BILL ANALYSIS
AB 2695
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Date of Hearing: May 5, 2010
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 2695 (Hernandez) - As Amended: April 15, 2010
Policy Committee: JudiciaryVote:8 -
2
Agriculture 7 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill creates, subject to approval by an industry
referendum, the 16-member California Nursery Producers
Commission (CNPC) within the Department of Food and Agriculture
(CDFA) to serve the marketing and research interests of the
nursery industry in the state. Specifically, this bill:
1)Provides that the CNPC shall be composed of 14 producers, one
public member, and one ex officio member.
2)Requires the secretary of CDFA, within 60 days of a request
from any producer, to establish a list of producers eligible
to vote on implementation of this legislation.
3)Authorizes an industry assessment of not more than six-tenths
of one cent per dollar of sales, to cover the costs of the
commission, including workload costs associated with CDFA
administering the commission.
4)Establishes procedures for collection, payment, tracking and
reporting, including penalties of 10% for failure to pay, with
an interest rate on unpaid balances of 1.5% per month.
FISCAL EFFECT
1)This legislation authorizes an industry assessment of up to
$0.006 per one dollar in sales on nursery producers who
produce and sell nursery products for a gross of at least $5
million per year in order to fund the commission. If the
AB 2695
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initial assessment rate is set at $0.001 per one dollar in
sales it would generate approximately $3 million in revenue
for the program.
2)Start up costs for CDFA would be approximately $20,000 with
ongoing costs between $25,000 and $30,000 per year. All costs
would be reimbursed by the commission.
COMMENTS
1)Rationale . According to the author, California nurseries face
numerous regulatory, research and marketing issues in
California. The industry sees a need for a unified voice to
educate the public and regulatory entities about the role
California's nursery industry plays in a variety of areas,
including water use, reuse and conservation, pest exclusion,
economic development, land use and trade. A commission will
bring together this diverse industry under a common entity to
assist in accomplishing its goals. According to the sponsor,
there are roughly 600 producers in California, as defined by
this bill.
2)California's Nursery Industry . According to the California
Association of Nurseries and Garden Centers, California is the
number one state for both nursery and floral crop production.
Last year's economic report placed production figures in
excess of $4 billion and retail sales over $13 billion.
Wholesale production in California represents about 20% of the
nation's production of nursery crop. In California, nursery
and floral combined are the second largest agricultural crop
in the state. Nurseries and garden centers employ over 217,500
Californians.
3)Agricultural Commissions . Over 20 different commissions for
various commodities ranging from avocados to walnuts have been
established under Division 22 of the Food and Agriculture
Code. Typically, these state-established commissions and
councils are authorized by statute to engage in various
activities covering promotion, education, production or
post-harvest research, and quality standards and inspections,
with some variation in authorization between different
commissions. In most cases, these commissions have authority
to collect assessments from producers, handlers, or others
subject to regulation, and use the funds to carry out the
mandate of the commission.
AB 2695
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Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081