearing Date: 7/7/15
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|Author: |Committee on Agriculture |
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|Version: |6/29/15 Amended |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Anne Megaro |
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Subject: Agriculture: California Avocado Commission: California
Salmon Council.
SUMMARY :
This bill would change the membership and district
reapportionment of the California Avocado Commission; would
require the secretary of the California Department of Food and
Agriculture to hold a referendum vote to include salmon handlers
on the California Salmon Council (CSC), as specified; and would
provide for CSC implementation procedures, membership, and other
conforming changes should the referendum affirm handler
participation.
BACKGROUND AND EXISTING
LAW :
The legislature finds that the agricultural and seafood
industries are vitally important elements of the state's economy
and state-supported councils and commissions enhance and
preserve the economic interests of the state of California.
There are approximately 16 active commissions/councils, all of
which are governed by boards of directors and overseen by the
California Department of Food and Agriculture (CDFA). These
commissions/councils were created to enhance their industries by
investing in promotion, advertising, education, marketing
research, scientific research, and/or the creation and
regulation of quality standards. Generally, commissions and
councils are initiated by the industry and go into effect
following an affirmative industry referendum vote and, at times,
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a periodic vote to reaffirm their existence. Once in effect,
every member of the industry, as specified, is required to
follow all laws and regulations including, but not limited to,
the payment of assessment fees.
California Salmon Council. The California Salmon Council was
created in 1988 with the purpose to develop, maintain, and
expand local and international markets for salmon harvested,
processed, manufactured, sold or distributed in California.
California Avocado Commission. The California Avocado Commission
(CAC) was created in 1977 to benefit California and the industry
by addressing advertising, promotion, research, quality and
maturity standards, crop statistics, and public education (Food
and Agricultural Code § 67001 et seq.).
Existing law:
1) Defines "handler" to mean a processor, receiver,
wholesaler, exporter, or individual licensed to working for
a licensed partnership, corporation, or other business
engaged in the California commercial salmon fishery.
2) Establishes the CSC, composed of nine voting and five
non-voting members appointed by CDFA representing
commercial salmon vessel operators, handlers, and one
public member.
3) Prescribes CSC powers and duties; education, research,
and public information programs; purchase of salmon
harvesting allocation rights; assessment fees; referendum
voting procedures; and council termination.
4) Requires salmon fishermen, as specified, to pay an
assessment fee in an amount determined by the CSC,
currently set at $0.05 per pound of salmon, in addition to
a $0.05 per pound of salmon landing fee charged by the
Department of Fish and Wildlife.
5) Establishes the CAC, composed of 10 producers and four
handlers elected by the industry and one public member
appointed by CDFA.
6) Divides California into five districts representing
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approximately 20% of the avocado production.
7) Provides for CAC membership, voting procedures, duties
and powers, assessment rates, recordkeeping, quality
standards, penalties, and referendum procedures including
continuance and termination.
PROPOSED
LAW :
This bill:
1) Reduces the number of districts established by the CAC
to a minimum of three districts and a maximum of five
districts.
2) Removes prescribed procedures for district
reapportionment and instead grants the commission the
authority to adopt procedures with a 2/3 vote and
concurrence by the secretary.
3) Specifies committee membership according to the number
of districts established under the CAC.
4) Provides for alternate members for producers, handlers,
and the public member.
5) Removes references to the CAC as a corporation.
6) Requires CDFA to post CSC regulations on its website.
7) Requires the secretary of CDFA to hold a referendum vote
to include salmon handlers within the CSC, as specified.
8) Adds two salmon handlers as voting members on the CSC
should handlers be included within the CSC.
9) Divides equally the officers and other members of the
executive committee between salmon vessel operators and
handlers should handlers be included within the CSC.
10) Requires salmon handlers, in addition to fishermen, to
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pay an assessment fee per pound of salmon, as specified.
11) Requires a vote rather than ballot poll to increase the
assessment fee above $0.07 per pound of salmon.
12) Prescribes implementation and referendum voting
procedures for fishermen and handlers, as specified.
13) Prescribes CSC continuation and termination procedures,
as specified.
14) Makes conforming changes should salmon handlers be
included on the CSC.
15) Makes numerous technical, clarifying, and conforming
changes.
ARGUMENTS IN SUPPORT:
According to the author, "As part of CAC recent strategic
planning process, a series of meetings were conducted with Board
and industry members in late 2014/early 2015. One of the clear
outcomes from these meetings was strong interest in having CAC
review its organizational structure with an eye towards
modernization. One recommendation was to modify CAC Board size
and establishing more flexible redistricting language to allow
CAC structure to evolve as changes in the industry take place,
while still equitably representing its constituents."
According to the California Salmon Council Board of Directors,
"Currently, only salmon fishermen are required to remit
assessments even though salmon receivers/buyers have voting
representative seats on the Board, but are not legally required
to withhold assessments. AB 958 does not mandatorily require
receivers/buyers to pay the Council's assessments, it merely
authorizes the California Department of Food & Agriculture to
schedule an industry wide referendum. The industry
receivers/buyers will have the opportunity to decide if they
wish to assess themselves and match the funds collected from
fishermen."
COMMENTS :
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Avocados. This bill would modernize the CAC by providing
flexibility to the commission to adjust the number of districts
and board members to more accurately represent the avocado
industry. These changes would only occur upon a 2/3 vote of the
board.
Salmon Council Funding. This bill would allow salmon handlers
within the CSC to join CSC fishermen and pay assessment fees.
Handlers would choose, through a referendum vote, whether they
would agree to pay these fees. According to handlers in
support, "The referendum, if successful, would essentially
double the budget of the Salmon council that is now funded with
an assessment paid by salmon fishermen only. The increased
revenues could be used for promotional efforts, trade and
consumer education, as well as market development and research,
which may be particularly important due to the fourth year of
drought conditions and the effect on salmon populations."
RELATED
LEGISLATION :
AB 914 (Atkins), Chapter 322, Statutes of 2011. Among other
provisions, authorizes the CAC to require producers to provide
specified avocado production data and increases the number of
crop years used to determine the reapportionment of avocado
districts.
AB 1795 (Agriculture), Chapter 365, Statutes of 2010. Among
other provisions, authorizes the CSC to share factual
information and negotiate with state, federal, and foreign
agencies on issues related to the CSC.
AB 2390 (Cedillo), Chapter 946, Statutes of 2002. Among other
provisions, makes various technical and substantive changes to
the CAC and expands and clarifies the purpose of the CAC.
PRIOR
ACTIONS :
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|Assembly Floor: |74 - 0 |
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|Assembly Appropriations Committee: |17 - 0 |
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|Assembly Agriculture Committee: |9 - 0 |
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SUPPORT :
California Fisheries and Seafood Institute
California Salmon Council Board of Directors
Pacific Coast Federation of Fishermen's Associations
OPPOSITION :
None received
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