Amended in Senate May 18, 2016

Amended in Senate May 5, 2016

Amended in Assembly March 1, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 1894


Introduced by Committee on Agriculture

February 11, 2016


An act to amend Sections 33704, 36806, 48003, 61345, 61412, 61805,begin delete and 62211end deletebegin insert 62211, and 76259end insert of, to add Section 61306.5 to, and to repeal Section 33704.5 of, the Food and Agricultural Code, and to amend Section 51203 of the Government 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.

(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.

This bill would delete a requirement that an establishment be closed to the public whenbegin delete theend delete 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.

(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.

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

(3) Existing law requires every milk handler to pay specified assessments and fees to thebegin delete secretaryend deletebegin insert Secretary of Food and Agricultureend insert 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.

(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.

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.

begin insert

(5) Existing law establishes the California Sheep Commission, comprised of 14 members who are elected or appointed in accordance with specified provisions to serve 2-year terms and limits the terms of office for each member to 4 consecutive terms.

end insert
begin insert

This bill would delete the provision limiting the terms of office of each member to 4 consecutive terms.

end insert
begin delete

(5)

end delete

begin insert(6)end insert 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.

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.

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

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

P3    1

SECTION 1.  

Section 33704 of the Food and Agricultural Code
2 is amended to read:

3

33704.  

(a) (1) Sections 33701, 33731, 33732, 33733, 33734,
433767, 33768, 33770, 33771, 33776, and 34593 do not apply to
P4    1the manufacture of ice cream that is manufactured from ice cream
2mix, to frozen dairy dessert that is manufactured from frozen dairy
3dessert mix, to frozen dessert that is manufactured from frozen
4dessert mix, to frozen yogurt that is manufactured from frozen
5yogurt mix, or to nondairy frozen dessert that is manufactured
6from nondairy frozen dessert mix, if those products are
7manufactured in a freezing device from which those products are
8 served directly in a semifrozen state, without packaging of any
9type, for consumption on the premises in or from rooms where
10food is served to the public.

11 (2) Except for nondairy frozen dessert mix, all mixes shall be
12secured from a licensed manufacturer of milk products.

13(3) Ice cream mix, frozen yogurt mix, frozen dairy dessert mix,
14frozen dessert mix, and nondairy frozen dessert mix shall be
15manufactured into a semifrozen state without adulteration and
16freezing device salvage shall not be reused as a mix.

17(b) A limited packaging permit may be issued by the secretary
18to a semifrozen (soft-serve) milk products plant for on-premises
19manufacture and packaging of hard frozen dairy products or hard
20frozen dairy product novelties. The permit may only be issued
21after the suitability of the facility for manufacture and packaging
22has been determined by the secretary. An annual onsite evaluation
23of compliance with the specific permit conditions shall be
24completed by the secretary before renewal of the limited packaging
25permit. A semifrozen milk products plant issued a limited
26packaging permit shall meet all of the following standards:

27(1) The hard frozen products shall only be sold to purchasers
28for consumption. No hard frozen product manufactured pursuant
29to the limited packaging permit shall be sold for resale.

30(2) All frozen dairy product mixes used for the manufacture
31and packaging of hard frozen dairy product novelties shall be
32dispensed from single service containers sealed at the licensed
33milk products plant where processed and pasteurized.
34Reconstitution of dry mix or condensed mix is prohibited at a
35semifrozen milk products plant issued a limited packaging permit.

36(3) Adequate facilities, consistent with recognized good
37manufacturing practices for the production and packaging of hard
38frozen dairy products, as determined by the secretary, shall be
39provided as a condition of the limited packaging permit. The
40facilities shall include, but are not limited to, adequate utensil and
P5    1novelty mold washing, sterilization and storage, and sufficient
2sanitary work area, including handwashing facilities, dedicated to
3the manufacture and packaging of hard frozen dairy product
4novelties. Sanitation guidelines consistent with good manufacturing
5and handling practices for retail food establishments manufacturing
6and packaging hard frozen dairy products in conformance with
7Part 110 (commencing with Section 110.3) of Title 21 of the Code
8of Federal Regulations shall be utilized by the secretary as a
9condition for issuance and renewal of the limited packaging permit.

10(4) Each individually packaged hard frozen novelty shall be
11labeled with the name of the product and the name and address of
12the manufacturer.

13(c) Nondairy frozen dessert mix shall be obtained from
14manufacturers licensed pursuant to Sections 38931 and 38934.
15Any dry or condensed mix to be reconstituted into freezable form
16shall be reconstituted on the premises in containers or equipment
17that meet the requirements of Sections 33763, 33764, 33765, and
1833766. Any water used for reconstitution shall be treated in a
19manner to ensure a quality equal to potable pasteurized water.
20Upon reconstitution, the product shall be poured directly into the
21freezing unit or refrigerated at a temperature not to exceed 45
22degrees Fahrenheit, and so maintained until frozen, or both.

23(d) Where any retail establishment manufactures two or more
24of the products provided for under this section, each of those
25products shall be processed in a separate freezing device, and that
26freezing device shall be clearly identified as to the product being
27manufactured therein.

28(e) The secretary may, by agreement with any approved milk
29inspection service, authorize the service to inspect and enforce
30requirements of this code applicable to the establishments covered
31by this section. Any agreement shall provide that the approved
32inspection service shall collect the applicable license fee for those
33establishments as provided in Sections 35221 and 38933. The fees
34collected shall be retained by the approved service to cover its cost
35of enforcement, but 15 percent of the fees collected shall be
36remitted to the secretary to cover the cost of administration.

37

SEC. 2.  

Section 33704.5 of the Food and Agricultural Code is
38repealed.

39

SEC. 3.  

Section 36806 of the Food and Agricultural Code is
40amended to read:

P6    1

36806.  

Ice cream mix, frozen yogurt mix, frozen dairy dessert
2mix, and frozen dessert mix are unfrozen products that are used
3in the manufacture of ice cream, frozen yogurt, frozen dairy dessert,
4or frozen dessert. They shall comply with all the requirements for
5ice cream, frozen yogurt, frozen dairy dessert, or frozen dessert,
6respectively.

7

SEC. 4.  

Section 48003 of the Food and Agricultural Code is
8amended to read:

9

48003.  

(a) Every person acting as a handler of commodities
10subject to this chapter shall be personally liable for the payment
11of assessments and inspection fees. Any handler who fails to file
12the required assessment form or pay an assessment or inspection
13fee by the last day of the month immediately following the month
14in which the commodities were received shall pay to the secretary
15a penalty of 10 percent of the assessment, inspection fee, or the
16sum of both the assessment fee and the inspection fee, owed and,
17in addition, 1.5 percent interest per month on the unpaid balance.

18(b) It shall be unlawful for a handler to refuse to collect the
19assessments or remit the assessments and the proper forms required
20by this chapter.

21(c) A handler shall not charge a producer an administrative fee
22for collecting or remitting an assessment.

23(d) A producer who disputes the amount of the assessment may
24file a claim with the secretary. The producer shall prove his or her
25claim by a preponderance of the evidence.

26(e) A producer may not bring a claim against a handler for
27damages, or otherwise, in connection with the assessment or the
28required deduction by the handler of the moneys owed to the
29producer.

30

SEC. 5.  

Section 61306.5 is added to the Food and Agricultural
31Code
, to read:

32

61306.5.  

“Educational and research activities” means any effort
33to develop and improve the management practices of dairy
34producers and processors, including, but not limited to, practices
35associated with the environmental sustainability of land, air quality,
36and water quality.

37

SEC. 6.  

Section 61345 of the Food and Agricultural Code is
38amended to read:

39

61345.  

(a) Chapter 2 (commencing with Section 61801),
40Chapter 2.5 (commencing with Section 62500), and Chapter 3
P7    1(commencing with Section 62700) shall be liberally construed as
2being complementary of, and supplemental to, this chapter, and
3these chapters shall constitute a single comprehensive scheme for
4the regulation of the production and handling of milk and related
5educational and research activities. However, each of the chapters,
6and each article, section, subdivision, sentence, clause, and phrase
7of each chapter is severable.

8(b) If one of the chapters or any article, section, subdivision,
9sentence, clause, or phrase of any one of the chapters is for any
10reason held void, invalid, or unconstitutional, the decision shall
11not affect the validity of any other chapter or any of its articles,
12sections, subdivisions, sentences, clauses, or phrases.

13

SEC. 7.  

Section 61412 of the Food and Agricultural Code is
14amended to read:

15

61412.  

(a) (1) Every milk handler who receives manufacturing
16milk subject to this article shall deduct as an assessment from
17payments made to producers for manufacturing milk the sum of
18one and two-tenths cents ($0.012) per hundredweight of
19manufacturing milk.

20 (2) The amount of the assessments deducted pursuant to
21paragraph (1) shall be paid to the secretary on or before the 45th
22day following the last day of the month during which the
23manufacturing milk was received.

24(b) (1) Every milk handler who receives manufacturing milk
25subject to this article that purchases or handles manufacturing milk
26from producers shall pay a fee of six-tenths of one cent ($0.006)
27per hundredweight of manufacturing milk.

28(2) The amount of the fee shall be paid to the secretary on or
29before the 45th day following the last day of the month in which
30the manufacturing milk was received.

31(c) Moneys from the amounts paid to the secretary pursuant to
32subdivisions (a) and (b) may be used to administer and enforce
33this chapter.

34

SEC. 8.  

Section 61805 of the Food and Agricultural Code is
35amended to read:

36

61805.  

The purposes of this chapter are to do all of the
37following:

38(a) Provide funds for administration and enforcement of this
39chapter, by assessments to be paid by producers and handlers of
40market milk in the manner prescribed in this chapter.

P8    1(b) Authorize and enable the secretary to prescribe marketing
2areas and to determine minimum prices to be paid to producers by
3handlers for market milk that are necessary due to varying factors
4of costs of production, health regulations, transportation, and other
5factors in the marketing areas of this state. In determining minimum
6prices to be paid producers by handlers, the secretary shall endeavor
7under like conditions to achieve uniformity of cost to handlers for
8market milk within any marketing area. However, no minimum
9prices established or determined under this chapter shall be invalid
10because uniformity of cost to handlers for market milk in any
11marketing area is not achieved as a result of the minimum producer
12prices so established or determined.

13(c) Authorize and enable the secretary to formulate stabilization
14and marketing plans, subject to the limitations prescribed in this
15chapter with respect to the contents of the stabilization and
16marketing plans, and to declare the plans in effect for any
17marketing area.

18(d) Enable the dairy industry, with the aid of the state, to develop
19and maintain satisfactory marketing conditions, bring about and
20maintain a reasonable amount of stability and prosperity in the
21production of market milk, and provide means for conducting
22educational and research activities.

23

SEC. 9.  

Section 62211 of the Food and Agricultural Code is
24amended to read:

25

62211.  

(a) (1) Every handler subject to the provisions of any
26stabilization and marketing plan, including a producer-handler,
27shall deduct as an assessment from payments made to producers
28for market milk, including the handler’s own production, the sum
29of one and six-tenths cents ($0.016) per hundredweight of market
30milk.

31(2) The amount of the assessments so deducted shall be paid to
32the secretary on or before the 45th day following the last day of
33the month during which such market milk was received.

34 (b) (1) Every handler subject to the provisions of any
35stabilization and marketing plan that purchases or handles market
36milk from producers, including the handler’s own production, if
37 any, shall pay a fee of eight-tenths of one cent ($0.008) per
38hundredweight of market milk.

P9    1(2) The amount of such fee shall be paid to the secretary on or
2before the 45th day following the last day of the month in which
3that market milk was received.

4(c) Moneys from the amounts paid to the secretary pursuant to
5subdivisions (a) and (b) may be used to administer and enforce
6this chapter.

7begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 76259 of the end insertbegin insertFood and Agricultural Codeend insertbegin insert is
8amended to read:end insert

9

76259.  

The term of office of all members of the commission,
10except ex officio members, shall be two years from the date of
11their election and until their successors are qualified. However, of
12the first members of the commission, one-half of the producers
13shall serve for one year, and one-half of the producers shall serve
14for two years, with the determination of the term of each such
15member made by lot at the time of the election.begin delete Terms of office
16of each member of the commission shall be limited to four
17consecutive terms. A member of the commission who was selected
18by lot to serve a one-year term may serve four consecutive terms
19in addition to the first one-year term.end delete

20

begin deleteSEC. 10.end delete
21
begin insertSEC. 11.end insert  

Section 51203 of the Government Code is amended
22to read:

23

51203.  

(a) The assessor shall determine the current fair market
24value of the land as if it were free of the contractual restriction
25pursuant to Section 51283. The Department of Conservation or
26the landowner, also referred to in this section as “parties,” may
27provide information to assist the assessor to determine the value.
28Any information provided to the assessor shall be served on the
29other party, unless the information was provided at the request of
30the assessor, and would be confidential under law if required of
31an assessee.

32(b) Within 45 days of receiving the assessor’s notice pursuant
33to subdivision (a) of Section 51283 or Section 51283.4, if the
34Department of Conservation or the landowner believes that the
35current fair market valuation certified pursuant to subdivision (b)
36of Section 51283 or Section 51283.4 is not accurate, the department
37or the landowner may request formal review from the county
38assessor in the county considering the petition to cancel the
39contract. The department or the landowner shall submit to the
40assessor and the other party the reasons for believing the valuation
P10   1is not accurate and the additional information the requesting party
2believes may substantiate a recalculation of the property valuation.
3The assessor may recover his or her reasonable costs of the formal
4review from the party requesting the review, and may provide an
5estimate of those costs to the requesting party. The recovery of
6these costs from the department may be deducted by the city or
7county from cancellation fees received pursuant to this chapter
8before transmittal to the Controller for deposit in the Soil
9Conservation Fund. The assessor may require a deposit from the
10landowner to cover the contingency that payment of a cancellation
11fee will not necessarily result from the completion of a formal
12review. This subdivision shall not be construed as a limitation on
13the authority provided in Section 51287 for cities or counties to
14recover their costs in the cancellation process, except that the
15assessor’s costs of conducting a formal review shall not be borne
16by the nonrequesting party.

17(1) If no request is made within 45 days of receiving notice by
18certified mail of the valuation, the assessor’s valuation shall be
19used to calculate the fee.

20(2) Upon receiving a request for formal review, the assessor
21shall formally review his or her valuation if, based on the
22determination of the assessor, the information may have a material
23effect on valuation of the property. The assessor shall notify the
24parties that the formal review is being undertaken and that
25information to aid the assessor’s review shall be submitted within
2630 days of the date of the notice to the parties. Any information
27submitted to the assessor shall be served on the other party who
28shall have 30 days to respond to that information to the assessor.
29If the response to the assessor contains new information, the party
30receiving that response shall have 20 days to respond to the
31assessor as to the new information. All submittals and responses
32to the assessor shall be served on the other party by personal service
33or an affidavit of mailing. The assessor shall avoid ex parte contacts
34during the formal review and shall report any such contacts to the
35department and the landowner at the same time the review is
36complete. The assessor shall complete the review no later than 120
37days of receiving the request.

38(3) At the conclusion of the formal review, the assessor shall
39either revise the cancellation valuation or determine that the
40original cancellation valuation is accurate. The assessor shall send
P11   1the revised valuation or notice of the determination that the
2valuation is accurate to the department, the landowner, and the
3board or council considering the petition to cancel the contract.
4The assessor shall include a brief narrative of what consideration
5was given to the items of information and responses directly
6relating to the cancellation value submitted by the parties. The
7assessor shall give no consideration to a party’s information or
8response that was not served on the other party. If the assessor
9denies a formal review, a brief narrative shall be provided to the
10parties indicating the basis for the denial, if requested.

11(c) For purposes of this section, the valuation date of any revised
12valuation pursuant to formal review or following judicial challenge
13shall remain the date of the assessor’s initial valuation, or his or
14her initial recomputation pursuant to Section 51283.4. For purposes
15of cancellation fee calculation in a tentative cancellation as
16provided in Section 51283, or in a recomputation for final
17cancellation as provided in Section 51283.4, a cancellation value
18shall be considered current for one year after its determination and
19certification by the assessor.

20(d) Notwithstanding any other provision of this section, the
21department and the landowner may agree on a cancellation
22valuation of the land. The agreed valuation shall serve as the
23cancellation valuation pursuant to Section 51283 or Section
2451283.4. The agreement shall be transmitted to the board or council
25considering the petition to cancel the contract.

26(e) If the department and landowner agree upon a cancellation
27value pursuant to subdivision (d) on a contract with a city or county
28 that includes an additional cancellation fee pursuant to Section
2951240, the department shall provide a preliminary valuation to the
30county assessor of the county in which the land is located and the
31board of supervisors or the city council at least 60 days before the
32effective date of the final cancellation valuation. The preliminary
33valuation shall include a description of the rationale and facts
34considered by the department in determining the cancellation value.
35The assessor may provide comments on the preliminary valuation
36to the board of supervisors or city council. The board of supervisors
37or city council may provide comments on the preliminary valuation
38and cancellation value, if submitted, to the department. Before
39determining the final cancellation valuation, the department shall
P12   1consider the comments of the board or council concerning the
2preliminary valuation and cancellation valuation, if submitted.

3(f) This section represents the exclusive administrative procedure
4for appealing a cancellation valuation calculated pursuant to this
5section. The Department of Conservation shall represent the
6interests of the state in the administrative and judicial remedies
7for challenging the determination of a cancellation valuation or
8cancellation fee.



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