BILL ANALYSIS
SENATE FOOD and AGRICULTURE COMMITTEE
Senator Dean Florez, Chairman
BILL NO: AB 1795 HEARING: 6/15/10
AUTHOR: Assembly Agriculture CommitteeFISCAL: Yes
VERSION: 6/3/10 CONSULTANT: John Chandler
Agriculture: California Citrus Advisory Committee: California
Apple Commission: California Salmon Council.
BACKGROUND AND EXISTING LAW
The California Apple Commission (commission) was authorized in
1990 but failed a referendum in 1991. It was finally
established following changes made by AB 2476 (Costa), Chapter
69, Statutes of 1994. The commission may engage in the
promotion of the apple industry, conduct production research,
and recommend maturity standards to the Secretary (secretary) of
the Department of Food and Agriculture (CDFA). In order to
perform its duties, the commission collects an assessment of
$0.75 per pound of fresh market apples produced in the state.
The California Apple Commission consists of 12 producers and
handlers spread between three regional districts and one public
member. Each of the three geographic districts is represented
by three producers and one handler commission member. All the
commission members are elected to a three-year term with a limit
of four consecutive terms.
The California Salmon Council is comprised of nine voting
members appointed by CDFA with consultation with the Department
of Fish and Game for a three year term. The nine voting members
are broken down to five commercial salmon vessel operators, two
handlers who are receivers or processors, one handler who is an
exporter or wholesaler, and one public member. The California
Salmon Council was authorized by the legislature in 1988 and
formed in 1989 to promote the marketing of California salmon and
salmon products. The California Salmon Council may, at the
direction of CDFA, conduct programs of education, research, or
pubic information to promote and improve California salmon.
In 1994, AB 3068 (Chapter 1048, Statutes of 1994) established an
assessment on navel and Valencia oranges in selected counties to
reimburse the county agriculture commissioner for the costs for
administering the county maturity and freeze damage inspection
program. This bill also created the Navel Valencia Orange
Advisory Committee to make recommendations to the California
Secretary of Food and Agriculture regarding the implementation
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of the inspection programs.
The Navel Valencia Orange Advisory Committee was changed to the
California Citrus Advisory Committee with the inclusion of
mandarin citrus varieties in the program, which have been a
growing part of the California citrus industry. Current law
allows the inspection program to assess fees not to exceed
$0.011 per carton of navel oranges, $0.005 per carton of lemons,
and $0.006 per carton of Valencia oranges or mandarin citrus.
AB 281 (De Leon), Chapter 426, Statutes of 2009, created the
California Citrus Disease Prevention Committee within the
Department of Food and Agriculture for the purpose of preventing
and controlling citrus disease in California and allows the
committee to levy fees on citrus producers to pay for citrus
disease detection and control programs.
PROPOSED LAW
AB 1795 would do the following:
Eliminate Apple Commission member term limit of four
consecutive terms.
Authorize the California Salmon Council, with approval
from CDFA, to present facts and negotiate with state,
federal, and foreign agencies on issues relating to the
California Salmon Marketing and Development Act.
Allow the Citrus Advisory Committee to make
recommendations to CDFA on the annual assessment.
o Clarify that a carton of citrus is defined as
a 40-pound equivalent produced.
o Add to the appeals process for handlers and
producers who dispute the assessment
o Allow the assessment to be adjusted up or down
as needed on the recommendation of the Citrus Advisory
Committee without requiring a regulatory change
provided it does not exceed the statutory maximum
assessment.
COMMENTS
1.Proponents state that AB 1795 would update the California
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Apple Commission and the California Salmon Council to reflect
the needs of their industries. California's apple industry
has changed significantly over the last 15 years, shrinking
from 40 apple handlers packing, shipping, and marketing
California apples to only 11 remaining apple handlers. With
the smaller pool of available handlers able and willing to
serve on the commission, the current term limit on the board
hinders the commission's ability to meet a quorum to conduct
business and continue functioning for the future of the
industry.
The California Salmon Council is the only marketing order
representing California salmon fishermen. In recent years,
the California salmon seasons were closed due to reasons
beyond the control of the industry and the government. As a
result, state and federal agencies increased there need to
work on salmon management issues while seeking input from the
California salmon industry through the California Salmon
Council. AB 1795 would allow the council to participate in
discussions and provide advice to state and federal agencies
regarding issues relevant to California salmon.
AB 1795 would make changes to the California Citrus Advisory
Committee to conform the committees handling of assessment to
AB 281 (De Leon) from 2009. Further, AB 1795 would allow the
assessment rate to be adjusted more efficiently to meet the
demands of the industry.
2.AB 1795 would seek to address the difficulty of the California
Apple Commission maintaining a full 13-member board from a
shrinking pool of eligible apple handlers due to a changing
California apple economy. It would seem the elimination of
term limits is a band-aid approach given the history of
decline of apple handlers over recent years. Given the
possibility the industry may continue to shrink, the committee
may wish to consider if a more serious reform of the
commission board is necessary, such as a reduction in the
commission size to reflect the current industry.
3.AB 1795 would increase the California Salmon Council's
authority to engage in meetings and offer advice to state and
federal agencies on issues relating to California salmon.
Councils are most commonly marketing organizations intended to
promote a product or industry (in this case, California
salmon) at the discretion of CDFA. The committee may wish to
consider if the California Salmon Council, with its growing
importance as a representative of the salmon industry, might
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better serve the industry as a commission rather than a
council.
PRIOR ACTIONS
Assembly Floor 74-0
Assembly Appropriations15-0
Assembly Agriculture 8-0
SUPPORT
California Apple Commission
California Citrus Mutual
California Salmon Council
OPPOSITION
None received