Amended in Senate May 5, 2016

Amended in Assembly March 1, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 1894

Introduced by Committee on Agriculture

February 11, 2016

An act to amend Sections begin insert 33704, 36806, end insert 48003, 61345, 61412, 61805, and 62211 of, begin delete and end delete to add Section 61306.5 to, begin insert and to repeal Section 33704.5 of, end insert the Food and begin delete Agriculture end delete begin insert Agricultural Code, and to amend Section 51203 of the Government end insert Code, relating to food and agriculture, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

AB 1894, as amended, Committee on Agriculture. Food and agriculture: omnibus bill.

begin insert

(1) Existing law regulates the production, handling, and marketing of milk and dairy products and requires milk products plants to comply with specified standards and requirements. Existing law authorizes the Secretary of Food and Agriculture to issue a limited packaging permit to a semifrozen milk products plant for on-premises manufacture and packaging of hard frozen dairy products or hard frozen dairy product novelties if certain requirements are satisfied.

end insert begin insert

This bill would delete a requirement that an establishment be closed to the public when the hard frozen dairy product novelties are manufactured and packaged and would delete a requirement that a manufacturer that directly serves frozen yogurt or nondairy frozen dessert on its premises post specified signs on the premises.

end insert begin insert

(2) Existing law requires certain unfrozen product mixes used in the manufacture of specified frozen dairy products to comply with all of the requirements for ice cream, frozen dairy dessert, or frozen dessert, respectively.

end insert begin insert

This bill would require frozen yogurt mix to comply with all of the requirements for frozen yogurt.

end insert begin delete

(1) Existing law establishes the California Citrus Advisory Committee and requires the committee to develop and make recommendations to the Secretary of Food and Agriculture regarding procedures for implementing an inspection program. Existing law requires producers of navel oranges, Valencia oranges, lemons, or mandarin citrus varieties grown in this state and prepared for fresh market in certain counties of the state to pay an assessment, as provided. Existing law requires the assessment to be collected from the producer by the first handler, and requires that the assessment be remitted to the Department of Food and Agriculture by the first handler, along with an assessment form, at the end of each month during the marketing season. Existing law requires any handler that does not file the required assessment report and assessments by the 10th day of the month following the month for which the assessment is payable to pay a penalty of 10% of the assessment owed, and, in addition, 1.5% interest per month on the unpaid balance.

end delete begin delete

This bill would instead require a handler to file the required assessment form and pay the assessment and inspection fees by the last day of the month immediately following the month in which the commodities were received, and would additionally apply the 10% penalty and 1.5% interest to a failure to pay an inspection fee. The bill would make a handler personally liable for the payment of assessments and inspection fees.

end delete begin delete

(2)

end delete

begin insert (3) end insert  Existing law begin delete regulates the production, handling, and marketing of milk and dairy products and end delete requires every milk handler begin delete subject to that regulatory scheme end delete to pay specified assessments and fees to the secretary to cover the costs of regulating milk. In that regard, existing law requires every milk handler who receives manufacturing milk subject to the milk marketing regulatory requirements or a handler subject to a milk stabilization and marketing plan, including producer-handlers, to deduct a specified assessment from payments made to producers for manufacturing milk or market milk, respectively. Existing law establishes the Department of Food and Agriculture Fund as a special fund, and continuously appropriates moneys in the fund for the administration and enforcement of, among other things, laws regulating the marketing of milk and other dairy products and the stabilization and marketing of market milk.

This bill would, for purposes of those provisions, define the term “educational and research activities” and would additionally provide for the regulation of milk and dairy products-related educational and research activities. The bill would authorize the use of moneys from the above-described assessments and fees for administering and enforcing the manufacturing milk and market milk laws, including the regulation of those educational and research activities. By authorizing the expenditure of moneys from the fund for a new purpose, that is, for milk and dairy-related educational and research activities, the bill would make an appropriation.

begin insert

(4) Existing law establishes the California Citrus Advisory Committee and requires the committee to develop and make recommendations to the Secretary of Food and Agriculture regarding procedures for implementing an inspection program. Existing law requires producers of navel oranges, Valencia oranges, lemons, or mandarin citrus varieties grown in this state and prepared for fresh market in certain counties of the state to pay an assessment, as provided. Existing law requires the assessment to be collected from the producer by the first handler and requires that the assessment be remitted to the Department of Food and Agriculture by the first handler, along with an assessment form, at the end of each month during the marketing season. Existing law requires any handler that does not file the required assessment report and assessments by the 10th day of the month following the month for which the assessment is payable to pay a penalty of 10% of the assessment owed and, in addition, 1.5% interest per month on the unpaid balance.

end insert begin insert

This bill would instead require a handler to file the required assessment form and pay the assessment and inspection fees by the last day of the month immediately following the month in which the commodities were received and would additionally apply the 10% penalty and 1.5% interest to a failure to pay an inspection fee. The bill would make a handler personally liable for the payment of assessments and inspection fees.

end insert begin insert

(5) The California Land Conservation Act of 1965, also known as the Williamson Act, authorizes a city or county to contract with a landowner for the continued use of the land for agricultural use in exchange for a lower assessed valuation for property tax purposes. Existing law requires the Department of Conservation to provide a preliminary valuation of the land to the county assessor and the city council or county board of supervisors at least 60 days prior to the effective date of the agreed upon cancellation valuation if the contract includes an additional cancellation fee.

end insert begin insert

This bill would specify that the Department of Conservation is required to provide the preliminary valuation pursuant to those provisions only if the department and landowner agree upon a cancellation value pursuant to a specified provision, as specified.

end insert

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 33704 of the end insert begin insert Food and Agricultural Code end insert

begin insert is amended to read: end insert

33704.  

(a)  begin insert (1) end insert begin insert   end insert Sections 33701, 33731, 33732, 33733, 33734,
33767, 33768, 33770, 33771, 33776, and 34593 do not apply to
the manufacture of ice cream that is manufactured from ice cream
mix, to frozen dairy dessert that is manufactured from frozen dairy
dessert mix, to frozen dessert that is manufactured from frozen
dessert mix, to frozen yogurt that is manufactured from frozen
yogurt mix, or to nondairy frozen dessert that is manufactured
from nondairy frozen dessert mix, if those products are
manufactured in a freezing device from which those products are
served directly in a semifrozen state, without packaging of any
type, for consumption on the premises in or from rooms where
food is served to the public.

begin delete

Except

end delete

begin insert (2) end insert begin insert   end insert begin insert Except end insert for nondairy frozen dessert mix, all mixes begin delete so used end delete
shall be secured from a licensed manufacturer of milk products.

begin delete

Ice

end delete

begin insert (3) end insert begin insert   end insert begin insert Ice end insert cream mix, frozen yogurt mix, frozen dairy dessert mix,
frozen dessert mix, and nondairy frozen dessert mix shall be
manufactured into a semifrozen state without adulteration and
freezing device salvage shall not be reused as a mix.

(b) A limited packaging permit may be issued by the secretary
to a semifrozen (soft-serve) milk products plant for on-premises
manufacture and packaging of hard frozen dairy products or hard
frozen dairy product novelties. The permit may only be issued
after the suitability of the facility for manufacture and packaging
has been determined by the secretary. An annual onsite evaluation
of compliance with the specific permit conditions shall be
completed by the secretary begin delete prior to end delete begin insert before end insert renewal of the limited
packaging permit. A semifrozen milk products plant issued a
limited packaging permit shall meet all of the following standards:

begin delete

(1) The manufacturing and packaging of hard frozen dairy
product novelties shall be done when the establishment is closed
to the public.

end delete begin delete

(2)

end delete

begin insert (1) end insert  The hard frozen products shall only be sold to purchasers
for consumption. No hard frozen product manufactured pursuant
to the limited packaging permit shall be sold for resale.

begin delete

(3)

end delete

begin insert (2) end insert  All frozen dairy product mixes used for the manufacture
and packaging of hard frozen dairy product novelties shall be
dispensed from single service containers sealed at the licensed
milk products plant where processed and pasteurized.
Reconstitution of dry mix or condensed mix is prohibited at a
semifrozen milk products plant issued a limited packaging permit.

begin delete

(4)

end delete

begin insert (3) end insert  Adequate facilities, consistent with recognized good
manufacturing practices for the production and packaging of hard
frozen dairy products, as determined by the secretary, shall be
provided as a condition of the limited packaging permit. The
facilities shall include, but are not limited to, adequate utensil and
novelty mold washing, sterilization and storage, and sufficient
sanitary work area, including handwashing facilities, dedicated to
the manufacture and packaging of hard frozen dairy product
novelties. Sanitation guidelines consistent with good manufacturing
and handling practices for retail food establishments manufacturing
and packaging hard frozen dairy products in conformance with
Part 110 (commencing with Section 110.3) of Title 21 of the Code
of Federal Regulations shall be utilized by the secretary as a
condition for issuance and renewal of the limited packaging permit.

begin delete

(5)

end delete

begin insert (4) end insert  Each individually packaged hard frozen novelty shall be
labeled with the name of the product and the name and address of
the manufacturer.

(c) Nondairy frozen dessert mix shall be obtained from
manufacturers licensed pursuant to Sections 38931 and 38934.
Any dry or condensed mix to be reconstituted into freezable form
shall be reconstituted on the premises in containers or equipment
that meet the requirements of Sections 33763, 33764, 33765, and
33766. Any water used for reconstitution shall be treated in a
manner to ensure a quality equal to potable pasteurized water.
Upon reconstitution, the product shall be poured directly into the
freezing unit or refrigerated at a temperature not to exceed 45
degrees Fahrenheit, and so maintained until frozen, or both.

(d) Where any retail establishment manufactures two or more
of the products provided for under this section, each of those
products shall be processed in a separate freezing device, and that
freezing device shall be clearly identified as to the product being
manufactured therein.

(e) The secretary may, by agreement with any approved milk
inspection service, authorize the service to inspect and enforce
requirements of this code applicable to the establishments covered
by this section. Any agreement shall provide that the approved
inspection service shall collect the applicable license fee for those
establishments as provided in Sections 35221 and 38933. The fees
begin delete so end delete collected shall be retained by the approved service to cover its
cost of enforcement, but 15 percent of the fees collected shall be
remitted to the secretary to cover the cost of administration.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 33704.5 of the end insert begin insert Food and Agricultural Code end insert begin insert is
repealed. end insert

begin delete

33704.5.  

(a) Any person who manufactures and directly serves
frozen yogurt or nondairy frozen dessert in the manner specified
in Section 33704, shall post on the premises where the manufacture
and service takes place a sign, or signs, which (1) states that frozen
yogurt or nondairy frozen dessert is served on the premises and
(2) lists the ingredients in each of the products served.

(b) The sign required to be posted pursuant to subdivision (a)
shall be placed in a conspicuous location, such as on a menu or
other sales device, and shall be printed in a legible manner that is
understandable under normal conditions by the person purchasing
the frozen products.

end delete

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 36806 of the end insert begin insert Food and Agricultural Code end insert begin insert is
amended to read: end insert

36806.  

Ice cream mix, begin insert frozen yogurt mix, end insert frozen dairy dessert
mix, and frozen dessert mix are unfrozen products that are used
in the manufacture of ice cream, begin insert frozen yogurt, end insert frozen dairy dessert,
or frozen dessert. They shall comply with all the requirements for
ice cream, begin insert frozen yogurt, end insert frozen dairy dessert, or frozen dessert,
respectively.

begin delete SECTION 1. end delete

begin insert SEC. 4. end insert   

Section 48003 of the Food and Agricultural Code is
amended to read:

48003.  

(a) Every person acting as a handler of commodities
subject to this chapter shall be personally liable for the payment
of assessments and inspection fees. Any handler who fails to file
the required assessment form or pay an assessment or inspection
fee by the last day of the month immediately following the month
in which the commodities were received shall pay to the secretary
a penalty of 10 percent of the assessment, inspection fee, or the
sum of both the assessment fee and the inspection fee, owed and,
in addition, 1.5 percent interest per month on the unpaid balance.

(b) It shall be unlawful for a handler to refuse to collect the
assessments or remit the assessments and the proper forms required
by this chapter.

(c) A handler shall not charge a producer an administrative fee
for collecting or remitting an assessment.

(d) A producer who disputes the amount of the assessment may
file a claim with the secretary. The producer shall prove his or her
claim by a preponderance of the evidence.

(e) A producer may not bring a claim against a handler for
damages, or otherwise, in connection with the assessment or the
required deduction by the handler of the moneys owed to the
producer.

begin delete SEC. 2. end delete

begin insert SEC. 5. end insert   

Section 61306.5 is added to the Food and Agricultural
Code, to read:

61306.5.  

“Educational and research activities” means any effort
to develop and improve the management practices of dairy
producers and processors, including, but not limited to, practices
associated with the environmental sustainability of land, air quality,
and water quality.

begin delete SEC. 3. end delete

begin insert SEC. 6. end insert   

Section 61345 of the Food and Agricultural Code is
amended to read:

61345.  

(a) Chapter 2 (commencing with Section 61801),
Chapter 2.5 (commencing with Section 62500), and Chapter 3
(commencing with Section 62700) shall be liberally construed as
being complementary of, and supplemental to, this chapter, and
these chapters shall constitute a single comprehensive scheme for
the regulation of the production and handling of milk and related
educational and research activities. However, each of the chapters,
and each article, section, subdivision, sentence, clause, and phrase
of each chapter is severable.

(b) If one of the chapters or any article, section, subdivision,
sentence, clause, or phrase of any one of the chapters is for any
reason held void, invalid, or unconstitutional, the decision shall
not affect the validity of any other chapter or any of its articles,
sections, subdivisions, sentences, clauses, or phrases.

begin delete SEC. 4. end delete

begin insert SEC. 7. end insert   

Section 61412 of the Food and Agricultural Code is
amended to read:

61412.  

(a) (1) Every milk handler who receives manufacturing
milk subject to this article shall deduct as an assessment from
payments made to producers for manufacturing milk the sum of
one and two-tenths cents ($0.012) per hundredweight of
manufacturing milk.

(2) The amount of the assessments deducted pursuant to
paragraph (1) shall be paid to the secretary on or before the 45th
day following the last day of the month during which the
manufacturing milk was received.

(b) (1) Every milk handler who receives manufacturing milk
subject to this article that purchases or handles manufacturing milk
from producers shall pay a fee of six-tenths of one cent ($0.006)
per hundredweight of manufacturing milk.

(2) The amount of the fee shall be paid to the secretary on or
before the 45th day following the last day of the month in which
the manufacturing milk was received.

(c) Moneys from the amounts paid to the secretary pursuant to
subdivisions (a) and (b) may be used to administer and enforce
this chapter.

begin delete SEC. 5. end delete

begin insert SEC. 8. end insert   

Section 61805 of the Food and Agricultural Code is
amended to read:

61805.  

The purposes of this chapter are to do all of the
following:

(a) Provide funds for administration and enforcement of this
chapter, by assessments to be paid by producers and handlers of
market milk in the manner prescribed in this chapter.

(b) Authorize and enable the secretary to prescribe marketing
areas and to determine minimum prices to be paid to producers by
handlers for market milk that are necessary due to varying factors
of costs of production, health regulations, transportation, and other
factors in the marketing areas of this state. In determining minimum
prices to be paid producers by handlers, the secretary shall endeavor
under like conditions to achieve uniformity of cost to handlers for
market milk within any marketing area. However, no minimum
prices established or determined under this chapter shall be invalid
because uniformity of cost to handlers for market milk in any
marketing area is not achieved as a result of the minimum producer
prices so established or determined.

(c) Authorize and enable the secretary to formulate stabilization
and marketing plans, subject to the limitations prescribed in this
chapter with respect to the contents of the stabilization and
marketing plans, and to declare the plans in effect for any
marketing area.

(d) Enable the dairy industry, with the aid of the state, to develop
and maintain satisfactory marketing conditions, bring about and
maintain a reasonable amount of stability and prosperity in the
production of market milk, and provide means for conducting
educational and research activities.

begin delete SEC. 6. end delete

begin insert SEC. 9. end insert   

Section 62211 of the Food and Agricultural Code is
amended to read:

62211.  

(a) (1) Every handler subject to the provisions of any
stabilization and marketing plan, including a producer-handler,
shall deduct as an assessment from payments made to producers
for market milk, including the handler’s own production, the sum
of one and six-tenths cents ($0.016) per hundredweight of market
milk.

(2) The amount of the assessments so deducted shall be paid to
the secretary on or before the 45th day following the last day of
the month during which such market milk was received.

(b) (1) Every handler subject to the provisions of any
stabilization and marketing plan that purchases or handles market
milk from producers, including the handler’s own production, if
any, shall pay a fee of eight-tenths of one cent ($0.008) per
hundredweight of market milk.

(2) The amount of such fee shall be paid to the secretary on or
before the 45th day following the last day of the month in which
that market milk was received.

(c) Moneys from the amounts paid to the secretary pursuant to
subdivisions (a) and (b) may be used to administer and enforce
this chapter.

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 51203 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

51203.  

(a) The assessor shall determine the current fair market
value of the land as if it were free of the contractual restriction
pursuant to Section 51283. The Department of Conservation or
the landowner, also referred to in this section as “parties,” may
provide information to assist the assessor to determine the value.
Any information provided to the assessor shall be served on the
other party, unless the information was provided at the request of
the assessor, and would be confidential under law if required of
an assessee.

(b) Within 45 days of receiving the assessor’s notice pursuant
to subdivision (a) of Section 51283 or Section 51283.4, if the
Department of Conservation or the landowner believes that the
current fair market valuation certified pursuant to subdivision (b)
of Section 51283 or Section 51283.4 is not accurate, the department
or the landowner may request formal review from the county
assessor in the county considering the petition to cancel the
contract. The department or the landowner shall submit to the
assessor and the other party the reasons for believing the valuation
is not accurate and the additional information the requesting party
believes may substantiate a recalculation of the property valuation.
The assessor may recover his or her reasonable costs of the formal
review from the party requesting the review, and may provide an
estimate of those costs to the requesting party. The recovery of
these costs from the department may be deducted by the city or
county from cancellation fees received pursuant to this chapter
begin delete prior to end delete begin insert before end insert transmittal to the Controller for deposit in the Soil
Conservation Fund. The assessor may require a deposit from the
landowner to cover the contingency that payment of a cancellation
fee will not necessarily result from the completion of a formal
review. This subdivision shall not be construed as a limitation on
the authority provided in Section 51287 for cities or counties to
recover their costs in the cancellation process, except that the
assessor’s costs of conducting a formal review shall not be borne
by the nonrequesting party.

(1) If no request is made within 45 days of receiving notice by
certified mail of the valuation, the assessor’s valuation shall be
used to calculate the fee.

(2) Upon receiving a request for formal review, the assessor
shall formally review his or her valuation if, based on the
determination of the assessor, the information may have a material
effect on valuation of the property. The assessor shall notify the
parties that the formal review is being undertaken and that
information to aid the assessor’s review shall be submitted within
30 days of the date of the notice to the parties. Any information
submitted to the assessor shall be served on the other party who
shall have 30 days to respond to that information to the assessor.
If the response to the assessor contains new information, the party
receiving that response shall have 20 days to respond to the
assessor as to the new information. All submittals and responses
to the assessor shall be served on the other party by personal service
or an affidavit of mailing. The assessor shall avoid ex parte contacts
during the formal review and shall report any such contacts to the
department and the landowner at the same time the review is
complete. The assessor shall complete the review no later than 120
days of receiving the request.

(3) At the conclusion of the formal review, the assessor shall
either revise the cancellation valuation or determine that the
original cancellation valuation is accurate. The assessor shall send
the revised valuation or notice of the determination that the
valuation is accurate to the department, the landowner, and the
board or council considering the petition to cancel the contract.
The assessor shall include a brief narrative of what consideration
was given to the items of information and responses directly
relating to the cancellation value submitted by the parties. The
assessor shall give no consideration to a party’s information or
response that was not served on the other party. If the assessor
denies a formal review, a brief narrative shall be provided to the
parties indicating the basis for the denial, if requested.

(c) For purposes of this section, the valuation date of any revised
valuation pursuant to formal review or following judicial challenge
shall remain the date of the assessor’s initial valuation, or his or
her initial recomputation pursuant to Section 51283.4. For purposes
of cancellation fee calculation in a tentative cancellation as
provided in Section 51283, or in a recomputation for final
cancellation as provided in Section 51283.4, a cancellation value
shall be considered current for one year after its determination and
certification by the assessor.

(d) Notwithstanding any other provision of this section, the
department and the landowner may agree on a cancellation
valuation of the land. The agreed valuation shall serve as the
cancellation valuation pursuant to Section 51283 or Section
51283.4. The agreement shall be transmitted to the board or council
considering the petition to cancel the contract.

(e) If begin insert the department and landowner agree upon a cancellation
value pursuant to subdivision (d) on end insert a contract with a city or county
begin insert that end insert includes an additional cancellation fee pursuant to Section
51240, the department shall provide a preliminary valuation to the
county assessor of the county in which the land is located and the
board of supervisors or the city council at least 60 days begin delete prior to end delete
begin insert before end insert the effective date of the final cancellation begin delete valuation pursuant
to subdivision (d). end delete begin insert valuation. end insert The preliminary valuation shall
include a description of the rationale and facts considered by the
department in determining the cancellation value. The assessor
may provide comments on the preliminary valuation to the board
of supervisors or city council. The board of supervisors or city
council may provide comments on the preliminary valuation and
cancellation value, if submitted, to the department. begin delete Prior to end delete begin insert Before end insert
determining the final cancellation valuation, the department shall
consider the comments of the board or council concerning the
preliminary valuation and cancellation valuation, if submitted.

(f) This section represents the exclusive administrative procedure
for appealing a cancellation valuation calculated pursuant to this
section. The Department of Conservation shall represent the
interests of the state in the administrative and judicial remedies
for challenging the determination of a cancellation valuation or
cancellation fee.