BILL ANALYSIS �
AB 2682
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Date of Hearing: April 11, 2012
ASSEMBLY COMMITTEE ON AGRICULTURE
Cathleen Galgiani, Chair
AB 2682 (Committee on Agriculture) - As Amended: March 29,
2012
SUBJECT : Agriculture.
SUMMARY : This bill changes the designation of the California
Science Center's (CSC) space age museum; makes a technical
change to the assessment fee exemption for varieties of olive
trees; adds kefir to the products that comprise Class 2 market
milk; and, makes technical changes to the rules for the
California Walnut Commission (CWC) to become non-operational.
Specifically, this bill :
1)Changes the designation of the type of museum that CSC may
establish from a space-age museum to an air and space center.
2)Clarifies that the Secretary (Secretary) of the California
Department of Food and Agriculture (CDFA) is allowed to exempt
varieties of olive trees from a special assessment used to
fund research, provides virus-tested and disease-free stock,
true-to-type validations, and authorizes contracting for
research.
3)Adds kefir to the list of class 2 market milk.
4)Deletes a duplicate reference on a referendum for the
dissolution of CWC, based upon permanent termination of
federal targeted export assistance funds.
5)Changes the definition for permanent termination of federal
targeted export assistance funds from the federal government
not providing federal targeted export assistance funds for two
consecutive years to three consecutive years.
EXISTING LAW allows CSC to establish a space-age museum, and
also:
1)Requires an annual assessment of a 1% fee on gross sales of
all deciduous pome and stone fruit trees, nut trees, olive
trees, and grapevines, with certain exceptions; and, allows
the Secretary to exempt certain species of pome and stone
AB 2682
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fruit trees, nut trees, grapevines, olive trees or ornamental
varieties, as specified, from the assessment.
2)Allows the Secretary to formulate a stabilization and
marketing plan which includes establishing the price to be
paid by milk handlers for various classes of market milk.
3)Defines Class 2 market milk as any market milk used in the
manufacturing of market cream, sour cream, cottage cheese,
soft fresh cheese, buttermilk, and yogurt, along with
variations of these products. Defines kefir as fermented milk
product, as specified.
4)Establishes CWC, and requires that CWC become inoperative at
the end of any marketing year in which targeted export
assistance funds provided by the federal government have been
permanently terminated for two consecutive years, unless a
referendum vote conducted among walnut producers approves the
continuation of CWC.
FISCAL EFFECT : This bill has been keyed fiscal by Legislative
Counsel.
COMMENTS : AB 2682 is the Committee on Agriculture's 2012
Omnibus legislation to make technical and/or non-substantial
changes, and/ or, cleanup to various portions of the Food and
Agriculture laws of California. This bill addresses the
re-designation of the CSC's space age museum, olive tree
assessment exemptions Class 2 market milk, and CWC dissolution
procedures.
In 1996, the CSC was granted authorization to establish a
"space-age museum." On April 12, 2011, National Aeronautics and
Space Administration announced that CSC would be awarded the
Endeavour, one of the three flown Space Shuttle Orbiters.
Endeavour will be the only Space Shuttle Orbiter on the west
coast. This bill provides updates to the phrase "space age
museum" with the standard phrasing in the science and space
center field, "an air and space center." Supporters state
having the wording updated will assist in the fundraising for
the project.
SB 707 (Cannella/Wolk), Chapter 343, Statues of 2011, included
olive trees in the existing 1% gross sales fee assessment, and
extends the membership of the Fruit Tree, Nut Tree and Grapevine
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Improvement Advisory Board to representatives from the olive
industry. The intent of SB 707 was to include only olive trees
used for producing olive oil. This bill will clarify the
statute to allow the Secretary to exclude olive trees that
produce table olives.
Milk and dairy food processors pay for milk based upon the
products in which it is used. Product usages are grouped in
"classifications." Class 1 is fluid milk and creams, Class 2
are cultured products such as yogurt and cottage cheese. Class
3 are frozen products such as ice cream and frozen yogurt.
Class 4 is cheese, butter and dry milk powder. Most of
California's milk uses classifications identical to those in the
federal system. According to supporters, comparability allows
California products to compete for markets for those products.
In 2005, the federal classification for kefir was changed to
Class 2, placing it among all other cultured dairy products.
This bill reclassifies kefir as a Class 2 product in California,
to align with the federal classification for this product.
Current law requires the Secretary to hold a hearing every six
years to determine if a substantial question exists among the
assessed producers, whether CWC should be continued. If the
Secretary makes such a finding, a referendum vote is scheduled.
CWC code was amended in 1998 to include a cross reference to the
referendum procedures, but failed to include the term hearing
when referencing the referendum process. This bill will make it
clear to CDFA that the full referendum process is be followed if
the targeted export assistance funds from the federal government
are permanently terminated.
REGISTERED SUPPORT / OPPOSITION :
Support
California Science Center Foundation
Dairy Institute
Opposition
None on file.
Analysis Prepared by : Victor Francovich / AGRI. / (916)
319-2084
AB 2682
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