BILL ANALYSIS                                                                                                                                                                                                    �



                            SENATE AGRICULTURE COMMITTEE
                         Senator Anthony Cannella, Chairman

          BILL NO:    AB 914                    HEARING:  06/21/11
          AUTHOR:   Atkins                      FISCAL:  Yes
          VERSION:  06/13/11                    CONSULTANT:  John Chandler
          
                       State Commissions: market information.

          BACKGROUND AND EXISTING LAW

          The California Avocado Commission (CAC) was created in 1978 to 
          provide advertising, promotion, education, and research for the 
          benefit of California avocado producers.
          The 15-member commission is composed of 10 producers elected two 
          from each of the five districts, four handler members, and one 
          public member.  The CAC's activities are supported by mandatory 
          assessments on avocado producers in California.

          The five districts of the CAC producer members are reapportioned 
          every five years with each district representing 20 percent of 
          the avocado production in the state.  The commission determines 
          every two years the number of pounds of avocados produced in 
          each postal zip code area and for the entire state.  

          The California Cut Flower Commission (CFC) was formed in 1990 to 
          promote and conduct research for the California cut flower 
          industry.  The CFC is composed of 13 members, 12 of which are 
          producers and one public member.  The California Avocado 
          Commission, the California Apple Commission, and the California 
          Blueberry Commission have the authority to gather and 
          disseminate sales marketing information to prevent unfair trade 
          practices.

          PROPOSED LAW

          AB 914 would do the following:

                 Increase from two years to five years the number of 
               prior avocado crop years used the CAC determines the 
               average number of pounds produced in each California postal 
               zip code area and statewide average.

                 Require avocado producers to provide the commission with 
               the location at which avocados are produced and the annual 
               volume of avocados produced at each location, information 
               that may be used for food safety, communications, 
               reapportionment of districts, and to conduct elections and 
               referenda.




          AB 914 - Page 2



                 Require the Cut Flower Commission to collect market 
               price information from willing producers of sales on 
               commission-determined varieties of cut flowers in order to 
               prevent unfair trade practices.  

                 Require dissemination of the market price information to 
               the willing cut flower producers.

                 Require that information collected about individual cut 
               flower producers be kept confidential and not made public.

                 Require that the CFC, with the approval of the 
               California Department of Food and Agriculture, adopt 
               procedures for collection and dissemination of the market 
               price information on sales of specified cut flowers.

          COMMENTS

          1.Supporters state that AB 914 would address unfair trade 
            practices by allowing the market to fluctuate on credible 
            information.  Cut flower market values based on misinformation 
            is detrimental to California cut flower growers in an industry 
            dominated by cheap imported flowers.  By giving the commission 
            the tools to gather and disseminate credible cut flower market 
            price information, producers would be able to receive the fair 
            market value for the commodity.

            Increasing the time for the California Avocado Commission 
            (CAC) to determine the average pounds of avocados produced to 
            five years will help the commission look at production for the 
            entire period prior to the five-year reapportionment of the 
            producer districts.  Requiring avocado producers to provide 
            the location and annual volume produced will aid the CAC in 
            the reapportionment process.  AB 914 enhances the timeliness 
            and provides a better edge for the CAC to address a food 
            safety issue with location and production information of 
            California avocados.

          2.AB 914 would require avocado producers to provide the 
            locations and the volume of avocados produced at each 
            location.  In the unfortunate event of a food illness outbreak 
            linked to avocados, health agencies will be tracking and 
            tracing back individual fruits or lots to their source.  
            Typically, the handler provides the trace-back information to 
            the health investigator, as handlers commonly track the 
            sources of commodities handled and shipped in the course of 





          AB 914 - Page 3


            business.  It does not seem that general production 
            information and location required in AB 914 would be as useful 
            as information available from handlers on the source and 
            disposition of contaminated product when tracing the source 
            and controlling food safety outbreaks.  

          PRIOR ACTIONS

          Assembly Floor 70-0
          Assembly Appropriations17-0
          Assembly Agriculture  9-0




          SUPPORT
          
          California Cut Flower Commission

          OPPOSITION
          
          None received