BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
2695 (Hernandez)
Hearing Date: 6/28/2010 Amended: 6/10/2010
Consultant: Bob Franzoia Policy Vote: F & A 4-1
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BILL SUMMARY: AB 2695 would create the California Nursery
Producers Commission (commission) and would specify the powers,
duties, and responsibilities of the commission. This bill would
authorize the commission to levy an annual assessment, not to
exceed a specified amount, on producers of nursery products and
would authorize the expenditure of these funds for purposes of
implementing and administering the bill's provisions, thereby
making an appropriation. This bill, except as necessary to
conduct an election, would not become effective until eligible
producers, by referendum, vote in favor of these provisions. In
addition, this bill would (1) authorize the commission to levy a
civil penalty not to exceed $1,000 on a person who willfully
renders or furnishes false information, as specified, (2)
authorize the commission to bring civil actions and other
remedies to enforce the bill's provisions and regulations
adopted pursuant to these provisions, and (3) provide for the
continuation and suspension of the operation of its provisions
and for concluding the operations of the commission.
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Fiscal Impact (in thousands)
Major Provisions 2010-11 2011-12 2012-13 Fund
New marketing commission
- administration Up to $40 $20-$30 ongoing Special*
- revenues Up to ($3,000**) annually Special*
* Industry assessment deposited in the Department of Food and
Agriculture Fund
** Based on one tenth of one cent ($0.001) assessment rate which
is capped at six tenths of one cent and may exceed that cap if
approved by the commission and producers
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STAFF COMMENTS: The purpose of this commission would be to
engage in research beneficial to the nursery industry, to
educate the public relative to nursery products, and to promote
and market nursery products. The bill notes the nursery
industry has been negatively impacted by invasive pests and
diseases that also adversely affect the state's environmental,
urban quality, and agricultural products.
The commission shall be composed of 14 producers nominated and
elected by and from producers and one public member appointed by
the Secretary of Food and Agriculture from nominees recommended
by the commission. The commission shall reimburse the Secretary
for all expenditures incurred in carrying out required duties
and responsibilities.
This bill defines producer as any person that operates under a
California state nursery
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AB 2695 (Hernandez)
license (producer category), as specified. Producer does not
apply to a licensed producer nursery that produced and sold
nursery products for a gross value of less than $2.5 million in
the preceding marketing season. However, this bill permits this
dollar value threshold to be increased by a two thirds vote of
the commission and decreased if approved by referendum. In
addition, the commission shall establish the assessment for the
marketing season at not more than six tenths of one cent
($0.006) per dollar of sales. However, the bill allows an
assessment greater than that amount if approved by a two thirds
vote of the commission and the producers. In essence, this bill
authorizes entities other than the Legislature to revise
statutory thresholds. Staff recommends deleting both
provisions (Food and Agriculture Code 79429 (b) and (c) and
79501 (b) as added by the bill), thus requiring any changes in
the threshold of producers subject to the assessment and any
increases in the assessment above six tenths of one cent to be
approved by statute.
Staff notes AB 1912 (Evans) which would establish the California
Apiary Research Commission also authorizes an entity other than
the Legislature to revise a statutory threshold. AB 1912
(Evans) is on today's file.