BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 958|
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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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