BILL ANALYSIS
AB 606
Page 1
Date of Hearing: May 6, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 606 (Ma) - As Amended: April 16, 2009
Policy Committee: AgricultureVote:
7 - 1
Judiciary 10 - 0
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill creates, subject to approval by an industry
referendum, the 10-member California Blueberry Commission (CBC)
within the Department of Food and Agriculture (CDFA) to serve
the marketing interests of the blueberry industry in the state.
Specifically, this bill:
1)Assigns all counties in the state to one of three districts
and permits the CBC to change the boundaries of districts or
to add or eliminate districts upon a two-thirds vote of the
commission.
2)Requires the secretary of the California Department of Food
and Agriculture (CDFA), within 15 days of the effective date
of this legislation, to establish a list of blueberry
producers and handlers for a referendum vote.
3)Provides that the CBC shall be composed of five producers,
four handlers, one public member, and various ex officio
members.
4)Authorizes an industry assessment of up to two and one-half
cents per pound for blueberries handled, to be paid, half by
producers and half by handlers, to cover the costs of the
commission, including workload costs associated with CDFA
administering the commission.
FISCAL EFFECT
This legislation authorizes an industry assessment of up to
AB 606
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$0.025 per pound in order to fund the commission. If the
maximum assessment is levied on 50 million pounds of blueberries
each year, the commission would receive $1.25 million in
operating revenue.
SUMMARY CONTINUED
5)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 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.
6)Establishes the CBC's duties and powers.
COMMENTS
1)Rationale . According to the author and sponsors, the
California Blueberry Association, the creation of the
California Blueberry Commission will answer the needs of the
state's blueberry industry by promoting blueberries,
advertising campaigns, research surrounding blueberries and
other marketing activities. It is hoped the California
Blueberry Commission will prepare the blueberry industry in
California to better adapt to the quickly expanding market.
2)California's Blueberry Industry . Due to recent reports on the
health benefits of blueberries, the demand for blueberries has
grown dramatically. In 2007, there was 2,700 producing acres.
In 2009, there are 4,500 producing acres. The state's top
producers of blueberries expect California to be the third or
fourth highest producing state this coming year. There are
presently 50 - 70 blueberry growers in California and 8 - 10
marketers of the fruit. The sponsors estimate that California
growers will produce 30 million pounds of blueberries, growing
to over 50 million pounds in coming years.
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3)Agricultural Commissions . 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 by statute 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.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081