BILL NUMBER: SB 1826 CHAPTERED 09/23/00 CHAPTER 587 FILED WITH SECRETARY OF STATE SEPTEMBER 23, 2000 APPROVED BY GOVERNOR SEPTEMBER 22, 2000 PASSED THE SENATE AUGUST 28, 2000 PASSED THE ASSEMBLY AUGUST 7, 2000 AMENDED IN ASSEMBLY JUNE 27, 2000 AMENDED IN ASSEMBLY JUNE 14, 2000 INTRODUCED BY Senator Kelley FEBRUARY 24, 2000 An act to amend Sections 67054, 67105, 74901, and 75131 of, and to add Section 74901.5 to, the Food and Agricultural Code, relating to agricultural commissions. LEGISLATIVE COUNSEL'S DIGEST SB 1826, Kelley. Agricultural commissions. (1) Existing law specifies requirements for membership on the California Avocado Commission, and requires producer members and alternate members on the commission to have a financial interest in producing, or causing to be produced, avocados for market. These requirements apply to independent and cooperative handlers. A cooperative handler is defined to mean a handler who handles fruit primarily for a cooperative producer. This bill would specify that if no entity meets the requirements of a cooperative handler, as defined, any person then serving on the commission shall remain eligible through the remainder of his or her current term. Thereafter, any person elected to the commission shall serve without reference to independent or cooperative status. (2) Existing law requires that all assessments be paid to the California Avocado Commission by the handler first handling avocados and that every handler is primarily and personally liable for the payment of the assessment. Failure of the handler to collect the assessment from a producer does not exempt the handler from primary liability for the assessment. This bill would make technical changes to this provision. (3) Existing law specifies the powers and duties of the California Winegrape Growers Commission and authorizes persons subject to any local commission to designate the manner in which the assessments that he or she pays to the local commission may be used, as specified. The commission is authorized to accept contributions of private, state, or federal funds that may be available for these specified purposes, and to allocate funds by contract or agreement to other persons or to state or federal agencies conducting market or production research. This bill instead would authorize the commission to accept contributions, or match private, local, state, or federal funds and employ or make contributions of funds to other persons or local, state, or federal agencies for purposes of maintaining, promoting, and enhancing the winegrape industry. The bill also would authorize the commission to present facts to, and negotiate with, local, state, federal, and foreign agencies on matters that affect the winegrape industry. (4) Existing law establishes the California Egg Commission to promote the marketing and production of eggs. Existing law provides for the levy of an assessment on egg handlers to support the activities of the commission, and requires that a referendum be conducted every 5th year on the continuation of these provisions. Existing law specified that this assessment shall not exceed one cent per dozen for shell eggs, or the equivalent thereof for egg products, but that the commission may establish a different assessment rate for eggs than for egg products so long as it does not exceed this maximum. This bill would provide that an assessment greater than this maximum assessment may be charged but only if it is approved by a vote of handlers as specified. The bill also would delete the provision authorizing the commission to revise any assessment rate that was adopted prior to the 1984 marketing season. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 67054 of the Food and Agricultural Code is amended to read: 67054. (a) Producer members and their alternates on the commission shall have a financial interest in producing, or causing to be produced, avocados for market. In order to be elected a commissioner or alternate, a producer shall, at the time of the election, have a financial interest in the production of avocados within the district in which the individual stands for election. (b) If a producer has a financial interest in the production of avocados within more than one district, the producer may stand for election in any district in which the producer has a financial interest in the production of avocados. (c) A producer who chooses to stand for election in a particular district shall not stand for election in any other district for a period of four years from the date of his or her most recent election to the commission. However, this subdivision does not apply in an election to fill vacancies created by the reapportionment of districts pursuant to Section 67045. (d) Handler members or their alternates shall have a financial interest in handling avocados for markets. (e) Except for the election of another public member, the public member or his or her alternate on the commission, shall have all the powers, rights, and privileges of any other member on the commission. The public member shall not have any financial interest in the avocado industry. (f) In the event that no entity meets the requirements of Section 67032.5, any person then serving on the commission shall remain eligible through the remainder of his or her current term. Thereafter, any person elected to the commission shall serve without reference to independent or cooperative status. SEC. 2. Section 67105 of the Food and Agricultural Code is amended to read: 67105. All assessments shall be paid to the commission by the handler first handling avocados who shall be primarily and personally liable for the payment of the assessment, and failure of the handler to collect the assessment from any producer shall not exempt the handler from that primary liability. Any handler subject to this section who fails to file a return or pay any assessment within the time required shall pay to the commission a penalty of 10 percent of the amount of the assessment determined to be due, and, in addition, 11/2-percent interest per month on the unpaid balance. SEC. 3. Section 74901 of the Food and Agricultural Code is amended to read: 74901. The commission may accept contributions of, or match, private, local, state, or federal funds and employ or make contributions of funds to other persons or local, state or federal agencies for purposes of maintaining, promoting, and enhancing the winegrape industry. SEC. 4. Section 74901.5 is added to the Food and Agricultural Code, to read: 74901.5. The commission may present facts to, and negotiate with, local, state, federal, and foreign agencies on matters that affect the winegrape industry. SEC. 5. Section 75131 of the Food and Agricultural Code is amended to read: 75131. (a) The assessment on eggs and egg products shall be established by the commission, with the approval of not less than five handler members, prior to the beginning of each marketing season and, except as provided in subdivision (d), shall not exceed one cent ($0.01) per dozen for shell eggs, or the equivalent thereof, as determined by the commission, for egg products. (b) The commission may establish an assessment rate that is different for eggs than for egg products, so long as it does not exceed the maximum assessment authorized in subdivision (a). (c) An assessment greater than the maximum specified in subdivision (a) may be charged but only if it is approved by a vote of the handlers as provided for in Section 75112.