BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
945 (Galgiani)
Hearing Date: 8/17/2009 Amended: 4/13/2009
Consultant: Bob Franzoia Policy Vote: Food & Ag 4-0
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BILL SUMMARY: AB 945 would extend from January 1, 2010 to
January 1, 2015 the authority of the Department of Food and
Agriculture (department) to create an industry funded
standardization program for the purpose of implementing
standards for fruits, nuts, and vegetables. The department is
required to adopt regulations that are determined to be
reasonably necessary to carry out this program including
establishing assessment rates and procedures for payment of
assessments. In addition, this bill would delete the
department's authority to exempt certain horse shows,
competitions, or sales from prohibitions against the drugging of
horses applicable to any horse show, competition, or sale
certified by the secretary of the department.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Sunset extension $950 $1,900 $1,900 Special*
all costs offset by current
assessment rates
Deletion of department No new costs; minor savings
Special*
exemption authority
* Food and Agriculture Fund
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STAFF COMMENTS: In 1915, the state established minimum standards
for all fresh fruits, nuts and vegetables, marking the beginning
of standardization. Standardization came at the behest of
California fresh fruit and vegetable industry to protect
consumers and industry from substandard products. Under this
program, more than 30 commodities must meet specific standards,
while all other commodities must meet at least minimum statutory
standards. Standardization also promulgates and processes
regulations concerning standardization of quality, maturity,
containers, labeling and packing requirements.
Prior to 1992, the program was funded by the General Fund.
Since then the program has been funded with revenue derived from
a set container fee assessment. Standardization laws establish
minimum standards for maturity, quality, size, standard
container and pack, and container markings.
County agricultural commissioners and their staff enforce
standards at the local level. Inspections take place in fields
and packinghouses, at wholesale markets and retail distribution
centers, retail outlets, and highway inspection stations.
Approximately 1,800 events register with the Equine Medication
Monitoring Program (EMMP) annually. Event managers collect a
$5.00 fee from persons entering horses in
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AB 954 (Galgiani)
their events. The fee revenue is deposited into the Food and
Agriculture Fund. This fee is exclusive of any other fees
charged for the administration and management of equine events
e.g., entry fees, stall fees, ground fees, and training fees.
The secretary, following a public hearing and with the
concurrence of the EMMP advisory committee may certify a horse
show, competition, or sale to be exempt from EMMP testing if
they meet or exceed the medication monitoring and testing
standards of the EMMP. This bill would delete the secretary's
authority to make such a certification.