BILL ANALYSIS
AB 604
Page 1
Date of Hearing: May 13, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 604 (Fuller) - As Amended: May 5, 2009
Policy Committee: AgricultureVote:8
- 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill suspends, on January 1, 2010, certain statutes
governing the San Joaquin Valley Cotton District. Specifically,
this bill:
1)Requires that all statutes governing the board becoming
inoperative on January 1, 2010, except the following:
a) The creation of the board, its membership and their
election.
b) The use of the proceeds for enforcement of this chapter,
board functions, cotton testing and related administrative
expenses.
c) The deposit and expenditure of funds.
d) The protection of the board's actions from liability as
a monopoly or combinations in the restraint of trade.
2)Authorizes the board, notwithstanding other provisions of the
authorizing chapter, and with the Secretary of the California
Department of Food and Agriculture's (CDFA) 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.
3)Permits the board in concurrence with the CDFA secretary to
periodically determine what specific sections of the
district's authorizing chapter and related regulations shall
be operative.
AB 604
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4)Requires the board to report to the Legislature annually the
specific actions taken under this new authority and requires
the board to notify, prior to taking certain actions in a
properly noticed public hearing, all eligible growers and
industry members.
FISCAL EFFECT
This legislation renders the statute governing the industry
assessment for the board's funding inoperative. To the extent
SJVBC does not reinstate the assessment, CDFA will lose
approximately $150,000 in funding for one Agricultural Pest
Control Specialist and part of a supervisory position both of
whom were tasked with carrying out the CDFA's administrative
duties associated with the San Joaquin Valley Cotton District.
COMMENTS
1)Background . This district was created by statute in 1978 and
approved by a referendum of growers and industry related
members in order to promote, aid and protect the 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.
2)Purpose . 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
will be unusual for an agricultural board in the state because
it circumvents legislative oversight for a statutorily created
entity. The author asserts that this bill is necessary because
the cotton industry has diminished significantly over the
years and the assessments on cotton farmers no longer generate
enough revenue to fully sustain the program.
3)California Cotton . California's cotton is grown primarily in
the San Joaquin Valley, but some acreage is also grown in
other parts of the state. Cotton was California's largest crop
for many years, with over 1 million acres being planted each
year between 1974 and 1997. The highest year was 1979 with
1.6 million acres of cotton planted in the state. In addition,
cotton was the state's number one agricultural export
commodity, reaching over $1 billion in value at one point.
AB 604
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In 2007, cotton farmers produced 460,000 acres, a significant
reduction from the over 1 million acres of cotton that were
planted in the state in 1997. The industry further projects
that only 300,000 acres will be planted in 2008, representing
the lowest cotton acreage in the state since the 1940s.
On acre of cotton produces approximately three bales of
cotton. A full size bale weighs approximately 500 pounds and
stands about 41/2 ft. high. A typical bale can produce as many
as 8,000 handkerchiefs, 3,400 pairs of socks, 750 shirts,
3,000 cloth diapers, or 325 pairs of jeans.
4)The San Joaquin Valley Cotton Board (SJVCB) . The SJVCB was
created by statute in 1925 and its primary purpose was to
encourage the uniformity, quality, and marketability of valley
cotton in order to bring the best monetary returns to growers.
The board's programs are completely funded by the industry
with an annual assessment of less than $1 per acre.
The Board is comprised of 11 members elected to serve four
year terms: two growers from each of the major growing
counties of Fresno, Tulare, Kings, and Kern; one grower each
from the counties of Madera and Merced; six members of the
cotton industry at large; and one public member appointed by
the Secretary of Food and Agriculture. Each member has an
alternate. The growers and their alternates are nominated and
elected by growers from their respective county.
5)Related Legislation . AB 1913 (Fuller; Chapter 189, Statutes of
2008) reduced the number of cotton growers on the SJVCB from
10 to seven and reduces the number of industry members from
six to three. In addition, the bill changed the SJVCB's
authority to being able to "take action," rather than just
being able to "determine issues."
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081