BILL ANALYSIS
AB 604
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Date of Hearing: April 29, 2009
ASSEMBLY COMMITTEE ON AGRICULTURE
Cathleen Galgiani, Chair
AB 604 (Fuller) - As Amended: April 22, 2009
SUBJECT : Cotton: San Joaquin Valley Quality Cotton District.
SUMMARY : Suspends, on January 1, 2010, the San Joaquin Valley
Quality Cotton District (district) statutes, except as
specified. Specifically, this bill :
1)Restructures the purpose of the district's statutes to be
"subject to" new requirements, as described.
2)Requires, January 1, 2010, the district statutes and
regulations become inoperative, except for the following
provisions:
a) The protection of the San Joaquin Valley Cotton Board's
(board) actions from liability as a monopoly or
combinations in the restraint of trade;
b) The creation of the board, its membership and their
election;
c) The use of proceeds for enforcement of this chapter,
board functions, cotton testing and related administrative
expenses; and,
d) The deposit and expenditure of funds.
3)Permits the board in concurrence with the Secretary
(Secretary) of the California Department of Food and
Agriculture, to periodically determine what specific sections
of the district's authorizing chapter and related regulations
shall be operative and for what period of time.
4)Authorizes the board, notwithstanding other provisions of the
authorizing chapter and with the Secretary's concurrence, to
decide if funds collected will be refunded in whole or part to
eligible persons, or transferred to persons or organizations
subject to this chapter.
5)Requires the board to report to the Legislature annually the
AB 604
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specific actions taken under this new authority and requires
the board to notify, prior to taking any actions concerning
items (3) and (4) above in a properly noticed public hearing,
all eligible growers and industry members.
EXISTING LAW creates the district with a purpose, various
definitions, a board comprised of 10 elected growers, six
elected industry related members, an appointed public member,
and four ex-official members, and permits the Secretary to
require the board to correct or cease any activities that are
not in the public interest or are in violation of this chapter.
Should the board not comply, the Secretary, upon written notice,
may suspend all or a portion of the board activities. Statutes
provide for the duties and powers of the board, authorize
regulations, assessments, industry referendums and outlines
requirements, enforcement, promotion and funding for research,
violations and penalties.
FISCAL EFFECT : Unknown. Legislative Counsel has keyed this
bill fiscal.
COMMENTS : This district was created by statute in 1978 and
approved by a referendum of growers and industry related members
for the purposes of promotion, aid and protection of planting
and growing of pure high quality cotton varieties. Due to
environmental and economic changes over recent years, the number
of cotton acres grown and producers has declined significantly.
AB 604 creates new and unique authority for the board, in
conjunction with the Secretary, to pick and choose what statutes
are to be used, as well as for how long. This circumvents the
legislative oversight for a statutorily created entity. The
Committee may wish to consider if this is appropriate, or if the
legislative reporting is sufficient. Another option is to place
a sunset on these provisions in order to have a legislative
review.
The Committee may wish to include the authority to protect the
state from the liability of board actions (FAC Section 52887).
This section protects the state from acts of the board or their
contracts, but has not been included in the new authority of the
board.
REGISTERED SUPPORT / OPPOSITION :
AB 604
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Support
California Cotton Growers Association (Sponsor)
Opposition
None on file.
Analysis Prepared by : Jim Collin / AGRI. / (916) 319-2084