BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1976


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          Date of Hearing:  March 30, 2016


                          ASSEMBLY COMMITTEE ON AGRICULTURE


                                  Bill Dodd, Chair


          AB 1976  
          (Irwin) - As Introduced February 16, 2016


          SUBJECT:  California Avocado Commission.


          SUMMARY:  Makes changes to the California Avocado Commission  
          (CAC) related to the  number of board members and the time frame  
          for sending CAC district's members information to the California  
          Department of Food and Agriculture (CDFA).   Specifically, this  
          bill:  


          1)Changes from four to two the number of avocado handlers  
            (handlers) as members of the CAC Board (Board).

          2)Changes from two to one the number of alternative handlers for  
            the Board.





          3)Deletes provision to having alternative handler members being  
            assigned to serve as the alternate to specific handler  
            members. 











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          4)Lowers from 11 to nine member of the Board if there are three  
            or four CAC districts.



          5)Changes information required for a list of CAC producers by  
            deleting district numbers and adding avocado grove locations.



          6)Changes the time from 90 days to 60 days when the list of CAC  
            producers needs to be sent to CDFA, upon a written request  
            from CDFA. 


          7)Makes conforming changes. 


          EXISTING LAW:  


          1)Establishes CAC, composed of 10 producers and four handlers  
            elected by the industry, and one public member appointed by  
            CDFA.  


          2)Divides California into five districts representing  
            approximately 20% of the avocado production. 


          3)Provides for CAC membership, voting procedures, duties and  
            powers, assessment rates, recordkeeping, quality standards,  
            penalties, and referendum procedures including continuance and  
            termination.


          FISCAL EFFECT:  Unknown.










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          COMMENTS:  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. 


          The California avocado industry has evolved over time since CAC  
          was created.  With recent changes in CAC law that reconfigured  
          CAC, the votes of the four handlers could account for a larger  
          percentage of the total the Board votes.  Furthermore, the  
          number of handlers in the industry has declined and it has  
          become harder to find four handlers to serve on a regular basis.  
           On October 15, 2015, the Board took action to modernize the law  
          governing its organization to reflect these realities.  The  
          Board unanimously passed a motion to reduce the number of  
          handler seats to two and alternate handler seats to one to  
          maintain a proportional ratio of producers and handlers.  


          AB 1976 codifies the motion that was passed by the Board in  
          2015.  Specifically, AB 1976 will decrease the number of  
          handlers represented on CAC and change the number of members  
          needed for a quorum to reflect the new amount of members.


          Marketing Advisory and Promotional Councils (councils) and  
          Commissions (commissions) are created through commodity specific  
          legislation.  California has over 20 commissions and three  
          councils under the purview of CDFA.  Commissions commonly have a  
          greater scope of authority and more independence from CDFA than  
          councils.  Councils, for example, are advisory to CDFA and all  
          actions of the councils are subject to CDFA approval.   
          Commissions generally are not advisory to CDFA.  With a few  
          exceptions, CDFA must concur with a commission's budget and  
          annual activities statement.  CDFA has cease and desist  
          authority over actions of commissions that CDFA deems not in the  
          public interest.


          RELATED LEGISLATION:








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          AB 958 (Committee on Agriculture), Statutes of 2015, Chapter  
          307, changed the membership and district reapportionment of CAC.


          AB 914 (Akins), Statutes of 2011, Chapter 322, authorized CAC to  
          use information provided to CAC for specified purposes,  
          including food safety and communications.  This bill also  
          revised the provision requiring CAC to reapportion CAC's  
          districts every five years by determining the average number of  
          pounds of fruit produced in each ZIP Code area in the five,  
          rather than two, crop years prior to a specified referendum.


          REGISTERED SUPPORT / OPPOSITION:




          Support




          California Avocado Commission





          Opposition


          None on file.












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          Analysis Prepared by:Victor Francovich / AGRI. / (916) 319-2084