BILL ANALYSIS
AB 606
Page 1
Date of Hearing: April 15, 2009
ASSEMBLY COMMITTEE ON AGRICULTURE
Cathleen Galgiani, Chair
AB 606 (Ma) - As Amended: April 2, 2009
SUBJECT : California Blueberry Commission.
SUMMARY : Creates the California Blueberry Commission
(CBC/Commission) with prescribed membership, powers, duties and
responsibilities, and requires positive referendum vote by
blueberry producers and handlers, as specified, to activate.
Specifically, this bill :
1)Provides declarations and general provisions for the CBC,
including stating that the CBC is necessary for efficient
management of research programs, management of pests and
diseases, improved cultural practices, advertising and
promotion programs.
2)Provides definitions including describing districts and
permits CBC to change boundaries of districts, and to add or
subtract districts upon a 2/3 vote of CBC.
3)Establishes CBC composed of four producers, four handlers, one
public member, and ex officio members. Three producers are to
be elected by producers within the established districts and
one producer is to be elected by all state producers, while
handlers are to elected on a statewide basis by handlers. The
public member is to be appointed by the Secretary (Secretary)
of the California Department of Food and Agriculture (CDFA).
Any one entity is limited to representation by only one
producer and one handler.
4)Except for ex officio members, each member shall have an
alternate elected in the same fashion as the member.
Vacancies are to be filled by appointment for the unexpired
term of office, by a majority vote of CBC. Designates a
quorum as a majority of producer members and a majority of
handler members, while a majority vote of members present at a
meeting, at which a quorum is present, constitute an act of
the CBC.
5)The Secretary and other appropriate members as determined by
the Commission shall be ex official members.
AB 606
Page 2
6)Permits the Commission to modify the number of producers and
handlers who serve on the Commission.
7)Permits the Secretary to correct or cease the activities or
functions of the Commission when it is determined they are not
in the public interest or in violation of this chapter, by
specified procedures.
8)Requires the Commission to reimburse the Secretary for all
expenditures incurred in carrying out this chapter.
9)Requires the Secretary, on decisions needing concurrence, to
respond within 15 working days of notification.
10)Requires all proceeds from assessments be deposited in
designated banks and disbursement ordered by the Commission be
by designated agents of the Commission.
11)Establishes that the state is not liable for acts of the
Commission or its agents, and that no Commission member,
alternate member, or employees of the Commission shall be
personally liable or individually responsible for errors,
omissions, or acts of the Commission, except for their own
individual acts of dishonesty or crime.
12)Establishes the Commission's duties and powers to include but
not be limited to the following:
a) Adopt, alter, rescind, modify and amend bylaws rules,
regulations and orders to carryout this chapter. Includes
rules for appeals;
b) Administer, enforce, perform all acts and exercise all
powers incidental to the purpose of this chapter;
c) Appoint officers with powers and duties delegated to
them by the Commission;
d) Hire personnel to manage and carry out the functions of
the Commission, including compensation;
e) Appoint committees of Commission members and non-members
to advise the Commission;
AB 606
Page 3
f) Establish offices, enter into contracts and agreements,
create liabilities, borrow funds, keep accurate books,
records and accounts subject to annual audits, which are to
be part of the annual report and be submitted to the
Legislature. Further, permits the Secretary to conduct a
fiscal and compliance audit when determined to be
necessary;
g) Authorizes, in regards to blueberries, advertising,
market expansion including foreign markets, education and
instruction of wholesale and retail trade, market surveys,
negotiations with state, federal and foreign agencies for
blueberry promotion, scientific research and to accept
private, state and federal funds for such;
h) Establish an assessment to defray operating costs and an
annual budget, that is concurred in by the Secretary, plus
an annual statement of contemplated activities; and,
i) Information collected regarding prices shall be
confidential and not made public under any circumstances.
13)Requires the Secretary, within 15 days of the effective date
of this chapter, to establish a list of producers and handlers
eligible for a referendum vote, but the chapter is not
operative except for the referendum vote. For the referendum
to pass, it must meet the following criteria:
a) At least 40% by number of the total producers from the
list must participate in the vote and either of the
following must occur:
i) 65% of the producers voted in favor and the
producers so voting represent a majority of blueberries
produced in the preceding marketing year by all producers
voting; or,
ii) A majority of producers voted in favor of the
referendum and those producers so voting produced 65% of
the blueberries in the preceding marketing year by all
producers voting.
b) At least 40% by number of the total number of handlers
from the list must participate in the vote and either of
the following must occur:
AB 606
Page 4
i) 65% of the handlers voted in favor and the handlers
so voting represent a majority of blueberries handled in
the preceding marketing year by all handlers voting; or,
ii) A majority of handlers voted in favor of the
referendum and those handlers so voting handled 65% of
the blueberries in the preceding marketing year by all
handlers voting.
14)Prior to the referendum, the proponents of the referendum
shall deposit funds to cover the cost of the referendum with
the Secretary.
15)Authorizes an assessment of up to two and one-half cents
($0.025) per pound for blueberries handled, to be paid, one
half by producers and one half by handlers. Establishes
procedures for collection, payment, and tracking and
reporting, including penalties of 10% for failure to pay with
an interest rate on unpaid balances of 1.5% per month.
16)Establishes a misdemeanor punishable by imprisonment not to
exceed six months in a county jail or a fine not to exceed
$1,000, or both for any of the following:
a) Willfully providing a false report, statement or record
or any method affecting the shipment and marketing of
blueberries to avoid payment of assessments, or failure to
furnish reports, statements or records required by the
Commission; and,
b) Failure or refusal by a shipper, processor, wholesaler
or retailer to furnishing the names and addresses of
persons providing blueberries and the quantity provided,
upon the request of the Commission.
17)Provides methods for continuation or suspension or
termination of the Commission, including requiring the
Secretary, after five years of implantation, to hold a hearing
to determine whether it should continue, which may prompt
another referendum, or by a 2/3 vote of the Commission to
terminate this chapter; the Commission may recommend
suspension of the Commission to the Secretary.
18)Permits the Commission to recommend to the Secretary the
AB 606
Page 5
adoption of blueberry quality standards, product labeling or
engage in any other activity authorized by the California
Marketing Act of 1937, and requires approval by referendum
before they become operative.
EXISTING LAW has no statutes specifically for blueberry
production, research or marketing. Statutes do authorize over
20 different commissions for various commodities with various
authorizations covering promotion, advertising, education,
production or post-harvest research, and quality standards and
inspections. Not all authorities have all the same authority
and not all that have the authority have activated them.
Several commissions are not operating due to not being approved
by referendum or to being terminated. Additionally, there is
the authority for a commodity group, through petition of the
Secretary, to implement much the same authorities under the
California Marketing Act of 1937 or the Federal Marketing Act.
FISCAL EFFECT : Unknown. Legislative Counsel has keyed this
bill fiscal.
COMMENTS : According to the author, blueberries became a
commercial commodity in California in 1996 and are currently
commercially produced in an estimated 12 states and several
foreign countries. Including California, today there are an
estimated 100 growers (producers) with roughly 4,000 producing
acreage and another 500 acres coming into production. Current
production is thought to be near 30 million pounds annually and
is estimated to grow to 50 million pounds as additional acreage
comes into production. It is estimated that there are 25
handlers processing and marketing this production which includes
about 8% organic product. This industry has grown rapidly here
in the U.S. and in South America.
Due to this growth, California producers are interested in
equipping themselves with more effective marketing knowledge and
options for their product(s), thereby remaining competitive with
producers in other states and countries. They understand that
management of production cost and the product's quality are
important elements to being competitive as well.
A commission can be an appropriate entity for accomplishing the
purposes stated by the author for this industry. Many of the
current commissions and marketing orders have been successful in
expanding markets domestically and offshore, improving handling
AB 606
Page 6
and storage of their commodity, thereby improving the quality of
the commodity, and providing research on pests and disease for
improving prevention. There have been some missteps by a few of
the commissions, which has lead one to be terminated by the
industry and another that had an audit by the Secretary, which
revealed potential misuse of funds. This bill has language
requiring annual audits and that the Secretary may conduct, upon
determination of the need, a fiscal and administrative audit of
the Commission.
There are four issues the Committee may wish to consider, as
follows:
1)Typically the definition of the commodity (page 4, line 13)
includes in the commodity's scientific name in order to ensure
specifically what products are to be assessed. The scientific
name for blueberries is believed to be Vaccinium. This may be
too broad by encompassing ornamental blueberries. Should the
commodity's scientific name be included in its definition?
2)The bill authorizes (page 4, line 30 to 33) the Commission,
upon a 2/3 vote, to change district boundaries which could
address changes in production locations, and also authorizes
the addition and deletion of districts. This is a relatively
new twist and could substantially change what producers and
handlers have voted on during the referendum, potentially
without notice to them. Should there be some notice or
informing of the producers and handlers of additions and
deletions of districts?
3)The bill permits (page 6, lines 12 and 13) the Commission to
modify the number of producers and handlers who serve on the
Commission, but does not appear to require a 2/3 vote of the
Commission as is required to change the boundaries or to add
or delete districts. This could substantially change what
producers and handlers have voted on during the referendum,
potentially without notice to them. Further, it does not
designate the modified commissioners to represent a district
at large, or if they are to be producers or handlers, or
equally expanded. Should this expansion authority be better
defined to require a 2/3 vote of the Commission or to refer to
the process of adding and deleting districts, and should the
affected parties be noticed?
4) The process for continuation or suspension and termination
AB 606
Page 7
(page 18, lines 6 to 8) provides for the Secretary to hold a
hearing to determine whether the Commission should be
continued. There is not the stated requirement that it be a
public hearing or that the industry has noticed of the
hearing. Should it be clarified that this is a public hearing
and that the affected industry be informed?
Previous Legislation : SB 303 (Chesbro), 2005 Statutes, Chapter
597, authorized the Mendocino County Winegrape and Wine
Commission (commission), and provided that, upon approval of a
referendum of producers and processors, the commission may
establish and collect an assessment from Mendocino winegrape
producers and processors in order to further research and
facilitate the successful and orderly marketing of Mendocino
County winegrapes.
REGISTERED SUPPORT / OPPOSITION :
Support
California Blueberry Association
Opposition
None on file
Analysis Prepared by : Jim Collin / AGRI. / (916) 319-2084