BILL ANALYSIS
AB 606
Page 1
ASSEMBLY THIRD READING
AB 606 (Ma)
As Amended April 16, 2009
Majority vote
AGRICULTURE 7-1 JUDICIARY 10-0
-----------------------------------------------------------------
|Ayes:|Galgiani, Tom Berryhill, |Ayes:|Feuer, Tran, Brownley, |
| |Arambula, Conway, Ma, | |Evans, Jones, Knight, |
| |Mendoza, Yamada | |Krekorian, Lieu, Monning, |
| | | |Nielsen |
|-----+--------------------------+-----+--------------------------|
|Nays:|Fuller | | |
| | | | |
-----------------------------------------------------------------
APPROPRIATIONS 17-0
-----------------------------------------------------------------
|Ayes:|De Leon, Nielsen, Ammiano, | | |
| |Charles Calderon, Davis, Duvall, | | |
| |Fuentes, Hall, Harkey, Miller, | | |
| |John A. Perez, Price, Skinner, | | |
| |Solorio, | | |
| |Audra Strickland, Torlakson, | | |
| |Krekorian | | |
-----------------------------------------------------------------
-----------------------------------------------------------------
| | | | |
-----------------------------------------------------------------
SUMMARY : Creates the California Blueberry Commission
(CBC/Commission) with prescribed membership, powers, duties and
responsibilities, and requires a 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, upon notice of affected parties, to change
AB 606
Page 2
boundaries of districts, and to add or subtract districts upon
a two-thirds vote of CBC.
3)Establishes CBC composed of five producers, four handlers, one
public member, and ex officio members. Three producers are to
be elected by producers within the established districts and
two producers are to be elected by all state producers, while
handlers are to be 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)Requires each member to 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, a majority vote of
members present at a meeting at which a quorum is present,
constitute an act of the CBC.
5)Requires the Secretary and other appropriate designees, as
determined by the Commission, to be ex official members.
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,
AB 606
Page 3
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 authority:
a) Adopt, alter, rescind, modify and amend bylaws, rules,
regulations and orders to carryout this chapter, and
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 consisting of Commission members and
non-members to advise the Commission;
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) Authorize, in regard 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
AB 606
Page 4
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) Sixty-five % 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:
i) Sixty-five % 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 $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
AB 606
Page 5
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 furnish 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 two-thirds 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
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 other commodities with
authorizations for promotion, advertising, education, production
or post-harvest research, quality standards, and inspections.
Not all commissions have all the same authority, and several
commissions are not operating due to a negative referendum vote
or due to termination by referendum. Additionally, there is
authority for a commodity group, through petitioning the
Secretary, to create a Marketing Order and implement many of the
same authorities as a commission, under the California Marketing
Act of 1937 or the Federal Marketing Act.
AB 606
Page 6
FISCAL EFFECT : According to the Assembly Appropriations
Committee, this legislation authorizes an industry assessment of
up to $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.
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
annual production is thought to be near 30 million pounds 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 in
the United States 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 costs and the product's quality is an
important element 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
and storage of their commodity, thereby improving the quality of
the commodity, and providing research on pests and diseases 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.
Previous legislation : SB 303 (Chesbro), Chapter 597, Statutes
of 2005, authorized the Mendocino County Winegrape and Wine
AB 606
Page 7
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.
Analysis Prepared by : Jim Collin / AGRI. / (916) 319-2084
FN: 0001067