BILL ANALYSIS �
AB 914
Page 1
Date of Hearing: May 4, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 914 (Atkins) - As Introduced: February 17, 2011
Policy Committee: AgricultureVote:9
- 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill requires the California Cut Flower Commission (CFC) to
annually collect certain cut flower market price information
based on actual sales to prevent unfair trade practices.
Specifically, this bill:
1)Requires CFC to annually collect information from
participating members related to sales in order to prevent
unfair trade practices.
2)Requires dissemination of this information to all interested
persons.
3)Allows the disclosure of the sales information that gives
industry totals, averages or other similar data.
FISCAL EFFECT
1)For the 2011 calendar year, the CFC anticipates that it will
receive $869,952 in revenue from grower assessments and
grants. The 2011 budget exceeds that amount by $10,000, thus
requiring the CFC to use a portion of its reserves.
2)The CFC currently expends $30,000 per year to gather and
disseminate voluntary grower sales volume and inventory
information for certain varieties of flowers. This
legislation places in statute the requirement that CFC
annually collect market price information based on sales which
have occurred. There would be no additional costs to the CFC
to collect the additional data.
AB 914
Page 2
COMMENTS
1)Rationale . The author intends to help California's flower
growers by requiring the CFC to collect market price
information which will allow CFC to track any misinformation
about commodity values. The author hopes that by gathering
price information and following price fluctuations in an
industry that is increasingly dominated by lower cost imported
flowers, California's flower growers will be able better
compete with international growers and receive a fair market
value for flowers grown in California.
Having access to more complete statistical information would
enable California cut flower growers to more effectively
analyze current market situations and trends which would in
turn enable them to make more economically sound and timely
decisions regarding the planting, harvesting, marketing, and
pricing of their flowers. For example, if the statistical
information shows that there is an oversupply of a certain
flower variety and an undersupply of another variety, the
grower can adjust his growing operations so as reduce his
plantings of the oversupplied variety and increase his
plantings of the undersupplied variety, thus increasing the
possibility that the grower will eventually be able to sell
his flowers at price levels that will at least cover his
growing costs and keep him/her economically viable.
2)Background . The United States flower market is increasingly
dominated by imported flowers. 70% of the U.S. market consists
of imported flowers from Colombia. In 1971, the United States
produced 1.2 billion blooms of roses, carnations, and
chrysanthemums and imported 100 million. By 2003, the United
States was importing 2 billion blooms and growing only 200
million. Most flowers sold in supermarkets, big box stores,
and airport kiosks come from Colombia, though increasingly
Ecuador and Kenya are providing the United States with
inexpensive bouquets as both countries increase their flower
exports and compete with Colombia in the international flower
market.
As with other agricultural products, California flower growers
must find a way to compete with a growing international
industry that produces large quantities of flower exports to
feed the demand for inexpensive flowers.
AB 914
Page 3
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081