BILL ANALYSIS Ó
SENATE COMMITTEE ON AGRICULTURE
Senator Cathleen Galgiani, Chair
2015 - 2016 Regular
Bill No: AB 1976 Hearing Date: 6/21/16
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|Author: |Irwin |
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|Version: |6/13/16 Amended |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Anne Megaro |
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Subject: California Avocado Commission
SUMMARY :
This bill would reduce the number of handler members on the
California Avocado Commission and reduce the time permitted to
submit producer information to the California Department of Food
and Agriculture.
BACKGROUND AND EXISTING
LAW :
The California Avocado Commission (CAC) was created in 1978 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.).
California leads the nation in avocado production, where in
2014, 54,000 acres were harvested with a farm gate value of $3.3
million.
Existing law:
1) Establishes the 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
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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.
PROPOSED
LAW :
This bill:
1) Decreases from four to two the number of avocado
handlers elected to the California Avocado Commission.
2) Decreases from two to one the number of alternate
handler members.
3) Decreases from eleven to nine the number of voting
members if the commission consists of three or four
districts and ten voting members if the commission consists
of five districts.
4) Deletes the provision allowing any handler handling 30%
or more of the volume of avocados to appoint a handler
member to the commission.
5) Requires a vacancy of a member position on the
commission to be filled by a majority vote of the
commission.
6) Deletes the provision that a producer seeking election
in one district shall not seek election in any other
district for four years.
7) Requires handlers to submit names, mailing addresses,
grove location, and handled volume to the secretary within
60 days of the request.
8) Makes technical changes.
ARGUMENTS IN SUPPORT:
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According to the author, "This bill is intended to codify a
motion that was unanimously approved by the California Avocado
Commission (CAC) Board in 2015. The CAC has served for over 35
years as the official information source for California avocados
and the California avocado industry. As the industry has
evolved over time, the commission and the Legislature have taken
actions to reflect modern changes. Last year, AB 958 changed
the membership and district reapportionment to modernize the
commission and provide it with more flexibility to adapt. This
bill builds on that to better proportionately represent the
handlers-to-producers ratio on the commission."
COMMENTS :
Need for this bill. This bill ratifies the action taken by the
CAC board on October 15, 2015. At this meeting, the board
raised concern that the new board seat configuration enacted by
AB 958 could potentially give handlers a larger percentage of
the total board votes than was previously established. The
board shared letters of support from the handler community that
showed a general consensus for reducing the number of handler
members on the CAC board. The board then voted unanimously to
reduce the number of handler members from four to two, with one
handler alternate member.
Commissions and Councils. There are approximately 16 active
commissions and councils, all of which are governed by boards of
directors and overseen by the California Department of Food and
Agriculture (CDFA). These entities 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.
Unlike marketing orders and marketing agreements, commissions
and councils are created through commodity-specific legislation.
Generally, councils are advisory to CDFA and all actions are
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subject to CDFA approval. Commissions have greater autonomy and
do not serve an advisory purpose; however, CDFA must concur with
their annual budget and activities statement, and CDFA has the
authority to issue cease and desist orders to commission actions
that CDFA deems to not be in the public interest.
RELATED
LEGISLATION :
AB 958 (Agriculture), Chapter 307, Statutes of 2015. Among
other provisions, changes the membership and district
reapportionment of the California Avocado Commission.
AB 914 (Atkins), Chapter 322, Statutes of 2011. Among other
provisions, authorizes the CAC to require producers to provide
specified avocado production data and increases the number of
crop years used to determine the reapportionment of avocado
districts.
AB 2390 (Cedillo), Chapter 946, Statutes of 2002. Among other
provisions, makes various technical and substantive changes to
the CAC and expands and clarifies the purpose of the CAC.
PRIOR
ACTIONS :
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|Assembly Floor: |76 - 0 |
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|Assembly Appropriations Committee: |18 - 0 |
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|Assembly Agriculture Committee: | 9 - 0 |
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SUPPORT :
California Avocado Commission (Sponsor)
OPPOSITION :
None received
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