BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2682
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 2682 (Agriculture Committee)
          As Amended  June 7, 2012
          Majority vote
           
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          |ASSEMBLY:  |72-0 |(May 3, 2012)   |SENATE: |38-0 |(August 9,     |
          |           |     |                |        |     |2012)          |
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           Original Committee Reference:    AGRI.

            SUMMARY  :  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; 
          clarifies that properly licensed retail food facilities are not 
          regarded as milk products plant; amends language relating to the 
          Dairy Council of California (DCC); and, makes technical changes 
          to the rules for the California Walnut Commission (CWC) to 
          become non-operational.  

           The Senate amendments  :

          1)Redefine "milk products plant" to not include a properly 
            licensed retail food facility that does either of the 
            following: 

             a)   Packages dairy products in the presence of the consumer; 
               or,

             b)   Cuts, wraps, and packages cheese, as specified.

          2)Amend language relating to the Dairy Council of California:

             a)   Authorizes the Secretary (Secretary) of the California 
               Department of Food and Agriculture (CDFA) to appoint all 
               members of DCC.  Members may hold office at the pleasure of 
               the Secretary, and members who represent producers are no 
               longer eligible to hold office;  

             b)   Repeals language relating to DCC member nominations to 
               allow for alternative procedures to select new members, as 
               specified.  Such procedures shall be recommended by DCC and 
               approved by the Secretary; and,








                                                                  AB 2682
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             c)   Authorizes the Secretary to assess a 1% interest rate on 
               unpaid assessment fees for each 30 days the fee is unpaid. 

           EXISTING LAW:  

          1)Permits CSC to establish a space-age museum in its building at 
            Exposition Park in the City of Los Angeles.

          2)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 which 
            produces, tests, maintains and distributes premium 
            foundation-level virus and disease-tested plant materials for 
            use by California nurseries.  

          3)Provides definitions for "milk products plant" and "handler" 
            of milk products.

          4)Provides classifications for milk products for the purpose of 
            milk marketing.

          5)Establishes DCC, consisting of 24-25 members, nominated by 
            dairy producers, producer-handlers, and handlers, and 
            appointed by the secretary of CDFA.  Provides for nomination 
            procedures and assessment fees for operation of DCC.

          6)Establishes CWC to promote the California walnut industry.  If 
            federal export assistance funds are not provided for two 
            consecutive budget years, the funds are deemed permanently 
            terminated and CWC becomes inoperative, unless a referendum 
            vote by producers is conducted.

           AS PASSED BY THE ASSEMBLY  , this bill changed the designation of 
          the CSC space age museum; made a technical change to the 
          assessment fee exemption for varieties of olive trees; added 
          kefir to the products that comprise Class 2 market milk; and, 
          made technical changes to the rules for CWC to become 
          non-operational. This bill was similar to the version approved 
          by the Senate.

          FISCAL EFFECT  :  Unknown

           COMMENTS  :  Two Senate amendments were added to this bill to 
          resolve the following issues:








                                                                  AB 2682
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          1)CDFA requires licensing of all milk products plants which 
            engage in the business of handling, receiving, processing, or 
            manufacturing of milk products.  Therefore, any grocery store 
            that cuts and wraps cheese in-house is considered a "milk 
            products plant" and would need to obtain a license.  This bill 
            provides technical changes to exclude retail food facilities 
            that cut and package cheese from the definition of "milk 
            products plant" and thus from the requirement to obtain the 
            corresponding license.

          2)Established in 1919, DCC serves California communities through 
            nutrition education programs that focus on healthy eating and 
            provide free nutrition lesson plans and programs to school 
            children and their families.  DCC is a state government entity 
            that is solely funded by, and works on behalf of, California 
            dairy farmers and milk processors, and is governed by 
            industry-elected members.  Upon review by DCC staff and 
            industry members, and in working with CDFA, it was determined 
            that definitions, election processes, and enforcement of fees 
            would require updates and clarifications.


           Analysis Prepared by  :    Victor Francovich / AGRI. / (916) 
          319-2084


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