BILL ANALYSIS
AB 735
Page 1
Date of Hearing: April 15, 2009
ASSEMBLY COMMITTEE ON AGRICULTURE
Cathleen Galgiani, Chair
AB 735 (Agriculture) - As Introduced: February 26, 2009
SUBJECT : California Wheat Commission.
SUMMARY : Restructures the California Wheat Commission
(Commission) membership from 15 district representatives to 13
district representatives and adds two at-large members who are
knowledgeable of the industry; conforms districts by
consolidating two districts, reducing them from 15 to 13;
authorizes the Commission to change the number of districts by a
2/3 vote and concurrence by the Secretary (Secretary) of the
California Department of Food and Agriculture, redefines a
quorum as a majority of the commissioners, and makes technical
non-substantive changes.
EXISTING LAW permits the Commission to be created upon a
positive referendum vote of producers and provides for an 18
member board (board) of producers elected to represent 15 wheat
growing districts, two handlers in good standing elected by
handlers doing business in the state and one public member
appointed by the director [Secretary]; states that the board
quorum shall be 10 voting members and that the boundaries of the
districts may be changed by a 2/3 vote of the board. Statutes
provide definitions, powers and duties, including among other
things the ability to provide scientific research of cultural
and production practices, marketing and distribution of wheat.
Statutes outline voting procedures for the referendum and the
assessment levels, penalties and conditions for continuation,
suspension and termination of the commission.
FISCAL EFFECT : Unknown. Legislative counsel has keyed this
bill fiscal.
COMMENTS : California's wheat industry has seen major changes
over the past several years due to the housing boom and other
economic impacts that have removed acreage from production.
Several of the existing districts have had significant
reductions in acreage and one district has not had a
representative for over 12 years, according to the Commission,
due to there not being a grower willing to participate. Wheat
production from 1997 to 2006 had declined from an estimated
AB 735
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544,000 harvested, with a value of $162.4 million, to 315,000
harvested with a value of $88.6 million.
The Commission has had problems being able to conduct business
consistently due to a lack of quorums at board meetings. By
consolidating an inactive district with an active one,
consolidating another two districts which have had planted
acreages reduced, the adding of two at-large members from wheat
production or involved with related wheat activities, and
removing the statutory number of 10 for a quorum, the Commission
believes it would be easier to conduct business at future board
meetings.
The Committee may wish to consider if notice should be given to
the assessed parties if a change in the number of districts
should be considered. This is new authority for the Commission
and would change the structure on which the producers voted.
There is oversight in that such a change requires the
concurrence of the Secretary.
REGISTERED SUPPORT / OPPOSITION :
Support
California Wheat Commission
Opposition
None on file
Analysis Prepared by : Jim Collin / AGRI. / (916) 319-2084