BILL ANALYSIS
AB 604
Page 1
ASSEMBLY THIRD READING
AB 604 (Fuller)
As Amended May 5, 2009
Majority vote
AGRICULTURE 8-0 APPROPRIATIONS 17-0
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|Ayes:|Galgiani, Tom Berryhill, |Ayes:|De Leon, Nielsen, |
| |Conway, Fuller, Ma, | |Ammiano, |
| |Mendoza, Yamada, Bonnie | |Charles Calderon, Davis, |
| |Lowenthal | |Duvall, Fuentes, Hall, |
| | | |Harkey, Miller, |
| | | |John A. Perez, Price, |
| | | |Skinner, |
| | | |Solorio, Audra |
| | | |Strickland, Torlakson, |
| | | |Krekorian |
|-----+--------------------------+-----+--------------------------|
| | | | |
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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 that on 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 protection of the state from acts of the board or
their contracts;
c) The creation of the board, its membership and their
election;
d) The use of proceeds for enforcement of this chapter,
board functions, cotton testing and related administrative
AB 604
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expenses; and,
e) The deposit and expenditure of funds.
3)Permits the board, in concurrence with the Secretary
(Secretary) of the California Department of Food and
Agriculture (CDFA), 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 annually report, to the Legislature, the
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, and industry referendums; and,
outlines requirements, enforcements, promotions and funding for
research, violations, and penalties.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, this legislation renders the industry assessment for
the board's funding inoperative and as long as the assessment
remains inoperative, CDFA will lose approximately $150,000 in
annual funding for staff relating to administrative duties
related to the district and the board.
COMMENTS : This district was created by statute in 1978 and
approved by a referendum of growers and industry related members
AB 604
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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 producers and cotton acres grown 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.
Analysis Prepared by : Jim Collin / AGRI. / (916) 319-2084
FN: 0001066