BILL ANALYSIS �
------------------------------------------------------------
|SENATE RULES COMMITTEE | AB 2682|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
------------------------------------------------------------
THIRD READING
Bill No: AB 2682
Author: Assembly Agriculture Committee
Amended: 6/7/12 in Senate
Vote: 21
SENATE AGRICULTURE COMMITTEE : 7-0, 7/3/12
AYES: Cannella, Rubio, Berryhill, Evans, La Malfa, Vargas,
Wolk
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
ASSEMBLY FLOOR : 72-0, 5/3/12 (Consent) - See last page for
vote
SUBJECT : Agriculture
SOURCE : Author
DIGEST : This bill, the Assembly Agriculture Committees
omnibus bill (1) changes designation of the California
Science Centers space-age museum to an air and space
center; (2) makes a technical change to exempt certain
varieties of olive trees from fee assessments; (3) makes
technical changes to exclude grocery stores who cut and
wrap cheese from the definition of milk processors; (4)
classifies kefir as a class 2 milk market product; (5)
makes technical changes to the appointment of members to
the Dairy Council of California; makes technical changes to
the rules for the California Walnut Commission.
CONTINUED
AB 2682
Page
2
ANALYSIS :
California Science Center
Existing law authorizes the California Science Center to
establish a space-
age museum in its building at Exposition Park in the City
of Los Angeles.
This bill permits the California Science Center to
establish an air and space center in its building at
Exposition Park in the City of Los Angeles.
Olives: Assessment
Existing law provides for a 1% assessment on gross sales of
varieties and species of fruit trees, nut trees, and
grapevines, with exceptions. Funds are used for research
programs, specifically the University of California
Foundation Plant Services program (FPS), which produces,
tests, maintains and distributes premium foundation-level
virus and disease-tested plant materials for use by
California nurseries.
This bill exempts certain species or varieties of olive
trees (table olives), or varieties of other named
agricultural produce, from a 1% annual assessment if it can
be demonstrated that no benefit is derived by these species
or varieties for programs relating to plant inspection,
quarantine and pest control.
Milk Products
Existing law provides definitions for "milk products plant"
and "handler" of milk products.
This bill redefines "milk products plant" to not include a
properly licensed retail food facility that does either of
the following:
Packages dairy products in the presence of the consumer.
Cuts, wraps, and packages cheese, excluding cottage
cheese, that is purchased from a licensed manufacturer of
milk products, labels the products pursuant to all
CONTINUED
AB 2682
Page
3
applicable state and federal laws, and sells the product
only to consumers on the premises of the retail food
facility.
Kefir: Marketing
Existing law provides classifications for milk products for
the purpose of milk marketing.
This bill classifies kefir from a class 1 to a class 2 milk
product for the purposes of milk marketing, and to conform
to federal standards.
Dairy Council of California
Existing law establishes the Dairy Council of California
which shall consist of 24-25 members, nominated by dairy
producers, producer-handlers, and handlers, and appointed
by the Secretary of CDFA. Also provides for nomination
procedures and assessment fees.
This bill amends language relating to the Dairy Council of
California:
Authorizing the Secretary of CDFA to appoint all members
of the Dairy Council of California. Members may hold
office at the pleasure of the Secretary, and members who
represent producers are no longer eligible to hold
office.
Repealing language relating to Dairy Council of
California member nominations to allow for alternative
procedures to select new members, including but not
limited to, nominations, preference voting, and district
representation. Such procedures shall be recommended by
the council and approved by the Secretary.
Authorizing the Secretary to assess a 1% interest rate
on unpaid assessment fees for each 30 days the fee is
unpaid.
This bill redefines "handler" of milk products to include
any person who secures custom processing services on an
ongoing basis.
CONTINUED
AB 2682
Page
4
California Walnut Commission (CWC)
Existing law establishes the CWC for the efficient
development and management of a national and international
advertising and promotion program that will enhance the
reputation and competitiveness of the California walnut
industry. In addition to an assessment fee, the CWC
receives export assistance funds from the federal
government. If federal export assistance funds are not
provided for two consecutive budget years, the funds are
deemed permanently terminated and the CWC becomes
inoperative, unless a referendum vote by producers is
conducted.
This bill increases, from two to three consecutive budget
years, the timeframe for which federal targeted export
assistance funds are deemed permanently terminated when the
federal government fails to provide these funds to the CWC.
Also provides clarification that the full process to avoid
discontinuation of the CWC be followed if said federal
funds are permanently terminated.
Comments
This bill is the Assembly Agriculture Committee's 2012
omnibus legislation designed to make technical and
nonsubstantial changes to various portions of the Food and
Agriculture laws for the state.
Related Legislation
SB 707 (Cannella and Wolk, Chapter 343, Statutes of 2011)
includes olive trees in the existing 1% gross sales fee
assessment.
AB 2218 (Woods, Chapter 289, Statutes of 1998) changes the
conditions under which the CWC may exist and how a
referendum vote is to be approved.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
SUPPORT : (Verified 8/8/12)
CONTINUED
AB 2682
Page
5
California Grocers Association
California Science Center Foundation
Dairy Institute of California
ARGUMENTS IN SUPPORT : The California Science Center
Foundation writes, "NASA revealed that the California
Science Center would be awarded Endeavour, one of the three
flown Space Shuttle Orbiters. Endeavour will be the only
Space Shuttle Orbiter not on the east coast. ?Since the
announcement, the Science Center has initiated its plans to
build a facility that features Endeavour. The current
language in the Food and Agricultural Code - Section 4103
gives the Science Center the authority to establish a
space-age museum. The proposed change provides updated
language in describing the air and space center. This
language is standard in the science and space center field.
The updated language will assist the California Science
Center Foundation Board of Trustees in its fundraising for
the project."
The California Grocers Association writes, "The most recent
version of AB 2682 includes technical language clarifying
that grocery stores are allowed to cut and wrap cheese for
sale on the premises of the store. Current law restricts
the activity of cutting and wrapping cheese to licensed
milk processing facilities. Since the original law's
inception, the grocery industry has changed significantly.
Today's grocery stores are licensed food handling
facilities inspected by local and state agencies and
required to comply with a myriad of health and safety laws
and ordinances. The proposed change in law was worked out
with the state's enforcement agencies overseeing these
activities."
ASSEMBLY FLOOR : 72-0, 5/3/12
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Beall,
Bill Berryhill, Block, Blumenfield, Bradford, Brownley,
Buchanan, Butler, Charles Calderon, Campos, Carter,
Cedillo, Chesbro, Conway, Cook, Davis, Dickinson,
Donnelly, Eng, Feuer, Fong, Fuentes, Beth Gaines,
Galgiani, Garrick, Gatto, Gordon, Gorell, Grove, Hagman,
Halderman, Harkey, Hayashi, Hill, Huber, Hueso, Huffman,
CONTINUED
AB 2682
Page
6
Jeffries, Knight, Lara, Logue, Bonnie Lowenthal, Ma,
Mansoor, Mendoza, Miller, Mitchell, Monning, Morrell,
Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel
P�rez, Portantino, Silva, Skinner, Solorio, Swanson,
Torres, Valadao, Wagner, Wieckowski, Yamada, John A.
P�rez
NO VOTE RECORDED: Bonilla, Fletcher, Furutani, Hall, Roger
Hern�ndez, Jones, Smyth, Williams
MEL:m 8/8/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED