BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                        AB 958|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
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                                      CONSENT 


          Bill No:  AB 958
          Author:   Committee on Agriculture  
          Amended:  6/29/15 in Senate
          Vote:     21  

           SENATE AGRICULTURE COMMITTEE:  5-0, 7/7/15
           AYES:  Galgiani, Cannella, Berryhill, Pan, Wolk

          SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           ASSEMBLY FLOOR:  74-0, 5/22/15 (Consent) - See last page for  
            vote

           SUBJECT:   Agriculture: California Avocado Commission:  
                     California Salmon Council


          SOURCE:    Author
          
          DIGEST:  This bill changes the membership and district  
          reapportionment of the California Avocado Commission (CAC);  
          requires the secretary of the California Department of Food and  
          Agriculture (CDFA) to hold a referendum vote to include salmon  
          handlers on the California Salmon Council (CSC), as specified;  
          and provides for CSC implementation procedures, membership, and  
          other conforming changes should the referendum affirm handler  
          participation.

          ANALYSIS:  

          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  








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             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  
             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.

          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 CAC 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  








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             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 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.

          Background

          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  








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          which are governed by boards of directors and overseen by the  
          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,  
          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 CSC 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 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.).

          Comments


          Avocados. This bill modernizes 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 allows salmon handlers within  
          the CSC to join CSC fishermen and pay assessment fees.  Handlers  
          choose, through a referendum vote, whether they 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."








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          FISCAL EFFECT:   Appropriation:    Yes         Fiscal  
          Com.:YesLocal:   Yes


          SUPPORT:   (Verified8/18/15)


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


          OPPOSITION:   (Verified8/18/15)


          None received

          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."








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          ASSEMBLY FLOOR:  74-0, 5/22/15
          AYES:  Achadjian, Travis Allen, Baker, Bigelow, Bloom, Bonilla,  
            Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau,  
            Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly,  
            Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,  
            Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,  
            Irwin, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,  
            Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin,  
            Nazarian, Obernolte, Patterson, Perea, Quirk, Rendon,  
            Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark  
            Stone, Thurmond, Ting, Wagner, Wilk, Williams, Wood, Atkins
          NO VOTE RECORDED:  Alejo, Jones, O'Donnell, Olsen, Waldron,  
            Weber


          Prepared by:Anne Megaro / AGRI. / (916) 651-1508
          8/18/15 17:03:25


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