BILL ANALYSIS Ó AB 1976 Page 1 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. AB 1976 Page 2 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. AB 1976 Page 3 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: AB 1976 Page 4 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. AB 1976 Page 5 Analysis Prepared by:Victor Francovich / AGRI. / (916) 319-2084