BILL ANALYSIS                                                                                                                                                                                                    



          
           AB 606
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 606 (Ma)
          As Amended August 26, 2009 
          Majority vote
           
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          |ASSEMBLY:  |75-1 |(June 1, 2009)  |SENATE: |25-13|(September 1,  |
          |           |     |                |        |     |2009)          |
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           Original Committee Reference:    AGRI.  

           SUMMARY  :  Creates the California Blueberry Commission (CBC) with  
          prescribed membership, powers, duties and responsibilities, and  
          requires a positive referendum vote by blueberry producers and  
          handlers, as specified, to activate. 

           The Senate amendments  make technical corrections; redefine  
          "producers/growers" to be those producing blueberries on land  
          totaling five acres or more; direct the development and  
          promotion of good agricultural and other practices to provide  
          safe food production for blueberries; delete the misdemeanor  
          crime and add a civil penalty authorization; and, reduce from 20  
          % to 15 % the signatures needed to trigger a referendum.  

           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 of the Department of Food and Agriculture (CDFA), 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.

           AS PASSED BY THE ASSEMBLY  , this bill was substantially similar  
          to the version passed by the Senate.  

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, this legislation authorizes an industry assessment of  








          
           AB 606
                                                                  Page  2

          up to $0.025 per pound in order to fund the CBC; if the maximum  
          assessment is levied on 50 million pounds of blueberries each  
          year, the CBC 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.  AB 606 does provide authority for CDFA to  
          audit the CB on fiscal and administrative performance, if such a  
          need is determined.

           
          Analysis Prepared by  :    Jim Collin / AGRI. / (916) 319-2084 


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