BILL ANALYSIS
AB 606
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Date of Hearing: April 21, 2009
ASSEMBLY COMMITTEE ON JUDICIARY
Mike Feuer, Chair
AB 606 (Ma) - As Amended: April 16, 2009
PROPOSED CONSENT
SUBJECT : CALIFORNIA BLUEBERRY COMMISSION
KEY ISSUE : SHOULD THE PROPOSED CALIFORNIA BLUEBERRY COMMISSION
HAVE THE SAME AUTHORITY, SHARED BY MANY OTHER AGRICULTURAL
COMMISSIONS, TO COMMENCE CERTAIN CIVIL ACTIONS AGAINST THOSE WHO
HAVE VIOLATED RULES OR REGULATIONS OF THE COMMISSION?
FISCAL EFFECT : As currently in print this bill is keyed fiscal.
SYNOPSIS
This non-controversial bill, sponsored by the California
Blueberry Association, would establish the California Blueberry
Commission ("Commission") with prescribed membership, powers,
duties and responsibilities. The CBC would have the authority,
of particular interest to this Committee, to commence a civil
action against an entity subject to Commission rules or
regulations that violates them. The bill reflects model statute
language that has been approved by the Legislature on numerous
previous occasions to authorize similar agricultural product
commissions, now established into law under the Food and
Agriculture Code. For this reason, it is reasonable to permit
the California Blueberry Commission to enjoy the same set of
well-established authorizations. There is no known opposition
to the bill.
SUMMARY : Creates the California Blueberry Commission (CBC) with
prescribed membership, powers, duties and responsibilities, and
authorizes the CBC to commence a civil action against a person
who violates Commission rules or regulations as provided by the
bill. 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.
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2)Assigns all counties in California to one of three
"Districts," as specified, but permits the CBC to change the
boundaries of districts or to add or eliminate districts upon
a 2/3 vote of CBC, so long as proper notice is provided to all
persons subject to this chapter prior to the action and the
Secretary of Food and Agriculture (Secretary) concurs.
3)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. Provides that the chapter is
not operative unless the Secretary conducts a referendum vote
and concludes that:
a) At least 40% of the total number of producers from the
list participated in the vote and either of the following
occurred:
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 participated in the vote and either of the
following occurred:
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.
4)Requires that, upon certification of the CBC, the Secretary
shall contact all producers and handlers for the purpose of
nominating and electing persons to the CBC. Provides that
nominees shall present a nomination petition to the Secretary,
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signed by at least three eligible persons, in order to be
eligible for election.
5)Provides that the CBC shall be composed of five producers,
four handlers, one public member, and ex officio members.
Provides that three producers shall be elected by producers
within the established districts and two producer members
shall be elected by and from producers on a statewide basis
without reference to districts. Provides that handlers shall
be elected on a statewide basis by handlers without reference
to districts, and that the public member is appointed by the
Secretary of Food and Agriculture from nominees recommended by
the CBC. Each entity subject to this chapter is limited to
representation by only one producer and one handler.
6)Authorizes the CBC to commence civil actions and utilize all
remedies provided in law or equity for the collection of
assessments and civil penalties. Also authorizes the CBC to
bring an action seeking injunctive relief or specific
performance to enforce the rules and regulations adopted under
this chapter.
7)Establishes the CBC'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 carry out 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 CBC;
d) Hire personnel to manage and carry out the functions of
the CBC, including compensation;
e) Appoint committees of CBC members and non-members to
advise the CBC;
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
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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;
i) Administer any program that has been adopted, as
provided, relating to quality standards for blueberries,
product labeling, or any other activity authorized by the
California Marketing Act of 1937; and
j) Prescribe the form and manner by which proponents and
opponents of the commission may contact producers and
handlers so long as all expenses associated with the
contacts are paid in advance.
8)Requires all proceeds from assessments to be deposited in
designated banks and all disbursements ordered by the CBC to
be made by designated agents of the CBC.
9)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.
10)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.
11)Establishes a misdemeanor punishable by imprisonment not to
exceed six months in a county jail or a fine not to exceed
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$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.
12)Requires the Secretary, five years after implementation of
this chapter and at five year intervals thereafter, to hold a
public hearing, after providing proper notice, for the purpose
of determining whether the CBC should be continued, suspended,
or terminated.
13)Permits the Commission to recommend to the Secretary the
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 any recommendation becomes operative.
EXISTING LAW contains no statutes specifically regulating
production, research or marketing of blueberries in California.
However, over 20 different commissions for various commodities
ranging from avocados to walnuts have been established under
Division 22 of the Food and Agriculture Code. Typically, these
state established commissions and councils are authorized to
engage in various activities covering promotion, advertising,
education, production or post-harvest research, and quality
standards and inspections, with some variation in authorization
between different commissions. In most cases, these commissions
have authority to collect assessments from producers, handlers,
or others subject to regulation, and use the funds to carry out
the mandate of the commission.
Several commissions are not operating, having been terminated or
not being approved by referendum, while some commissions were
never activated even after statutory authority to enable them
was granted.
Additionally, there is the authority for a commodity group,
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through petition of the Secretary, to implement much of the same
authorities under the California Marketing Act of 1937 or the
Federal Marketing Act.
COMMENTS : This bill, sponsored by the California Blueberry
Association, creates the California Blueberry Commission with
prescribed membership, powers, duties and responsibilities.
According to the author, the blueberry industry is rapidly
growing in California, with 66% more acres producing blueberries
in 2009 than existed in 2007. With 50 to 70 blueberry growers
and eight to ten marketers in California, the state's top
producers expect California to be the third or fourth highest
producing state this coming year. Given these facts and
projections, California blueberry producers have identified the
need for a blueberry commission to market and research one of
the fastest growing fruit crops in the state.
The Authority to Bring a Civil Action to Enforce Rules and
Regulations is Commonly Held by Fellow Agricultural Commissions :
The CBC is authorized, among other things, to commence a civil
action against an entity subject to Commission rules or
regulations who violates them, including failure to pay required
assessments to the CBC. A review of the enabling legislation
for many similar agricultural commissions, found in Division 22
of the Food and Agriculture Code (FAC), reveals that the
provisions granting such authority under this bill are identical
or substantially similar to those already held by many of these
established agricultural commissions. (See, e.g., FAC Section
67112.5(a) (California Avocado Commission); FAC Section 74173
(Winegrowers of California Commission); FAC Section 71132
(California Rice Commission).)
Because identical statutory authority has been approved by the
Legislature on multiple occasions for similar agricultural
commissions, it is reasonably concluded that the California
Blueberry Commission should also have this statutory authority
upon its establishment into law. There is no known opposition
to this bill.
REGISTERED SUPPORT / OPPOSITION :
Support
California Blueberry Association (sponsor)
AB 606
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Opposition
None on file
Analysis Prepared by : Anthony Lew / JUD. / (916) 319-2334