BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON AGRICULTURE
                          Senator Cathleen Galgiani, Chair
                                2015 - 2016  Regular 

          Bill No:           AB 958          Hearing Date: 7/7/15
           ----------------------------------------------------------------- 
          |Author:    |Committee on Agriculture                             |
          |-----------+-----------------------------------------------------|
          |Version:   |6/29/15   Amended                                    |
           ----------------------------------------------------------------- 
           ---------------------------------------------------------------- 
          |Urgency:   |No                    |Fiscal:    |Yes              |
           ---------------------------------------------------------------- 
           ----------------------------------------------------------------- 
          |Consultant:|Anne Megaro                                          |
          |           |                                                     |
           ----------------------------------------------------------------- 
          
          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,  







          AB 958 (Committee on Agriculture)                           Page  
          2 of ?
          
          
          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  








          AB 958 (Committee on Agriculture)                           Page  
          3 of ?
          
          
               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  








          AB 958 (Committee on Agriculture)                           Page  
          4 of ?
          
          
               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  :








          AB 958 (Committee on Agriculture)                           Page  
          5 of ?
          
          

          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  :
                         
           ------------------------------------------------------------------ 
          |Assembly Floor:                       |74 - 0                     |
          |--------------------------------------+---------------------------|
          |Assembly Appropriations Committee:    |17 - 0                     |








          AB 958 (Committee on Agriculture)                           Page  
          6 of ?
          
          
          |--------------------------------------+---------------------------|
          |Assembly Agriculture Committee:       |9 - 0                      |
          |                                      |                           |
           ------------------------------------------------------------------ 

           SUPPORT  :
          
          California Fisheries and Seafood Institute
          California Salmon Council Board of Directors
          Pacific Coast Federation of Fishermen's Associations

           OPPOSITION  :
          
          None received

                                      -- END --