AB 2606: California Agave Commission.
- Session Year: 2023-2024
- House: Assembly
- Latest Version Date: 2024-09-27
Current Status:
Passed
(2024-09-27: Chaptered by Secretary of State - Chapter 725, Statutes of 2024.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
What does this bill do?
This bill would create the California Agave Commission, a state board of growers, processors, and a public member to run research, education, marketing, and promotion for California agave and to collect fees from agave growers and processors; the commission would only be formed if growers and processors vote to approve it. The commission could set assessments (fees) within set caps (from about $1,000 for small producers to up to $50,000 for larger ones), require and inspect records, keep proprietary data confidential, levy fines (up to $1,000) for false or missing reports, and sue to enforce its rules.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Under existing law, the Legislature finds and declares that the agricultural and seafood industries are vitally important elements of the states economy. Existing law provides for various commissions and councils to promote the marketing and production of agricultural or seafood commodities.
This bill would create the California Agave Commission in the state government with a prescribed membership, and would specify the powers, duties, and responsibilities of the commissions board of directors. The bill would authorize the commissions board of directors to, among other things, conduct research for specified purposes. The bill would authorize the commission to levy an annual assessment on growers and processors, as defined, and would authorize the commission to expend revenues from those assessments and all other moneys received by the commission, including from penalties for failing to pay the assessment and the civil penalties described below, for purposes of implementing the bill, thereby making an appropriation.
The bill would provide that the commission would not be established, and these provisions would not be implemented, except as necessary to conduct an election, until the growers and processors of agave vote in favor of establishing the commission, as prescribed. The bill would also provide for the suspension of the operation of the commission and for concluding the operation of the commission under certain circumstances. The bill would authorize the commission to levy a civil penalty, as specified, on a person for willfully rendering or furnishing false reports, secreting, destroying, or altering records, failing to render or furnish a report, or failing or refusing to furnish to the commission information concerning the name and address of persons from whom agave is received and the quantity received. The bill would authorize the commission to bring certain civil actions to enforce the bills provisions.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
Under existing law, the Legislature finds and declares that the agricultural and seafood industries are vitally important elements of the states economy. Existing law provides for various commissions and councils to promote the marketing and production of agricultural or seafood commodities.
This bill would create the California Agave Commission in the state government with a prescribed membership, and would specify the powers, duties, and responsibilities of the commissions board of directors. The bill would authorize the commissions board of directors to, among other things, conduct research for specified purposes. The bill would authorize the commission to levy an annual assessment on growers and processors, as defined, and would authorize the commission to expend revenues from those assessments and all other moneys received by the commission, including from penalties for failing to pay the assessment and the civil penalties described below, for purposes of implementing the bill, thereby making an appropriation.
The bill would provide that the commission would not be established, and these provisions would not be implemented, except as necessary to conduct an election, until the growers and processors of agave vote in favor of establishing the commission, as prescribed. The bill would also provide for the suspension of the operation of the commission and for concluding the operation of the commission under certain circumstances. The bill would authorize the commission to levy a civil penalty, as specified, on a person for willfully rendering or furnishing false reports, secreting, destroying, or altering records, failing to render or furnish a report, or failing or refusing to furnish to the commission information concerning the name and address of persons from whom agave is received and the quantity received. The bill would authorize the commission to bring certain civil actions to enforce the bills provisions.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
Under existing law, the Legislature finds and declares that the agricultural and seafood industries are vitally important elements of the states economy. Existing law provides for various commissions and councils to promote the marketing and production of agricultural or seafood commodities.
This bill would create the California Agave Commission in the state government with a prescribed membership, and would specify the powers, duties, and responsibilities of the commissions board of directors. The bill would authorize the commissions board of directors to, among other things, conduct research for specified purposes. The bill would authorize the commission to levy an annual assessment on growers and processors, as defined, and would authorize the commission to expend revenues from those assessments and all other moneys received by the commission, including from penalties for failing to pay the assessment and the civil penalties described below, for purposes of implementing the bill, thereby making an appropriation.
The bill would provide that the commission would not be established, and these provisions would not be implemented, except as necessary to conduct an election, until the growers and processors of agave vote in favor of establishing the commission, as prescribed. The bill would also provide for the suspension of the operation of the commission and for concluding the operation of the commission under certain circumstances. The bill would authorize the commission to levy a civil penalty, as specified, on a person for willfully rendering or furnishing false reports, secreting, destroying, or altering records, failing to render or furnish a report, or failing or refusing to furnish to the commission information concerning the name and address of persons from whom agave is received and the quantity received. The bill would authorize the commission to bring certain civil actions to enforce the bills provisions.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
Under existing law, the Legislature finds and declares that the agricultural and seafood industries are vitally important elements of the states economy. Existing law provides for various commissions and councils to promote the marketing and production of agricultural or seafood commodities.
This bill would create the California Agave Commission in the state government with a prescribed membership, and would specify the powers, duties, and responsibilities of the commissions board of directors. The bill would authorize the commissions board of directors to, among other things, conduct research for specified purposes. The bill would authorize the commission to levy an annual assessment on growers and processors, as defined, and would authorize the commission to expend revenues from those assessments and all other moneys received by the commission, including from penalties for failing to pay the assessment and the civil penalties described below, for purposes of implementing the bill, thereby making an appropriation.
The bill would provide that the commission would not be established, and these provisions would not be implemented, except as necessary to conduct an election, until the growers and processors of agave vote in favor of establishing the commission, as prescribed. The bill would also provide for the suspension of the operation of the commission and for concluding the operation of the commission under certain circumstances. The bill would authorize the commission to levy a civil penalty, as specified, on a person for willfully rendering or furnishing false reports, secreting, destroying, or altering records, failing to render or furnish a report, or failing or refusing to furnish to the commission information concerning the name and address of persons from whom agave is received and the quantity received. The bill would authorize the commission to bring certain civil actions to enforce the bills provisions.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
Under existing law, the Legislature finds and declares that the agricultural and seafood industries are vitally important elements of the states economy. Existing law provides for various commissions and councils to promote the marketing and production of agricultural or seafood commodities.
This bill would create the California Agave Commission in the state government with a prescribed membership, and would specify the powers, duties, and responsibilities of the commission commissions board of directors. The bill would authorize commission the commissions board of directors to, among other things, conduct research for specified purposes. The bill would authorize the commission to levy an annual assessment on growers and processors, as defined, and would authorize the commission to expend revenues from those assessments and all other funds moneys received by the commission, including from penalties for failing to pay the assessment and the civil penalties described below, for purposes of implementing the bill, thereby making an appropriation.
The bill would provide that the commission would not be established, and these provisions would not be implemented, except as necessary to conduct an election, until the growers and processors of agave vote in favor of the bills provisions, establishing the commission, as prescribed. The bill would also provide for the suspension of the operation of the commission and for concluding the operation of the commission under certain circumstances. The bill would authorize the commission to levy a civil penalty, as specified, on a person for willfully rendering or furnishing false reports, secreting, destroying, or altering records, failing to render or furnish a report, or failing or refusing to furnish to the commission information concerning the name and address of persons from whom agave is received. received and the quantity received. The bill would authorize the commission to bring certain civil actions to enforce the bills provisions.
Under existing law, the Legislature finds and declares that the agricultural and seafood industries are vitally important elements of the states economy. Existing law provides for various commissions and councils to promote the marketing and production of agricultural or seafood commodities.
This bill would create the California Agave Commission in the state government with a prescribed membership, and would specify the powers, duties, and responsibilities of the commission board of directors. The bill would authorize commission board of directors to, among other things, conduct research for specified purposes. The bill would authorize the commission to levy an annual assessment on growers and processors, as defined, and would authorize the commission to expend those assessments and all other funds received by the commission, including penalties for failing to pay the assessment and the civil penalties described below, for purposes of implementing the bill, thereby making an appropriation.
The bill would provide that the commission would not be established, and these provisions would not be implemented, except as necessary to conduct an election, until the growers and processors of agave vote in favor of the bills provisions, as prescribed. The bill would also provide for the suspension of the operation of the commission and for concluding the operation of the commission under certain circumstances. The bill would authorize the commission to levy a civil penalty, as specified, on a person for rendering or furnishing false reports, secreting, destroying, or altering records, failing to furnish a report, or failing or refusing to furnish to the commission information concerning the name and address of persons from whom agave is received. The bill would authorize the commission to bring certain civil actions to enforce the bills provisions.
The cultivation of agave for processing into agave products and the marketing of agave and agave products constitute an important industry of this state, which provides substantial and necessary revenues for the state and employment for its residents.
79912.The cultivation of agave in California is consistent with and supportive of Californias environmentally sensitive policies relating to sustainable farming practices, including water conservation, through the cultivation of drought tolerant crops.
79913.The establishment of the commission is necessary for the efficient management of activities authorized in this chapter. The commission is also necessary to enhance the competitiveness of the industry within the state, national, and international marketplace.
79914.The purposes of this chapter are hereby declared to be in the public interest. This chapter is enacted in the exercise of the police power of this state for the purpose of protecting the health, peace, safety, and general welfare of the people of this state.
79915.The commission form of administration created by this chapter is uniquely situated to provide those engaged in the activities specified in this chapter the opportunity to avail themselves of the benefits of collective action in the broad fields of research, education, promotion, and marketing.
79916.No action taken by the commission, or by any individual in accordance with this chapter or with bylaws or procedures established pursuant to this chapter, shall be deemed a violation of the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), the Unfair Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of the Business and Professions Code), or any statutory or common law against monopolies or combinations in restraint of trade.
79917.It is the intent of the Legislature that members of the commission represent and further the interests of the agave industry and that this representation and furtherance serve the public interest. Accordingly, the Legislature finds that with respect to persons who are elected or appointed to the commission, the agave industry is tantamount to, and constitutes, the public generally within the meaning of Section 87103 of the Government Code.
2.Definitions79921.Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.
79922.(a)Agave means the species of plants in the genus Agave of the family Asparagaceae cultivated for their juice and fiber.
(b)Agave cultivated solely for ornamental purposes is not subject to this chapter.
79923.Books and records means books, records, contracts, documents, memoranda, papers, correspondence, or other written data pertaining to matters relating to the activities subject to this chapter.
79924.Commission means the California Agave Commission.
79925.Cultivate or cultivated means to plant, tend, harvest, or improve agave. Cultivated acreage does not include acreage removed from cultivation due to weather, disease, or other circumstances beyond the control of the grower.
79926.Ex officio members means nonvoting members of the commission board of directors.
79927.Grower means a person who commercially cultivates agave, or causes agave to be cultivated, not in a container and on two acres or more during the marketing season.
79928.Market or marketing means to sell agave and agave products into commercial channels of trade.
79929.Marketing season or fiscal year are synonymous terms and mean the period beginning April 1 of any year and extending through March 31 of the following year.
79930.Process or processing means to engage in the business of a processor.
79931.(a)Processor means a person licensed to commercially process agave and who processes agave in an amount of more than three tons in the state in the preceding marketing season.
(b)When the processor is a corporation or a limited liability company, all of the directors, officers, managers, and members of the corporation or limited liability company shall be treated as individuals when determining compliance with this chapter.
79932.Public member means a person appointed to the commission board of directors pursuant to the procedures specified in this chapter.
79933.Secretary means the Secretary of Food and Agriculture.
3.California Agave Commission79936.(a)There is in state government the California Agave Commission. Except as provided in this section, the commission board of directors shall be composed of six growers, two processors, and one public member. The public member shall be appointed to the commission by the secretary from nominees recommended by the commission.
(b)The commission board of directors may modify the number of members who serve on the commission board of directors by a two-thirds vote that is concurred in by the secretary, if proper notice is provided to all persons subject to this chapter before the action.
(c)The secretary and other appropriate persons, as determined by the commission, shall be ex officio members of the commission.
79937.(a)The secretary may require the commission to correct or cease any existing activity or function that is determined by the secretary to not be in the public interest or to be in violation of this chapter.
(b)If the commission refuses or fails to cease those activities or functions or to make corrections as required by the secretary, the secretary may, upon written notice, suspend all or a portion of the activities or functions of the commission until the cessation or correction of activities or functions as required by the secretary have been accomplished by the commission.
(c)Actions of the commission in violation of the secretarys written notice shall be without legal force or effect. The secretary, to the extent feasible, shall issue the written notice before the commission enters into a contractual relationship affecting the existing or proposed activities or functions that are the subject of the written notice.
(d)Upon service of the written notice, the secretary shall notify the commission in writing of the specific acts that the secretary determines are not in the public interest or are in violation of this chapter, and the secretarys reasons for requiring a cessation or correction of specific existing or proposed activities or functions, and may make recommendations that will make those activities or functions acceptable to the secretary.
79938.The commission or the secretary may bring an action for judicial relief from the secretarys written notice, or from noncompliance by the commission with the written notice, in a court of competent jurisdiction, which may issue a temporary restraining order, permanent injunction, or other applicable relief.
79939.The commission shall reimburse the secretary for all expenditures incurred by the secretary in carrying out their duties and responsibilities under this chapter. However, a court may, if it finds that the secretary acted arbitrarily or capriciously in restricting the activities or functions of the commission, relieve the commission of the responsibility for payment of the secretarys legal costs with regard to that action.
79940.Except for the ex officio members of the commission board of directors, each member of the commission board of directors shall have an alternate member elected in the same manner as the member. An alternate member, in the absence of the member for whom they are an alternate, shall serve in place of the member. An alternate member may also serve in place of any other absent member of the same classification if the members alternate is also absent. However, an alternate member may not serve in place of more than one absent member at a meeting. An alternate member serving in place of a member shall have, and may exercise, all rights, privileges, and powers of the member when serving. In the event of death, removal, resignation, or the disqualification of a member, the alternate for the member, or another alternate of the same classification if the alternate member for the member is absent, shall act as the member until a qualified successor is elected.
79941.Any vacancy on the commission board of directors, including, but not limited to, the failure of any person elected or appointed to the commission board of directors as a member or alternate member to continue in their position due to a change in status making them ineligible to serve, or due to death, removal, or resignation, shall be filled by the election of another person, or appointment in the case of a public member, for the unexpired portion of the term, with elected positions to be filled by a majority vote of the commission board of directors. However, the person elected or appointed shall fulfill all the qualifications set forth in this article as required for the office they are to occupy. The qualifications of any person to fill a vacancy shall be certified in writing to the secretary. The secretary shall notify the commission if the secretary determines that the person is not qualified.
79942.A grower member and their alternate on the commission board of directors shall be an individual, partner, or employee of a grower who has a financial interest in cultivating agave, or causing agave to be cultivated. The grower member and their alternate shall comply with this section during the entire term of their office in order to remain on the commission board of directors.
79943.A processor member and their alternate on the commission board of directors shall be an individual, partner, or employee of a processor who has a financial interest in processing agave, or causing agave to be processed. The processor member and their alternate shall comply with this section during the entire term of their office in order to remain on the commission board of directors.
79944.The public member and their alternate on the commission board of directors shall have all the powers, rights, and privileges of any other member on the commission board of directors. The public member shall not have any financial interest in the cultivating or processing of agave or the marketing of agave products but may be an individual who provides services to individuals who do have a financial interest. The public member and their alternate shall comply with this section during the entire term of their office.
79945.(a)The term of office of each member of the commission board of directors and their alternate, except an ex officio member, shall be three years from the date of their election or appointment and until their successor is elected.
(b)An alternate shall serve the same term as the member for whom they serve as alternate.
79946.The commission may sue and be sued and enter into contracts. Copies of its proceedings, records, and acts, when authenticated, shall be admissible in evidence in all courts of the state, and shall be prima facie evidence of the truth of all statements within the proceedings, records, and acts.
79947.A quorum of the commission board of directors is a majority of the members authorized to vote. Except as otherwise provided in this chapter, the vote of a majority of these members present at a meeting at which there is a quorum shall constitute an act of the commission.
79948.The secretary or their representatives shall be notified and may attend each meeting of the commission board of directors and any meetings of a committee established by the commission, except the secretary is not authorized to attend an executive session of the commission board of directors called for the purpose of discussing potential or actual litigation against the department.
79949.A member of the commission board of directors or of any committee established by the commission, shall not receive a salary. Except for ex officio government members, members and alternates may receive reasonable and necessary traveling expenses and meal allowances, as established by the commission board of directors, for each day spent in actual attendance at, or in traveling to and from, meetings of the commission or committees of the commission, or on special assignment for the commission.
79950.If the secretary is required to concur in a decision of the commission, the secretary shall indicate their response within 15 working days from notification of the decision. The response may be a request that additional information be provided.
79951.All moneys received by a person from assessments levied under the authority of this chapter or otherwise received by the commission shall be deposited into banks designated by the commission board of directors and shall be disbursed by order of the commission board of directors through an agent or agents designated for that purpose. Any authorized agent or agents shall be bonded by a fidelity bond, executed by a surety company authorized to transact business in the state, in favor of the commission, in the amount of not less than twenty-five thousand dollars ($25,000).
79952.The state shall not be liable for the acts of the commission or its contracts. Payments of all claims arising by reason of the administration of this chapter or acts of the commission shall be limited to the funds collected by the commission. Members and alternate members of the commission board of directors, employees, and agents of the commission shall not be personally liable for the contracts of the commission, and members and alternate members of the commission board of directors and employees of the commission shall not be responsible individually in any way to a grower, processor, or any other person for error in judgment, mistakes, or other acts, either of commission or omission, as principal, agent, or employee, except for their own individual acts of dishonesty or crime. Members and alternate members of the commission board of directors shall not be held responsible individually for any act or omission of any other member or alternate member. The liability of the members and alternate members of the commission board of directors shall be several and not joint, and a member or alternate member shall not be liable for the default of any other member or alternate member.
4.Powers and Duties79956.The powers and duties of the commission board of directors shall include, but are not limited to, all of the following:
(a)Adopt and from time to time alter, rescind, modify, and amend bylaws and procedures for carrying out this chapter, including procedures for related appeals. These actions shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(b)Administer and enforce this chapter and perform all acts and exercise all powers incidental to, or in connection with, or determined reasonably necessary for, proper or advisable effectuation of the purposes of this chapter.
(c)Appoint officers from the members of the commission board of directors, including a chair, one or more vice chairs, and any other officers as it determines necessary. The officers shall have the powers and duties delegated to them by the commission board of directors.
(d)Employ a person to serve at the pleasure of the commission as president and chief executive officer, and other personnel, including legal counsel, necessary to carry out this chapter. Alternatively, the commission may retain a management firm or staff from any board, commission, or committee of the state to perform the functions prescribed by this subdivision under control of the commission board of directors. If a person subject to this subdivision engages in conduct that the secretary determines to be in violation of this chapter, or is not in the public interest, the secretary shall notify the commission of the conduct and request that corrective, and if appropriate, disciplinary action, be taken by the commission board of directors. If the commission board of directors fails or refuses to correct the situation or to take disciplinary action satisfactory to the secretary, the secretary may suspend or discharge the person subject to this subdivision.
(e)Fix the compensation for all employees.
(f)Appoint committees composed of members, alternates, and nonmembers of the commission board of directors to advise in carrying out this chapter.
(g)Establish offices and incur expenses, invest funds, enter into contracts and agreements, and create liabilities and borrow funds in advance of receipt of assessments as determined necessary for the proper administration and enforcement of this chapter and the performance of its duties.
(h)Keep accurate books, records, and accounts of all of its dealings, which shall be subject to an annual audit by an auditing firm selected by the commission board of directors with the concurrence of the secretary. The audit shall be made a part of an annual report to all growers and processors subject to this chapter, and, notwithstanding Sections 9795 and 10231.5 of the Government Code, copies of the audit shall be submitted to the Legislature and the department. In addition, the secretary may, as they determine necessary, conduct, or cause to be conducted, a fiscal and compliance audit of the commission.
(i)Present facts to, and negotiate with, state, federal, and foreign agencies on matters that affect the purposes of this chapter.
(j)Make, in the name of the commission, contracts to render service in formulating and conducting plans and programs, and any other contracts or agreements determined to be necessary for the purposes specified in this chapter.
(k)Conduct, and contract with others to conduct, research, including the study, analysis, dissemination, and accumulation of information obtained from research or elsewhere for purposes described in this chapter that is primarily for the benefit of growers and processors. In connection with the research, accept contributions of, or to match, private, state, or federal funds that may be available for these purposes, and to employ or make contributions of funds to other persons or state or federal agencies conducting the research.
(l)Collect information and publish and distribute to growers and processors, a bulletin or other communication for dissemination of information relating to this chapter.
(m)Establish an assessment rate to defray operating costs.
(n)Establish an annual budget according to accepted accounting practices. The budget shall be concurred in by the secretary before the disbursement of funds, except for disbursements made pursuant to subdivision (e).
(o)Submit to the secretary for their concurrence, an annual statement of contemplated activities authorized under this chapter.
(p)Investigate and prosecute civil violations of this chapter and file complaints with appropriate law enforcement agencies or officers for suspected criminal violations of this chapter.
(q)Prescribe the form and manner by which proponents and opponents of the commission may contact growers if all expenses associated with the contacts are paid in advance.
(r)Engage in communications with the public regarding activities authorized in this section.
(s)Conduct activities related to education, marketing, and promotion of agave and agave products.
5.Implementation and Voting Procedures79961.(a)No later than 90 days from the request of proponents of the commission, the secretary shall establish a list of growers and processors eligible to vote on the implementation of this chapter. The proponents shall provide the secretary with a list of growers and processors of agave to assist in identifying eligible voters. In establishing the list, the secretary shall require that (1) growers submit their names and mailing addresses and planted acreage, (2) processors submit their names and mailing addresses and the names and addresses of growers from whom agave is received, and the paid weight to the growers during the preceding marketing season. The request for the information shall be in writing. The information shall be filed with the secretary within 10 days following receipt of the written request for information.
(b)A grower or processor whose name does not appear on the secretarys list may have their name placed on the list by filing with the secretary a signed statement identifying themselves as a grower or processor. Failure to be on the list does not exempt the grower or processor from paying assessments under this chapter.
79962.The commission shall not be established, and this chapter shall not be implemented, except as necessary to conduct an implementation referendum vote, until the secretary finds all of the following in a referendum vote conducted by the secretary:
(a)At least 40 percent of the total number of growers from the list established by the secretary pursuant to this article participate, and that either of the following occurs:
(1)Sixty-five percent of the growers who voted in the referendum voted in favor of establishing the commission, and those growers cultivated a majority of the total quantity of agave cultivated in the preceding marketing season by all of the growers voting in the referendum.
(2)A majority of the growers who voted in the referendum voted in favor of establishing the commission, and those growers cultivated 65 percent or more of the total quantity of agave cultivated in the preceding marketing season by all of the growers voting in the referendum.
(b)At least 40 percent of the total number of processors from the list established by the secretary pursuant to this article participate, and that either of the following occurs:
(1)Sixty-five percent of the processors who voted in the referendum voted in favor of establishing the commission, and those processors processed a majority of the total quantity of agave processed in the preceding marketing season by all of the processors voting in the referendum.
(2)A majority of the processors who voted in the referendum voted in favor of establishing the commission, and those processors processed 65 percent or more of the total quantity of agave processed in the preceding marketing season by all of the processors voting in the referendum.
79963.The secretary shall establish a period in which to conduct the referendum that shall not be less than 10 days or more than 60 days in duration and may prescribe additional procedures necessary to conduct the referendum. If the initial period established is less than 60 days, the secretary may extend the period.
79964.Nonreceipt of a ballot shall not invalidate a referendum.
79965.If the secretary finds that a referendum vote in favor of establishing the commission has occurred, as provided in this article, the secretary shall certify the vote and give notice of the vote to growers and processors whose names and addresses are on file with the secretary.
79966.If the secretary finds that a referendum vote in favor of establishing the commission has not occurred, as provided in this article, the secretary shall certify the vote and declare this chapter inoperative. The secretary may conduct another implementation referendum vote one or more years after the previous vote has been taken.
79967.(a)Upon the establishment of the commission, the secretary shall contact growers and processors in a manner determined by the secretary for the purpose of nominating and electing persons to the commission board of directors.
(b)Subsequent to the first election of members of the commission board of directors, or appointment in cases of a public member, growers and processors shall be selected pursuant to nomination and election procedures established by the commission board of directors with the concurrence of the secretary.
79968.Before the referendum vote conducted by the secretary pursuant to this article, the proponents of the commission shall deposit with the secretary an amount of funds determined necessary by the secretary to defray the expenses of preparing the necessary lists and information and conducting the vote. Any funds not used for this purpose shall be returned to the proponents of the commission who deposited the funds with the secretary. Upon establishment of the commission, the commission board of directors may reimburse the proponents of the commission for any funds deposited with the secretary and for any legal expenses and costs incurred in establishing the commission.
6.Assessments and Records79971.(a)The commission board of directors shall, no later than the beginning of each marketing season, or as soon thereafter as possible, establish assessments to be paid by growers and processors for the marketing season.
(b)The assessment for growers that cultivate 2 to 10, inclusive, acres of agave for the marketing season shall not exceed one thousand dollars ($1,000) and may be levied using a sliding scale. The assessment for growers that cultivate more than 10 acres of agave for the marketing season shall not exceed fifty thousand dollars ($50,000) and may be levied using a sliding scale.
(c)The assessment for processors that process 3 to 10, inclusive, tons of agave for the marketing season shall not exceed one thousand dollars ($1,000) and may be levied using a sliding scale. The assessment for processors that process more than 10 tons of agave for the marketing season shall not exceed fifty thousand dollars ($50,000) and may be levied using a sliding scale.
(d)An assessment greater than the amounts established pursuant to this section shall not be charged unless it is approved in accordance with the voting requirements provided in Section 79962.
(e)The assessment shall not exceed the reasonable costs of achieving the purposes of this chapter.
79972.(a)Processors of agave shall keep a complete and accurate record of all agave processed by them with the names of the growers whose agave was processed.
(b)(1)Growers who process agave that they have cultivated shall keep a complete and accurate record of the agave processed.
(2)Growers shall, upon request of the commission, provide proof of commodity sale.
(c)The records described in subdivisions (a) and (b) shall contain information required by the commission. The records shall be preserved by growers and processors for a period of two years and shall be offered and submitted for inspection at any reasonable time upon written demand by the commission or its duly authorized agent.
79973.(a)All proprietary information obtained by the commission or the secretary from any source, including the names and addresses of growers and processors, shall be confidential and shall not be disclosed except if required by court order in a judicial proceeding.
(b)Information on volume shipments and any other related information that is required for reports to governmental agencies, financial reports to the commission on aggregate sales and inventory information, and any other information that gives only totals, but excludes individual information, may be disclosed by the commission.
79974.Growers and processors of agave that pay the assessment shall be trustees of the assessed funds until they are paid to the commission at the time and in the manner prescribed by the commission board of directors. Growers who process agave that they have cultivated shall be responsible for paying both assessments directly to the commission at the time and in the manner prescribed by the commission board of directors.
79975.Every grower and processor shall be personally liable for the payment of the assessments owed to the commission.
7.Actions and Penalties79981.(a)A person who fails to file a return or pay an assessment within the time required by the commission shall pay to the commission a penalty of 10 percent of the amount of the assessment determined to be past due and, in addition, interest on the unpaid balance at the rate of 1.5 percent per month.
(b)In addition to any other penalty imposed, the commission may require a person who fails to pay an assessment or related charge pursuant to this chapter to furnish and maintain a surety bond in a form and amount and for a period of time specified by the commission board of directors as assurance that all payments to the commission will be made when due.
79982.A civil penalty not exceeding one thousand dollars ($1,000) may be levied by the commission on any person who does any of the following:
(a)Willfully render or furnish a false report, statement, or record required by the commission, or in any way avoids the payment of an assessment.
(b)Fail to render or furnish a report, statement, or record required by the commission.
(c)When engaged in cultivating agave for processing into agave products, fails or refuses to furnish to the commission or its duly authorized agents, upon request, information concerning the name and address of the persons from whom agave was received and the quantity received.
(d)Secrete, destroy, or alter records required to be kept by this chapter.
79983.For purposes of according individuals aggrieved by its actions or determinations, the commission board of directors shall establish procedures for an informal hearing before the commission or before a committee of the commission established for this purpose. Appeals from the decision of the commission board of directors may be made to the secretary. The determination of the secretary shall be subject to judicial review upon petition filed with the appropriate superior court.
79984.(a)The commission may commence civil actions and use all remedies provided in law or equity for the collection of assessments and civil penalties, and for obtaining injunctive relief or specific performance, relating to this chapter and the procedures adopted under this chapter. A court shall issue to the commission any requested writ of attachment or injunctive relief upon a prima facie showing by verified complaint that a named defendant has violated this chapter or any other procedures of the commission, including, but not limited to, the nonpayment of assessments. A bond shall not be required to be posted by the commission as a condition for the issuance of any writ of attachment or injunctive relief.
(b)A writ of attachment shall be issued pursuant to Chapter 5 (commencing with Section 485.010) of Title 6.5 of Part 2 of the Code of Civil Procedure, except that the showing specified in Section 485.010 is not required. Injunctive relief shall be issued pursuant to Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure, except that the showing of irreparable harm or of inadequate remedy at law specified by Section 526 or 527 is not required.
(c)Upon entry of any final judgment on behalf of the commission against any defendant, the court shall enjoin the defendant from conducting any type of business regarding the cultivating or processing of agave until there is full compliance with, and satisfaction of, the judgment.
(d)Upon a favorable judgment for the commission, the court may order that the commission be reimbursed for reasonable attorneys fees and other related costs actually incurred. Venue for these actions is at the domicile or place of business of the defendant or in the county of the principal office of the commission. The commission may be sued only in the county of its principal office.
79985.Any action by the commission for any penalty or other remedy that is prescribed under this chapter shall be commenced within two years from the date of discovery of the alleged violation. An action against the commission by a person shall be commenced within two years from the date of the alleged violation.
79986.The commission shall not be required to allege or prove that an adequate remedy at law does not exist in any action brought pursuant to this chapter.
79987.(a)This chapter shall be liberally construed.
(b)The provisions of this chapter are severable. If any provision of this chapter or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
79988.The termination of the operation of the commission and the implementation of this chapter shall not affect or waive any right, duty, obligation, or liability that has arisen or that may thereafter arise in connection with this chapter, release or extinguish any violation of this chapter, or affect or impair any right or remedies of the commission with respect to any violation.
8.Continuation or Suspension and Termination79991.(a)Five years after implementation of this chapter, the secretary shall hold a public hearing, after providing proper notice to persons subject to this chapter and any other persons or entities who have requested, in writing, notice of the hearing, to determine whether the commission shall continue to operate and this chapter shall continue to be implemented.
(b)If the secretary finds after the hearing that no substantial question exists among the growers and processors assessed pursuant to this chapter regarding whether the commission shall continue to operate, the secretary shall certify the finding and this chapter shall continue to be implemented.
(c)If the secretary finds after the hearing that a substantial question exists among the growers and processors assessed pursuant to this chapter regarding whether the commission shall continue to operate, the secretary shall conduct a referendum among growers and processors to determine whether the operation of the commission shall be terminated, in accordance with both of the following:
(1)The commission shall continue to operate unless the secretary determines from the referendum that a majority of the eligible growers and a majority of the eligible processors voting in the referendum voted in favor of terminating the commission.
(2)If the secretary finds that a vote to terminate the operation of the commission has been given, the secretary shall certify the vote and declare the implementation of this chapter is suspended upon the expiration of the current marketing season. Thereupon, the operation of the commission shall be concluded and funds distributed in the manner provided in Section 79994. A bond or security shall not be required for the referendum.
79992.Following a hearing, or a referendum resulting in a vote to continue the operation of the commission if required, the process specified in Section 79991 shall be conducted by the secretary every five years thereafter between April 1 and March 31 of the following year, unless a referendum is conducted as the result of a petition pursuant to Section 79993. In that case, the hearing, and referendum if required, shall be conducted every five years following the industry petitioned referendum.
79993.(a)Upon a finding by a two-thirds vote of the commission board of directors that the commission has not tended to effectuate its declared purposes, the commission may recommend to the secretary that the operation of the commission be suspended. Any suspension shall not become effective until expiration of the current marketing season.
(b)(1)The secretary shall, upon receipt of a recommendation, or may, after a public hearing to review a petition described in paragraph (2) requesting the suspension, cause a referendum to be conducted among the listed growers and processors to determine if the operation of the commission shall be suspended. The secretary shall not hold a referendum as a result of a petition described in paragraph (2) unless the petitioner shows by the weight of evidence that the implementation of this chapter has not effectuated its declared purposes.
(2)A petition filed requesting suspension of the operation of the commission shall be signed by at least 15 percent of the growers and at least 15 percent of the processors, by number, who also cultivate and process at least 15 percent of the total volume of agave in the preceding marketing season.
(c)The secretary shall establish a referendum period, which shall not be less than 10 days or more than 60 days in duration. The secretary may prescribe additional procedures necessary to conduct the referendum. At the close of the established referendum period, the secretary shall tabulate the ballots filed during the period. The secretary shall suspend the operation of the commission if the secretary finds both of the following:
(1)At least 40 percent of the total number of growers from the list established by the secretary participate, and that either of the following occurs:
(A)Sixty-five percent of the growers that voted in the referendum voted in favor of suspension, and the growers so voting grew a majority of the total quantity of agave cultivated in the preceding marketing season by all of the growers voting in the referendum.
(B)A majority of the growers that voted in the referendum voted in favor of suspension, and the growers so voting grew 65 percent or more of the total quantity of agave cultivated in the preceding marketing season by all of the growers voting in the referendum.
(2)At least 40 percent of the total number of processors from the list established by the secretary participate, and that either of the following occurs:
(A)Sixty-five percent of the processors that voted in the referendum voted in favor of suspension, and the processors so voting processed a majority of the total quantity of agave processed in the preceding marketing season by all of the processors voting in the referendum.
(B)A majority of the processors that voted in the referendum voted in favor of suspension, and the processors so voting processed 65 percent or more of the total quantity of agave processed in the preceding marketing season by all of the processors voting in the referendum.
79994.After the effective date of suspension of the operation of the commission, the operation of the commission shall be concluded and all moneys held by the commission, and moneys collected by assessment and not required to defray the expenses of concluding and terminating the operation of the commission, shall be returned on a pro rata basis to all persons from whom assessments were collected in the immediately preceding marketing season. However, if the commission board of directors finds that the amounts returnable are so small as to make impractical the computation and remitting of the pro rata refund to those persons, any moneys remaining after payment of all expenses of winding up and terminating the operation shall be withdrawn from the approved depository and paid into a related state or federal program or used to fund activities related to the subject matter of this chapter.
79995.Upon suspension of the operation of the commission, the commission shall mail a copy of the notice of suspension to growers and processors affected by the suspension whose names and addresses are on file.
SEC. 2.The Legislature finds and declares that Section 1 of this act, which adds Chapter 30 (commencing with Section 79911) to Part 2 of Division 22 of the Food and Agricultural Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
In order to protect confidential and proprietary information provided to the California Agave Commission by growers and processors, the limitations on the publics right of access imposed by Section 1 of this act are necessary.
The cultivation of agave for processing into agave products and the marketing of agave and agave products constitute an important industry of this state, which provides substantial and necessary revenues for the state and employment for its residents.
79912.The cultivation of agave in California is consistent with and supportive of Californias environmentally sensitive policies relating to sustainable farming practices, including water conservation, through the cultivation of drought tolerant crops.
79913.The establishment of the commission is necessary for the efficient management of activities authorized in this chapter. The commission is also necessary to enhance the competitiveness of the industry within the state, national, and international marketplace.
79914.The purposes of this chapter are hereby declared to be in the public interest. This chapter is enacted in the exercise of the police power of this state for the purpose of protecting the health, peace, safety, and general welfare of the people of this state.
79915.The commission form of administration created by this chapter is uniquely situated to provide those engaged in the activities specified in this chapter the opportunity to avail themselves of the benefits of collective action in the broad fields of research, education, promotion, and marketing.
79916.No action taken by the commission, or by any individual in accordance with this chapter or with bylaws or procedures established pursuant to this chapter, shall be deemed a violation of the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), the Unfair Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of the Business and Professions Code), or any statutory or common law against monopolies or combinations in restraint of trade.
79917.It is the intent of the Legislature that members of the commission represent and further the interests of the agave industry and that this representation and furtherance serve the public interest. Accordingly, the Legislature finds that with respect to persons who are elected or appointed to the commission, the agave industry is tantamount to, and constitutes, the public generally within the meaning of Section 87103 of the Government Code.
2.Definitions79921.Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.
79922.(a)Agave means the species of plants in the genus Agave of the family Asparagaceae cultivated for their juice and fiber.
(b)Agave cultivated solely for ornamental purposes is not subject to this chapter.
79923.Books and records means books, records, contracts, documents, memoranda, papers, correspondence, or other written data pertaining to matters relating to the activities subject to this chapter.
79924.Commission means the California Agave Commission.
79925.Cultivate or cultivated means to plant, tend, harvest, or improve agave. Cultivated acreage does not include acreage removed from cultivation due to weather, disease, or other circumstances beyond the control of the grower.
79926.Ex officio members means nonvoting members of the commission board of directors.
79927.Grower means a person who commercially cultivates agave, or causes agave to be cultivated, not in a container and on two acres or more during the marketing season.
79928.Market or marketing means to sell agave and agave products into commercial channels of trade.
79929.Marketing season or fiscal year are synonymous terms and mean the period beginning April 1 of any year and extending through March 31 of the following year.
79930.Process or processing means to engage in the business of a processor.
79931.(a)Processor means a person licensed to commercially process agave and who processes agave in an amount of more than three tons in the state in the preceding marketing season.
(b)When the processor is a corporation or a limited liability company, all of the directors, officers, managers, and members of the corporation or limited liability company shall be treated as individuals when determining compliance with this chapter.
79932.Public member means a person appointed to the commission board of directors pursuant to the procedures specified in this chapter.
79933.Secretary means the Secretary of Food and Agriculture.
3.California Agave Commission79936.(a)There is in state government the California Agave Commission. Except as provided in this section, the commission board of directors shall be composed of six growers, two processors, and one public member. The public member shall be appointed to the commission by the secretary from nominees recommended by the commission.
(b)The commission board of directors may modify the number of members who serve on the commission board of directors by a two-thirds vote that is concurred in by the secretary, if proper notice is provided to all persons subject to this chapter before the action.
(c)The secretary and other appropriate persons, as determined by the commission, shall be ex officio members of the commission.
79937.(a)The secretary may require the commission to correct or cease any existing activity or function that is determined by the secretary to not be in the public interest or to be in violation of this chapter.
(b)If the commission refuses or fails to cease those activities or functions or to make corrections as required by the secretary, the secretary may, upon written notice, suspend all or a portion of the activities or functions of the commission until the cessation or correction of activities or functions as required by the secretary have been accomplished by the commission.
(c)Actions of the commission in violation of the secretarys written notice shall be without legal force or effect. The secretary, to the extent feasible, shall issue the written notice before the commission enters into a contractual relationship affecting the existing or proposed activities or functions that are the subject of the written notice.
(d)Upon service of the written notice, the secretary shall notify the commission in writing of the specific acts that the secretary determines are not in the public interest or are in violation of this chapter, and the secretarys reasons for requiring a cessation or correction of specific existing or proposed activities or functions, and may make recommendations that will make those activities or functions acceptable to the secretary.
79938.The commission or the secretary may bring an action for judicial relief from the secretarys written notice, or from noncompliance by the commission with the written notice, in a court of competent jurisdiction, which may issue a temporary restraining order, permanent injunction, or other applicable relief.
79939.The commission shall reimburse the secretary for all expenditures incurred by the secretary in carrying out their duties and responsibilities under this chapter. However, a court may, if it finds that the secretary acted arbitrarily or capriciously in restricting the activities or functions of the commission, relieve the commission of the responsibility for payment of the secretarys legal costs with regard to that action.
79940.Except for the ex officio members of the commission board of directors, each member of the commission board of directors shall have an alternate member elected in the same manner as the member. An alternate member, in the absence of the member for whom they are an alternate, shall serve in place of the member. An alternate member may also serve in place of any other absent member of the same classification if the members alternate is also absent. However, an alternate member may not serve in place of more than one absent member at a meeting. An alternate member serving in place of a member shall have, and may exercise, all rights, privileges, and powers of the member when serving. In the event of death, removal, resignation, or the disqualification of a member, the alternate for the member, or another alternate of the same classification if the alternate member for the member is absent, shall act as the member until a qualified successor is elected.
79941.Any vacancy on the commission board of directors, including, but not limited to, the failure of any person elected or appointed to the commission board of directors as a member or alternate member to continue in their position due to a change in status making them ineligible to serve, or due to death, removal, or resignation, shall be filled by the election of another person, or appointment in the case of a public member, for the unexpired portion of the term, with elected positions to be filled by a majority vote of the commission board of directors. However, the person elected or appointed shall fulfill all the qualifications set forth in this article as required for the office they are to occupy. The qualifications of any person to fill a vacancy shall be certified in writing to the secretary. The secretary shall notify the commission if the secretary determines that the person is not qualified.
79942.A grower member and their alternate on the commission board of directors shall be an individual, partner, or employee of a grower who has a financial interest in cultivating agave, or causing agave to be cultivated. The grower member and their alternate shall comply with this section during the entire term of their office in order to remain on the commission board of directors.
79943.A processor member and their alternate on the commission board of directors shall be an individual, partner, or employee of a processor who has a financial interest in processing agave, or causing agave to be processed. The processor member and their alternate shall comply with this section during the entire term of their office in order to remain on the commission board of directors.
79944.The public member and their alternate on the commission board of directors shall have all the powers, rights, and privileges of any other member on the commission board of directors. The public member shall not have any financial interest in the cultivating or processing of agave or the marketing of agave products but may be an individual who provides services to individuals who do have a financial interest. The public member and their alternate shall comply with this section during the entire term of their office.
79945.(a)The term of office of each member of the commission board of directors and their alternate, except an ex officio member, shall be three years from the date of their election or appointment and until their successor is elected.
(b)An alternate shall serve the same term as the member for whom they serve as alternate.
79946.The commission may sue and be sued and enter into contracts. Copies of its proceedings, records, and acts, when authenticated, shall be admissible in evidence in all courts of the state, and shall be prima facie evidence of the truth of all statements within the proceedings, records, and acts.
79947.A quorum of the commission board of directors is a majority of the members authorized to vote. Except as otherwise provided in this chapter, the vote of a majority of these members present at a meeting at which there is a quorum shall constitute an act of the commission.
79948.The secretary or their representatives shall be notified and may attend each meeting of the commission board of directors and any meetings of a committee established by the commission, except the secretary is not authorized to attend an executive session of the commission board of directors called for the purpose of discussing potential or actual litigation against the department.
79949.A member of the commission board of directors or of any committee established by the commission, shall not receive a salary. Except for ex officio government members, members and alternates may receive reasonable and necessary traveling expenses and meal allowances, as established by the commission board of directors, for each day spent in actual attendance at, or in traveling to and from, meetings of the commission or committees of the commission, or on special assignment for the commission.
79950.If the secretary is required to concur in a decision of the commission, the secretary shall indicate their response within 15 working days from notification of the decision. The response may be a request that additional information be provided.
79951.All moneys received by a person from assessments levied under the authority of this chapter or otherwise received by the commission shall be deposited into banks designated by the commission board of directors and shall be disbursed by order of the commission board of directors through an agent or agents designated for that purpose. Any authorized agent or agents shall be bonded by a fidelity bond, executed by a surety company authorized to transact business in the state, in favor of the commission, in the amount of not less than twenty-five thousand dollars ($25,000).
79952.The state shall not be liable for the acts of the commission or its contracts. Payments of all claims arising by reason of the administration of this chapter or acts of the commission shall be limited to the funds collected by the commission. Members and alternate members of the commission board of directors, employees, and agents of the commission shall not be personally liable for the contracts of the commission, and members and alternate members of the commission board of directors and employees of the commission shall not be responsible individually in any way to a grower, processor, or any other person for error in judgment, mistakes, or other acts, either of commission or omission, as principal, agent, or employee, except for their own individual acts of dishonesty or crime. Members and alternate members of the commission board of directors shall not be held responsible individually for any act or omission of any other member or alternate member. The liability of the members and alternate members of the commission board of directors shall be several and not joint, and a member or alternate member shall not be liable for the default of any other member or alternate member.
4.Powers and Duties79956.The powers and duties of the commission board of directors shall include, but are not limited to, all of the following:
(a)Adopt and from time to time alter, rescind, modify, and amend bylaws and procedures for carrying out this chapter, including procedures for related appeals. These actions shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(b)Administer and enforce this chapter and perform all acts and exercise all powers incidental to, or in connection with, or determined reasonably necessary for, proper or advisable effectuation of the purposes of this chapter.
(c)Appoint officers from the members of the commission board of directors, including a chair, one or more vice chairs, and any other officers as it determines necessary. The officers shall have the powers and duties delegated to them by the commission board of directors.
(d)Employ a person to serve at the pleasure of the commission as president and chief executive officer, and other personnel, including legal counsel, necessary to carry out this chapter. Alternatively, the commission may retain a management firm or staff from any board, commission, or committee of the state to perform the functions prescribed by this subdivision under control of the commission board of directors. If a person subject to this subdivision engages in conduct that the secretary determines to be in violation of this chapter, or is not in the public interest, the secretary shall notify the commission of the conduct and request that corrective, and if appropriate, disciplinary action, be taken by the commission board of directors. If the commission board of directors fails or refuses to correct the situation or to take disciplinary action satisfactory to the secretary, the secretary may suspend or discharge the person subject to this subdivision.
(e)Fix the compensation for all employees.
(f)Appoint committees composed of members, alternates, and nonmembers of the commission board of directors to advise in carrying out this chapter.
(g)Establish offices and incur expenses, invest funds, enter into contracts and agreements, and create liabilities and borrow funds in advance of receipt of assessments as determined necessary for the proper administration and enforcement of this chapter and the performance of its duties.
(h)Keep accurate books, records, and accounts of all of its dealings, which shall be subject to an annual audit by an auditing firm selected by the commission board of directors with the concurrence of the secretary. The audit shall be made a part of an annual report to all growers and processors subject to this chapter, and, notwithstanding Sections 9795 and 10231.5 of the Government Code, copies of the audit shall be submitted to the Legislature and the department. In addition, the secretary may, as they determine necessary, conduct, or cause to be conducted, a fiscal and compliance audit of the commission.
(i)Present facts to, and negotiate with, state, federal, and foreign agencies on matters that affect the purposes of this chapter.
(j)Make, in the name of the commission, contracts to render service in formulating and conducting plans and programs, and any other contracts or agreements determined to be necessary for the purposes specified in this chapter.
(k)Conduct, and contract with others to conduct, research, including the study, analysis, dissemination, and accumulation of information obtained from research or elsewhere for purposes described in this chapter that is primarily for the benefit of growers and processors. In connection with the research, accept contributions of, or to match, private, state, or federal funds that may be available for these purposes, and to employ or make contributions of funds to other persons or state or federal agencies conducting the research.
(l)Collect information and publish and distribute to growers and processors, a bulletin or other communication for dissemination of information relating to this chapter.
(m)Establish an assessment rate to defray operating costs.
(n)Establish an annual budget according to accepted accounting practices. The budget shall be concurred in by the secretary before the disbursement of funds, except for disbursements made pursuant to subdivision (e).
(o)Submit to the secretary for their concurrence, an annual statement of contemplated activities authorized under this chapter.
(p)Investigate and prosecute civil violations of this chapter and file complaints with appropriate law enforcement agencies or officers for suspected criminal violations of this chapter.
(q)Prescribe the form and manner by which proponents and opponents of the commission may contact growers if all expenses associated with the contacts are paid in advance.
(r)Engage in communications with the public regarding activities authorized in this section.
(s)Conduct activities related to education, marketing, and promotion of agave and agave products.
5.Implementation and Voting Procedures79961.(a)No later than 90 days from the request of proponents of the commission, the secretary shall establish a list of growers and processors eligible to vote on the implementation of this chapter. The proponents shall provide the secretary with a list of growers and processors of agave to assist in identifying eligible voters. In establishing the list, the secretary shall require that (1) growers submit their names and mailing addresses and planted acreage, (2) processors submit their names and mailing addresses and the names and addresses of growers from whom agave is received, and the paid weight to the growers during the preceding marketing season. The request for the information shall be in writing. The information shall be filed with the secretary within 10 days following receipt of the written request for information.
(b)A grower or processor whose name does not appear on the secretarys list may have their name placed on the list by filing with the secretary a signed statement identifying themselves as a grower or processor. Failure to be on the list does not exempt the grower or processor from paying assessments under this chapter.
79962.The commission shall not be established, and this chapter shall not be implemented, except as necessary to conduct an implementation referendum vote, until the secretary finds all of the following in a referendum vote conducted by the secretary:
(a)At least 40 percent of the total number of growers from the list established by the secretary pursuant to this article participate, and that either of the following occurs:
(1)Sixty-five percent of the growers who voted in the referendum voted in favor of establishing the commission, and those growers cultivated a majority of the total quantity of agave cultivated in the preceding marketing season by all of the growers voting in the referendum.
(2)A majority of the growers who voted in the referendum voted in favor of establishing the commission, and those growers cultivated 65 percent or more of the total quantity of agave cultivated in the preceding marketing season by all of the growers voting in the referendum.
(b)At least 40 percent of the total number of processors from the list established by the secretary pursuant to this article participate, and that either of the following occurs:
(1)Sixty-five percent of the processors who voted in the referendum voted in favor of establishing the commission, and those processors processed a majority of the total quantity of agave processed in the preceding marketing season by all of the processors voting in the referendum.
(2)A majority of the processors who voted in the referendum voted in favor of establishing the commission, and those processors processed 65 percent or more of the total quantity of agave processed in the preceding marketing season by all of the processors voting in the referendum.
79963.The secretary shall establish a period in which to conduct the referendum that shall not be less than 10 days or more than 60 days in duration and may prescribe additional procedures necessary to conduct the referendum. If the initial period established is less than 60 days, the secretary may extend the period.
79964.Nonreceipt of a ballot shall not invalidate a referendum.
79965.If the secretary finds that a referendum vote in favor of establishing the commission has occurred, as provided in this article, the secretary shall certify the vote and give notice of the vote to growers and processors whose names and addresses are on file with the secretary.
79966.If the secretary finds that a referendum vote in favor of establishing the commission has not occurred, as provided in this article, the secretary shall certify the vote and declare this chapter inoperative. The secretary may conduct another implementation referendum vote one or more years after the previous vote has been taken.
79967.(a)Upon the establishment of the commission, the secretary shall contact growers and processors in a manner determined by the secretary for the purpose of nominating and electing persons to the commission board of directors.
(b)Subsequent to the first election of members of the commission board of directors, or appointment in cases of a public member, growers and processors shall be selected pursuant to nomination and election procedures established by the commission board of directors with the concurrence of the secretary.
79968.Before the referendum vote conducted by the secretary pursuant to this article, the proponents of the commission shall deposit with the secretary an amount of funds determined necessary by the secretary to defray the expenses of preparing the necessary lists and information and conducting the vote. Any funds not used for this purpose shall be returned to the proponents of the commission who deposited the funds with the secretary. Upon establishment of the commission, the commission board of directors may reimburse the proponents of the commission for any funds deposited with the secretary and for any legal expenses and costs incurred in establishing the commission.
6.Assessments and Records79971.(a)The commission board of directors shall, no later than the beginning of each marketing season, or as soon thereafter as possible, establish assessments to be paid by growers and processors for the marketing season.
(b)The assessment for growers that cultivate 2 to 10, inclusive, acres of agave for the marketing season shall not exceed one thousand dollars ($1,000) and may be levied using a sliding scale. The assessment for growers that cultivate more than 10 acres of agave for the marketing season shall not exceed fifty thousand dollars ($50,000) and may be levied using a sliding scale.
(c)The assessment for processors that process 3 to 10, inclusive, tons of agave for the marketing season shall not exceed one thousand dollars ($1,000) and may be levied using a sliding scale. The assessment for processors that process more than 10 tons of agave for the marketing season shall not exceed fifty thousand dollars ($50,000) and may be levied using a sliding scale.
(d)An assessment greater than the amounts established pursuant to this section shall not be charged unless it is approved in accordance with the voting requirements provided in Section 79962.
(e)The assessment shall not exceed the reasonable costs of achieving the purposes of this chapter.
79972.(a)Processors of agave shall keep a complete and accurate record of all agave processed by them with the names of the growers whose agave was processed.
(b)(1)Growers who process agave that they have cultivated shall keep a complete and accurate record of the agave processed.
(2)Growers shall, upon request of the commission, provide proof of commodity sale.
(c)The records described in subdivisions (a) and (b) shall contain information required by the commission. The records shall be preserved by growers and processors for a period of two years and shall be offered and submitted for inspection at any reasonable time upon written demand by the commission or its duly authorized agent.
79973.(a)All proprietary information obtained by the commission or the secretary from any source, including the names and addresses of growers and processors, shall be confidential and shall not be disclosed except if required by court order in a judicial proceeding.
(b)Information on volume shipments and any other related information that is required for reports to governmental agencies, financial reports to the commission on aggregate sales and inventory information, and any other information that gives only totals, but excludes individual information, may be disclosed by the commission.
79974.Growers and processors of agave that pay the assessment shall be trustees of the assessed funds until they are paid to the commission at the time and in the manner prescribed by the commission board of directors. Growers who process agave that they have cultivated shall be responsible for paying both assessments directly to the commission at the time and in the manner prescribed by the commission board of directors.
79975.Every grower and processor shall be personally liable for the payment of the assessments owed to the commission.
7.Actions and Penalties79981.(a)A person who fails to file a return or pay an assessment within the time required by the commission shall pay to the commission a penalty of 10 percent of the amount of the assessment determined to be past due and, in addition, interest on the unpaid balance at the rate of 1.5 percent per month.
(b)In addition to any other penalty imposed, the commission may require a person who fails to pay an assessment or related charge pursuant to this chapter to furnish and maintain a surety bond in a form and amount and for a period of time specified by the commission board of directors as assurance that all payments to the commission will be made when due.
79982.A civil penalty not exceeding one thousand dollars ($1,000) may be levied by the commission on any person who does any of the following:
(a)Willfully render or furnish a false report, statement, or record required by the commission, or in any way avoids the payment of an assessment.
(b)Fail to render or furnish a report, statement, or record required by the commission.
(c)When engaged in cultivating agave for processing into agave products, fails or refuses to furnish to the commission or its duly authorized agents, upon request, information concerning the name and address of the persons from whom agave was received and the quantity received.
(d)Secrete, destroy, or alter records required to be kept by this chapter.
79983.For purposes of according individuals aggrieved by its actions or determinations, the commission board of directors shall establish procedures for an informal hearing before the commission or before a committee of the commission established for this purpose. Appeals from the decision of the commission board of directors may be made to the secretary. The determination of the secretary shall be subject to judicial review upon petition filed with the appropriate superior court.
79984.(a)The commission may commence civil actions and use all remedies provided in law or equity for the collection of assessments and civil penalties, and for obtaining injunctive relief or specific performance, relating to this chapter and the procedures adopted under this chapter. A court shall issue to the commission any requested writ of attachment or injunctive relief upon a prima facie showing by verified complaint that a named defendant has violated this chapter or any other procedures of the commission, including, but not limited to, the nonpayment of assessments. A bond shall not be required to be posted by the commission as a condition for the issuance of any writ of attachment or injunctive relief.
(b)A writ of attachment shall be issued pursuant to Chapter 5 (commencing with Section 485.010) of Title 6.5 of Part 2 of the Code of Civil Procedure, except that the showing specified in Section 485.010 is not required. Injunctive relief shall be issued pursuant to Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure, except that the showing of irreparable harm or of inadequate remedy at law specified by Section 526 or 527 is not required.
(c)Upon entry of any final judgment on behalf of the commission against any defendant, the court shall enjoin the defendant from conducting any type of business regarding the cultivating or processing of agave until there is full compliance with, and satisfaction of, the judgment.
(d)Upon a favorable judgment for the commission, the court may order that the commission be reimbursed for reasonable attorneys fees and other related costs actually incurred. Venue for these actions is at the domicile or place of business of the defendant or in the county of the principal office of the commission. The commission may be sued only in the county of its principal office.
79985.Any action by the commission for any penalty or other remedy that is prescribed under this chapter shall be commenced within two years from the date of discovery of the alleged violation. An action against the commission by a person shall be commenced within two years from the date of the alleged violation.
79986.The commission shall not be required to allege or prove that an adequate remedy at law does not exist in any action brought pursuant to this chapter.
79987.(a)This chapter shall be liberally construed.
(b)The provisions of this chapter are severable. If any provision of this chapter or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
79988.The termination of the operation of the commission and the implementation of this chapter shall not affect or waive any right, duty, obligation, or liability that has arisen or that may thereafter arise in connection with this chapter, release or extinguish any violation of this chapter, or affect or impair any right or remedies of the commission with respect to any violation.
8.Continuation or Suspension and Termination79991.(a)Five years after implementation of this chapter, the secretary shall hold a public hearing, after providing proper notice to persons subject to this chapter and any other persons or entities who have requested, in writing, notice of the hearing, to determine whether the commission shall continue to operate and this chapter shall continue to be implemented.
(b)If the secretary finds after the hearing that no substantial question exists among the growers and processors assessed pursuant to this chapter regarding whether the commission shall continue to operate, the secretary shall certify the finding and this chapter shall continue to be implemented.
(c)If the secretary finds after the hearing that a substantial question exists among the growers and processors assessed pursuant to this chapter regarding whether the commission shall continue to operate, the secretary shall conduct a referendum among growers and processors to determine whether the operation of the commission shall be terminated, in accordance with both of the following:
(1)The commission shall continue to operate unless the secretary determines from the referendum that a majority of the eligible growers and a majority of the eligible processors voting in the referendum voted in favor of terminating the commission.
(2)If the secretary finds that a vote to terminate the operation of the commission has been given, the secretary shall certify the vote and declare the implementation of this chapter is suspended upon the expiration of the current marketing season. Thereupon, the operation of the commission shall be concluded and funds distributed in the manner provided in Section 79994. A bond or security shall not be required for the referendum.
79992.Following a hearing, or a referendum resulting in a vote to continue the operation of the commission if required, the process specified in Section 79991 shall be conducted by the secretary every five years thereafter between April 1 and March 31 of the following year, unless a referendum is conducted as the result of a petition pursuant to Section 79993. In that case, the hearing, and referendum if required, shall be conducted every five years following the industry petitioned referendum.
79993.(a)Upon a finding by a two-thirds vote of the commission board of directors that the commission has not tended to effectuate its declared purposes, the commission may recommend to the secretary that the operation of the commission be suspended. Any suspension shall not become effective until expiration of the current marketing season.
(b)(1)The secretary shall, upon receipt of a recommendation, or may, after a public hearing to review a petition described in paragraph (2) requesting the suspension, cause a referendum to be conducted among the listed growers and processors to determine if the operation of the commission shall be suspended. The secretary shall not hold a referendum as a result of a petition described in paragraph (2) unless the petitioner shows by the weight of evidence that the implementation of this chapter has not effectuated its declared purposes.
(2)A petition filed requesting suspension of the operation of the commission shall be signed by at least 15 percent of the growers and at least 15 percent of the processors, by number, who also cultivate and process at least 15 percent of the total volume of agave in the preceding marketing season.
(c)The secretary shall establish a referendum period, which shall not be less than 10 days or more than 60 days in duration. The secretary may prescribe additional procedures necessary to conduct the referendum. At the close of the established referendum period, the secretary shall tabulate the ballots filed during the period. The secretary shall suspend the operation of the commission if the secretary finds both of the following:
(1)At least 40 percent of the total number of growers from the list established by the secretary participate, and that either of the following occurs:
(A)Sixty-five percent of the growers that voted in the referendum voted in favor of suspension, and the growers so voting grew a majority of the total quantity of agave cultivated in the preceding marketing season by all of the growers voting in the referendum.
(B)A majority of the growers that voted in the referendum voted in favor of suspension, and the growers so voting grew 65 percent or more of the total quantity of agave cultivated in the preceding marketing season by all of the growers voting in the referendum.
(2)At least 40 percent of the total number of processors from the list established by the secretary participate, and that either of the following occurs:
(A)Sixty-five percent of the processors that voted in the referendum voted in favor of suspension, and the processors so voting processed a majority of the total quantity of agave processed in the preceding marketing season by all of the processors voting in the referendum.
(B)A majority of the processors that voted in the referendum voted in favor of suspension, and the processors so voting processed 65 percent or more of the total quantity of agave processed in the preceding marketing season by all of the processors voting in the referendum.
79994.After the effective date of suspension of the operation of the commission, the operation of the commission shall be concluded and all moneys held by the commission, and moneys collected by assessment and not required to defray the expenses of concluding and terminating the operation of the commission, shall be returned on a pro rata basis to all persons from whom assessments were collected in the immediately preceding marketing season. However, if the commission board of directors finds that the amounts returnable are so small as to make impractical the computation and remitting of the pro rata refund to those persons, any moneys remaining after payment of all expenses of winding up and terminating the operation shall be withdrawn from the approved depository and paid into a related state or federal program or used to fund activities related to the subject matter of this chapter.
79995.Upon suspension of the operation of the commission, the commission shall mail a copy of the notice of suspension to growers and processors affected by the suspension whose names and addresses are on file.
SEC. 2.The Legislature finds and declares that Section 1 of this act, which adds Chapter 30 (commencing with Section 79911) to Part 2 of Division 22 of the Food and Agricultural Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
In order to protect confidential and proprietary information provided to the California Agave Commission by growers and processors, the limitations on the publics right of access imposed by Section 1 of this act are necessary.
The cultivation of agave for processing into agave products and the marketing of agave and agave products constitute an important industry of this state, which provides substantial and necessary revenues for the state and employment for its residents.
79912.The cultivation of agave in California is consistent with and supportive of Californias environmentally sensitive policies relating to sustainable farming practices, including water conservation, through the cultivation of drought tolerant crops.
79913.The establishment of the commission is necessary for the efficient management of activities authorized in this chapter. The commission is also necessary to enhance the competitiveness of the industry within the state, national, and international marketplace.
79914.The purposes of this chapter are hereby declared to be in the public interest. This chapter is enacted in the exercise of the police power of this state for the purpose of protecting the health, peace, safety, and general welfare of the people of this state.
79915.The commission form of administration created by this chapter is uniquely situated to provide those engaged in the activities specified in this chapter the opportunity to avail themselves of the benefits of collective action in the broad fields of research, education, promotion, and marketing.
79916.No action taken by the commission, or by any individual in accordance with this chapter or with bylaws or procedures established pursuant to this chapter, shall be deemed a violation of the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), the Unfair Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of the Business and Professions Code), or any statutory or common law against monopolies or combinations in restraint of trade.
79917.It is the intent of the Legislature that members of the commission represent and further the interests of the agave industry and that this representation and furtherance serve the public interest. Accordingly, the Legislature finds that with respect to persons who are elected or appointed to the commission, the agave industry is tantamount to, and constitutes, the public generally within the meaning of Section 87103 of the Government Code.
2.Definitions79921.Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.
79922.(a)Agave means the species of plants in the genus Agave of the family Aparagaceae Asparagaceae cultivated for their juice and fiber.
(b)Agave cultivated solely for ornamental purposes is not subject to this chapter.
79923.Books and records means books, records, contracts, documents, memoranda, papers, correspondence, or other written data pertaining to matters relating to the activities subject to this chapter.
79924.Commission means the California Agave Commission.
79925.Cultivate or cultivated means to plant, tend, harvest, or improve agave. Cultivated acreage does not include acreage removed from cultivation due to weather, disease, or other circumstances beyond the control of the grower.
79926.Ex officio members means nonvoting members of the commission board of directors.
79927.Grower means a person who commercially cultivates agave, or causes agave to be cultivated, not in a container and on two acres or more during the marketing season.
79928.Market or marketing means to sell agave and agave products into commercial channels of trade.
79929.Marketing season or fiscal year are synonymous terms and mean the period beginning April 1 of any year and extending through March 31 of the following year.
79930.Process or processing means to engage in the business of a processor.
79931.(a)Processor means a person licensed to commercially process agave and who processes agave in an amount of more than three tons in the state in the preceding marketing season.
(b)When the processor is a corporation or a limited liability company, all of the directors, officers, managers, and members of the corporation or limited liability company shall be treated as individuals when determining compliance with this chapter.
79932.Public member means a person appointed to the commission board of directors pursuant to the procedures specified in this chapter.
79933.Secretary means the Secretary of Food and Agriculture.
3.California Agave Commission79936.(a)There is in state government the California Agave Commission. Except as provided in this section, the commission board of directors shall be composed of six growers, two processors, and one public member. The public member shall be appointed to the commission by the secretary from nominees recommended by the commission.
(b)The commission board of directors may modify the number of members who serve on the commission board of directors by a two-thirds vote that is concurred in by the secretary, if proper notice is provided to all persons subject to this chapter before the action.
(c)The secretary and other appropriate persons, as determined by the commission, shall be ex officio members of the commission.
79937.(a)The secretary may require the commission to correct or cease any existing activity or function that is determined by the secretary to not be in the public interest or to be in violation of this chapter.
(b)If the commission refuses or fails to cease those activities or functions or to make corrections as required by the secretary, the secretary may, upon written notice, suspend all or a portion of the activities or functions of the commission until the cessation or correction of activities or functions as required by the secretary have been accomplished by the commission.
(c)Actions of the commission in violation of the secretarys written notice shall be without legal force or effect. The secretary, to the extent feasible, shall issue the written notice before the commission enters into a contractual relationship affecting the existing or proposed activities or functions that are the subject of the written notice.
(d)Upon service of the written notice, the secretary shall notify the commission in writing of the specific acts that the secretary determines are not in the public interest or are in violation of this chapter, and the secretarys reasons for requiring a cessation or correction of specific existing or proposed activities or functions, and may make recommendations that will make those activities or functions acceptable to the secretary.
79938.The commission or the secretary may bring an action for judicial relief from the secretarys written notice, or from noncompliance by the commission with the written notice, in a court of competent jurisdiction, which may issue a temporary restraining order, permanent injunction, or other applicable relief.
79939.The commission shall reimburse the secretary for all expenditures incurred by the secretary in carrying out their duties and responsibilities under this chapter. However, a court may, if it finds that the secretary acted arbitrarily or capriciously in restricting the activities or functions of the commission, relieve the commission of the responsibility for payment of the secretarys legal costs with regard to that action.
79940.Except for the ex officio members of the commission board of directors, each member of the commission board of directors shall have an alternate member elected in the same manner as the member. An alternate member, in the absence of the member for whom they are an alternate, shall serve in place of the member. An alternate member may also serve in place of any other absent member of the same classification if the members alternate is also absent. However, an alternate member may not serve in place of more than one absent member at a meeting. An alternate member serving in place of a member shall have, and may exercise, all rights, privileges, and powers of the member when serving. In the event of death, removal, resignation, or the disqualification of a member, the alternate for the member, or another alternate of the same classification if the alternate member for the member is absent, shall act as the member until a qualified successor is elected.
79941.Any vacancy on the commission board of directors, including, but not limited to, the failure of any person elected or appointed to the commission board of directors as a member or alternate member to continue in their position due to a change in status making them ineligible to serve, or due to death, removal, or resignation, shall be filled by the election of another person, or appointment in the case of a public member, for the unexpired portion of the term, with elected positions to be filled by a majority vote of the commission board of directors. However, the person elected or appointed shall fulfill all the qualifications set forth in this article as required for the office they are to occupy. The qualifications of any person to fill a vacancy shall be certified in writing to the secretary. The secretary shall notify the commission if the secretary determines that the person is not qualified.
79942.A grower member and their alternate on the commission board of directors shall be an individual, partner, or employee of a grower who has a financial interest in cultivating agave, or causing agave to be cultivated. The grower member and their alternate shall comply with this section during the entire term of their office in order to remain on the commission board of directors.
79943.A processor member and their alternate on the commission board of directors shall be an individual, partner, or employee of a processor who has a financial interest in processing agave, or causing agave to be processed. The processor member and their alternate shall comply with this section during the entire term of their office in order to remain on the commission board of directors.
79944.The public member and their alternate on the commission board of directors shall have all the powers, rights, and privileges of any other member on the commission board of directors. The public member shall not have any financial interest in the cultivating or processing of agave or the marketing of agave products but may be an individual who provides services to individuals who do have a financial interest. The public member and their alternate shall comply with this section during the entire term of their office.
79945.(a)The term of office of each member of the commission board of directors and their alternate, except an ex officio member, shall be three years from the date of their election or appointment and until their successor is elected.
(b)An alternate shall serve the same term as the member for whom they serve as alternate.
79946.The commission may sue and be sued and enter into contracts. Copies of its proceedings, records, and acts, when authenticated, shall be admissible in evidence in all courts of the state, and shall be prima facie evidence of the truth of all statements within the proceedings, records, and acts.
79947.A quorum of the commission board of directors is a majority of the members authorized to vote. Except as otherwise provided in this chapter, the vote of a majority of these members present at a meeting at which there is a quorum shall constitute an act of the commission.
79948.The secretary or their representatives shall be notified and may attend each meeting of the commission board of directors and any meetings of a committee established by the commission, except the secretary is not authorized to attend an executive session of the commission board of directors called for the purpose of discussing potential or actual litigation against the department.
79949.A member of the commission board of directors or of any committee established by the commission, shall not receive a salary. Except for ex officio government members, members and alternates may receive reasonable and necessary traveling expenses and meal allowances, as established by the commission board of directors, for each day spent in actual attendance at, or in traveling to and from, meetings of the commission or committees of the commission, or on special assignment for the commission.
79950.If the secretary is required to concur in a decision of the commission, the secretary shall indicate their response within 15 working days from notification of the decision. The response may be a request that additional information be provided.
79951.All moneys received by a person from assessments levied under the authority of this chapter or otherwise received by the commission shall be deposited into banks designated by the commission board of directors and shall be disbursed by order of the commission board of directors through an agent or agents designated for that purpose. Any authorized agent or agents shall be bonded by a fidelity bond, executed by a surety company authorized to transact business in the state, in favor of the commission, in the amount of not less than twenty-five thousand dollars ($25,000).
79952.The state shall not be liable for the acts of the commission or its contracts. Payments of all claims arising by reason of the administration of this chapter or acts of the commission shall be limited to the funds collected by the commission. Members and alternate members of the commission board of directors, employees, and agents of the commission shall not be personally liable for the contracts of the commission, and members and alternate members of the commission board of directors and employees of the commission shall not be responsible individually in any way to a grower, processor, or any other person for error in judgment, mistakes, or other acts, either of commission or omission, as principal, agent, or employee, except for their own individual acts of dishonesty or crime. Members and alternate members of the commission board of directors shall not be held responsible individually for any act or omission of any other member or alternate member. The liability of the members and alternate members of the commission board of directors shall be several and not joint, and a member or alternate member shall not be liable for the default of any other member or alternate member.
4.Powers and Duties79956.The powers and duties of the commission board of directors shall include, but are not limited to, all of the following:
(a)Adopt and from time to time alter, rescind, modify, and amend bylaws and procedures for carrying out this chapter, including procedures for related appeals. These actions shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(b)Administer and enforce this chapter and perform all acts and exercise all powers incidental to, or in connection with, or determined reasonably necessary for, proper or advisable effectuation of the purposes of this chapter.
(c)Appoint officers from the members of the commission board of directors, including a chair, one or more vice chairs, and any other officers as it determines necessary. The officers shall have the powers and duties delegated to them by the commission board of directors.
(d)Employ a person to serve at the pleasure of the commission as president and chief executive officer, and other personnel, including legal counsel, necessary to carry out this chapter. Alternatively, the commission may retain a management firm or staff from any board, commission, or committee of the state to perform the functions prescribed by this subdivision under control of the commission board of directors. If a person subject to this subdivision engages in conduct that the secretary determines to be in violation of this chapter, or is not in the public interest, the secretary shall notify the commission of the conduct and request that corrective, and if appropriate, disciplinary action, be taken by the commission board of directors. If the commission board of directors fails or refuses to correct the situation or to take disciplinary action satisfactory to the secretary, the secretary may suspend or discharge the person subject to this subdivision.
(e)Fix the compensation for all employees.
(f)Appoint committees composed of members, alternates, and nonmembers of the commission board of directors to advise in carrying out this chapter.
(g)Establish offices and incur expenses, invest funds, enter into contracts and agreements, and create liabilities and borrow funds in advance of receipt of assessments as determined necessary for the proper administration and enforcement of this chapter and the performance of its duties.
(h)Keep accurate books, records, and accounts of all of its dealings, which shall be subject to an annual audit by an auditing firm selected by the commission board of directors with the concurrence of the secretary. The audit shall be made a part of an annual report to all growers and processors subject to this chapter, and, notwithstanding Sections 9795 and 10231.5 of the Government Code, copies of the audit shall be submitted to the Legislature and the department. In addition, the secretary may, as they determine necessary, conduct, or cause to be conducted, a fiscal and compliance audit of the commission.
(i)Present facts to, and negotiate with, state, federal, and foreign agencies on matters that affect the purposes of this chapter.
(j)Make, in the name of the commission, contracts to render service in formulating and conducting plans and programs, and any other contracts or agreements determined to be necessary for the purposes specified in this chapter.
(k)Conduct, and contract with others to conduct, research, including the study, analysis, dissemination, and accumulation of information obtained from research or elsewhere for purposes described in this chapter that is primarily for the benefit of growers and processors. In connection with the research, accept contributions of, or to match, private, state, or federal funds that may be available for these purposes, and to employ or make contributions of funds to other persons or state or federal agencies conducting the research.
(l)Collect information and publish and distribute to growers and processors, a bulletin or other communication for dissemination of information relating to this chapter.
(m)Establish an assessment rate to defray operating costs.
(n)Establish an annual budget according to accepted accounting practices. The budget shall be concurred in by the secretary before the disbursement of funds, except for disbursements made pursuant to subdivision (e).
(o)Submit to the secretary for their concurrence, an annual statement of contemplated activities authorized under this chapter.
(p)Investigate and prosecute civil violations of this chapter and file complaints with appropriate law enforcement agencies or officers for suspected criminal violations of this chapter.
(q)Prescribe the form and manner by which proponents and opponents of the commission may contact growers if all expenses associated with the contacts are paid in advance.
(r)Engage in communications with the public regarding activities authorized in this section.
(s)Conduct activities related to education, marketing, and promotion of agave and agave products.
5.Implementation and Voting Procedures79961.(a)No later than 90 days from the request of proponents of the commission, the secretary shall establish a list of growers and processors eligible to vote on the implementation of this chapter. The proponents shall provide the secretary with a list of growers and processors of agave to assist in identifying eligible voters. In establishing the list, the secretary shall require that (1) growers submit their names and mailing addresses and planted acreage, (2) processors submit their names and mailing addresses and the names and addresses of growers from whom agave is received, and the paid weight to the growers during the preceding marketing season. The request for the information shall be in writing. The information shall be filed with the secretary within 10 days following receipt of the written request for information.
(b)A grower or processor whose name does not appear on the secretarys list may have their name placed on the list by filing with the secretary a signed statement identifying themselves as a grower or processor. Failure to be on the list does not exempt the grower or processor from paying assessments under this chapter.
79962.The commission shall not be established, and this chapter shall not be implemented, except as necessary to conduct an implementation referendum vote, until the secretary finds all of the following in a referendum vote conducted by the secretary:
(a)At least 40 percent of the total number of growers from the list established by the secretary pursuant to this article participate, and that either of the following occurs:
(1)Sixty-five percent of the growers who voted in the referendum voted in favor of establishing the commission, and those growers cultivated a majority of the total quantity of agave cultivated in the preceding marketing season by all of the growers voting in the referendum.
(2)A majority of the growers who voted in the referendum voted in favor of establishing the commission, and those growers cultivated 65 percent or more of the total quantity of agave cultivated in the preceding marketing season by all of the growers voting in the referendum.
(b)At least 40 percent of the total number of processors from the list established by the secretary pursuant to this article participate, and that either of the following occurs:
(1)Sixty-five percent of the processors who voted in the referendum voted in favor of establishing the commission, and those processors processed a majority of the total quantity of agave processed in the preceding marketing season by all of the processors voting in the referendum.
(2)A majority of the processors who voted in the referendum voted in favor of establishing the commission, and those processors processed 65 percent or more of the total quantity of agave processed in the preceding marketing season by all of the processors voting in the referendum.
79963.The secretary shall establish a period in which to conduct the referendum that shall not be less than 10 days or more than 60 days in duration and may prescribe additional procedures necessary to conduct the referendum. If the initial period established is less than 60 days, the secretary may extend the period.
79964.Nonreceipt of a ballot shall not invalidate a referendum.
79965.If the secretary finds that a referendum vote in favor of establishing the commission has occurred, as provided in this article, the secretary shall certify the vote and give notice of the vote to growers and processors whose names and addresses are on file with the secretary.
79966.If the secretary finds that a referendum vote in favor of establishing the commission has not occurred, as provided in this article, the secretary shall certify the vote and declare this chapter inoperative. The secretary may conduct another implementation referendum vote one or more years after the previous vote has been taken.
79967.(a)Upon the establishment of the commission, the secretary shall contact growers and processors in a manner determined by the secretary for the purpose of nominating and electing persons to the commission board of directors.
(b)Subsequent to the first election of members of the commission board of directors, or appointment in cases of a public member, growers and processors shall be selected pursuant to nomination and election procedures established by the commission board of directors with the concurrence of the secretary.
79968.Before the referendum vote conducted by the secretary pursuant to this article, the proponents of the commission shall deposit with the secretary an amount of funds determined necessary by the secretary to defray the expenses of preparing the necessary lists and information and conducting the vote. Any funds not used for this purpose shall be returned to the proponents of the commission who deposited the funds with the secretary. Upon establishment of the commission, the commission board of directors may reimburse the proponents of the commission for any funds deposited with the secretary and for any legal expenses and costs incurred in establishing the commission.
6.Assessments and Records79971.(a)The commission board of directors shall, no later than the beginning of each marketing season, or as soon thereafter as possible, establish the assessment assessments to be paid by growers and processors for the marketing season.
(b)The commission shall establish an assessment to be paid by a grower that cultivates The assessment for growers that cultivate 2 to 10, inclusive, acres of agave for the marketing seasons that season shall not exceed one thousand dollars ($1,000) and may be assessed on levied using a sliding scale. Growers The assessment for growers that cultivate more than 10 acres of agave for the marketing season shall not exceed fifty thousand dollars ($50,000) and may be assessed on levied using a sliding scale.
(c)The commission shall establish an assessment paid by a processor that processes The assessment for processors that process 3 to 10, inclusive, tons of agave for the marketing seasons that season shall not exceed one thousand dollars ($1,000) and may be assessed on levied using a sliding scale. Processors The assessment for processors that process more than 10 tons of agave for the marketing season shall not exceed fifty thousand dollars ($50,000) and may be assessed on levied using a sliding scale.
(d)An assessment greater than the amounts established pursuant to this section shall not be charged unless it is approved in accordance with the voting requirements provided in Section 79962.
(e)The assessment shall not exceed the reasonable costs of achieving the purposes of this chapter.
79972.(a)Processors of agave shall keep a complete and accurate record of all agave processed by them with the names of the growers whose agave was processed.
(b)(1)Growers who process agave that they have cultivated shall keep a complete and accurate record of the agave processed.
(2)Growers shall, upon request of the commission, provide proof of commodity sale.
(c)The records described in subdivisions (a) and (b) shall contain information required by the commission. The records shall be preserved by growers and processors for a period of two years and shall be offered and submitted for inspection at any reasonable time upon written demand by the commission or its duly authorized agent.
79973.(a)All proprietary information obtained by the commission or the secretary from any source, including the names and addresses of growers and processors, shall be confidential and shall not be disclosed except if required by court order in a judicial proceeding.
(b)Information on volume shipments and any other related information that is required for reports to governmental agencies, financial reports to the commission on aggregate sales and inventory information, and any other information that gives only totals, but excludes individual information, may be disclosed by the commission.
79974.Growers and processors of agave that pay the assessment shall be trustees of the assessed funds until they are paid to the commission at the time and in the manner prescribed by the commission board of directors. Growers who process agave that they have cultivated shall be responsible for paying both assessments directly to the commission at the time and in the manner prescribed by the commission board of directors.
79975.Every grower and processor shall be personally liable for the payment of the assessments owed to the commission.
7.Actions and Penalties79981.(a)A person who fails to file a return or pay an assessment within the time required by the commission shall pay to the commission a penalty of 10 percent of the amount of the assessment determined to be past due and, in addition, interest on the unpaid balance at the rate of 1.5 percent per month.
(b)In addition to any other penalty imposed, the commission may require a person who fails to pay an assessment or related charge pursuant to this chapter to furnish and maintain a surety bond in a form and amount and for a period of time specified by the commission board of directors as assurance that all payments to the commission will be made when due.
79982.A civil penalty not exceeding one thousand dollars ($1,000) may be levied by the commission on any person who does any of the following:
(a)Willfully render or furnish a false report, statement, or record required by the commission, or in any way avoids the payment of an assessment.
(b)Fail to render or furnish a report, statement, or record required by the commission.
(c)When engaged in cultivating agave for processing into agave products, fails or refuses to furnish to the commission or its duly authorized agents, upon request, information concerning the name and address of the persons from whom agave was received and the quantity received.
(d)Secrete, destroy, or alter records required to be kept by this chapter.
79983.For purposes of according individuals aggrieved by its actions or determinations, the commission board of directors shall establish procedures for an informal hearing before the commission or before a committee of the commission established for this purpose. Appeals from the decision of the commission board of directors may be made to the secretary. The determination of the secretary shall be subject to judicial review upon petition filed with the appropriate superior court.
79984.(a)The commission may commence civil actions and use all remedies provided in law or equity for the collection of assessments and civil penalties, and for obtaining injunctive relief or specific performance, relating to this chapter and the procedures adopted under this chapter. A court shall issue to the commission any requested writ of attachment or injunctive relief upon a prima facie showing by verified complaint that a named defendant has violated this chapter or any other procedures of the commission, including, but not limited to, the nonpayment of assessments. A bond shall not be required to be posted by the commission as a condition for the issuance of any writ of attachment or injunctive relief.
(b)A writ of attachment shall be issued pursuant to Chapter 5 (commencing with Section 485.010) of Title 6.5 of Part 2 of the Code of Civil Procedure, except that the showing specified in Section 485.010 is not required. Injunctive relief shall be issued pursuant to Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure, except that the showing of irreparable harm or of inadequate remedy at law specified by Section 526 or 527 is not required.
(c)Upon entry of any final judgment on behalf of the commission against any defendant, the court shall enjoin the defendant from conducting any type of business regarding the cultivating or processing of agave until there is full compliance with, and satisfaction of, the judgment.
(d)Upon a favorable judgment for the commission, the court may order that the commission be reimbursed for reasonable attorneys fees and other related costs actually incurred. Venue for these actions is at the domicile or place of business of the defendant or in the county of the principal office of the commission. The commission may be sued only in the county of its principal office.
79985.Any action by the commission for any penalty or other remedy that is prescribed under this chapter shall be commenced within two years from the date of discovery of the alleged violation. An action against the commission by a person shall be commenced within two years from the date of the alleged violation.
79986.The commission shall not be required to allege or prove that an adequate remedy at law does not exist in any action brought pursuant to this chapter.
79987.(a)This chapter shall be liberally construed.
(b)The provisions of this chapter are severable. If any provision of this chapter or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
79988.The termination of the operation of the commission and the implementation of this chapter shall not affect or waive any right, duty, obligation, or liability that has arisen or that may thereafter arise in connection with this chapter, release or extinguish any violation of this chapter, or affect or impair any right or remedies of the commission with respect to any violation.
8.Continuation or Suspension and Termination79991.(a)Five years after implementation of this chapter, the secretary shall hold a public hearing, after providing proper notice to persons subject to this chapter and any other persons or entities who have requested, in writing, notice of the hearing, to determine whether the commission shall continue to operate and this chapter shall continue to be implemented.
(b)If the secretary finds after the hearing that no substantial question exists among the growers and processors assessed pursuant to this chapter regarding whether the commission shall continue to operate, the secretary shall certify the finding and this chapter shall continue to be implemented.
(c)If the secretary finds after the hearing that a substantial question exists among the growers and processors assessed pursuant to this chapter regarding whether the commission shall continue to operate, the secretary shall conduct a referendum among growers and processors to determine whether the operation of the commission shall be terminated, in accordance with both of the following:
(1)The commission shall continue to operate unless the secretary determines from the referendum that a majority of the eligible growers and a majority of the eligible processors voting in the referendum voted in favor of terminating the commission.
(2)If the secretary finds that a vote to terminate the operation of the commission has been given, the secretary shall certify the vote and declare the implementation of this chapter is suspended upon the expiration of the current marketing season. Thereupon, the operation of the commission shall be concluded and funds distributed in the manner provided in Section 79994. A bond or security shall not be required for the referendum.
79992.Following a hearing, or a referendum resulting in a vote to continue the operation of the commission if required, the process specified in Section 79991 shall be conducted by the secretary every five years thereafter between April 1 and March 31 of the following year, unless a referendum is conducted as the result of a petition pursuant to Section 79993. In that case, the hearing, and referendum if required, shall be conducted every five years following the industry petitioned referendum.
79993.(a)Upon a finding by a two-thirds vote of the commission board of directors that the commission has not tended to effectuate its declared purposes, the commission may recommend to the secretary that the operation of the commission be suspended. Any suspension shall not become effective until expiration of the current marketing season.
(b)(1)The secretary shall, upon receipt of a recommendation, or may, after a public hearing to review a petition described in paragraph (2) requesting the suspension, cause a referendum to be conducted among the listed growers and processors to determine if the operation of the commission shall be suspended. The secretary shall not hold a referendum as a result of a petition described in paragraph (2) unless the petitioner shows by the weight of evidence that the implementation of this chapter has not effectuated its declared purposes.
(2)A petition filed requesting suspension of the operation of the commission shall be signed by at least 15 percent of the growers and at least 15 percent of the processors, by number, who also cultivate and process at least 15 percent of the total volume of agave in the preceding marketing season.
(c)The secretary shall establish a referendum period, which shall not be less than 10 days or more than 60 days in duration. The secretary may prescribe additional procedures necessary to conduct the referendum. At the close of the established referendum period, the secretary shall tabulate the ballots filed during the period. The secretary shall suspend the operation of the commission if the secretary finds both of the following:
(1)At least 40 percent of the total number of growers from the list established by the secretary participate, and that either of the following occurs:
(A)Sixty-five percent of the growers that voted in the referendum voted in favor of suspension, and the growers so voting grew a majority of the total quantity of agave cultivated in the preceding marketing season by all of the growers voting in the referendum.
(B)A majority of the growers that voted in the referendum voted in favor of suspension, and the growers so voting grew 65 percent or more of the total quantity of agave cultivated in the preceding marketing season by all of the growers voting in the referendum.
(2)At least 40 percent of the total number of processors from the list established by the secretary participate, and that either of the following occurs:
(A)Sixty-five percent of the processors that voted in the referendum voted in favor of suspension, and the processors so voting processed a majority of the total quantity of agave processed in the preceding marketing season by all of the processors voting in the referendum.
(B)A majority of the processors that voted in the referendum voted in favor of suspension, and the processors so voting processed 65 percent or more of the total quantity of agave processed in the preceding marketing season by all of the processors voting in the referendum.
79994.After the effective date of suspension of the operation of the commission, the operation of the commission shall be concluded and all moneys held by the commission, and moneys collected by assessment and not required to defray the expenses of concluding and terminating the operation of the commission, shall be returned on a pro rata basis to all persons from whom assessments were collected in the immediately preceding marketing season. However, if the commission board of directors finds that the amounts returnable are so small as to make impractical the computation and remitting of the pro rata refund to those persons, any moneys remaining after payment of all expenses of winding up and terminating the operation shall be withdrawn from the approved depository and paid into a related state or federal program or used to fund activities related to the subject matter of this chapter.
79995.Upon suspension of the operation of the commission, the commission shall mail a copy of the notice of suspension to growers and processors affected by the suspension whose names and addresses are on file.
SEC. 2.The Legislature finds and declares that Section 1 of this act, which adds Chapter 30 (commencing with Section 79911) to Part 2 of Division 22 of the Food and Agricultural Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
In order to protect confidential and proprietary information provided to the California Agave Commission by growers and processors, the limitations on the publics right of access imposed by Section 1 of this act are necessary.
The cultivation of agave for processing into agave products and the marketing of agave and agave products constitute an important industry of this state, which provides substantial and necessary revenues for the state and employment for its residents.
79912.The cultivation of agave in California is consistent with and supportive of Californias environmentally sensitive policies relating to sustainable farming practices, including water conservation, through the cultivation of drought tolerant crops.
79913.The establishment of the commission is necessary for the efficient management of activities authorized in this chapter. The commission is also necessary to enhance the competitiveness of the industry within the state, national, and international marketplace.
79914.The purposes of this chapter are hereby declared to be in the public interest. This chapter is enacted in the exercise of the police power of this state for the purpose of protecting the health, peace, safety, and general welfare of the people of this state.
79915.The commission form of administration created by this chapter is uniquely situated to provide those engaged in the activities specified in this chapter the opportunity to avail themselves of the benefits of collective action in the broad fields of research, education, promotion, and marketing.
79916.No action taken by the commission, or by any individual in accordance with this chapter or with bylaws or procedures established pursuant to this chapter, shall be deemed a violation of the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), the Unfair Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of the Business and Professions Code), or any statutory or common law against monopolies or combinations in restraint of trade.
79917.It is the intent of the Legislature that members of the commission represent and further the interests of the agave industry and that this representation and furtherance serve the public interest. Accordingly, the Legislature finds that with respect to persons who are elected or appointed to the commission, the agave industry is tantamount to, and constitutes, the public generally within the meaning of Section 87103 of the Government Code.
2.Definitions79921.Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.
79922.(a)Agave means the species of plants in the genus Agave of the family Aparagaceae cultivated for their juice and fiber.
(b)Agave cultivated solely for ornamental purposes is not subject to this chapter.
79923.Books and records means books, records, contracts, documents, memoranda, papers, correspondence, or other written data pertaining to matters relating to the activities subject to this chapter.
79924.Commission means the California Agave Commission.
79925.Cultivate or cultivated means to plant, tend, harvest, or improve agave. Cultivated acreage does not include acreage removed from cultivation due to weather, disease, or other circumstances beyond the control of the grower.
79926.Ex officio members means nonvoting members of the commission board of directors.
79927.Grower means a person who commercially cultivates agave, or causes agave to be cultivated, not in a container and on two acres or more during the marketing season.
79928.Market or marketing means to sell agave and agave products into commercial channels of trade.
79929.Marketing season or fiscal year are synonymous terms and mean the period beginning April 1 of any year and extending through March 31 of the following year.
79930.Process or processing means to engage in the business of a processor.
79931.(a)Processor means a person licensed to commercially process agave and who processes agave in an amount of more than three tons in the state in the preceding marketing season.
(b)When the processor is a corporation or a limited liability company, all of the directors, officers, managers, and members of the corporation or limited liability company shall be treated as individuals when determining compliance with this chapter.
79932.Public member means a person appointed to the commission board of directors pursuant to the procedures specified in this chapter.
79933.Secretary means the Secretary of Food and Agriculture.
3.California Agave Commission79936.(a)There is in state government the California Agave Commission. Except as provided in this section, the commission board of directors shall be composed of six growers, two processors, and one public member. The public member shall be appointed to the commission by the secretary from nominees recommended by the commission.
(b)The commission board of directors may modify the number of members who serve on the commission board of directors by a two-thirds vote that is concurred in by the secretary, if proper notice is provided to all persons subject to this chapter before the action.
(c)The secretary and other appropriate persons, as determined by the commission, shall be ex officio members of the commission.
79937.(a)The secretary may require the commission to correct or cease any existing activity or function that is determined by the secretary to not be in the public interest or to be in violation of this chapter.
(b)If the commission refuses or fails to cease those activities or functions or to make corrections as required by the secretary, the secretary may, upon written notice, suspend all or a portion of the activities or functions of the commission until the cessation or correction of activities or functions as required by the secretary have been accomplished by the commission.
(c)Actions of the commission in violation of the secretarys written notice shall be without legal force or effect. The secretary, to the extent feasible, shall issue the written notice before the commission enters into a contractual relationship affecting the existing or proposed activities or functions that are the subject of the written notice.
(d)Upon service of the written notice, the secretary shall notify the commission in writing of the specific acts that the secretary determines are not in the public interest or are in violation of this chapter, and the secretarys reasons for requiring a cessation or correction of specific existing or proposed activities or functions, and may make recommendations that will make those activities or functions acceptable to the secretary.
79938.The commission or the secretary may bring an action for judicial relief from the secretarys written notice, or from noncompliance by the commission with the written notice, in a court of competent jurisdiction, which may issue a temporary restraining order, permanent injunction, or other applicable relief.
79939.The commission shall reimburse the secretary for all expenditures incurred by the secretary in carrying out their duties and responsibilities under this chapter. However, a court may, if it finds that the secretary acted arbitrarily or capriciously in restricting the activities or functions of the commission, relieve the commission of the responsibility for payment of the secretarys legal costs with regard to that action.
79940.Except for the ex officio members of the commission board of directors, each member of the commission board of directors shall have an alternate member elected in the same manner as the member. An alternate member, in the absence of the member for whom they are an alternate, shall serve in place of the member. An alternate member may also serve in place of any other absent member of the same classification if the members alternate is also absent. However, an alternate member may not serve in place of more than one absent member at a meeting. An alternate member serving in place of a member shall have, and may exercise, all rights, privileges, and powers of the member when serving. In the event of death, removal, resignation, or the disqualification of a member, the alternate for the member, or another alternate of the same classification if the alternate member for the member is absent, shall act as the member until a qualified successor is elected.
79941.Any vacancy on the commission board of directors, including, but not limited to, the failure of any person elected or appointed to the commission board of directors as a member or alternate member to continue in their position due to a change in status making them ineligible to serve, or due to death, removal, or resignation, shall be filled by the election of another person, or appointment in the case of a public member, for the unexpired portion of the term, with elected positions to be filled by a majority vote of the commission board of directors. However, the person elected or appointed shall fulfill all the qualifications set forth in this article as required for the office they are to occupy. The qualifications of any person to fill a vacancy shall be certified in writing to the secretary. The secretary shall notify the commission if the secretary determines that the person is not qualified.
79942.A grower member and their alternate on the commission board of directors shall be an individual, partner, or employee of a grower who has a financial interest in cultivating agave, or causing agave to be cultivated. The grower member and their alternate shall comply with this section during the entire term of their office in order to remain on the commission board of directors.
79943.A processor member and their alternate on the commission board of directors shall be an individual, partner, or employee of a processor who has a financial interest in processing agave, or causing agave to be processed. The processor member and their alternate shall comply with this section during the entire term of their office in order to remain on the commission board of directors.
79944.The public member and their alternate on the commission board of directors shall have all the powers, rights, and privileges of any other member on the commission board of directors. The public member shall not have any financial interest in the cultivating or processing of agave or the marketing of agave products but may be an individual who provides services to individuals who do have a financial interest. The public member and their alternate shall comply with this section during the entire term of their office.
79945.(a)The term of office of each member of the commission board of directors and their alternate, except an ex officio member, shall be three years from the date of their election or appointment and until their successor is elected.
(b)An alternate shall serve the same term as the member for whom they serve as alternate.
79946.The commission may sue and be sued and enter into contracts. Copies of its proceedings, records, and acts, when authenticated, shall be admissible in evidence in all courts of the state, and shall be prima facie evidence of the truth of all statements within the proceedings, records, and acts.
79947.A quorum of the commission board of directors is a majority of the members authorized to vote. Except as otherwise provided in this chapter, the vote of a majority of these members present at a meeting at which there is a quorum shall constitute an act of the commission.
79948.The secretary or their representatives shall be notified and may attend each meeting of the commission board of directors and any meetings of a committee established by the commission, except the secretary is not authorized to attend an executive session of the commission board of directors called for the purpose of discussing potential or actual litigation against the department.
79949.A member of the commission board of directors or of any committee established by the commission, shall not receive a salary. Except for ex officio government members, members and alternates may receive reasonable and necessary traveling expenses and meal allowances, as established by the commission board of directors, for each day spent in actual attendance at, or in traveling to and from, meetings of the commission or committees of the commission, or on special assignment for the commission.
79950.If the secretary is required to concur in a decision of the commission, the secretary shall indicate their response within 15 working days from notification of the decision. The response may be a request that additional information be provided.
79951.All moneys received by a person from assessments levied under the authority of this chapter or otherwise received by the commission shall be deposited into banks designated by the commission board of directors and shall be disbursed by order of the commission board of directors through an agent or agents designated for that purpose. Any authorized agent or agents shall be bonded by a fidelity bond, executed by a surety company authorized to transact business in the state, in favor of the commission, in the amount of not less than twenty-five thousand dollars ($25,000).
79952.The state shall not be liable for the acts of the commission or its contracts. Payments of all claims arising by reason of the administration of this chapter or acts of the commission shall be limited to the funds collected by the commission. Members and alternate members of the commission board of directors, employees, and agents of the commission shall not be personally liable for the contracts of the commission, and members and alternate members of the commission board of directors and employees of the commission shall not be responsible individually in any way to a grower, processor, or any other person for error in judgment, mistakes, or other acts, either of commission or omission, as principal, agent, or employee, except for their own individual acts of dishonesty or crime. Members and alternate members of the commission board of directors shall not be held responsible individually for any act or omission of any other member or alternate member. The liability of the members and alternate members of the commission board of directors shall be several and not joint, and a member or alternate member shall not be liable for the default of any other member or alternate member.
4.Powers and Duties79956.The powers and duties of the commission board of directors shall include, but are not limited to, all of the following:
(a)Adopt and from time to time alter, rescind, modify, and amend bylaws and procedures for carrying out this chapter, including procedures for related appeals. These actions shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(b)Administer and enforce this chapter and perform all acts and exercise all powers incidental to, or in connection with, or determined reasonably necessary for, proper or advisable effectuation of the purposes of this chapter.
(c)Appoint officers from the members of the commission board of directors, including a chair, one or more vice chairs, and any other officers as it determines necessary. The officers shall have the powers and duties delegated to them by the commission board of directors.
(d)Employ a person to serve at the pleasure of the commission as president and chief executive officer, and other personnel, including legal counsel, necessary to carry out this chapter. Alternatively, the commission may retain a management firm or staff from any board, commission, or committee of the state to perform the functions prescribed by this subdivision under control of the commission board of directors. If a person subject to this subdivision engages in conduct that the secretary determines to be in violation of this chapter, or is not in the public interest, the secretary shall notify the commission of the conduct and request that corrective, and if appropriate, disciplinary action, be taken by the commission board of directors. If the commission board of directors fails or refuses to correct the situation or to take disciplinary action satisfactory to the secretary, the secretary may suspend or discharge the person subject to this subdivision.
(e)Fix the compensation for all employees.
(f)Appoint committees composed of members, alternates, and nonmembers of the commission board of directors to advise in carrying out this chapter.
(g)Establish offices and incur expenses, invest funds, enter into contracts and agreements, and create liabilities and borrow funds in advance of receipt of assessments as determined necessary for the proper administration and enforcement of this chapter and the performance of its duties.
(h)Keep accurate books, records, and accounts of all of its dealings, which shall be subject to an annual audit by an auditing firm selected by the commission board of directors with the concurrence of the secretary. The audit shall be made a part of an annual report to all growers and processors subject to this chapter, and, notwithstanding Sections 9795 and 10231.5 of the Government Code, copies of the audit shall be submitted to the Legislature and the department. In addition, the secretary may, as they determine necessary, conduct, or cause to be conducted, a fiscal and compliance audit of the commission.
(i)Present facts to, and negotiate with, state, federal, and foreign agencies on matters that affect the purposes of this chapter.
(j)Make, in the name of the commission, contracts to render service in formulating and conducting plans and programs, and any other contracts or agreements determined to be necessary for the purposes specified in this chapter.
(k)Conduct, and contract with others to conduct, research, including the study, analysis, dissemination, and accumulation of information obtained from research or elsewhere for purposes described in this chapter that is primarily for the benefit of growers and processors. In connection with the research, accept contributions of, or to match, private, state, or federal funds that may be available for these purposes, and to employ or make contributions of funds to other persons or state or federal agencies conducting the research.
(l)Collect information and publish and distribute to growers and processors, a bulletin or other communication for dissemination of information relating to this chapter.
(m)Establish an assessment rate to defray operating costs.
(n)Establish an annual budget according to accepted accounting practices. The budget shall be concurred in by the secretary before the disbursement of funds, except for disbursements made pursuant to subdivision (e).
(o)Submit to the secretary for their concurrence, an annual statement of contemplated activities authorized under this chapter.
(p)Investigate and prosecute civil violations of this chapter and file complaints with appropriate law enforcement agencies or officers for suspected criminal violations of this chapter.
(q)Prescribe the form and manner by which proponents and opponents of the commission may contact growers if all expenses associated with the contacts are paid in advance.
(r)Engage in communications with the public regarding activities authorized in this section.
(s)Conduct activities related to education, marketing, and promotion of agave and agave products.
5.Implementation and Voting Procedures79961.(a)No later than 90 days from the request of proponents of the commission, the secretary shall establish a list of growers and processors eligible to vote on the implementation of this chapter. The proponents shall provide the secretary with a list of growers and processors of agave to assist in identifying eligible voters. In establishing the list, the secretary shall require that (1) growers submit their names and mailing addresses and planted acreage, (2) processors submit their names and mailing addresses and the names and addresses of growers from whom agave is received, and the paid weight to the growers during the preceding marketing season. The request for the information shall be in writing. The information shall be filed with the secretary within 10 days following receipt of the written request for information.
(b)A grower or processor whose name does not appear on the secretarys list may have their name placed on the list by filing with the secretary a signed statement identifying themselves as a grower or processor. Failure to be on the list does not exempt the grower or processor from paying assessments under this chapter.
79962.The commission shall not be established, and this chapter shall not be implemented, except as necessary to conduct an implementation referendum vote, until the secretary finds all of the following in a referendum vote conducted by the secretary:
(a)At least 40 percent of the total number of growers from the list established by the secretary pursuant to this article participate, and that either of the following occurs:
(1)Sixty-five percent of the growers who voted in the referendum voted in favor of establishing the commission, and those growers cultivated a majority of the total quantity of agave cultivated in the preceding marketing season by all of the growers voting in the referendum.
(2)A majority of the growers who voted in the referendum voted in favor of establishing the commission, and those growers cultivated 65 percent or more of the total quantity of agave cultivated in the preceding marketing season by all of the growers voting in the referendum.
(b)At least 40 percent of the total number of processors from the list established by the secretary pursuant to this article participate, and that either of the following occurs:
(1)Sixty-five percent of the processors who voted in the referendum voted in favor of establishing the commission, and those processors processed a majority of the total quantity of agave processed in the preceding marketing season by all of the processors voting in the referendum.
(2)A majority of the processors who voted in the referendum voted in favor of establishing the commission, and those processors processed 65 percent or more of the total quantity of agave processed in the preceding marketing season by all of the processors voting in the referendum.
79963.The secretary shall establish a period in which to conduct the referendum that shall not be less than 10 days or more than 60 days in duration and may prescribe additional procedures necessary to conduct the referendum. If the initial period established is less than 60 days, the secretary may extend the period.
79964.Nonreceipt of a ballot shall not invalidate a referendum.
79965.If the secretary finds that a referendum vote in favor of establishing the commission has occurred, as provided in this article, the secretary shall certify the vote and give notice of the vote to growers and processors whose names and addresses are on file with the secretary.
79966.If the secretary finds that a referendum vote in favor of establishing the commission has not occurred, as provided in this article, the secretary shall certify the vote and declare this chapter inoperative. The secretary may conduct another implementation referendum vote one or more years after the previous vote has been taken.
79967.(a)Upon the establishment of the commission, the secretary shall contact growers and processors in a manner determined by the secretary for the purpose of nominating and electing persons to the commission board of directors.
(b)Subsequent to the first election of members of the commission board of directors, or appointment in cases of a public member, growers and processors shall be selected pursuant to nomination and election procedures established by the commission board of directors with the concurrence of the secretary.
79968.Before the referendum vote conducted by the secretary pursuant to this article, the proponents of the commission shall deposit with the secretary an amount of funds determined necessary by the secretary to defray the expenses of preparing the necessary lists and information and conducting the vote. Any funds not used for this purpose shall be returned to the proponents of the commission who deposited the funds with the secretary. Upon establishment of the commission, the commission board of directors may reimburse the proponents of the commission for any funds deposited with the secretary and for any legal expenses and costs incurred in establishing the commission.
6.Assessments and Records79971.(a)The commission board of directors shall, no later than the beginning of each marketing season, or as soon thereafter as possible, establish the assessment to be paid by growers and processors for the marketing season.
(b)The commission shall establish an assessment to be paid by a grower that cultivates 2 to 10, inclusive, acres of agave for the marketing seasons that shall not exceed one thousand dollars ($1,000) and may be assessed on a sliding scale. Growers that cultivate more than 10 acres of agave for the marketing season may be assessed on a sliding scale.
(c)The commission shall establish an assessment paid by a processor that processes 3 to 10, inclusive, tons of agave for the marketing seasons that shall not exceed one thousand dollars ($1,000) and may be assessed on a sliding scale. Processors that process more than 10 tons of agave for the marketing season may be assessed on a sliding scale.
(d)An assessment greater than the amounts established pursuant to this section shall not be charged unless it is approved in accordance with the voting requirements provided in Section 79962.
(e)The assessment shall not exceed the reasonable costs of achieving the purposes of this chapter.
79972.(a)Processors of agave shall keep a complete and accurate record of all agave processed by them with the names of the growers whose agave was processed.
(b)(1)Growers who process agave that they have cultivated shall keep a complete and accurate record of the agave processed.
(2)Growers shall, upon request of the commission, provide proof of commodity sale.
(c)The records described in subdivisions (a) and (b) shall contain information required by the commission. The records shall be preserved by growers and processors for a period of two years and shall be offered and submitted for inspection at any reasonable time upon written demand by the commission or its duly authorized agent.
79973.(a)All proprietary information obtained by the commission or the secretary from any source, including the names and addresses of growers and processors, shall be confidential and shall not be disclosed except if required by court order in a judicial proceeding.
(b)Information on volume shipments and any other related information that is required for reports to governmental agencies, financial reports to the commission on aggregate sales and inventory information, and any other information that gives only totals, but excludes individual information, may be disclosed by the commission.
79974.Growers and processors of agave that pay the assessment shall be trustees of the assessed funds until they are paid to the commission at the time and in the manner prescribed by the commission board of directors. Growers who process agave that they have cultivated shall be responsible for paying both assessments directly to the commission at the time and in the manner prescribed by the commission board of directors.
79975.Every grower and processor shall be personally liable for the payment of the assessments owed to the commission.
7.Actions and Penalties79981.(a)A person who fails to file a return or pay an assessment within the time required by the commission shall pay to the commission a penalty of 10 percent of the amount of the assessment determined to be past due and, in addition, interest on the unpaid balance at the rate of 1.5 percent per month.
(b)In addition to any other penalty imposed, the commission may require a person who fails to pay an assessment or related charge pursuant to this chapter to furnish and maintain a surety bond in a form and amount and for a period of time specified by the commission board of directors as assurance that all payments to the commission will be made when due.
79982.A civil penalty not exceeding one thousand dollars ($1,000) may be levied by the commission on any person who does any of the following:
(a)Willfully render or furnish a false report, statement, or record required by the commission, or in any way avoids the payment of an assessment.
(b)Fail to render or furnish a report, statement, or record required by the commission.
(c)When engaged in cultivating agave for processing into agave products, fails or refuses to furnish to the commission or its duly authorized agents, upon request, information concerning the name and address of the persons from whom agave was received and the quantity received.
(d)Secrete, destroy, or alter records required to be kept by this chapter.
79983.For purposes of according individuals aggrieved by its actions or determinations, the commission board of directors shall establish procedures for an informal hearing before the commission or before a committee of the commission established for this purpose. Appeals from the decision of the commission board of directors may be made to the secretary. The determination of the secretary shall be subject to judicial review upon petition filed with the appropriate superior court.
79984.(a)The commission may commence civil actions and use all remedies provided in law or equity for the collection of assessments and civil penalties, and for obtaining injunctive relief or specific performance, relating to this chapter and the procedures adopted under this chapter. A court shall issue to the commission any requested writ of attachment or injunctive relief upon a prima facie showing by verified complaint that a named defendant has violated this chapter or any other procedures of the commission, including, but not limited to, the nonpayment of assessments. A bond shall not be required to be posted by the commission as a condition for the issuance of any writ of attachment or injunctive relief.
(b)A writ of attachment shall be issued pursuant to Chapter 5 (commencing with Section 485.010) of Title 6.5 of Part 2 of the Code of Civil Procedure, except that the showing specified in Section 485.010 is not required. Injunctive relief shall be issued pursuant to Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure, except that the showing of irreparable harm or of inadequate remedy at law specified by Section 526 or 527 is not required.
(c)Upon entry of any final judgment on behalf of the commission against any defendant, the court shall enjoin the defendant from conducting any type of business regarding the cultivating or processing of agave until there is full compliance with, and satisfaction of, the judgment.
(d)Upon a favorable judgment for the commission, the court may order that the commission be reimbursed for reasonable attorneys fees and other related costs actually incurred. Venue for these actions is at the domicile or place of business of the defendant or in the county of the principal office of the commission. The commission may be sued only in the county of its principal office.
79985.Any action by the commission for any penalty or other remedy that is prescribed under this chapter shall be commenced within two years from the date of discovery of the alleged violation. An action against the commission by a person shall be commenced within two years from the date of the alleged violation.
79986.The commission shall not be required to allege or prove that an adequate remedy at law does not exist in any action brought pursuant to this chapter.
79987.(a)This chapter shall be liberally construed.
(b)The provisions of this chapter are severable. If any provision of this chapter or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
79988.The termination of the operation of the commission and the implementation of this chapter shall not affect or waive any right, duty, obligation, or liability that has arisen or that may thereafter arise in connection with this chapter, release or extinguish any violation of this chapter, or affect or impair any right or remedies of the commission with respect to any violation.
8.Continuation or Suspension and Termination79991.(a)Five years after implementation of this chapter, the secretary shall hold a public hearing, after providing proper notice to persons subject to this chapter and any other persons or entities who have requested, in writing, notice of the hearing, to determine whether the commission shall continue to operate and this chapter shall continue to be implemented.
(b)If the secretary finds after the hearing that no substantial question exists among the growers and processors assessed pursuant to this chapter regarding whether the commission shall continue to operate, the secretary shall certify the finding and this chapter shall continue to be implemented.
(c)If the secretary finds after the hearing that a substantial question exists among the growers and processors assessed pursuant to this chapter regarding whether the commission shall continue to operate, the secretary shall conduct a referendum among growers and processors to determine whether the operation of the commission shall be terminated, in accordance with both of the following:
(1)The commission shall continue to operate unless the secretary determines from the referendum that a majority of the eligible growers and a majority of the eligible processors voting in the referendum voted in favor of terminating the commission.
(2)If the secretary finds that a vote to terminate the operation of the commission has been given, the secretary shall certify the vote and declare the implementation of this chapter is suspended upon the expiration of the current marketing season. Thereupon, the operation of the commission shall be concluded and funds distributed in the manner provided in Section 79994. A bond or security shall not be required for the referendum.
79992.Following a hearing, or a referendum resulting in a vote to continue the operation of the commission if required, the process specified in Section 79991 shall be conducted by the secretary every five years thereafter between April 1 and March 31 of the following year, unless a referendum is conducted as the result of a petition pursuant to Section 79993. In that case, the hearing, and referendum if required, shall be conducted every five years following the industry petitioned referendum.
79993.(a)Upon a finding by a two-thirds vote of the commission board of directors that the commission has not tended to effectuate its declared purposes, the commission may recommend to the secretary that the operation of the commission be suspended. Any suspension shall not become effective until expiration of the current marketing season.
(b)(1)The secretary shall, upon receipt of a recommendation, or may, after a public hearing to review a petition described in paragraph (2) requesting the suspension, cause a referendum to be conducted among the listed growers and processors to determine if the operation of the commission shall be suspended. The secretary shall not hold a referendum as a result of a petition described in paragraph (2) unless the petitioner shows by the weight of evidence that the implementation of this chapter has not effectuated its declared purposes.
(2)A petition filed requesting suspension of the operation of the commission shall be signed by at least 15 percent of the growers and at least 15 percent of the processors, by number, who also cultivate and process at least 15 percent of the total volume of agave in the preceding marketing season.
(c)The secretary shall establish a referendum period, which shall not be less than 10 days or more than 60 days in duration. The secretary may prescribe additional procedures necessary to conduct the referendum. At the close of the established referendum period, the secretary shall tabulate the ballots filed during the period. The secretary shall suspend the operation of the commission if the secretary finds both of the following:
(1)At least 40 percent of the total number of growers from the list established by the secretary participate, and that either of the following occurs:
(A)Sixty-five percent of the growers that voted in the referendum voted in favor of suspension, and the growers so voting grew a majority of the total quantity of agave cultivated in the preceding marketing season by all of the growers voting in the referendum.
(B)A majority of the growers that voted in the referendum voted in favor of suspension, and the growers so voting grew 65 percent or more of the total quantity of agave cultivated in the preceding marketing season by all of the growers voting in the referendum.
(2)At least 40 percent of the total number of processors from the list established by the secretary participate, and that either of the following occurs:
(A)Sixty-five percent of the processors that voted in the referendum voted in favor of suspension, and the processors so voting processed a majority of the total quantity of agave processed in the preceding marketing season by all of the processors voting in the referendum.
(B)A majority of the processors that voted in the referendum voted in favor of suspension, and the processors so voting processed 65 percent or more of the total quantity of agave processed in the preceding marketing season by all of the processors voting in the referendum.
79994.After the effective date of suspension of the operation of the commission, the operation of the commission shall be concluded and all moneys held by the commission, and moneys collected by assessment and not required to defray the expenses of concluding and terminating the operation of the commission, shall be returned on a pro rata basis to all persons from whom assessments were collected in the immediately preceding marketing season. However, if the commission board of directors finds that the amounts returnable are so small as to make impractical the computation and remitting of the pro rata refund to those persons, any moneys remaining after payment of all expenses of winding up and terminating the operation shall be withdrawn from the approved depository and paid into a related state or federal program or used to fund activities related to the subject matter of this chapter.
79995.Upon suspension of the operation of the commission, the commission shall mail a copy of the notice of suspension to growers and processors affected by the suspension whose names and addresses are on file.
SEC. 2.The Legislature finds and declares that Section 1 of this act, which adds Chapter 30 (commencing with Section 79911) to Part 2 of Division 22 of the Food and Agricultural Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
In order to protect confidential and proprietary information provided to the California Agave Commission by growers and processors, the limitations on the publics right of access imposed by Section 1 of this act are necessary.
The growing cultivation of agave for processing into agave products and the marketing of agave and agave products constitute an important industry of this state, which provides substantial and necessary revenues for the state and employment for its residents.
79912.The growing cultivation of agave in California is consistent with and supportive of Californias environmentally sensitive policies relating to sustainable farming practices, including water conservation, through the growing cultivation of drought tolerant crops.
79913.The establishment of the commission is necessary for the efficient management of activities authorized in this chapter. The commission is also necessary to enhance the competitiveness of the industry within the state, national, and international marketplace.
79914.The purposes of this chapter are hereby declared to be in the public interest. This chapter is enacted in the exercise of the police power of this state for the purpose of protecting the health, peace, safety, and general welfare of the people of this state.
79915.The commission form of administration created by this chapter is uniquely situated to provide those engaged in the activities specified in this chapter the opportunity to avail themselves of the benefits of collective action in the broad fields of growing research, grower education, marketing, and public education. promotion, and marketing.
79916.No action taken by the commission, or by any individual in accordance with this chapter or with bylaws or procedures established pursuant to this chapter, shall be deemed a violation of the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), the Unfair Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of the Business and Professions Code), or any statutory or common law against monopolies or combinations in restraint of trade.
79917.It is the intent of the Legislature that members of the commission represent and further the interests of the agave industry and that this representation and furtherance serve the public interest. Accordingly, the Legislature finds that with respect to persons who are elected or appointed to the commission, the agave industry is tantamount to, and constitutes, the public generally within the meaning of Section 87103 of the Government Code.
2.Definitions79921.Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.
79922.(a)Agave means the species of plants in the genus Agave of the family Aparagaceae cultivated for their juice and fiber.
(b)Agave cultivated solely for ornamental purposes is not subject to this chapter.
79923.Books and records means books, records, contracts, documents, memoranda, papers, correspondence, or other written data pertaining to matters relating to the activities subject to this chapter.
79924.Commission means the California Agave Commission.
79925.Cultivate or cultivated means to plant, tend, harvest, or improve agave. Cultivated acreage does not include acreage removed from cultivation due to weather, disease, or other circumstances beyond the control of the grower.
79925.79926.Ex officio members means nonvoting members of the commission board of directors.
79926.79927.Grower means a person who commercially grows cultivates agave, or causes agave to be grown, on more than one acre, that is processed into agave products cultivated, not in a container and on two acres or more during the marketing season.
79927.79928.Market or marketing means to sell agave and agave products into commercial channels of trade.
79928.79929.Marketing season or fiscal year are synonymous terms and mean the period beginning April 1 of any year and extending through March 30 31 of the following year.
79929.79930.Process or processing means to engage in the business of a processor.
79930.79931.(a)Processor means a person licensed to commercially process agave and who processes agave in an amount of more than three tons in the state in the preceding marketing season.
(b)When the processor is a corporation or a limited liability company, all of the directors, officers, managers, and members of the corporation or limited liability company shall be treated as individuals when determining compliance with this chapter.
79931.79932.Public member means a person appointed to the commission board of directors pursuant to the procedures specified in this chapter.
79932.79933.Secretary means the Secretary of Food and Agriculture.
3.California Agave Commission79936.(a)There is in state government the California Agave Commission. Except as provided in this section, the commission board of directors shall be composed of six growers, two processors, and one public member. The public member shall be appointed to the commission by the secretary from nominees recommended by the commission.
(b)The commission board of directors may modify the number of members who serve on the commission board of directors by a two-thirds vote that is concurred in by the secretary, if proper notice is provided to all persons subject to this chapter before the action.
(c)The secretary and other appropriate persons, as determined by the commission, shall be ex officio members of the commission.
79937.(a)The secretary may require the commission to correct or cease any existing activity or function that is determined by the secretary to not be in the public interest or to be in violation of this chapter.
(b)If the commission refuses or fails to cease those activities or functions or to make corrections as required by the secretary, the secretary may, upon written notice, suspend all or a portion of the activities or functions of the commission until the cessation or correction of activities or functions as required by the secretary have been accomplished by the commission.
(c)Actions of the commission in violation of the secretarys written notice shall be without legal force or effect. The secretary, to the extent feasible, shall issue the written notice before the commission enters into a contractual relationship affecting the existing or proposed activities or functions that are the subject of the written notice.
(d)Upon service of the written notice, the secretary shall notify the commission in writing of the specific acts that the secretary determines are not in the public interest or are in violation of this chapter, and the secretarys reasons for requiring a cessation or correction of specific existing or proposed activities or functions, and may make recommendations that will make those activities or functions acceptable to the secretary.
79938.The commission or the secretary may bring an action for judicial relief from the secretarys written notice, or from noncompliance by the commission with the written notice, in a court of competent jurisdiction, which may issue a temporary restraining order, permanent injunction, or other applicable relief.
79939.The commission shall reimburse the secretary for all expenditures incurred by the secretary in carrying out their duties and responsibilities under this chapter. However, a court may, if it finds that the secretary acted arbitrarily or capriciously in restricting the activities or functions of the commission, relieve the commission of the responsibility for payment of the secretarys legal costs with regard to that action.
79940.Except for the ex officio members of the commission board of directors, each member of the commission board of directors shall have an alternate member elected in the same manner as the member. An alternate member, in the absence of the member for whom they are an alternate, shall serve in place of the member. An alternate member may also serve in place of any other absent member of the same classification if the members alternate is also absent. However, an alternate member may not serve in place of more than one absent member at a meeting. An alternate member serving in place of a member shall have, and may exercise, all rights, privileges, and powers of the member when serving. In the event of death, removal, resignation, or the disqualification of a member, the alternate for the member, or another alternate of the same classification if the alternate member for the member is absent, shall act as the member until a qualified successor is elected.
79941.Any vacancy on the commission board of directors, including, but not limited to, the failure of any person elected or appointed to the commission board of directors as a member or alternate member to continue in their position due to a change in status making them ineligible to serve, or due to death, removal, or resignation, shall be filled by the election of another person, or appointment in the case of a public member, for the unexpired portion of the term, with elected positions to be filled by a majority vote of the commission board of directors. However, the person elected or appointed shall fulfill all the qualifications set forth in this article as required for the office they are to occupy. The qualifications of any person to fill a vacancy shall be certified in writing to the secretary. The secretary shall notify the commission if the secretary determines that the person is not qualified.
79942.A grower member and their alternate on the commission board of directors shall be an individual, partner, or employee of a grower who has a financial interest in growing cultivating agave, or causing agave to be grown. cultivated. The grower member and their alternate shall comply with this section during the entire term of their office in order to remain on the commission board of directors.
79943.A processor member and their alternate on the commission board of directors shall be an individual, partner, or employee of a processor who has a financial interest in processing agave, or causing agave to be processed. The processor member and their alternate shall comply with this section during the entire term of their office in order to be remain on the commission board of directors.
79944.The public member and their alternate on the commission board of directors shall have all the powers, rights, and privileges of any other member on the commission board of directors. The public member shall not have any financial interest in the growing cultivating or processing of agave or the marketing of agave products but may be an individual who provides services to individuals who do have a financial interest. The public member and their alternate shall comply with this section during the entire term of their office.
79945.(a)The term of office of each member of the commission board of directors and their alternate, except an ex officio member, shall be three years from the date of their election or appointment and until their successor is elected.
(b)An alternate shall serve the same term as the member for whom they serve as alternate.
79946.The commission may sue and be sued and enter into contracts. Copies of its proceedings, records, and acts, when authenticated, shall be admissible in evidence in all courts of the state, and shall be prima facie evidence of the truth of all statements within the proceedings, records, and acts.
79947.A quorum of the commission board of directors is a majority of the members authorized to vote. Except as otherwise provided in this chapter, the vote of a majority of these members present at a meeting at which there is a quorum shall constitute an act of the commission.
79948.The secretary or their representatives shall be notified and may attend each meeting of the commission board of directors and any meetings of a committee established by the commission, except the secretary is not authorized to attend an executive session of the commission board of directors called for the purpose of discussing potential or actual litigation against the department.
79949.A member of the commission board of directors or of any committee established by the commission, shall not receive a salary. Except for ex officio government members, a member members and alternates may receive reasonable and necessary traveling expenses and meal allowances, as established by the commission board of directors, for each day spent in actual attendance at, or in traveling to and from, meetings of the commission or committees of the commission, or on special assignment for the commission.
79950.If the secretary is required to concur in a decision of the commission, the secretary shall indicate their response within 15 working days from notification of the decision. The response may be a request that additional information be provided.
79951.All moneys received by a person from assessments levied under the authority of this chapter or otherwise received by the commission shall be deposited into banks designated by the commission board of directors and shall be disbursed by order of the commission board of directors through an agent or agents designated for that purpose. Any authorized agent or agents shall be bonded by a fidelity bond, executed by a surety company authorized to transact business in the state, in favor of the commission, in the amount of not less than twenty-five thousand dollars ($25,000).
79952.The state shall not be liable for the acts of the commission or its contracts. Payments of all claims arising by reason of the administration of this chapter or acts of the commission shall be limited to the funds collected by the commission. Members and alternate members of the commission board of directors, employees, and agents of the commission shall not be personally liable for the contracts of the commission, and members and alternate members of the commission board of directors and employees of the commission shall not be responsible individually in any way to a grower, processor, or any other person for error in judgment, mistakes, or other acts, either of commission or omission, as principal, agent, or employee, except for their own individual acts of dishonesty or crime. Members and alternate members of the commission board of directors shall not be held responsible individually for any act or omission of any other member or alternate member. The liability of the members and alternate members of the commission board of directors shall be several and not joint, and a member or alternate member shall not be liable for the default of any other member or alternate member.
4.Powers and Duties79956.The powers and duties of the commission board of directors shall include, but are not limited to, all of the following:
(a)Adopt and from time to time alter, rescind, modify, and amend bylaws and procedures for carrying out this chapter, including procedures for related appeals. These actions shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(b)Administer and enforce this chapter and perform all acts and exercise all powers incidental to, or in connection with, or determined reasonably necessary for, proper or advisable effectuation of the purposes of this chapter.
(c)Appoint officers from the members of the commission board of directors, including a chair, one or more vice chairs, and any other officers as it determines necessary. The officers shall have the powers and duties delegated to them by the commission board of directors.
(d)Employ a person to serve at the pleasure of the commission as president and chief executive officer, and other personnel, including legal counsel, necessary to carry out this chapter. The Alternatively, the commission may retain a management firm or staff from any board, commission, or committee of the state to perform the functions prescribed by this subdivision under control of the commission board of directors. If a person subject to this subdivision engages in conduct that the secretary determines to be in violation of this chapter, or is not in the public interest, the secretary shall notify the commission of the conduct and request that corrective, and if appropriate, disciplinary action, be taken by the commission board of directors. If the commission board of directors fails or refuses to correct the situation or to take disciplinary action satisfactory to the secretary, the secretary may suspend or discharge the person subject to this subdivision.
(e)Fix the compensation for all employees.
(f)Appoint committees composed of both members members, alternates, and nonmembers of the commission board of directors to advise in carrying out this chapter.
(g)Establish offices and incur expenses, invest funds, enter into contracts and agreements, and create liabilities and borrow funds in advance of receipt of assessments as determined necessary for the proper administration and enforcement of this chapter and the performance of its duties.
(h)Keep accurate books, records, and accounts of all of its dealings, which shall be subject to an annual audit by an auditing firm selected by the commission board of directors with the concurrence of the secretary. The audit shall be made a part of an annual report to all growers and processors subject to this chapter, and, notwithstanding Sections 9795 and 10231.5 of the Government Code, copies of the audit shall be submitted to the Legislature and the department. In addition, the secretary may, as they determines determine necessary, conduct, or cause to be conducted, a fiscal and compliance audit of the commission.
(i)Present facts to, and negotiate with, state, federal, and foreign agencies on matters that affect the purposes of this chapter.
(j)Make, in the name of the commission, contracts to render service in formulating and conducting plans and programs, and any other contracts or agreements determined to be necessary for the purposes specified in this chapter.
(k)Conduct, and contract with others to conduct, research, including the study, analysis, dissemination, and accumulation of information obtained from research or elsewhere for purposes described in this chapter that is primarily for the benefit of growers and processors. In connection with the research, accept contributions of, or to match, private, state, or federal funds that may be available for these purposes, and to employ or make contributions of funds to other persons or state or federal agencies conducting the research.
(l)Collect information and publish and distribute to growers and processors, a bulletin or other communication for dissemination of information relating to this chapter.
(m)Establish an assessment rate to defray operating costs.
(n)Establish an annual budget according to accepted accounting practices. The budget shall be concurred in by the secretary before the disbursement of funds, except for disbursements made pursuant to subdivision (e).
(o)Submit to the secretary for their concurrence, an annual statement of contemplated activities authorized under this chapter.
(p)Investigate and prosecute civil violations of this chapter and file complaints with appropriate law enforcement agencies or officers for suspected criminal violations of this chapter.
(q)Prescribe the form and manner by which proponents and opponents of the commission may contact growers if all expenses associated with the contacts are paid in advance.
(r)Engage in communications with the public regarding activities authorized in this section.
(s)Conduct activities related to education, marketing, and promotion of agave and agave products.
5.Implementation and Voting Procedures79961.(a)Before February 15, 2025, No later than 90 days from the request of proponents of the commission, the secretary shall establish a list of growers and processors eligible to vote on the implementation of this chapter. The proponents shall provide the secretary with a list of growers and processors of agave to assist in identifying eligible voters. In establishing the list, the secretary shall require that (1) growers submit their names and mailing addresses and planted acreage, (2) processors submit their names and mailing addresses and the names and addresses of growers from whom agave is received, and the net paid weight to the growers during the preceding marketing season. The request for the information shall be in writing. The information shall be filed with the secretary within 10 days following receipt of the written request for information.
(b)A grower or processor whose name does not appear on the secretarys list may have their name placed on the list by filing with the secretary a signed statement identifying themselves as a grower or processor. Failure to be on the list does not exempt the grower or processor from paying assessments under this chapter.
79962.The commission shall not be established, and this chapter shall not be implemented, except as necessary to conduct an implementation referendum vote, until the secretary finds all of the following in a referendum vote conducted by the secretary:
(a)At least 40 percent of the total number of growers from the list established by the secretary pursuant to this article participate, and that either of the following occurs:
(1)Sixty-five percent of the growers who voted in the referendum voted in favor of establishing the commission, and those growers grew cultivated a majority of the total quantity of agave processed cultivated in the preceding marketing season by all of the growers voting in the referendum.
(2)A majority of the growers who voted in the referendum voted in favor of establishing the commission, and those growers grew cultivated 65 percent or more of the total quantity of agave processed cultivated in the preceding marketing season by all of the growers voting in the referendum.
(b)At least 40 percent of the total number of processors from the list established by the secretary pursuant to this article participate, and that either of the following occurs:
(1)Sixty-five percent of the processors who voted in the referendum voted in favor of establishing the commission, and those processors processed a majority of the total quantity of agave processed in the preceding marketing season by all of the processors voting in the referendum.
(2)A majority of the processors who voted in the referendum voted in favor of establishing the commission, and those processors processed 65 percent or more of the total quantity of agave processed in the preceding marketing season by all of the processors voting in the referendum.
79963.The secretary shall establish a period in which to conduct the referendum that shall not be less than 10 days or more than 60 days in duration and may prescribe additional procedures necessary to conduct the referendum. If the initial period established is less than 60 days, the secretary may extend the period.
79964.Nonreceipt of a ballot shall not invalidate a referendum.
79965.If the secretary finds that a referendum vote in favor of establishing the commission has occurred, as provided in this article, the secretary shall certify the vote and give notice of the vote to growers and processors whose names and addresses are on file with the secretary.
79966.If the secretary finds that a referendum vote in favor of establishing the commission has not occurred, as provided in this article, the secretary shall certify the vote and declare this chapter inoperative. The secretary may conduct another implementation referendum vote one or more years after the previous vote has been taken.
79967.(a)Upon the establishment of the commission, the secretary shall contact growers and processors in a manner determined by the secretary for the purpose of nominating and electing persons to the commission board of directors.
(b)Subsequent to the first election of members of the commission board of directors, or appointment in cases of a public member, growers and processors shall be selected pursuant to nomination and election procedures established by the commission board of directors with the concurrence of the secretary.
79968.Before the referendum vote conducted by the secretary pursuant to this article, the proponents of the commission shall deposit with the secretary an amount of funds determined necessary by the secretary to defray the expenses of preparing the necessary lists and information and conducting the vote. Any funds not used for this purpose shall be returned to the proponents of the commission who deposited the funds with the secretary. Upon establishment of the commission, the commission board of directors may reimburse the proponents of the commission for any funds deposited with the secretary and for any legal expenses and costs incurred in establishing the commission.
6.Assessments and Records79971.(a)The commission board of directors shall, no later than the beginning of each marketing season, or as soon thereafter as possible, establish the assessment to be paid by growers and processors for the marketing season.
(b)The commission shall establish an assessment to be paid by a grower that cultivates 2 to 10, inclusive, acres of agave for the marketing seasons that shall not exceed one thousand dollars ($1,000) and may be assessed on a sliding scale. Growers that cultivate more than 10 acres of agave for the marketing season may be assessed on a sliding scale.
(c)The commission shall establish an assessment paid by a processor that processes 3 to 10, inclusive, tons of agave for the marketing seasons that shall not exceed one thousand dollars ($1,000) and may be assessed on a sliding scale. Processors that process more than 10 tons of agave for the marketing season may be assessed on a sliding scale.
(b)(d)An assessment greater than the amounts established pursuant to subdivision (a) this section shall not be charged unless it is approved in accordance with the voting requirements provided in Section 79962.
(c)(e)The assessment shall not exceed the reasonable costs of achieving the purposes of this chapter.
79972.(a)Processors of agave shall keep a complete and accurate record of all agave processed by them with the name of the grower names of the growers whose agave was processed.
(b)(1)A grower who processes Growers who process agave that they have grown cultivated shall keep a complete and accurate record of the agave processed.
(2)A grower Growers shall, upon request of the commission, provide proof of commodity sale.
(c)The records described in subdivisions (a) and (b) shall contain information required by the commission. The records shall be preserved by growers and processors for a period of two years and shall be offered and submitted for inspection at any reasonable time upon written demand by the commission or its duly authorized agent.
79973.(a)All proprietary information obtained by the commission or the secretary from any source, including the names and addresses of growers and processors, shall be confidential and shall not be disclosed except if required by court order in a judicial proceeding.
(b)Information on volume shipments and any other related information that is required for reports to governmental agencies, financial reports to the commission on aggregate sales and inventory information, and any other information that gives only totals, but excludes individual information, may be disclosed by the commission.
79974.Growers and processors of agave that pay the assessment shall be trustees of the assessed funds until they are paid to the commission at the time and in the manner prescribed by the commission board of directors. Growers who process agave that they have grown cultivated shall be responsible for paying both assessments directly to the commission at the time and in the manner prescribed by the commission board of directors.
79975.Every grower and processor shall be personally liable for the payment of the assessments owed to the commission.
7.Actions and Penalties79981.(a)A person who fails to file a return or pay an assessment within the time required by the commission shall pay to the commission a penalty of 10 percent of the amount of the assessment determined to be past due and, in addition, interest on the unpaid balance at the rate of 1.5 percent per month.
(b)In addition to any other penalty imposed, the commission may require a person who fails to pay an assessment or related charge pursuant to Article 6 (commencing with Section 79971) this chapter to furnish and maintain a surety bond in a form and amount and for a period of time specified by the commission board of directors as assurance that all payments to the commission will be made when due.
79982.A civil penalty not exceeding one thousand dollars ($1,000) may be levied by the commission on a any person who does any of the following:
(a)Willfully render or furnish a false report, statement, or record required by the commission, or in any way avoids the payment of an assessment on the products highest value. assessment.
(b)Fail to render or furnish a report, statement, or record required by the commission.
(c)When engaged in growing cultivating agave for processing into agave products, fails or refuses to furnish to the commission or its duly authorized agents, upon request, information concerning the name and address of the persons from whom agave was received and the quantity received.
(d)Secrete, destroy, or alter records required to be kept by this chapter.
79983.For purposes of according individuals aggrieved by its actions or determinations, the commission board of directors shall establish procedures for an informal hearing before the commission or before a committee of the commission established for this purpose. Appeals from the decision of the commission board of directors may be made to the secretary. The determination of the secretary shall be subject to judicial review upon petition filed with the appropriate superior court.
79984.(a)The commission may commence civil actions and use all remedies provided in law or equity for the collection of assessments and civil penalties, and for obtaining injunctive relief or specific performance, relating to this chapter and the procedures adopted under this chapter. A court shall issue to the commission any requested writ of attachment or injunctive relief upon a prima facie showing by verified complaint that a named defendant has violated this chapter or any other procedures of the commission, including, but not limited to, the nonpayment of assessments. A bond shall not be required to be posted by the commission as a condition for the issuance of any writ of attachment or injunctive relief.
(b)A writ of attachment shall be issued pursuant to Chapter 5 (commencing with Section 485.010) of Title 6.5 of Part 2 of the Code of Civil Procedure, except that the showing specified in Section 485.010 is not required. Injunctive relief shall be issued pursuant to Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure, except that the showing of irreparable harm or of inadequate remedy at law specified by Section 526 or 527 is not required.
(c)Upon entry of any final judgment on behalf of the commission against any defendant, the court shall enjoin the defendant from conducting any type of business regarding the growing cultivating or processing of agave until there is full compliance with, and satisfaction of, the judgment.
(d)Upon a favorable judgment for the commission, the court may order that the commission be reimbursed for reasonable attorneys fees and other related costs actually incurred. Venue for these actions is at the domicile or place of business of the defendant or in the county of the principal office of the commission. The commission may be sued only in the county of its principal office.
79985.Any action by the commission for any penalty or other remedy that is prescribed under this chapter shall be commenced within two years from the date of discovery of the alleged violation. An action against the commission by a person shall be commenced within two years from the date of the alleged violation.
79986.The commission shall not be required to allege or prove that an adequate remedy at law does not exist in any action brought pursuant to this chapter.
79987.(a)This chapter shall be liberally construed.
(b)The provisions of this chapter are severable. If any provision of this chapter or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
79988.The termination of the operation of the commission and the implementation of this chapter shall not affect or waive any right, duty, obligation, or liability that has arisen or that may thereafter arise in connection with this chapter, release or extinguish any violation of this chapter, or affect or impair any right or remedies of the commission with respect to any violation.
8.Continuation or Suspension and Termination79991.(a)Five years after implementation of this chapter, the secretary shall hold a public hearing, after providing proper notice to persons subject to this chapter and any other persons or entities who have requested, in writing, notice of the hearing, to determine whether the commission shall continue to operate and this chapter shall continue to be implemented.
(b)If the secretary finds after the hearing that no substantial question exists among the growers and processors assessed pursuant to this chapter regarding whether the commission shall continue to operate, the secretary shall certify the finding and this chapter shall continue to be implemented.
(c)If the secretary finds after the hearing that a substantial question exists among the growers and processors assessed pursuant to this chapter regarding whether the commission shall continue to operate, the secretary shall conduct a referendum among growers and processors to determine whether the operation of the commission shall be terminated, in accordance with both of the following:
(1)The commission shall continue to operate unless the secretary determines from the referendum that a majority of the eligible growers and a majority of the eligible processors voting in the referendum voted in favor of terminating the commission.
(2)If the secretary finds that a vote to terminate the operation of the commission has been given, the secretary shall certify the vote and declare the implementation of this chapter is suspended upon the expiration of the current marketing season. Thereupon, the operation of the commission shall be concluded and funds distributed in the manner provided in Section 79994. A bond or security shall not be required for the referendum.
79992.Following a hearing, or a referendum resulting in a vote to continue the operation of the commission if required, the process specified in Section 79991 shall be conducted by the secretary every five years thereafter between July 1 and June 30 April 1 and March 31 of the following year, unless a referendum is conducted as the result of a petition pursuant to Section 79993. In that case, the hearing, and referendum if required, shall be conducted every five years following the industry petitioned referendum.
79993.(a)Upon a finding by a two-thirds vote of the commission board of directors that the commission has not tended to effectuate its declared purposes, the commission may recommend to the secretary that the operation of the commission be suspended. Any suspension shall not become effective until expiration of the current marketing season.
(b)(1)The secretary shall, upon receipt of a recommendation, or may, after a public hearing to review a petition described in paragraph (2) requesting the suspension, cause a referendum to be conducted among the listed growers and processors to determine if the operation of the commission shall be suspended. The secretary shall not hold a referendum as a result of a petition described in paragraph (2) unless the petitioner shows by the weight of evidence that the implementation of this chapter has not effectuated its declared purposes.
(2)A petition filed requesting suspension of the operation of the commission shall be signed by at least 15 percent of the growers and at least 15 percent of the processors, by number, who also grow cultivate and process at least 15 percent of the total volume of agave in the preceding marketing season.
(c)The secretary shall establish a referendum period, which shall not be less than 10 days or more than 60 days in duration. The secretary may prescribe additional procedures necessary to conduct the referendum. At the close of the established referendum period, the secretary shall tabulate the ballots filed during the period. The secretary shall suspend the operation of the commission if the secretary finds both of the following:
(1)At least 40 percent of the total number of growers from the list established by the secretary participate, and that either of the following occurs:
(A)Sixty-five percent of the growers that voted in the referendum voted in favor of suspension, and the growers so voting grew a majority of the total quantity of agave processed cultivated in the preceding marketing season by all of the growers voting in the referendum.
(B)A majority of the growers that voted in the referendum voted in favor of suspension, and the growers so voting grew 65 percent or more of the total quantity of agave processed cultivated in the preceding marketing season by all of the growers voting in the referendum.
(2)At least 40 percent of the total number of processors from the list established by the secretary participate, and that either of the following occurs:
(A)Sixty-five percent of the processors that voted in the referendum voted in favor of suspension, and the processors so voting processed a majority of the total quantity of agave processed in the preceding marketing season by all of the processors voting in the referendum.
(B)A majority of the processors that voted in the referendum voted in favor of suspension, and the processors so voting processed 65 percent or more of the total quantity of agave processed in the preceding marketing season by all of the processors voting in the referendum.
79994.After the effective date of suspension of the operation of the commission, the operation of the commission shall be concluded and all moneys held by the commission, and moneys collected by assessment and not required to defray the expenses of concluding and terminating the operation of the commission, shall be returned on a pro rata basis to all persons from whom assessments were collected in the immediately preceding marketing season. However, if the commission board of directors finds that the amounts returnable are so small as to make impractical the computation and remitting of the pro rata refund to those persons, any moneys remaining after payment of all expenses of winding up and terminating the operation shall be withdrawn from the approved depository and paid into a related state or federal program or used to fund activities related to the subject matter of this chapter.
79995.Upon suspension of the operation of the commission, the commission shall mail a copy of the notice of suspension to growers and processors affected by the suspension whose names and addresses are on file.
The growing of agave for processing into agave products and the marketing of agave and agave products constitute an important industry of this state, which provides substantial and necessary revenues for the state and employment for its residents.
79912.The growing of agave in California is consistent with and supportive of Californias environmentally sensitive policies relating to sustainable farming practices, including water conservation, through the growing of drought tolerant crops.
79913.The establishment of the commission is necessary for the efficient management of activities authorized in this chapter. The commission is also necessary to enhance the competitiveness of the industry within the state, national, and international marketplace.
79914.The purposes of this chapter are hereby declared to be in the public interest. This chapter is enacted in the exercise of the police power of this state for the purpose of protecting the health, peace, safety, and general welfare of the people of this state.
79915.The commission form of administration created by this chapter is uniquely situated to provide those engaged in the activities specified in this chapter the opportunity to avail themselves of the benefits of collective action in the broad fields of growing research, grower education, marketing, and public education.
79916.No action taken by the commission, or by any individual in accordance with this chapter or with bylaws or procedures established pursuant to this chapter, shall be deemed a violation of the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), the Unfair Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of the Business and Professions Code), or any statutory or common law against monopolies or combinations in restraint of trade.
79917.It is the intent of the Legislature that members of the commission represent and further the interests of the agave industry and that this representation and furtherance serve the public interest. Accordingly, the Legislature finds that with respect to persons who are elected or appointed to the commission, the agave industry is tantamount to, and constitutes, the public generally within the meaning of Section 87103 of the Government Code.
2.Definitions79921.Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.
79922.(a)Agave means the species of plants in the genus Agave of the family Aparagaceae cultivated for their juice and fiber.
(b)Agave cultivated solely for ornamental purposes is not subject to this chapter.
79923.Books and records means books, records, contracts, documents, memoranda, papers, correspondence, or other written data pertaining to matters relating to the activities subject to this chapter.
79924.Commission means the California Agave Commission.
79925.Ex officio members means nonvoting members of the commission board of directors.
79926.Grower means a person who commercially grows agave, or causes agave to be grown, on more than one acre, that is processed into agave products during the marketing season.
79927.Market or marketing means to sell agave and agave products into commercial channels of trade.
79928.Marketing season or fiscal year are synonymous terms and mean the period beginning April 1 of any year and extending through March 30 of the following year.
79929.Process or processing means to engage in the business of a processor.
79930.(a)Processor means a person licensed to commercially process agave and who processes agave in an amount of more than three tons in the state in the preceding marketing season.
(b)When the processor is a corporation or a limited liability company, all of the directors, officers, managers, and members of the corporation or limited liability company shall be treated as individuals when determining compliance with this chapter.
79931.Public member means a person appointed to the commission board of directors pursuant to the procedures specified in this chapter.
79932.Secretary means the Secretary of Food and Agriculture.
3.California Agave Commission79936.(a)There is in state government the California Agave Commission. Except as provided in this section, the commission board of directors shall be composed of six growers, two processors, and one public member.
(b)The commission board of directors may modify the number of members who serve on the commission board of directors by a two-thirds vote that is concurred in by the secretary, if proper notice is provided to all persons subject to this chapter before the action.
79937.(a)The secretary may require the commission to correct or cease any existing activity or function that is determined by the secretary to not be in the public interest or to be in violation of this chapter.
(b)If the commission refuses or fails to cease those activities or functions or to make corrections as required by the secretary, the secretary may, upon written notice, suspend all or a portion of the activities or functions of the commission until the cessation or correction of activities or functions as required by the secretary have been accomplished by the commission.
(c)Actions of the commission in violation of the secretarys written notice shall be without legal force or effect. The secretary, to the extent feasible, shall issue the written notice before the commission enters into a contractual relationship affecting the existing or proposed activities or functions that are the subject of the written notice.
(d)Upon service of the written notice, the secretary shall notify the commission in writing of the specific acts that the secretary determines are not in the public interest or are in violation of this chapter, and the secretarys reasons for requiring a cessation or correction of specific existing or proposed activities or functions, and may make recommendations that will make those activities or functions acceptable to the secretary.
79938.The commission or the secretary may bring an action for judicial relief from the secretarys written notice, or from noncompliance by the commission with the written notice, in a court of competent jurisdiction, which may issue a temporary restraining order, permanent injunction, or other applicable relief.
79939.The commission shall reimburse the secretary for all expenditures incurred by the secretary in carrying out their duties and responsibilities under this chapter. However, a court may, if it finds that the secretary acted arbitrarily or capriciously in restricting the activities or functions of the commission, relieve the commission of the responsibility for payment of the secretarys legal costs with regard to that action.
79940.Except for the ex officio members of the commission board of directors, each member of the commission board of directors shall have an alternate member elected in the same manner as the member. An alternate member, in the absence of the member for whom they are an alternate, shall serve in place of the member. An alternate member may also serve in place of any other absent member of the same classification if the members alternate is also absent. However, an alternate member may not serve in place of more than one absent member at a meeting. An alternate member serving in place of a member shall have, and may exercise, all rights, privileges, and powers of the member when serving. In the event of death, removal, resignation, or the disqualification of a member, the alternate for the member, or another alternate of the same classification if the alternate member for the member is absent, shall act as the member until a qualified successor is elected.
79941.Any vacancy on the commission board of directors, including, but not limited to, the failure of any person elected or appointed to the commission board of directors as a member or alternate member to continue in their position due to a change in status making them ineligible to serve, or due to death, removal, or resignation, shall be filled by the election of another person, or appointment in the case of a public member, for the unexpired portion of the term, with elected positions to be filled by a majority vote of the commission board of directors. However, the person elected or appointed shall fulfill all the qualifications set forth in this article as required for the office they are to occupy. The qualifications of any person to fill a vacancy shall be certified in writing to the secretary. The secretary shall notify the commission if the secretary determines that the person is not qualified.
79942.A grower member and their alternate on the commission board of directors shall be an individual, partner, or employee of a grower who has a financial interest in growing agave, or causing agave to be grown. The grower member and their alternate shall comply with this section during the entire term of their office in order to remain on the commission board of directors.
79943.A processor member and their alternate on the commission board of directors shall be an individual, partner, or employee of a processor who has a financial interest in processing agave, or causing agave to be processed. The processor member and their alternate shall comply with this section during the entire term of their office in order to be remain on the commission board of directors.
79944.The public member and their alternate on the commission board of directors shall have all the powers, rights, and privileges of any other member on the commission board of directors. The public member shall not have any financial interest in the growing or processing of agave or the marketing of agave products but may be an individual who provides services to individuals who do have a financial interest. The public member and their alternate shall comply with this section during the entire term of their office.
79945.(a)The term of office of each member of the commission board of directors and their alternate, except an ex officio member, shall be three years from the date of their election and until their successor is elected.
(b)An alternate shall serve the same term as the member for whom they serve as alternate.
79946.The commission may sue and be sued and enter into contracts. Copies of its proceedings, records, and acts, when authenticated, shall be admissible in evidence in all courts of the state, and shall be prima facie evidence of the truth of all statements within the proceedings, records, and acts.
79947.A quorum of the commission board of directors is a majority of the members authorized to vote. Except as otherwise provided in this chapter, the vote of a majority of these members present at a meeting at which there is a quorum shall constitute an act of the commission.
79948.The secretary or their representatives shall be notified and may attend each meeting of the commission board of directors and any meetings of a committee established by the commission, except the secretary is not authorized to attend an executive session of the commission board of directors called for the purpose of discussing potential or actual litigation against the department.
79949.A member of the commission board of directors or of any committee established by the commission, shall not receive a salary. Except for ex officio government members, a member may receive reasonable and necessary traveling expenses and meal allowances, as established by the commission board of directors, for each day spent in actual attendance at, or in traveling to and from, meetings of the commission or committees of the commission, or on special assignment for the commission.
79950.If the secretary is required to concur in a decision of the commission, the secretary shall indicate their response within 15 working days from notification of the decision. The response may be a request that additional information be provided.
79951.All moneys received by a person from assessments levied under the authority of this chapter or otherwise received by the commission shall be deposited into banks designated by the commission board of directors and shall be disbursed by order of the commission board of directors through an agent or agents designated for that purpose. Any authorized agent or agents shall be bonded by a fidelity bond, executed by a surety company authorized to transact business in the state, in favor of the commission, in the amount of not less than twenty-five thousand dollars ($25,000).
79952.The state shall not be liable for the acts of the commission or its contracts. Payments of all claims arising by reason of the administration of this chapter or acts of the commission shall be limited to the funds collected by the commission. Members and alternate members of the commission board of directors, employees, and agents of the commission shall not be personally liable for the contracts of the commission, and members and alternate members of the commission board of directors and employees of the commission shall not be responsible individually in any way to a grower, processor, or any other person for error in judgment, mistakes, or other acts, either of commission or omission, as principal, agent, or employee, except for their own individual acts of dishonesty or crime. Members and alternate members of the commission board of directors shall not be held responsible individually for any act or omission of any other member or alternate member. The liability of the members and alternate members of the commission board of directors shall be several and not joint, and a member or alternate member shall not be liable for the default of any other member or alternate member.
4.Powers and Duties79956.The powers and duties of the commission board of directors shall include, but are not limited to, all of the following:
(a)Adopt and from time to time alter, rescind, modify, and amend bylaws and procedures for carrying out this chapter, including procedures for related appeals. These actions shall not be subject to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
(b)Administer and enforce this chapter and perform all acts and exercise all powers incidental to, or in connection with, or determined reasonably necessary for, proper or advisable effectuation of the purposes of this chapter.
(c)Appoint officers from the members of the commission board of directors, including a chair, one or more vice chairs, and any other officers as it determines necessary. The officers shall have the powers and duties delegated to them by the commission board of directors.
(d)Employ a person to serve at the pleasure of the commission as president and chief executive officer, and other personnel, including legal counsel, necessary to carry out this chapter. The commission may retain a management firm or staff from any board, commission, or committee of the state to perform the functions prescribed by this subdivision under control of the commission board of directors. If a person subject to this subdivision engages in conduct that the secretary determines to be in violation of this chapter, or is not in the public interest, the secretary shall notify the commission of the conduct and request that corrective, and if appropriate, disciplinary action, be taken by the commission board of directors. If the commission board of directors fails or refuses to correct the situation or to take disciplinary action satisfactory to the secretary, the secretary may suspend or discharge the person subject to this subdivision.
(e)Fix the compensation for all employees.
(f)Appoint committees composed of both members and nonmembers of the commission board of directors to advise in carrying out this chapter.
(g)Establish offices and incur expenses, invest funds, enter into contracts and agreements, and create liabilities and borrow funds in advance of receipt of assessments as determined necessary for the proper administration and enforcement of this chapter and the performance of its duties.
(h)Keep accurate books, records, and accounts of all of its dealings, which shall be subject to an annual audit by an auditing firm selected by the commission board of directors with the concurrence of the secretary. The audit shall be made a part of an annual report to all growers and processors subject to this chapter, and, notwithstanding Sections 9795 and 10231.5 of the Government Code, copies of the audit shall be submitted to the Legislature and the department. In addition, the secretary may, as they determines necessary, conduct, or cause to be conducted, a fiscal and compliance audit of the commission.
(i)Present facts to, and negotiate with, state, federal, and foreign agencies on matters that affect the purposes of this chapter.
(j)Make, in the name of the commission, contracts to render service in formulating and conducting plans and programs, and any other contracts or agreements determined to be necessary for the purposes specified in this chapter.
(k)Conduct, and contract with others to conduct, research, including the study, analysis, dissemination, and accumulation of information obtained from research or elsewhere for purposes described in this chapter that is primarily for the benefit of growers and processors. In connection with the research, accept contributions of, or to match, private, state, or federal funds that may be available for these purposes, and to employ or make contributions of funds to other persons or state or federal agencies conducting the research.
(l)Collect information and publish and distribute to growers and processors, a bulletin or other communication for dissemination of information relating to this chapter.
(m)Establish an assessment rate to defray operating costs.
(n)Establish an annual budget according to accepted accounting practices. The budget shall be concurred in by the secretary before the disbursement of funds, except for disbursements made pursuant to subdivision (e).
(o)Submit to the secretary for their concurrence, an annual statement of contemplated activities authorized under this chapter.
(p)Investigate and prosecute civil violations of this chapter and file complaints with appropriate law enforcement agencies or officers for suspected criminal violations of this chapter.
(q)Prescribe the form and manner by which proponents and opponents of the commission may contact growers if all expenses associated with the contacts are paid in advance.
(r)Engage in communications with the public regarding activities authorized in this section.
5.Implementation and Voting Procedures79961.(a)Before February 15, 2025, the secretary shall establish a list of growers and processors eligible to vote on the implementation of this chapter. In establishing the list, the secretary shall require that (1) growers submit their names and mailing addresses and planted acreage, (2) processors submit their names and mailing addresses and the names and addresses of growers from whom agave is received, and the net paid weight to the growers during the preceding marketing season. The request for the information shall be in writing. The information shall be filed within 10 days following receipt of the written request for information.
(b)A grower or processor whose name does not appear on the secretarys list may have their name placed on the list by filing with the secretary a signed statement identifying themselves as a grower or processor. Failure to be on the list does not exempt the grower or processor from paying assessments under this chapter.
79962.The commission shall not be established, and this chapter shall not be implemented, except as necessary to conduct an implementation referendum vote, until the secretary finds all of the following in a referendum vote conducted by the secretary:
(a)At least 40 percent of the total number of growers from the list established by the secretary pursuant to this article participate, and that either of the following occurs:
(1)Sixty-five percent of the growers who voted in the referendum voted in favor of establishing the commission, and those growers grew a majority of the total quantity of agave processed in the preceding marketing season by all of the growers voting in the referendum.
(2)A majority of the growers who voted in the referendum voted in favor of establishing the commission, and those growers grew 65 percent or more of the total quantity of agave processed in the preceding marketing season by all of the growers voting in the referendum.
(b)At least 40 percent of the total number of processors from the list established by the secretary pursuant to this article participate, and that either of the following occurs:
(1)Sixty-five percent of the processors who voted in the referendum voted in favor of establishing the commission, and those processors processed a majority of the total quantity of agave processed in the preceding marketing season by all of the processors voting in the referendum.
(2)A majority of the processors who voted in the referendum voted in favor of establishing the commission, and those processors processed 65 percent or more of the total quantity of agave processed in the preceding marketing season by all of the processors voting in the referendum.
79963.The secretary shall establish a period in which to conduct the referendum that shall not be less than 10 days or more than 60 days in duration and may prescribe additional procedures necessary to conduct the referendum. If the initial period established is less than 60 days, the secretary may extend the period.
79964.Nonreceipt of a ballot shall not invalidate a referendum.
79965.If the secretary finds that a referendum vote in favor of establishing the commission has occurred, as provided in this article, the secretary shall certify the vote and give notice of the vote to growers and processors whose names and addresses are on file with the secretary.
79966.If the secretary finds that a referendum vote in favor of establishing the commission has not occurred, as provided in this article, the secretary shall certify the vote and declare this chapter inoperative. The secretary may conduct another implementation referendum vote one or more years after the previous vote has been taken.
79967.(a)Upon the establishment of the commission, the secretary shall contact growers and processors in a manner determined by the secretary for the purpose of nominating and electing persons to the commission board of directors.
(b)Subsequent to the first election of members of the commission board of directors, or appointment in cases of a public member, growers and processors shall be selected pursuant to nomination and election procedures established by the commission board of directors with the concurrence of the secretary.
79968.Before the referendum vote conducted by the secretary pursuant to this article, the proponents of the commission shall deposit with the secretary an amount of funds determined necessary by the secretary to defray the expenses of preparing the necessary lists and information and conducting the vote. Any funds not used for this purpose shall be returned to the proponents of the commission who deposited the funds with the secretary. Upon establishment of the commission, the commission board of directors may reimburse the proponents of the commission for any funds deposited with the secretary and for any legal expenses and costs incurred in establishing the commission.
6.Assessments and Records79971.(a)The commission board of directors shall, no later than the beginning of each marketing season, or as soon thereafter as possible, establish the assessment to be paid by growers and processors for the marketing season.
(b)An assessment greater than the amounts established pursuant to subdivision (a) shall not be charged unless it is approved in accordance with the voting requirements provided in Section 79962.
(c)The assessment shall not exceed the reasonable costs of achieving the purposes of this chapter.
79972.(a)Processors of agave shall keep a complete and accurate record of all agave processed by them with the name of the grower whose agave was processed.
(b)(1)A grower who processes agave that they have grown shall keep a complete and accurate record of the agave processed.
(2)A grower shall, upon request of the commission, provide proof of commodity sale.
(c)The records described in subdivisions (a) and (b) shall contain information required by the commission. The records shall be preserved by growers and processors for a period of two years and shall be offered and submitted for inspection at any reasonable time upon written demand by the commission or its duly authorized agent.
79973.(a)All proprietary information obtained by the commission or the secretary from any source, including the names and addresses of growers and processors, shall be confidential and shall not be disclosed except if required by court order in a judicial proceeding.
(b)Information on volume shipments and any other related information that is required for reports to governmental agencies, financial reports to the commission on aggregate sales and inventory information, and any other information that gives only totals, but excludes individual information, may be disclosed by the commission.
79974.Growers and processors of agave that pay the assessment shall be trustees of the assessed funds until they are paid to the commission at the time and in the manner prescribed by the commission board of directors. Growers who process agave that they have grown shall be responsible for paying both assessments directly to the commission at the time and in the manner prescribed by the commission board of directors.
79975.Every grower and processor shall be personally liable for the payment of the assessments owed to the commission.
7.Actions and Penalties79981.(a)A person who fails to file a return or pay an assessment within the time required by the commission shall pay to the commission a penalty of 10 percent of the amount of the assessment determined to be past due and, in addition, interest on the unpaid balance at the rate of 1.5 percent per month.
(b)In addition to any other penalty imposed, the commission may require a person who fails to pay an assessment or related charge pursuant to Article 6 (commencing with Section 79971) to furnish and maintain a surety bond in a form and amount and for a period of time specified by the commission board of directors as assurance that all payments to the commission will be made when due.
79982.A civil penalty not exceeding one thousand dollars ($1,000) may be levied by the commission on a person who does any of the following:
(a)Willfully render or furnish a false report, statement, or record required by the commission, or in any way avoids the payment of an assessment on the products highest value.
(b)Fail to render or furnish a report, statement, or record required by the commission.
(c)When engaged in growing agave for processing into agave products, fails or refuses to furnish to the commission or its duly authorized agents, upon request, information concerning the name and address of the persons from whom agave was received and the quantity received.
(d)Secrete, destroy, or alter records required to be kept by this chapter.
79983.For purposes of according individuals aggrieved by its actions or determinations, the commission board of directors shall establish procedures for an informal hearing before the commission or before a committee of the commission established for this purpose. Appeals from the decision of the commission board of directors may be made to the secretary. The determination of the secretary shall be subject to judicial review upon petition filed with the appropriate superior court.
79984.(a)The commission may commence civil actions and use all remedies provided in law or equity for the collection of assessments and civil penalties, and for obtaining injunctive relief or specific performance, relating to this chapter and the procedures adopted under this chapter. A court shall issue to the commission any requested writ of attachment or injunctive relief upon a prima facie showing by verified complaint that a named defendant has violated this chapter or any other procedures of the commission, including, but not limited to, the nonpayment of assessments. A bond shall not be required to be posted by the commission as a condition for the issuance of any writ of attachment or injunctive relief.
(b)A writ of attachment shall be issued pursuant to Chapter 5 (commencing with Section 485.010) of Title 6.5 of Part 2 of the Code of Civil Procedure, except that the showing specified in Section 485.010 is not required. Injunctive relief shall be issued pursuant to Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure, except that the showing of irreparable harm or of inadequate remedy at law specified by Section 526 or 527 is not required.
(c)Upon entry of any final judgment on behalf of the commission against any defendant, the court shall enjoin the defendant from conducting any type of business regarding the growing or processing of agave until there is full compliance with, and satisfaction of, the judgment.
(d)Upon a favorable judgment for the commission, the court may order that the commission be reimbursed for reasonable attorneys fees and other related costs actually incurred. Venue for these actions is at the domicile or place of business of the defendant or in the county of the principal office of the commission. The commission may be sued only in the county of its principal office.
79985.Any action by the commission for any penalty or other remedy that is prescribed under this chapter shall be commenced within two years from the date of discovery of the alleged violation. An action against the commission by a person shall be commenced within two years from the date of the alleged violation.
79986.The commission shall not be required to allege or prove that an adequate remedy at law does not exist in any action brought pursuant to this chapter.
79987.(a)This chapter shall be liberally construed.
(b)The provisions of this chapter are severable. If any provision of this chapter or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
79988.The termination of the operation of the commission and the implementation of this chapter shall not affect or waive any right, duty, obligation, or liability that has arisen or that may thereafter arise in connection with this chapter, release or extinguish any violation of this chapter, or affect or impair any right or remedies of the commission with respect to any violation.
8.Continuation or Suspension and Termination79991.(a)Five years after implementation of this chapter, the secretary shall hold a public hearing, after providing proper notice to persons subject to this chapter and any other persons or entities who have requested, in writing, notice of the hearing, to determine whether the commission shall continue to operate and this chapter shall continue to be implemented.
(b)If the secretary finds after the hearing that no substantial question exists among the growers and processors assessed pursuant to this chapter regarding whether the commission shall continue to operate, the secretary shall certify the finding and this chapter shall continue to be implemented.
(c)If the secretary finds after the hearing that a substantial question exists among the growers and processors assessed pursuant to this chapter regarding whether the commission shall continue to operate, the secretary shall conduct a referendum among growers and processors to determine whether the operation of the commission shall be terminated, in accordance with both of the following:
(1)The commission shall continue to operate unless the secretary determines from the referendum that a majority of the eligible growers and a majority of the eligible processors voting in the referendum voted in favor of terminating the commission.
(2)If the secretary finds that a vote to terminate the operation of the commission has been given, the secretary shall certify the vote and declare the implementation of this chapter is suspended upon the expiration of the current marketing season. Thereupon, the operation of the commission shall be concluded and funds distributed in the manner provided in Section 79994. A bond or security shall not be required for the referendum.
79992.Following a hearing, or a referendum resulting in a vote to continue the operation of the commission if required, the process specified in Section 79991 shall be conducted by the secretary every five years thereafter between July 1 and June 30 of the following year, unless a referendum is conducted as the result of a petition pursuant to Section 79993. In that case, the hearing, and referendum if required, shall be conducted every five years following the industry petitioned referendum.
79993.(a)Upon a finding by a two-thirds vote of the commission board of directors that the commission has not tended to effectuate its declared purposes, the commission may recommend to the secretary that the operation of the commission be suspended. Any suspension shall not become effective until expiration of the current marketing season.
(b)(1)The secretary shall, upon receipt of a recommendation, or may, after a public hearing to review a petition described in paragraph (2) requesting the suspension, cause a referendum to be conducted among the listed growers and processors to determine if the operation of the commission shall be suspended. The secretary shall not hold a referendum as a result of a petition described in paragraph (2) unless the petitioner shows by the weight of evidence that the implementation of this chapter has not effectuated its declared purposes.
(2)A petition filed requesting suspension of the operation of the commission shall be signed by at least 15 percent of the growers and at least 15 percent of the processors, by number, who also grow and process at least 15 percent of the total volume of agave in the preceding marketing season.
(c)The secretary shall establish a referendum period, which shall not be less than 10 days or more than 60 days in duration. The secretary may prescribe additional procedures necessary to conduct the referendum. At the close of the established referendum period, the secretary shall tabulate the ballots filed during the period. The secretary shall suspend the operation of the commission if the secretary finds both of the following:
(1)At least 40 percent of the total number of growers from the list established by the secretary participate, and that either of the following occurs:
(A)Sixty-five percent of the growers that voted in the referendum voted in favor of suspension, and the growers so voting grew a majority of the total quantity of agave processed in the preceding marketing season by all of the growers voting in the referendum.
(B)A majority of the growers that voted in the referendum voted in favor of suspension, and the growers so voting grew 65 percent or more of the total quantity of agave processed in the preceding marketing season by all of the growers voting in the referendum.
(2)At least 40 percent of the total number of processors from the list established by the secretary participate, and that either of the following occurs:
(A)Sixty-five percent of the processors that voted in the referendum voted in favor of suspension, and the processors so voting processed a majority of the total quantity of agave processed in the preceding marketing season by all of the processors voting in the referendum.
(B)A majority of the processors that voted in the referendum voted in favor of suspension, and the processors so voting processed 65 percent or more of the total quantity of agave processed in the preceding marketing season by all of the processors voting in the referendum.
79994.After the effective date of suspension of the operation of the commission, the operation of the commission shall be concluded and all moneys held by the commission, and moneys collected by assessment and not required to defray the expenses of concluding and terminating the operation of the commission, shall be returned on a pro rata basis to all persons from whom assessments were collected in the immediately preceding marketing season. However, if the commission board of directors finds that the amounts returnable are so small as to make impractical the computation and remitting of the pro rata refund to those persons, any moneys remaining after payment of all expenses of winding up and terminating the operation shall be withdrawn from the approved depository and paid into a related state or federal program or used to fund activities related to the subject matter of this chapter.
79995.Upon suspension of the operation of the commission, the commission shall mail a copy of the notice of suspension to growers and processors affected by the suspension whose names and addresses are on file.
|
Date
|
Status
|
|---|---|
| Sep 27, 2024 | Chaptered by Secretary of State - Chapter 725, Statutes of 2024. |
| Sep 27, 2024 | Approved by the Governor. |
| Sep 5, 2024 | Enrolled and presented to the Governor at 4 p.m. |
| Aug 27, 2024 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 0.). |
| Aug 27, 2024 | Assembly Rule 77 suspended. |
| Aug 26, 2024 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 28 pursuant to Assembly Rule 77. |
| Aug 26, 2024 | Read third time. Passed. Ordered to the Assembly. (Ayes 40. Noes 0.). |
| Aug 22, 2024 | Read second time. Ordered to third reading. |
| Aug 21, 2024 | Read third time and amended. Ordered to second reading. |
| Aug 8, 2024 | Ordered to third reading. |
| Aug 8, 2024 | From Consent Calendar. |
| Aug 6, 2024 | Read second time. Ordered to Consent Calendar. |
| Aug 5, 2024 | From committee: Be ordered to second reading file pursuant to Senate Rule 28.8 and ordered to Consent Calendar. |
| Jul 3, 2024 | From committee: Do pass and re-refer to Com. on APPR with recommendation: To Consent Calendar. (Ayes 11. Noes 0.) (July 2). Re-referred to Com. on APPR. |
| Jun 27, 2024 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD. |
| Jun 24, 2024 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD. |
| Jun 18, 2024 | From committee: Do pass and re-refer to Com. on JUD. with recommendation: To Consent Calendar. (Ayes 5. Noes 0.) (June 18). Re-referred to Com. on JUD. |
| Jun 5, 2024 | Referred to Coms. on AGRI and JUD. |
| May 23, 2024 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 22, 2024 | Read third time. Passed. Ordered to the Senate. (Ayes 71. Noes 0. Page 5493.) |
| May 20, 2024 | Read second time. Ordered to third reading. |
| May 16, 2024 | From committee: Do pass. (Ayes 14. Noes 0.) (May 16). |
| Apr 24, 2024 | In committee: Set, first hearing. Referred to APPR. suspense file. |
| Apr 16, 2024 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (April 16). Re-referred to Com. on APPR. |
| Apr 11, 2024 | From committee: Do pass and re-refer to Com. on JUD. (Ayes 8. Noes 0.) (April 10). Re-referred to Com. on JUD. |
| Mar 4, 2024 | Referred to Coms. on AGRI. and JUD. |
| Feb 15, 2024 | From printer. May be heard in committee March 16. |
| Feb 14, 2024 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 27, 2024 | AB 2606 Aguiar-Curry Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Aug 26, 2024 | Assembly 3rd Reading AB2606 Aguiar-Curry By Padilla | Senate Floor |
Passed |
|
| Jul 2, 2024 | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Judiciary |
Passed |
|
| Jun 18, 2024 | Do pass, but first be re-referred to the Committee on [Judiciary] with the recommendation: To Consent Calendar | Senate Standing Committee on Agriculture |
Passed |
|
| May 22, 2024 | AB 2606 Aguiar-Curry Assembly Third Reading | Assembly Floor |
Passed |
|
| May 16, 2024 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 16, 2024 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Judiciary |
Passed |
|
| Apr 10, 2024 | Do pass and be re-referred to the Committee on [Judiciary] | Assembly Standing Committee on Agriculture |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| California Agave Council | ** Support | |
| California Agave Council | * Indeterminate | Apr 16, 2024 |
| The California Agave Council | * Support | Apr 10, 2024 |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 2606
Author:(Aguiar-Curry)
As Amended Ver:August 21, 2024
Majority vote
SUMMARY
This bill establishes the California Agave Commission (CAC) and authorizes the commission to establish an assessment to be paid by growers and processors for the purpose of engaging in marketing of California Agave products.
Senate Amendments
- Add definition for “cultivate” or “cultivated” means to plant, tend, harvest, or improve agave. Cultivated acreage does not include acreage removed from cultivation due to weather, disease, or other circumstances beyond the control of the grower.
- Clarifies appointment of public CAC board member and requires the Secretary of the California Department of Food and Agriculture (CDFA) or a designate to be ex officio CAC board member.
- Requires the assessment for growers that cultivate 2 to 10, inclusive, acres of agave for the marketing season not exceed one thousand dollars ($1,000) and may be levied using a sliding scale and the assessment for growers that cultivate more than 10 acres of agave for the marketing season not exceed fifty thousand dollars ($50,000) and may be levied using a sliding scale.
- Requires the assessment for processors that process 3 to 10, inclusive, tons of agave for the marketing season not exceed one thousand dollars ($1,000) and may be levied using a sliding scale and the assessment for processors that process more than 10 tons of agave for the marketing season not exceed fifty thousand dollars ($50,000) and may be levied using a sliding scale.
- Makes numerous conforming and technical changes.
These amendments align with the Assembly Committee on Agriculture’s policy goals.
COMMENTS
This bill would authorize, upon an affirmative referendum vote of all growers and distillers in California, to establish the CAC. The CAC can then set an assessment on growers and processors; the CAC can invest in research, educate the industry about sustainable farming and processing practices, and enhance market competitiveness and consumer education of California agave spirits and products. The bill prescribes membership, the makeup of the board of directors, CAC authorities and obligations, voting procedures, assessments, and penalties. This bill authorizes the CAC, once formed, to levy an annual assessment on growers and processors to support the CAC’s work on the industry’s behalf. The CAC can be disbanded after a hearing by CDFA and a vote of the membership. This bill can have a positive impact on small-scale farmers and farm employees, many of whom are in disadvantaged communities, to bring research and promotional opportunities for culturally relevant foods, such as agave spirits, to the market.
The purpose of marketing programs is to provide agricultural producers and handlers an organizational structure, operating under government sanction, which allows them to solve production and marketing problems collectively that they could not address individually.
Current marketing programs’ activities include commodity promotion, research, and maintenance of quality standards. Commissions provide a structure for solving problems and provide a vehicle for collecting funds to support activities.
According to the Author
Agave is a rapidly growing agricultural crop in California because it is resilient to many of the state’s climactic extremes and can serve as an excellent replacement crop for drought or water-stricken production regions. While this is a nascent industry, agave spirits are quickly becoming one of the fastest growing spirits, according to the Distilled Spirits Council of U.S. AB 2606 establishes the CAC to give the agave industry an opportunity to self-organize and pool grower and distiller resources to invest collectively in education, research, and marketing.
Arguments in Support
This bill seeks to create the CAC, funded entirely by the industry, to help our industry grow. There is a long history of successful commodity commissions in the Food and Agricultural Code that allows for pooled resources to pursue initiatives in grower education, sustainable practices, plant health, research, and marketing. Long-standing commission law, of which this bill is modeled after, identifies rules and procedures for establishment of the CAC, processes for continuation or cessation, voting and assessment standards—all guided by self-determination of California agave growers and distillers and overseen by CDFA. In short, this bill allows for the conditions of a mature and successful agave industry to grow.
Arguments in Opposition
None on file.
FISCAL COMMENTS
According to the Assembly Committee on Appropriations, this bill has ongoing annual costs of an unknown amount, likely in the low hundreds of thousands of dollars, for CDFA to fulfill its responsibilities related to and provide statutory oversight of the CAC (Food and Agriculture Fund). This bill requires the CAC to levy a mandatory assessment on agave growers and processors and reimburse CDFA for all expenditures incurred by the department in carrying out its duties and responsibilities under this bill. This bill also requires any startup costs incurred by CDFA in conducting the required referendum be covered by a deposit provided to the department by the proponents of the Commission. CDFA notes its startup costs for previously established commissions have been around $10,000.
VOTES:
ASM AGRICULTURE: 8-0-2
YES: Soria, Alanis, Aguiar-Curry, Connolly, Irwin, Jones-Sawyer, Villapudua, Wood
ABS, ABST OR NV: Sanchez, Ta
ASM JUDICIARY: 12-0-0
YES: Kalra, Dixon, Bauer-Kahan, Bryan, Connolly, Haney, Maienschein, McKinnor, Pacheco, Reyes, Sanchez, Waldron
ASM APPROPRIATIONS: 14-0-1
YES: Wicks, Sanchez, Arambula, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Grayson, Haney, Hart, Jim Patterson, Pellerin, Villapudua
ABS, ABST OR NV: Ta
ASSEMBLY FLOOR: 71-0-9
YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Flora, Mike Fong, Vince Fong, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
ABS, ABST OR NV: Calderon, Cervantes, Megan Dahle, Essayli, Friedman, Holden, Mathis, Luz Rivas, Ta
SENATE FLOOR: 40-0-0
YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk
UPDATED
VERSION: August 21, 2024
CONSULTANT: Victor Francovich / AGRI. / (916) 319-2084 FN: 0004612
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 2606
Author:(Aguiar-Curry)
As Amended Ver:August 21, 2024
Majority vote
SUMMARY
This bill establishes the California Agave Commission (CAC) and authorizes the commission to establish an assessment to be paid by growers and processors for the purpose of engaging in marketing of California Agave products.
Senate Amendments
- Add definition for “cultivate” or “cultivated” means to plant, tend, harvest, or improve agave. Cultivated acreage does not include acreage removed from cultivation due to weather, disease, or other circumstances beyond the control of the grower.
- Clarifies appointment of public CAC board member and requires the Secretary of the California Department of Food and Agriculture (CDFA) or a designate to be ex officio CAC board member.
- Requires the assessment for growers that cultivate 2 to 10, inclusive, acres of agave for the marketing season not exceed one thousand dollars ($1,000) and may be levied using a sliding scale and the assessment for growers that cultivate more than 10 acres of agave for the marketing season not exceed fifty thousand dollars ($50,000) and may be levied using a sliding scale.
- Requires the assessment for processors that process 3 to 10, inclusive, tons of agave for the marketing season not exceed one thousand dollars ($1,000) and may be levied using a sliding scale and the assessment for processors that process more than 10 tons of agave for the marketing season not exceed fifty thousand dollars ($50,000) and may be levied using a sliding scale.
- Makes numerous conforming and technical changes.
These amendments align with the Assembly Committee on Agriculture’s policy goals.
COMMENTS
This bill would authorize, upon an affirmative referendum vote of all growers and distillers in California, to establish the CAC. The CAC can then set an assessment on growers and processors; the CAC can invest in research, educate the industry about sustainable farming and processing practices, and enhance market competitiveness and consumer education of California agave spirits and products. The bill prescribes membership, the makeup of the board of directors, CAC authorities and obligations, voting procedures, assessments, and penalties. This bill authorizes the CAC, once formed, to levy an annual assessment on growers and processors to support the CAC’s work on the industry’s behalf. The CAC can be disbanded after a hearing by CDFA and a vote of the membership. This bill can have a positive impact on small-scale farmers and farm employees, many of whom are in disadvantaged communities, to bring research and promotional opportunities for culturally relevant foods, such as agave spirits, to the market.
The purpose of marketing programs is to provide agricultural producers and handlers an organizational structure, operating under government sanction, which allows them to solve production and marketing problems collectively that they could not address individually.
Current marketing programs’ activities include commodity promotion, research, and maintenance of quality standards. Commissions provide a structure for solving problems and provide a vehicle for collecting funds to support activities.
According to the Author
Agave is a rapidly growing agricultural crop in California because it is resilient to many of the state’s climactic extremes and can serve as an excellent replacement crop for drought or water-stricken production regions. While this is a nascent industry, agave spirits are quickly becoming one of the fastest growing spirits, according to the Distilled Spirits Council of U.S. AB 2606 establishes the CAC to give the agave industry an opportunity to self-organize and pool grower and distiller resources to invest collectively in education, research, and marketing.
Arguments in Support
This bill seeks to create the CAC, funded entirely by the industry, to help our industry grow. There is a long history of successful commodity commissions in the Food and Agricultural Code that allows for pooled resources to pursue initiatives in grower education, sustainable practices, plant health, research, and marketing. Long-standing commission law, of which this bill is modeled after, identifies rules and procedures for establishment of the CAC, processes for continuation or cessation, voting and assessment standards—all guided by self-determination of California agave growers and distillers and overseen by CDFA. In short, this bill allows for the conditions of a mature and successful agave industry to grow.
Arguments in Opposition
None on file.
FISCAL COMMENTS
According to the Assembly Committee on Appropriations, this bill has ongoing annual costs of an unknown amount, likely in the low hundreds of thousands of dollars, for CDFA to fulfill its responsibilities related to and provide statutory oversight of the CAC (Food and Agriculture Fund). This bill requires the CAC to levy a mandatory assessment on agave growers and processors and reimburse CDFA for all expenditures incurred by the department in carrying out its duties and responsibilities under this bill. This bill also requires any startup costs incurred by CDFA in conducting the required referendum be covered by a deposit provided to the department by the proponents of the Commission. CDFA notes its startup costs for previously established commissions have been around $10,000.
VOTES:
ASM AGRICULTURE: 8-0-2
YES: Soria, Alanis, Aguiar-Curry, Connolly, Irwin, Jones-Sawyer, Villapudua, Wood
ABS, ABST OR NV: Sanchez, Ta
ASM JUDICIARY: 12-0-0
YES: Kalra, Dixon, Bauer-Kahan, Bryan, Connolly, Haney, Maienschein, McKinnor, Pacheco, Reyes, Sanchez, Waldron
ASM APPROPRIATIONS: 14-0-1
YES: Wicks, Sanchez, Arambula, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Grayson, Haney, Hart, Jim Patterson, Pellerin, Villapudua
ABS, ABST OR NV: Ta
ASSEMBLY FLOOR: 71-0-9
YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Flora, Mike Fong, Vince Fong, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
ABS, ABST OR NV: Calderon, Cervantes, Megan Dahle, Essayli, Friedman, Holden, Mathis, Luz Rivas, Ta
UPDATED
VERSION: August 21, 2024
CONSULTANT: Victor Francovich / AGRI. / (916) 319-2084 FN: 0004612
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 2606 |
THIRD READING
Bill No: AB 2606
Author: Aguiar-Curry (D)
Amended: 8/21/24 in Senate
Vote: 21
SENATE AGRICULTURE COMMITTEE: 5-0, 6/18/24
AYES: Hurtado, Grove, Alvarado-Gil, Cortese, Padilla
SENATE JUDICIARY COMMITTEE: 11-0, 7/2/24
AYES: Umberg, Wilk, Allen, Ashby, Caballero, Durazo, Laird, Niello, Roth, Stern, Wahab
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 71-0, 5/22/24 - See last page for vote
SUBJECT: California Agave Commission
SOURCE: California Agave Council
DIGEST:
This bill establishes the California Agave Commission (the Commission) and authorizes the commission to establish assessments to be paid by growers and processors for the purpose of engaging in marketing of California Agave products.
Senate Floor Amendments of 8/21/24 correct the spelling of the word “Asparagaceae” and clarify the commission shall establish two assessments: one for growers and one for processors. Finally, the amendments allow both assessments to be levied using a sliding scale.
ANALYSIS:
Existing law authorizes various marketing and promotion commissions (commissions) to promote the production and marketing of California agricultural commodities. Commissions have a variety of powers covering promotion, advertising, education, production or post-harvest research, and quality standards and inspections. Commissions cover a variety of commodities. (Food and Agricultural Code § 63901)
This bill:
1) Finds and declares the state and its residents benefit economically and environmentally from the industry of growing, processing and marketing agave and agave products. It further finds the establishment of the commission is necessary for the efficient management of activities authorized in this chapter and is also necessary to enhance the competitiveness of the industry within the state, national, and international marketplace.
- Defines the following:
- “Agave” to mean the species of plant in the genus Agave of the family Asparagaceae cultivated for their juice and fiber. Agave cultivated solely for ornamental purposes is not subject to this chapter.
- “Books and records” to mean books, records, contracts, documents, memoranda, papers, correspondence, or other written data pertaining to matters relating to the activities subject to this chapter.
- “Commission” to mean the California Agave Commission.
- “Cultivate” or “cultivated” to mean to plant, tend, harvest, or improve agave. Cultivated acreage does not include acreage removed from cultivation due to due to weather, disease, or other circumstances beyond the control of the grower.
- “Ex officio members” to mean nonvoting members of the commission board of directors.
- “Grower” to mean a person who commercially grows agave, or causes agave to be grown, on more than one acre, that is processed into agave products during the marketing season.
- “Market or marketing” to mean to sell agave and agave products into commercial channels of trade.
- “Marketing season or fiscal year” to be synonymous terms and mean the period beginning April 1 of any year and extending through March 30 of the following year.
- “Process or processing” to mean to engage in the business of a processor.
- “Processor” to mean a person licensed to commercially process agave and who processes agave in an amount of more than three tons in the state in the preceding marketing season.
- When the processor is a corporation or a limited liability company, all of the directors, officers, managers, and members of the corporation or a limited liability company shall be treated as individuals when determining compliance with this chapter.
- “Public member” to mean a person appointed to the commission board of directors pursuant to the procedures specified in this chapter.
- “Secretary” to mean the Secretary of the CDFA.
- Establishes the California Agave Commission board of directors, comprised of six growers, two processors, and one public member.
- Allows the board of directors to modify the number of members who serve on the commission, as specified.
- Authorizes the secretary of the CDFA to require the Commission to correct or cease any existing activity or function that is determined by the secretary to not be in the public interest or to be in violation of this chapter.
- Allows the Commission or the secretary to bring action for judicial relief from the secretary’s written notice, or from noncompliance by the commission with the written notice, in a court of competent jurisdiction, which may order a temporary restraining order, permanent injunction, or other applicable relief.
- Requires the Commission to reimburse the secretary for expenditures incurred by the secretary in carrying out her duties and responsibilities under this chapter.
- Requires each member, with the exception of the ex officio member, to have an alternate member elected in the same manner as the member, who will serve in place of the member. The alternate shall have the same powers and privileges of the member when serving.
- States any vacancy on the Commission shall be filled by the election of another person, or appointment in the case of a public member, for the unexpired portion of the term, with elected positions to be filled by a majority vote of the Commission board of directors.
- States the grower member and their alternate on the Commission shall be an individual, partner, or employee of a grower who has a financial interest in growing or causing agave to be grown.
- States a processor member and their alternate shall be an individual, partner, or employee of a processor who has a financial interest in processing agave or marketing of agave products but may be an individual who provides services to individuals who do have a financial interest.
- States the public member and their alternate on the Commission shall have all the powers, rights, and privileges of any other member on the Commission board of directors.
- They shall not have any financial interest in the growing or processing of agave or the marketing of agave products but may be an individual who provides services to individuals who do have a financial interest.
- The term of office for each member of the Commission board of directors and their alternate, except an ex officio member, shall be three years from the date of their election and until their successor is elected.
- Establishes the Commission’s ability to sue and be sued and enter into contracts.
- Establishes a quorum of the Commission board of directors is a majority of the members authorized to vote.
- Requires the secretary, or his or her representative, to be notified and allows them to attend meetings of the board, except for executive sessions called for the purpose of discussing litigation against the department.
- States a member of the Commission or any committee established by the Commission shall not receive a salary.
- Except for ex officio government members, a member may receive reasonable and necessary traveling expenses and meal allowances for each day spent in actual attendance at, or in traveling to and from, meetings of the Commission or committees of the Commission, or on special assignment for the Commission.
- States all moneys received by a person from assessments levied under the authority of this chapter shall be deposited into banks designated by the Commission and shall be disbursed by order of the Commission through an agent or agents designated for that purpose.
- States the state shall not be liable for the acts of the Commission or its contracts.
- Establishes the powers and duties of the Commission including, but not limited to:
- Adopt, alter, rescind, modify, and amend bylaws and procedures for carrying out this chapter.
- Administer and enforce this chapter and perform all acts and exercise all powers incidental to, or in connection with, or determined by reasonably necessary for, proper or advisable effectuation of the purposes of this chapter.
- Appoint officers from the members of the Commission.
- Employ a person to serve at the pleasure of the Commission necessary to carry out this chapter.
- Fix the compensation for all employees.
- Appoint committees composed of both members and nonmembers of the commission board of directors to advise in carrying out this chapter.
- Establish offices and incur expenses, invest funds, enter into contracts and agreements, and create liabilities and borrow funds.
- Keep accurate books, records, and accounts of all of its dealings.
- Subject to an annual audit.
- Negotiate with state, federal, and foreign agencies on matters that affect the purposes of this chapter.
- Make contracts to render service in formulating and conducting plans and programs, and any other contracts or agreements determined to be necessary for the purposes specified in this chapter.
- Conduct and contract with others to conduct, research, analysis, dissemination, and accumulation of information obtained from research for purposes described in this chapter for the benefit of growers and processors.
- Accept contributions of, or to match, private, state, or federal funds that may be available for these purposes.
- Collect information and publish and distribute to growers and processors, a bulletin or other communication for dissemination of information related to this chapter.
- Establish an assessment rate to defray operating costs.
- Establish an annual budget.
- Submit to the secretary an annual statement of contemplated activities authorized under this chapter.
- Investigate and prosecute civil violations of this chapter and file complaints with appropriate law enforcement.
- Prescribe the form and manner by which proponents and opponents of the commission may contact growers if all expenses associated with the contracts are paid in advance.
- Engage in communications with the public regarding activities authorized in this section.
- Establishes implementation and voting procedures for the Commission.
- Establishes assessments to be paid by growers and processors for the marketing season.
- The assessment for growers that cultivate 2 to 10, inclusive, acres of agave for the marketing season shall not exceed $1,000 and may be levied using a sliding scale.
- The assessment for growers that cultivate more than 10 acres of agave for the marketing season shall not exceed $50,000 and may be levied using a sliding scale.
- The assessment for processors that process 3 to 10, inclusive, tons of agave for the marketing season shall not exceed $1,000 and may be levied using a sliding scale.
- The assessment for processors that process more than 10 tons of agave for the marketing season shall not exceed $50,000 and may be levied using a sliding scale.
- The assessment for growers that cultivate 2 to 10, inclusive, acres of agave for the marketing season shall not exceed $1,000 and may be levied using a sliding scale.
- Processors of agave and a grower who processes agave shall keep accurate and complete records of agave processed. They will preserve the records for a period of two years and shall contain information pursuant to this section. This bill states all proprietary information will be confidential.
- A person who fails to file a return or pay an assessment within the time required by the commission shall pay the commission a penalty of 10% of the amount determined to be past due and, in addition, interest on the unpaid balance at the rate of 1.5% per month.
- A civil penalty not exceeding $1,000 may be levied by the commission on a person who:
- Furnishes a false report, statement, or record required by the Commission.
- Fails to render or furnish a report, statement, or record required by the Commission.
- When engaged in growing agave for processing into agave products, fails or refuses to furnish to the commission or its duly authorized agents, upon request, information concerning the name and address of the persons from whom agave was received and the quantity received.
- Secrete, destroy, or alter records required to be kept by this chapter.
- For purposes of according individuals aggrieved by its actions or determinations, the commission board of directors shall establish procedures for an informal hearing before the commission or before a committee of the commission established for this purpose.
- The commission may commence civil actions and use all remedies provided in law or equity for the collection of assessments and civil penalties, and for obtaining injunctive relief or specific performance, relating to this chapter and the procedures adopted under this chapter.
- Upon a favorable judgment for the commission, the court may order that the commission be reimbursed for reasonable attorney’s fees and other related costs actually incurred.
- Any action by the commission for any penalty or other remedy that is prescribed under this chapter shall be commenced within two years from the date of discovery of the alleged violation. An action against the commission by a person shall be commenced within two years from the date of the alleged violation.
- The termination of the operation of the commission and the implementation of this chapter shall not affect or waive any right, duty, obligation, or liability that has arisen or that may thereafter arise in connection with this chapter, release or extinguish any violation of this chapter, or affect or impair any right or remedies of the commission with respect to any violation.
- Authorizes the Secretary, five years after implementation of this chapter, to hold a public hearing to determine whether the commission shall continue to operate and this chapter shall continue to be implemented.
- If the secretary finds after the hearing that no substantial question exists among the growers and processors assessed pursuant to this chapter regarding whether the commission shall continue to operate, the secretary shall certify the finding and this chapter shall continue to be implemented.
- If the secretary finds after the hearing that a substantial question exists among the growers and processors assessed pursuant to this chapter regarding whether the commission shall continue to operate, the secretary shall conduct a referendum among growers and processors to determine whether the operation of the commission shall be terminated.
FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No
SUPPORT: (Verified 8/20/24)
California Agave Council (Source)
OPPOSITION: (Verified 8/20/24)
None received
ARGUMENTS IN SUPPORT: According to the author:
“Agave is a rapidly growing agricultural crop in California because it is resilient to many of the state’s climactic extremes and can serve as an excellent replacement crop for drought or water-stricken production regions. While this is a nascent industry, agave spirits are quickly becoming one of the fastest growing spirits, according to the Distilled Spirits Council of U.S. AB 2606 establishes the California Agave Commission to give the agave industry an opportunity to self-organize and pool grower and distiller resources to invest collectively in education, research, and marketing.”
The California Agave Council, sponsors of the legislation, write in support stating:
“AB 2606 seeks to create the California Agave Commission, funded entirely by the industry, to help our industry grow. There is a long history of successful commodity commissions in the Food and Agricultural Code that allows for pooled resources to pursue initiatives in grower education, sustainable practices, plant health, research, and marketing. Long-standing commission law, of which AB 2606 is modeled after, identifies rules and procedures for establishment of the Commission, processes for continuation or cessation, voting and assessment standards—all guided by self-determination of California agave growers and distillers and overseen by the California Department of Food and Agriculture. In short, AB 2606 allows for the conditions of a mature and successful agave industry to grow.”
ASSEMBLY FLOOR: 71-0, 5/22/24
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Flora, Mike Fong, Vince Fong, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
NO VOTE RECORDED: Calderon, Cervantes, Megan Dahle, Essayli, Friedman, Holden, Mathis, Luz Rivas, Ta
Prepared by: Reichel Everhart / AGRI. / (916) 651-1508
8/22/24 16:10:33
**** END ****
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 2606 |
THIRD READING
Bill No: AB 2606
Author: Aguiar-Curry (D)
Amended: 6/27/24 in Senate
Vote: 21
SENATE AGRICULTURE COMMITTEE: 5-0, 6/18/24
AYES: Hurtado, Grove, Alvarado-Gil, Cortese, Padilla
SENATE JUDICIARY COMMITTEE: 11-0, 7/2/24
AYES: Umberg, Wilk, Allen, Ashby, Caballero, Durazo, Laird, Niello, Roth, Stern, Wahab
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 71-0, 5/22/24 - See last page for vote
SUBJECT: California Agave Commission
SOURCE: California Agave Council
DIGEST:
This bill establishes the California Agave Commission (the Commission) and authorizes the commission to establish an assessment to be paid by growers and processors for the purpose of engaging in marketing of California Agave products.
ANALYSIS: Existing law authorizes various marketing and promotion commissions (commissions) to promote the production and marketing of California agricultural commodities. Commissions have a variety of powers covering promotion, advertising, education, production or post-harvest research, and quality standards and inspections. Commissions cover a variety of commodities. (Food and Agricultural Code § 63901)
This bill:
- Finds and declares:
- The state and its residents benefit economically and environmentally from the industry of growing, processing and marketing agave and agave products.
- The establishment of the commission is necessary for the efficient management of activities authorized in this chapter and is also necessary to enhance the competitiveness of the industry within the state, national, and international marketplace.
- Defines the following:
- “Agave” to mean the species of plant in the genus Agave of the family Aparagaceae cultivated for their juice and fiber. Agave cultivated solely for ornamental purposes is not subject to this chapter.
- “Books and records” to mean books, records, contracts, documents, memoranda, papers, correspondence, or other written data pertaining to matters relating to the activities subject to this chapter.
- “Commission” to mean the California Agave Commission.
- “Ex officio members” to mean nonvoting members of the commission board of directors.
- “Grower” to mean a person who commercially grows agave, or causes agave to be grown, on more than one acre, that is processed into agave products during the marketing season.
- “Market or marketing” to mean to sell agave and agave products into commercial channels of trade.
- “Marketing season or fiscal year” to be synonymous terms and mean the period beginning April 1 of any year and extending through March 30 of the following year.
- “Process or processing” to mean to engage in the business of a processor.
- “Processor” to mean a person licensed to commercially process agave and who processes agave in an amount of more than three tons in the state in the preceding marketing season.
- When the processor is a corporation or a limited liability company, all of the directors, officers, managers, and members of the corporation or a limited liability company shall be treated as individuals when determining compliance with this chapter.
- “Public member” to mean a person appointed to the commission board of directors pursuant to the procedures specified in this chapter.
- “Secretary” to mean the Secretary of the CDFA.
- Establishes the California Agave Commission board of directors, comprised of six growers, two processors, and one public member.
- Allows the board of directors to modify the number of members who serve on the commission, as specified.
- Authorizes the secretary of the CDFA to require the Commission to correct or cease any existing activity or function that is determined by the secretary to not be in the public interest or to be in violation of this chapter.
- Allows the Commission or the secretary to bring action for judicial relief from the secretary’s written notice, or from noncompliance by the commission with the written notice, in a court of competent jurisdiction, which may order a temporary restraining order, permanent injunction, or other applicable relief.
- Requires the Commission to reimburse the secretary for expenditures incurred by the secretary in carrying out her duties and responsibilities under this chapter.
- Requires each member, with the exception of the ex officio member, to have an alternate member elected in the same manner as the member, who will serve in place of the member. The alternate shall have the same powers and privileges of the member when serving.
- States any vacancy on the Commission shall be filled by the election of another person, or appointment in the case of a public member, for the unexpired portion of the term, with elected positions to be filled by a majority vote of the Commission board of directors.
- States the grower member and their alternate on the Commission shall be an individual, partner, or employee of a grower who has a financial interest in growing or causing agave to be grown.
- States a processor member and their alternate shall be an individual, partner, or employee of a processor who has a financial interest in processing agave or marketing of agave products but may be an individual who provides services to individuals who do have a financial interest.
- States the public member and their alternate on the Commission shall have all the powers, rights, and privileges of any other member on the Commission board of directors.
- They shall not have any financial interest in the growing or processing of agave or the marketing of agave products but may be an individual who provides services to individuals who do have a financial interest.
- The term of office for each member of the Commission board of directors and their alternate, except an ex officio member, shall be three years from the date of their election and until their successor is elected.
- Establishes the Commission’s ability to sue and be sued and enter into contracts.
- Establishes a quorum of the Commission board of directors is a majority of the members authorized to vote.
- Requires the secretary, or his or her representative, to be notified and allows them to attend meetings of the board, except for executive sessions called for the purpose of discussing litigation against the department.
- States a member of the Commission or any committee established by the Commission shall not receive a salary.
- Except for ex officio government members, a member may receive reasonable and necessary traveling expenses and meal allowances for each day spent in actual attendance at, or in traveling to and from, meetings of the Commission or committees of the Commission, or on special assignment for the Commission.
- States all moneys received by a person from assessments levied under the authority of this chapter shall be deposited into banks designated by the Commission and shall be disbursed by order of the Commission through an agent or agents designated for that purpose.
- States the state shall not be liable for the acts of the Commission or its contracts.
- Establishes the powers and duties of the Commission including, but not limited to:
- Adopt, alter, rescind, modify, and amend bylaws and procedures for carrying out this chapter.
- Administer and enforce this chapter and perform all acts and exercise all powers incidental to, or in connection with, or determined by reasonably necessary for, proper or advisable effectuation of the purposes of this chapter.
- Appoint officers from the members of the Commission.
- Employ a person to serve at the pleasure of the Commission necessary to carry out this chapter.
- Fix the compensation for all employees.
- Appoint committees composed of both members and nonmembers of the commission board of directors to advise in carrying out this chapter.
- Establish offices and incur expenses, invest funds, enter into contracts and agreements, and create liabilities and borrow funds.
- Keep accurate books, records, and accounts of all of its dealings.
- Subject to an annual audit.
Negotiate with state, federal, and foreign agencies on matters that affect the purposes of this chapter.
- Make contracts to render service in formulating and conducting plans and programs, and any other contracts or agreements determined to be necessary for the purposes specified in this chapter.
- Conduct and contract with others to conduct, research, analysis, dissemination, and accumulation of information obtained from research for purposes described in this chapter for the benefit of growers and processors.
- Accept contributions of, or to match, private, state, or federal funds that may be available for these purposes.
- Collect information and publish and distribute to growers and processors, a bulletin or other communication for dissemination of information related to this chapter.
- Establish an assessment rate to defray operating costs.
- Establish an annual budget.
- Submit to the secretary an annual statement of contemplated activities authorized under this chapter.
- Investigate and prosecute civil violations of this chapter and file complaints with appropriate law enforcement.
- Prescribe the form and manner by which proponents and opponents of the commission may contact growers if all expenses associated with the contracts are paid in advance.
- Engage in communications with the public regarding activities authorized in this section.
- Establishes implementation and voting procedures for the Commission.
- Establishes an assessment to be paid by growers and processors for the marketing season.
- An assessment greater than the amounts established shall not be charged unless it is approved in accordance with the voting requirements provided in Section 79962 of the Food and Agricultural Code.
- The assessment shall not exceed the reasonable costs of achieving the purposes of this chapter.
- Processors of agave and a grower who processes agave shall keep accurate and complete records of agave processed. They will preserve the records for a period of two years and shall contain information pursuant to this section. This bill states all proprietary information will be confidential.
- A person who fails to file a return or pay an assessment within the time required by the commission shall pay the commission a penalty of 10% of the amount determined to be past due and, in addition, interest on the unpaid balance at the rate of 1.5% per month.
- A civil penalty not exceeding $1,000 may be levied by the commission on a person who:
- Furnishes a false report, statement, or record required by the Commission.
- Fails to render or furnish a report, statement, or record required by the Commission.
- When engaged in growing agave for processing into agave products, fails or refuses to furnish to the commission or its duly authorized agents, upon request, information concerning the name and address of the persons from whom agave was received and the quantity received.
- Secrete, destroy, or alter records required to be kept by this chapter.
- For purposes of according individuals aggrieved by its actions or determinations, the commission board of directors shall establish procedures for an informal hearing before the commission or before a committee of the commission established for this purpose.
- The commission may commence civil actions and use all remedies provided in law or equity for the collection of assessments and civil penalties, and for obtaining injunctive relief or specific performance, relating to this chapter and the procedures adopted under this chapter.
- Upon a favorable judgment for the commission, the court may order that the commission be reimbursed for reasonable attorney’s fees and other related costs actually incurred.
- Any action by the commission for any penalty or other remedy that is prescribed under this chapter shall be commenced within two years from the date of discovery of the alleged violation. An action against the commission by a person shall be commenced within two years from the date of the alleged violation.
- The termination of the operation of the commission and the implementation of this chapter shall not affect or waive any right, duty, obligation, or liability that has arisen or that may thereafter arise in connection with this chapter, release or extinguish any violation of this chapter, or affect or impair any right or remedies of the commission with respect to any violation.
- Authorizes the Secretary, five years after implementation of this chapter, to hold a public hearing to determine whether the commission shall continue to operate and this chapter shall continue to be implemented.
- If the secretary finds after the hearing that no substantial question exists among the growers and processors assessed pursuant to this chapter regarding whether the commission shall continue to operate, the secretary shall certify the finding and this chapter shall continue to be implemented.
- If the secretary finds after the hearing that a substantial question exists among the growers and processors assessed pursuant to this chapter regarding whether the commission shall continue to operate, the secretary shall conduct a referendum among growers and processors to determine whether the operation of the commission shall be terminated.
FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No
SUPPORT: (Verified 8/5/24)
California Agave Council (source)
OPPOSITION: (Verified 8/5/24)
None received
ARGUMENTS IN SUPPORT: According to the author, “Agave is a rapidly growing agricultural crop in California because it is resilient to many of the state’s climactic extremes and can serve as an excellent replacement crop for drought or water-stricken production regions. While this is a nascent industry, agave spirits are quickly becoming one of the fastest growing spirits, according to the Distilled Spirits Council of U.S. AB 2606 establishes the California Agave Commission to give the agave industry an opportunity to self-organize and pool grower and distiller resources to invest collectively in education, research, and marketing.”
ASSEMBLY FLOOR: 71-0, 5/22/24
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Flora, Mike Fong, Vince Fong, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
NO VOTE RECORDED: Calderon, Cervantes, Megan Dahle, Essayli, Friedman, Holden, Mathis, Luz Rivas, Ta
Prepared by: Reichel Everhart / AGRI. /(916) 651-1508
8/9/24 16:43:51
**** END ****
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 2606 |
CONSENT
Bill No: AB 2606
Author: Aguiar-Curry (D)
Amended: 6/27/24 in Senate
Vote: 21
SENATE AGRICULTURE COMMITTEE: 5-0, 6/18/24
AYES: Hurtado, Grove, Alvarado-Gil, Cortese, Padilla
SENATE JUDICIARY COMMITTEE: 11-0, 7/2/24
AYES: Umberg, Wilk, Allen, Ashby, Caballero, Durazo, Laird, Niello, Roth, Stern, Wahab
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 71-0, 5/22/24 - See last page for vote
SUBJECT: California Agave Commission
SOURCE: California Agave Council
DIGEST:
This bill establishes the California Agave Commission (the Commission) and authorizes the commission to establish an assessment to be paid by growers and processors for the purpose of engaging in marketing of California Agave products.
ANALYSIS: Existing law authorizes various marketing and promotion commissions (commissions) to promote the production and marketing of California agricultural commodities. Commissions have a variety of powers covering promotion, advertising, education, production or post-harvest research, and quality standards and inspections. Commissions cover a variety of commodities. (Food and Agricultural Code § 63901)
This bill:
- Finds and declares:
- The state and its residents benefit economically and environmentally from the industry of growing, processing and marketing agave and agave products.
- The establishment of the commission is necessary for the efficient management of activities authorized in this chapter and is also necessary to enhance the competitiveness of the industry within the state, national, and international marketplace.
- Defines the following:
- “Agave” to mean the species of plant in the genus Agave of the family Aparagaceae cultivated for their juice and fiber. Agave cultivated solely for ornamental purposes is not subject to this chapter.
- “Books and records” to mean books, records, contracts, documents, memoranda, papers, correspondence, or other written data pertaining to matters relating to the activities subject to this chapter.
- “Commission” to mean the California Agave Commission.
- “Ex officio members” to mean nonvoting members of the commission board of directors.
- “Grower” to mean a person who commercially grows agave, or causes agave to be grown, on more than one acre, that is processed into agave products during the marketing season.
- “Market or marketing” to mean to sell agave and agave products into commercial channels of trade.
- “Marketing season or fiscal year” to be synonymous terms and mean the period beginning April 1 of any year and extending through March 30 of the following year.
- “Process or processing” to mean to engage in the business of a processor.
- “Processor” to mean a person licensed to commercially process agave and who processes agave in an amount of more than three tons in the state in the preceding marketing season.
- When the processor is a corporation or a limited liability company, all of the directors, officers, managers, and members of the corporation or a limited liability company shall be treated as individuals when determining compliance with this chapter.
- “Public member” to mean a person appointed to the commission board of directors pursuant to the procedures specified in this chapter.
- “Secretary” to mean the Secretary of the CDFA.
- Establishes the California Agave Commission board of directors, comprised of six growers, two processors, and one public member.
- Allows the board of directors to modify the number of members who serve on the commission, as specified.
- Authorizes the secretary of the CDFA to require the Commission to correct or cease any existing activity or function that is determined by the secretary to not be in the public interest or to be in violation of this chapter.
- Allows the Commission or the secretary to bring action for judicial relief from the secretary’s written notice, or from noncompliance by the commission with the written notice, in a court of competent jurisdiction, which may order a temporary restraining order, permanent injunction, or other applicable relief.
- Requires the Commission to reimburse the secretary for expenditures incurred by the secretary in carrying out her duties and responsibilities under this chapter.
- Requires each member, with the exception of the ex officio member, to have an alternate member elected in the same manner as the member, who will serve in place of the member. The alternate shall have the same powers and privileges of the member when serving.
- States any vacancy on the Commission shall be filled by the election of another person, or appointment in the case of a public member, for the unexpired portion of the term, with elected positions to be filled by a majority vote of the Commission board of directors.
- States the grower member and their alternate on the Commission shall be an individual, partner, or employee of a grower who has a financial interest in growing or causing agave to be grown.
- States a processor member and their alternate shall be an individual, partner, or employee of a processor who has a financial interest in processing agave or marketing of agave products but may be an individual who provides services to individuals who do have a financial interest.
- States the public member and their alternate on the Commission shall have all the powers, rights, and privileges of any other member on the Commission board of directors.
- They shall not have any financial interest in the growing or processing of agave or the marketing of agave products but may be an individual who provides services to individuals who do have a financial interest.
- The term of office for each member of the Commission board of directors and their alternate, except an ex officio member, shall be three years from the date of their election and until their successor is elected.
- Establishes the Commission’s ability to sue and be sued and enter into contracts.
- Establishes a quorum of the Commission board of directors is a majority of the members authorized to vote.
- Requires the secretary, or his or her representative, to be notified and allows them to attend meetings of the board, except for executive sessions called for the purpose of discussing litigation against the department.
- States a member of the Commission or any committee established by the Commission shall not receive a salary.
- Except for ex officio government members, a member may receive reasonable and necessary traveling expenses and meal allowances for each day spent in actual attendance at, or in traveling to and from, meetings of the Commission or committees of the Commission, or on special assignment for the Commission.
- States all moneys received by a person from assessments levied under the authority of this chapter shall be deposited into banks designated by the Commission and shall be disbursed by order of the Commission through an agent or agents designated for that purpose.
- States the state shall not be liable for the acts of the Commission or its contracts.
- Establishes the powers and duties of the Commission including, but not limited to:
- Adopt, alter, rescind, modify, and amend bylaws and procedures for carrying out this chapter.
- Administer and enforce this chapter and perform all acts and exercise all powers incidental to, or in connection with, or determined by reasonably necessary for, proper or advisable effectuation of the purposes of this chapter.
- Appoint officers from the members of the Commission.
- Employ a person to serve at the pleasure of the Commission necessary to carry out this chapter.
- Fix the compensation for all employees.
- Appoint committees composed of both members and nonmembers of the commission board of directors to advise in carrying out this chapter.
- Establish offices and incur expenses, invest funds, enter into contracts and agreements, and create liabilities and borrow funds.
- Keep accurate books, records, and accounts of all of its dealings.
- Subject to an annual audit.
Negotiate with state, federal, and foreign agencies on matters that affect the purposes of this chapter.
- Make contracts to render service in formulating and conducting plans and programs, and any other contracts or agreements determined to be necessary for the purposes specified in this chapter.
- Conduct and contract with others to conduct, research, analysis, dissemination, and accumulation of information obtained from research for purposes described in this chapter for the benefit of growers and processors.
- Accept contributions of, or to match, private, state, or federal funds that may be available for these purposes.
- Collect information and publish and distribute to growers and processors, a bulletin or other communication for dissemination of information related to this chapter.
- Establish an assessment rate to defray operating costs.
- Establish an annual budget.
- Submit to the secretary an annual statement of contemplated activities authorized under this chapter.
- Investigate and prosecute civil violations of this chapter and file complaints with appropriate law enforcement.
- Prescribe the form and manner by which proponents and opponents of the commission may contact growers if all expenses associated with the contracts are paid in advance.
- Engage in communications with the public regarding activities authorized in this section.
- Establishes implementation and voting procedures for the Commission.
- Establishes an assessment to be paid by growers and processors for the marketing season.
- An assessment greater than the amounts established shall not be charged unless it is approved in accordance with the voting requirements provided in Section 79962 of the Food and Agricultural Code.
- The assessment shall not exceed the reasonable costs of achieving the purposes of this chapter.
- Processors of agave and a grower who processes agave shall keep accurate and complete records of agave processed. They will preserve the records for a period of two years and shall contain information pursuant to this section. This bill states all proprietary information will be confidential.
- A person who fails to file a return or pay an assessment within the time required by the commission shall pay the commission a penalty of 10% of the amount determined to be past due and, in addition, interest on the unpaid balance at the rate of 1.5% per month.
- A civil penalty not exceeding $1,000 may be levied by the commission on a person who:
- Furnishes a false report, statement, or record required by the Commission.
- Fails to render or furnish a report, statement, or record required by the Commission.
- When engaged in growing agave for processing into agave products, fails or refuses to furnish to the commission or its duly authorized agents, upon request, information concerning the name and address of the persons from whom agave was received and the quantity received.
- Secrete, destroy, or alter records required to be kept by this chapter.
- For purposes of according individuals aggrieved by its actions or determinations, the commission board of directors shall establish procedures for an informal hearing before the commission or before a committee of the commission established for this purpose.
- The commission may commence civil actions and use all remedies provided in law or equity for the collection of assessments and civil penalties, and for obtaining injunctive relief or specific performance, relating to this chapter and the procedures adopted under this chapter.
- Upon a favorable judgment for the commission, the court may order that the commission be reimbursed for reasonable attorney’s fees and other related costs actually incurred.
- Any action by the commission for any penalty or other remedy that is prescribed under this chapter shall be commenced within two years from the date of discovery of the alleged violation. An action against the commission by a person shall be commenced within two years from the date of the alleged violation.
- The termination of the operation of the commission and the implementation of this chapter shall not affect or waive any right, duty, obligation, or liability that has arisen or that may thereafter arise in connection with this chapter, release or extinguish any violation of this chapter, or affect or impair any right or remedies of the commission with respect to any violation.
- Authorizes the Secretary, five years after implementation of this chapter, to hold a public hearing to determine whether the commission shall continue to operate and this chapter shall continue to be implemented.
- If the secretary finds after the hearing that no substantial question exists among the growers and processors assessed pursuant to this chapter regarding whether the commission shall continue to operate, the secretary shall certify the finding and this chapter shall continue to be implemented.
- If the secretary finds after the hearing that a substantial question exists among the growers and processors assessed pursuant to this chapter regarding whether the commission shall continue to operate, the secretary shall conduct a referendum among growers and processors to determine whether the operation of the commission shall be terminated.
FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No
SUPPORT: (Verified 8/5/24)
California Agave Council (source)
OPPOSITION: (Verified 8/5/24)
None received
ARGUMENTS IN SUPPORT: According to the author, “Agave is a rapidly growing agricultural crop in California because it is resilient to many of the state’s climactic extremes and can serve as an excellent replacement crop for drought or water-stricken production regions. While this is a nascent industry, agave spirits are quickly becoming one of the fastest growing spirits, according to the Distilled Spirits Council of U.S. AB 2606 establishes the California Agave Commission to give the agave industry an opportunity to self-organize and pool grower and distiller resources to invest collectively in education, research, and marketing.”
ASSEMBLY FLOOR: 71-0, 5/22/24
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Flora, Mike Fong, Vince Fong, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
NO VOTE RECORDED: Calderon, Cervantes, Megan Dahle, Essayli, Friedman, Holden, Mathis, Luz Rivas, Ta
Prepared by: Reichel Everhart / AGRI. /(916) 651-1508
8/7/24 14:34:41
**** END ****
Senator Thomas Umberg, Chair
2023-2024 Regular Session
Bill No: AB 2606 (Author:Aguiar-Curry)
Version: June 27, 2024
Hearing Date: July 2, 2024
Fiscal: Yes
Urgency: No
AMConsultant:
SUBJECT
California Agave Commission
DIGEST
This establishes the California Agave Commission, as provided.
EXECUTIVE SUMMARY
Existing law provides for over two-dozen commissions and councils established to market California-based meat, fruit, vegetable, and fish products. This bill seeks to establish the California Agave Commission. According to the author and sponsor of the bill, many farmers are pursuing limited water-use crops, including agave, to retain economic opportunity and preserve farmland and jobs. Agave in particular, has proven to be a promising alternative as it requires 10 percent or less of the water needed by many traditional crops, while producing new, high-value products, such as California-grown agave spirits. Despite the growth of the agave industry, there is no state entity that directly helps address key challenges facing the agave industry or provides a voice for agave farmers. The bill is sponsored by the California Agave Council. No timely opposition was received by this Committee. The bill passed the Senate Agricultural Committee on a vote of 5 to 0.
PROPOSED CHANGES TO THE LAW
Existing law:
- Finds and declares that the agricultural and seafood industries are vitally important elements of the state’s economy and are supported by state established commissions and councils specified in this division that are mandated to enhance and preserve the economic interests of the State of California and are intended to do all of the following:
- Implement public policy through their expressive conduct, and that the programs conducted by these commissions and councils are among the broad range of state-mandated regulatory programs that are funded by the public through user fees assessed in accordance with each person’s relationship to a particular program;
- Reflect a continuing commitment by the State of California to its agricultural and seafood industries that are integral to its economy;
- Represent a policy of support for persons engaged in the agricultural and seafood industries, which are critically important elements of the state’s economy;
- Provide benefit to the entire industry and all of the people of this state; and
- Enhance the image of California agricultural and seafood products to increase the overall demand for these commodities. (Food & Ag. Code § 63901.)
- Authorizes any agricultural or seafood commission or council to petition the Secretary of Food and Agriculture to adopt and administer any activity authorized pursuant to the California Marketing Act of 1937. (Food & Ag. Code § 63905(a).)
- Authorizes over two dozen agricultural and seafood councils and commissions for commodities ranging from wine grapes to blue berries to spiny lobsters and olive oil. (Food & Ag. Code §§ 64001 through 79902.)
- Provides that it is unlawful for any person to do any of the following:
- Refuse to render a report, statement, or record required by a commission or council authorized by 3);
- Furnish a false report, statement, or record required a commission or council authorized by 3);
- When engaged in the handling of peppers, to fail or refuse to furnish a commission or council created by 3), or their duly authorized agents, information concerning the names and addresses of persons from whom peppers have been received and the quantity so received; and
- Secrete, destroy, or alter records required to be kept by law. (Ibid.)
- Requires a commission or council established by 3) to establish procedures for the purpose of according individuals aggrieved by its actions or determinations an informal hearing before the commission or council, or before a committee of the commission or council designated for this purpose, and that appeals from decisions of the commission or council may be made to the Secretary of Food and Agriculture and that the Secretary’s determination maybe subject to judicial review upon a petition filed with the appropriate superior court. (Ibid.)
- Authorizes councils and commissions described in 3) to commence civil actions and utilize all remedies provided in law or equity for the collection of assessments and civil penalties, and for obtaining injunctive relief or specific performance regarding the rules and regulations adopted pursuant to the authorizing statutes of the commission or council. (Ibid.)
- Requires a court to issue a commission or council described in 3) any requested writ of attachment or injunctive relief upon a prima facie showing by verified complaint that a named defendant has violated any rule or regulation of the commission or council, including, but not limited to, the nonpayment of assessments, and that no bond is required to be posted by the commission or council as a condition for the issuance of any writ of attachment or injunctive relief. (Ibid.)
- Requires that upon entry of any final judgment on behalf of a commission or council established by 3) against any defendant, the court must enjoin the defendant from conducting any type of business regarding the commodity governed by the commission or council until there is full compliance and satisfaction of the judgment. (Ibid.)
- Requires, upon a favorable verdict for a commission or council established pursuant to 3), the commission or council to receive reimbursement for any reasonable attorney’s fees and other actual related costs. (Ibid.)
- Provides that venue for any actions authorized by 6) may be established at the domicile or place of business of the defendant or in the county of the principal office of the commission or council, but that the commission or council may be sued only in the county of its principal office. (Ibid.)
- Authorizes the Secretary of Food and Agriculture to, upon written notice, suspend all or a portion of the activities or functions of a commission or council established pursuant to 3) until the cessation or correction of activities or functions as required by the Secretary have been accomplished by the commission or council. (Ibid.)
- Authorizes a commission or council authorized by 3) to seek judicial relief from the Secretary of Food and Agriculture’s written notice, or from noncompliance by the commission or council with the written notice, in a court of competent jurisdiction, which may issue a temporary restraining order, permanent injunction, or other applicable relief. (Ibid.)
- Provides that a commission or council created pursuant to 3) may sue or be sued and enter into contracts. (Ibid.)
- Limits the liability of the State of California for any act or omission by a commission or council established pursuant to 3) and provides that any damages incurred by the commission or council are to be paid by the funds the commission or council collects. (Ibid.)
This bill:
- Establishes the California Agave Commission (Commission).
- Provides that the Commission is to have a board of directors consisting of the following:
- six agave growers;
- two agave processors; and
- one member of the public.
- Authorizes the Secretary of Food and Agriculture (Secretary) to require the Commission to correct or cease any existing activity or function that is determined by the Secretary to not be in the public interest or to be in violation of this bill.
- Provides that, if the Commission refuses or fails to cease those activities or functions or to make corrections as required by the Secretary, the Secretary may, upon written notice, suspend all or a portion of the activities or functions of the commission until the cessation or correction of activities or functions as required by the Secretary have been accomplished by the Commission.
- Provides that actions of the Commission that are in violation of the Secretary’s written notice are deemed to have no legal effect.
- Requires the Secretary to notify the Commission in writing of the specific acts that the Secretary determines are not in the public interest or are in violation of this bill, and the Secretary’s reasons for requiring a cessation or correction of specific existing or proposed activities or functions, and may make recommendations that will make those activities or functions acceptable to the Secretary.
- Requires the Commission to reimburse the Secretary for all expenditures incurred by the Secretary in carrying out their duties and responsibilities, as specified.
- Requires, except for the ex officio members of the Commission board of directors, each member of the commission board of directors to have an alternate member elected in the same manner as the member.
- Requires any vacancy on the Commission board of directors, including, but not limited to, the failure of any person elected or appointed to the commission board of directors as a member or alternate member to continue in their position due to a change in status making them ineligible to serve, or due to death, removal, or resignation, to be filled by the election of another person, or appointment in the case of a public member, for the unexpired portion of the term, with elected positions to be filled by a majority vote of the commission board of directors.
- Requires, for their entire term of office, a grower member and their alternate on the Commission board of directors to be an individual, partner, or employee of a grower who has a financial interest in growing agave, or causing agave to be grown.
- Requires, for their entire term of office, a producer member of the Commission to be an individual, partner, or employee of a processor who has a financial interest in processing agave, or causing agave to be processed.
- Specifies that the public member of the Commission possess all the powers, rights, and privileges of any other member on the Commission board of directors.
- Establishes three year terms for all members of the Commission board of directors.
- Provides that the Commission may sue and be sued and enter into contracts.
- Establishes quorum and other procedural rules for the operation of meetings of the board of directors of the Commission.
- Provides that the State of California is not liable for any act or omission of the Commission and that any damages incurred by the Commission are to be paid by the funds collected by the Commission from agave growers and producers.
- Authorizes the Commission to do the following:
- administer and enforce the provisions of this bill;
- appoint officers from the members of the commission board of directors;
- employ a person to serve at the pleasure of the commission as president and chief executive officer, and other personnel, including legal counsel, necessary to carry out this bill;
- fix the compensation for all employees;
- appoint committees composed of members, alternates, and nonmembers of the commission board of directors to advise in carrying out this bill;
- establish offices and incur expenses, invest funds, enter into contracts and agreements, and create liabilities and borrow funds in advance of receipt of assessments as determined necessary for the proper administration and enforcement of this bill and the performance of its duties;
- keep accurate books, records, and accounts of all of its dealings;
- present facts to, and negotiate with, state, federal, and foreign agencies;
- make, in the name of the California Agave Commission, contracts to render service in formulating and conducting plans and programs, and any other contracts or agreements determined to be necessary for the purposes of this bill;
- conduct, and contract with others to conduct, research, including the study, analysis, dissemination, and accumulation of information obtained from research or elsewhere for purposes of this bill;
- collect information and publish and distribute to growers, processors, and the public a bulletin or other communication for dissemination of information;
- establish an assessment rate to defray operating costs;
- establish an annual budget according to accepted accounting practices;
- submit to the Secretary of Food and Agriculture an annual statement of contemplated activities;
- investigate and prosecute civil violations of this bill and file complaints with appropriate law enforcement agencies or officers for suspected criminal violations of this bill;
- prescribe the form and manner by which proponents and opponents of the California Agave Commission may contact growers if all expenses associated with the contacts are paid in advance; and
- conduct activities related to education, marketing, and promotion of agave and agave products.
- Requires the Secretary to establish a list of growers and processors eligible to vote on the implementation of this bill, as specified.
- Provides that the Commission is not formally established, and that the terms of this bill (except for this procedure) does not take effect until at least 40 percent of the total number of growers and processors from the list established by the Secretary participate in a vote to implement the Commission and either of the following occurs:
- Sixty-five percent of the growers and producers who voted in the referendum voted in favor of establishing the Commission, and those growers and producers grow or produced a majority of the total quantity of agave cultivated or processed in the preceding marketing season by all of the growers or processors voting in the referendum; or
- A majority of the growers and processors who voted in the referendum voted in favor of establishing the Commission, and those growers and producers grow or produce 65 percent or more of the total quantity of agave cultivated or processed in the preceding marketing season by all of the growers voting in the referendum.
- Requires the Commission board of directors to, no later than the beginning of each marketing season, or as soon thereafter as possible, establish the assessment to be paid by growers and processors for the marketing season.
- Provides that all proprietary information obtained by the Commission or the Secretary from any source, including the names and addresses of growers and processors, is confidential and cannot be disclosed except if required by court order in a judicial proceeding.
- Requires that a person who fails to file a return or pay an assessment within the time required by the Commission to pay the Commission a penalty of 10 percent of the amount of the assessment determined to be past due and, in addition, interest on the unpaid balance at the rate of 1.5 percent per month.
- Authorizes the Commission to seek a civil penalty not to exceed $1,000 against a person who does any of the following:
- willfully renders or furnishes a false report, statement, or record required by the Commission, or in any way avoids the payment of an assessment on the product’s highest value;
- fails to render or furnish a report, statement, or record required by the Commission;
- when engaged in growing agave for processing into agave products, fails or refuses to furnish to the Commission or its duly authorized agents, upon request, information concerning the name and address of the persons from whom agave was received and the quantity received; and
- secrete, destroy, or alter records.
- Authorizes the Commission to establish procedures for an informal hearing before the Commission or before a committee of the Commission to hear from individuals aggrieved by its actions or determinations.
- Authorizes the Commission to commence civil actions and utilize all remedies provided in law or equity for the collection of assessments and civil penalties and for the obtaining for injunctive relief or specific performance regarding the rules and regulations adopted pursuant to the authorizing statutes of the Commission.
- Requires a court to issue the California Agave Commission any requested writ of attachment or injunctive relief upon a prima facie showing by verified complaint that a named defendant has violated any rule or regulation of the commission or council, including, but not limited to, the nonpayment of assessments, and that no bond is required to be posted by the Commission as a condition for the issuance of any writ of attachment or injunctive relief.
- Requires that upon entry of any final judgment on behalf of the California Agave Commission against any defendant, the court must enjoin the defendant from conducting any type of business regarding agave until there is full compliance and satisfaction of the judgment.
- Requires, upon a favorable verdict for the California Agave Commission, the commission is entitled to receive reimbursement for any reasonable attorney’s fees and other actual related costs.
- Provides that venue for any actions authorized by 25) may be established at the domicile or place of business of the defendant or in the county of the principal office of the California Agave Commission, but that the Commission may be sued only in the county of its principal office.
- Requires any action pursuant to 25) to be commenced within two years of the discovery of the alleged violation.
- Requires the Secretary of Food and Agriculture to hold a public hearing, five years after the implementation of this bill, to determine whether the California Agave Commission should continue to operate and this bill should continue to be implemented, as specified.
- Adopts a severability clause.
COMMENTS
- Stated need for the bill
The author writes:
Agave is a rapidly growing agricultural crop in California because it is resilient to many of the state’s climactic extremes and can serve as an excellent replacement crop for drought or water-stricken production regions. While this is a nascent industry, agave spirits are quickly becoming one of the fastest growing spirits, according to the Distilled Spirits Council of U.S. AB 2606 establishes the California Agave Commission to give the agave industry an opportunity to self-organize and pool grower and distiller resources to invest collectively in education, research, and marketing.
- Agave
The author and sponsor of the bill note that the increasing impacts of climate change and persistent droughts have reduced water availability throughout California, placing significantly more pressure on the state’s agricultural sector and agriculture-dependent regions. The implementation of the Sustainable Groundwater Management Act has placed restrictions on groundwater use to maintain sustainable water-use strategies. They state that current and future water scarcity will lead to higher production costs, lower yields, fallowed fields, and rural job losses that disproportionately impact underrepresented farmers, farm employees, and their communities. They point to the economic opportunity of agave due to it only requiring 10 percent or less of the water needed by many traditional crops, while producing new, high-value products, such as California-grown agave spirits, which are similar to tequila, mezcal, and others made in Mexico. According to the Distilled Spirits Council, tequila and mezcal are the fastest-growing spirit categories in the United States today.
- This bill seeks to enact the Commission and models its structure and authority off existing commodity-based commissions
Existing law provides for the establishment and operation of numerous councils and commissions seeking to promote commodities including, among others, California peppers, California dairy, California iceberg lettuce, and California apples. These commissions and councils have been established over the years utilizing a nearly identical statutory framework that this bill is modeled after. The existing framework vests day-to-day governing authority with a board of directors, made up of commodity producers and the public, who are authorized to hire staff. The boards are supervised, to a degree, by the Secretary. Existing law requires the Secretary to develop a list of a commodity’s producers who are then given an opportunity to vote whether or not to create the commission or council. If they vote to create the commission or council, it is authorized to charge a fee to the commodity producers to assist in the commission or council’s operations and marketing work. The commission and council are authorized to sue and seek civil penalties against producers who do not assist in funding the commission or council. These groups are also allowed to collect production data from the commodity producers but cannot disclose the confidential and proprietary data outside of a court order in a judicial proceeding. Additionally, as these entities are quasi-governmental bodies, the council and commissions can sue and be sued and are subject to meeting requirements spelled out in statute.
The Commission established by this bill is essentially identical to the structure of the other commissions and councils described above. Specific to this Committee’s jurisdiction, the bill:
- specifies that no action taken by the Commission, or by any individual in accordance with the bill or with bylaws or procedures established pursuant to the bill, are to be deemed a violation of the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), the Unfair Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of the Business and Professions Code), or any statutory or common law against monopolies or combinations in restraint of trade;
- authorizes the Commission to sue and be sued;
- provides for the assessment of civil penalties for certain acts, and specifies the manner in which the Commission can enforce the penalties through a civil action in a court of competent jurisdiction;
- provides that documents received by the Commission are proprietary and confidential, and are not to be disclosed except by order of a court.
As noted above, these provisions are ones that are included under all other similar commodity commission statutes. The Commission is subject to review five years after its creation. Additionally, in the event agave growers and producers believe the Commission is not providing value, or acting in a manner that is inconsistent with the industry’s wishes, the producers can vote to end the Commission. Lastly, if Commission is seen as abusing its powers or behaving in a manner that is inconsistent with law, the Secretary has the authority to essentially halt the Commission’s operations.
- Limitation on access to public records
Access to information concerning the conduct of the people’s business is a fundamental and necessary right of every person in this state. (Gov. Cod § 7921.000.) In 2004, the right of public access was enshrined in the California Constitution with the passage of Proposition 59 (Nov. 3, 2004, statewide general election),[1] which amended the California Constitution to specifically protect the right of the public to access and obtain government records: “The people have the right of access to information concerning the conduct of the people’s business, and therefore . . . the writings of public officials and agencies shall be open to public scrutiny.” (Cal. Const., art. I, sec. 3 (b)(1).) In 2014, voters approved Proposition 42 (Jun. 3, 2014, statewide direct primary election)[2] to further increase public access to government records by requiring local agencies to comply with the CPRA and the Ralph M. Brown Act[3], and with any subsequent statutory enactment amending either act, as provided. (Cal. Const., art. I, sec. 3 (b)(7).)
Under the CPRA, public records are open to inspection by the public at all times during the office hours of the agency, unless they are exempt from disclosure. (Gov. Cod § 7922.252.) A public record is defined as any writing containing information relating to the conduct of the public’s business that is prepared, owned, used, or retained by any public agency regardless of physical form or characteristics. (Gov. Code § 7920.530.) There are several general categories of documents or information that are permissively exempt from disclosure under the CPRA essentially due to the character of the information. The exempt information can be withheld by the public agency with custody of the information, but it also may be disclosed if it is shown that the public’s interest in disclosure outweighs the public’s interest in non-disclosure of the information. (CBS, Inc. v. Block (1986) 42 Cal.3d 646, at 652.). Additionally, some records are prohibited from disclosure or are specifically stated to not be public records. (see Gov. Code § 7924.110(a).)
California generally recognizes that public access to information concerning the conduct of the people’s business is a fundamental and necessary right.[4] At the same time, the state recognizes that this right must be balanced against the right to privacy.[5] The general right of access to public records may, therefore, be limited when records include personal information. The bill provides that the limitation on access to public records in the bill is needed to protect confidential and proprietary information provided to the California Agave Commission by growers and processors.
- Statements in support
The California Agave Commission, the sponsor of the bill, writes:
In recent years agave has proven to be a promising high value climate resilient low water use crop alternative for California farmers. Our industry is young, but rapidly growing. Agave requires less than 10% water than other crops now grown in many of the impacted water regions of our state. Agave provides an economically and environmentally attractive alternative to the fallowing of thousands of acres of productive agricultural land that has already begun and is predicted to severely impact California’s agriculture economy in the years ahead. In addition, due to the long history of agave grown in Mexico for distilled spirits, many of our Mexican American farm owners and workers bring with them the cultural experience and expertise that provides new business and job opportunities in our disadvantaged farming communities.
AB 2606 seeks to create the California Agave Commission, funded entirely by the industry, to help our industry grow. There is a long history of successful commodity commissions in the Food and Agricultural Code that allows for pooled resources to pursue initiatives in grower education, sustainable practices, plant health, research, and marketing. Long-standing commission law, of which AB 2606 is modeled after, identifies rules and procedures for establishment of the Commission, processes for continuation or cessation, voting and assessment standards—all guided by self-determination of California agave growers and distillers and overseen by the California Department of Food and Agriculture. In short, AB 2606 allows for the conditions of a mature and successful agave industry to grow.
SUPPORT
California Agave Council (sponsor)
OPPOSITION
None received.
RELATED LEGISLATION
Pending Legislation: None known.
Prior Legislation: AB 2303 (Aguiar-Curry, Ch. 694, Stats. 2022) prescribed labeling requirements for agave spirits produced entirely in California.
PRIOR VOTES
Senate Agriculture Committee (Ayes 5, Noes 0)
Assembly Floor (Ayes 71, Noes 0)
Assembly Appropriations Committee (Ayes 14, Noes 0)
Assembly Judiciary Committee (Ayes 12, Noes 0)
Assembly Agriculture Committee (Ayes 8, Noes 0)
**************
Prop. 59 was placed on the ballot by a unanimous vote of both houses of the Legislature. (SCA 1 (Burton, Ch. 1, Stats. 2004)) ↑
Prop. 42 was placed on the ballot by a unanimous vote of both houses of the Legislature. (SCA 3 (Leno, Ch. 123, Stats. 2013)) ↑
The Ralph M. Brown Act is the open meetings laws that applies to local agencies. (Gov. Code §§ 59450 et. seq.) ↑
Cal. Const., art. I, § 3; Gov. Code, § 7921.000. ↑
Cal. Const., art. I, § 1. ↑
SENATE COMMITTEE ON AGRICULTURE
Senator Melissa Hurtado, Chair
2023 - 2024 Regular
Bill No: AB 2606 Hearing Date: 6/18/24
Author: | Aguiar-Curry | ||
Version: | 2/14/24 | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Reichel Everhart | ||
Subject: California Agave Commission
SUMMARY
:
This bill would establish the California Agave Commission and authorize the commission to establish an assessment to be paid by growers and processors for the purpose of engaging in marketing of California Agave products.
BACKGROUND AND EXISTING LAW
:
- Authorizes various marketing and promotion commissions (commissions) to promote the production and marketing of California agricultural commodities. Commissions have a variety of powers covering promotion, advertising, education, production or post-harvest research, and quality standards and inspections. Commissions cover a variety of commodities. (Food and Agricultural Code Section 63901).
PROPOSED LAW
:
This bill:
- Finds and declares:
- The state and its residents benefit economically and environmentally from the industry of growing, processing and marketing agave and agave products.
- The establishment of the commission is necessary for the efficient management of activities authorized in this chapter and is also necessary to enhance the competitiveness of the industry within the state, national, and international marketplace.
- Defines the following:
- “Agave” to mean the species of plant in the genus Agave of the family Aparagaceae cultivated for their juice and fiber. Agave cultivated solely for ornamental purposes is not subject to this chapter.
- “Books and records” to mean books, records, contracts, documents, memoranda, papers, correspondence, or other written data pertaining to matters relating to the activities subject to this chapter.
- “Commission” to mean the California Agave Commission.
- “Ex officio members” to mean nonvoting members of the commission board of directors.
- “Grower” to mean a person who commercially grows agave, or causes agave to be grown, on more than one acre, that is processed into agave products during the marketing season.
- “Market or marketing” to mean to sell agave and agave products into commercial channels of trade.
- “Marketing season or fiscal year” to be synonymous terms and mean the period beginning April 1 of any year and extending through March 30 of the following year.
- “Process or processing” to mean to engage in the business of a processor.
- “Processor” to mean a person licensed to commercially process agave and who processes agave in an amount of more than three tons in the state in the preceding marketing season.
- When the processor is a corporation or a limited liability company, all of the directors, officers, managers, and members of the corporation or a limited liability company shall be treated as individuals when determining compliance with this chapter.
- “Public member” to mean a person appointed to the commission board of directors pursuant to the procedures specified in this chapter.
- “Secretary” to mean the Secretary of CDFA.
- Establishes the California Agave Commission board of directors, comprised of six growers, two processors, and one public member.
- Allows the board of directors to modify the number of members who serve on the commission, as specified.
- Authorizes the secretary of CDFA to require the Commission to correct or cease any existing activity or function that is determined by the secretary to not be in the public interest or to be in violation of this chapter.
- Allows the Commission or the secretary to bring action for judicial relief from the secretary’s written notice, or from noncompliance by the commission with the written notice, in a court of competent jurisdiction, which may order a temporary restraining order, permanent injunction, or other applicable relief.
- Requires the Commission to reimburse the secretary for expenditures incurred by the secretary in carrying out her duties and responsibilities under this chapter.
- Requires each member, with the exception of the ex officio member, to have an alternate member elected in the same manner as the member, who will serve in place of the member. The alternate shall have the same powers and privileges of the member when serving.
- States any vacancy on the Commission shall be filled by the election of another person, or appointment in the case of a public member, for the unexpired portion of the term, with elected positions to be filled by a majority vote of the Commission board of directors.
- States the grower member and their alternate on the Commission shall be an individual, partner, or employee of a grower who has a financial interest in growing or causing agave to be grown.
- States a processor member and their alternate shall be an individual, partner, or employee of a processor who has a financial interest in processing agave or marketing of agave products but may be an individual who provides services to individuals who do have a financial interest.
- States the public member and their alternate on the Commission shall have all the powers, rights, and privileges of any other member on the Commission board of directors.
- They shall not have any financial interest in the growing or processing of agave or the marketing of agave products but may be an individual who provides services to individuals who do have a financial interest.
- The term of office for each member of the Commission board of directors and their alternate, except an ex officio member, shall be three years from the date of their election and until their successor is elected.
- Establishes the Commission’s ability to sue and be sued and enter into contracts.
- Establishes a quorum of the Commission board of directors is a majority of the members authorized to vote.
- Requires the secretary, or his or her representative, to be notified and allows them to attend meetings of the board, except for executive sessions called for the purpose of discussing litigation against the department.
- States a member of the Commission or any committee established by the Commission shall not receive a salary.
- Except for ex officio government members, a member may receive reasonable and necessary traveling expenses and meal allowances for each day spent in actual attendance at, or in traveling to and from, meetings of the Commission or committees of the Commission, or on special assignment for the Commission.
- States all moneys received by a person from assessments levied under the authority of this chapter shall be deposited into banks designated by the Commission and shall be disbursed by order of the Commission through an agent or agents designated for that purpose.
- States the state shall not be liable for the acts of the Commission or its contracts.
- Establishes the powers and duties of the Commission including, but not limited to:
- Adopt, alter, rescind, modify, and amend bylaws and procedures for carrying out this chapter.
- Administer and enforce this chapter and perform all acts and exercise all powers incidental to, or in connection with, or determined by reasonably necessary for, proper or advisable effectuation of the purposes of this chapter.
- Appoint officers from the members of the Commission.
- Employ a person to serve at the pleasure of the Commission necessary to carry out this chapter.
- Fix the compensation for all employees.
- Appoint committees composed of both members and nonmembers of the commission board of directors to advise in carrying out this chapter.
- Establish offices and incur expenses, invest funds, enter into contracts and agreements, and create liabilities and borrow funds.
- Keep accurate books, records, and accounts of all of its dealings.
- Subject to an annual audit.
- Negotiate with state, federal, and foreign agencies on matters that affect the purposes of this chapter.
- Make contracts to render service in formulating and conducting plans and programs, and any other contracts or agreements determined to be necessary for the purposes specified in this chapter.
- Conduct and contract with others to conduct, research, analysis, dissemination, and accumulation of information obtained from research for purposes described in this chapter for the benefit of growers and processors.
- Accept contributions of, or to match, private, state, or federal funds that may be available for these purposes.
- Collect information and publish and distribute to growers and processors, a bulletin or other communication for dissemination of information related to this chapter.
- Establish an assessment rate to defray operating costs.
- Establish an annual budget.
- Submit to the secretary an annual statement of contemplated activities authorized under this chapter.
- Investigate and prosecute civil violations of this chapter and file complaints with appropriate law enforcement.
- Prescribe the form and manner by which proponents and opponents of the commission may contact growers if all expenses associated with the contracts are paid in advance.
- Engage in communications with the public regarding activities authorized in this section.
- Establishes implementation and voting procedures for the Commission.
- Establishes an assessment to be paid by growers and processors for the marketing season.
- An assessment greater than the amounts established shall not be charged unless it is approved in accordance with the voting requirements provided in Section 79962.
- The assessment shall not exceed the reasonable costs of achieving the purposes of this chapter.
- Processors of agave and a grower who processes agave shall keep accurate and complete records of agave processed. They will preserve the records for a period of two years and shall contain information pursuant to this section. The bill states all proprietary information will be confidential.
- A person who fails to file a return or pay an assessment within the time required by the commission shall pay the commission a penalty of 10% of the amount determined to be past due and, in addition, interest on the unpaid balance at the rate of 1.5% per month.
- A civil penalty not exceeding $1,000 may be levied by the commission on a person who:
- Furnishes a false report, statement, or record required by the Commission.
- Fails to render or furnish a report, statement, or record required by the Commission.
- When engaged in growing agave for processing into agave products, fails or refuses to furnish to the commission or its duly authorized agents, upon request, information concerning the name and address of the persons from whom agave was received and the quantity received.
- Secrete, destroy, or alter records required to be kept by this chapter.
- For purposes of according individuals aggrieved by its actions or determinations, the commission board of directors shall establish procedures for an informal hearing before the commission or before a committee of the commission established for this purpose.
- The commission may commence civil actions and use all remedies provided in law or equity for the collection of assessments and civil penalties, and for obtaining injunctive relief or specific performance, relating to this chapter and the procedures adopted under this chapter.
- Upon a favorable judgment for the commission, the court may order that the commission be reimbursed for reasonable attorney’s fees and other related costs actually incurred.
- Any action by the commission for any penalty or other remedy that is prescribed under this chapter shall be commenced within two years from the date of discovery of the alleged violation. An action against the commission by a person shall be commenced within two years from the date of the alleged violation.
- The termination of the operation of the commission and the implementation of this chapter shall not affect or waive any right, duty, obligation, or liability that has arisen or that may thereafter arise in connection with this chapter, release or extinguish any violation of this chapter, or affect or impair any right or remedies of the commission with respect to any violation.
- Authorizes the Secretary, five years after implementation of this chapter, to hold a public hearing to determine whether the commission shall continue to operate and this chapter shall continue to be implemented.
- If the secretary finds after the hearing that no substantial question exists among the growers and processors assessed pursuant to this chapter regarding whether the commission shall continue to operate, the secretary shall certify the finding and this chapter shall continue to be implemented.
- If the secretary finds after the hearing that a substantial question exists among the growers and processors assessed pursuant to this chapter regarding whether the commission shall continue to operate, the secretary shall conduct a referendum among growers and processors to determine whether the operation of the commission shall be terminated.
ARGUMENTS IN SUPPORT:
According to the author:
“Agave is a rapidly growing agricultural crop in California because it is resilient to many of the state’s climactic extremes and can serve as an excellent replacement crop for drought or water-stricken production regions. While this is a nascent industry, agave spirits are quickly becoming one of the fastest growing spirits, according to the Distilled Spirits Council of U.S. AB 2606 establishes the California Agave Commission to give the agave industry an opportunity to self-organize and pool grower and distiller resources to invest collectively in education, research, and marketing.”
ARGUMENTS IN OPPOSITION:
None received.
COMMENTS:
This bill is referred to this committee and the Senate Judiciary Committee. Elements of the bill under Senate Judiciary Committee’s jurisdiction will be discussed before that Committee and are included here for completeness and context only.
PRIOR ACTIONS
:
Assembly Floor: | 71 - 0 |
Assembly Appropriations Committee: | 14 - 0 |
Assembly Agriculture Committee: | 8 - 0 |
SUPPORT
:
California Agave Council (Sponsor)
OPPOSITION
:
None received
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 2606
Author:(Aguiar-Curry)
As Introduced Ver:February 14, 2024
Majority vote
SUMMARY
This bill establishes the California Agave Commission (Commission) at the California Department of Food and Agriculture (CDFA).
Major Provisions
- Requires the Commission to reimburse the secretary of CDFA for all expenditures incurred by the secretary in carrying out their duties and responsibilities under this bill, as specified.
- Provides that the state is not liable for any act or omission of the Commission and that any damages incurred by the Commission are to be paid by the funds collected by the Commission from agave growers and processors.
- Requires the secretary of CDFA, before February 15, 2025, to establish a list of growers and producers eligible to vote on the implementation of this bill. Provides that the Commission shall not be established, and this bill shall not be implemented, except as necessary to conduct an implementation referendum vote, until the secretary makes specified findings in the referendum vote.
- Requires the proponents of the Commission, before the referendum vote conducted by the secretary, to deposit with the secretary an amount of funds determined necessary by the secretary to defray the expenses of preparing the necessary lists and information and conducting the vote, as specified.
- Requires the Commission board of directors, no later than the beginning of each marketing season, or as soon thereafter as possible, to establish the assessment to be paid by growers and processors for the marketing season, as specified.
- Requires the Commission to impose penalties for failure to pay the assessment and authorizes the Commission to levy civil penalties and commence civil actions for certain action, as specified.
- Requires the Secretary to hold a public hearing, five years after the implementation of this bill, to determine whether the Commission should continue to operate and whether this bill should continue to be implemented, as specified.
COMMENTS
Agave is a genus of succulent plants native to the hot and arid regions of the Americas, particularly Mexico and the southwestern United States. There are over 200 species of agave, ranging from small ornamental plants to large and impressive specimens. One of the most well-known species is Agave tequilana, also known as blue agave, which is cultivated for the production of tequila. The heart of the blue agave plant, called the piña, is harvested and processed to extract the sweet sap, which is then fermented and distilled to make tequila. Agave plants are characterized by their thick, fleshy leaves that often end in sharp points or spines. They typically grow in rosette formations close to the ground, although some species can develop tall flower stalks. Agaves are valued for their various commercial uses, including the production of sweeteners, fibers, and alcoholic beverages like mezcal and tequila.
Agave is an expanding agricultural crop in California that is resilient to many of the state's climatic extremes and may serve as an excellent replacement crop for drought or water-stricken production regions. While this is a nascent industry, agave spirits are quickly becoming one of the fastest growing spirits, according to the Distilled Spirits Council of U.S.
According to the Author
The agave industry wants an opportunity to self-organize and pool grower and distiller resources to invest collectively in education, research, and marketing. Current law has precedent to allow, with statutory authority, the formation of a commodity commission, which may with an affirmative vote of the existing industry to form under the auspices of CDFA, determine and collect assessments and determine how those resources are expended for the benefit of the industry. This bill would offer statutory authority to allow for the creation of such a commission.
Arguments in Support
This legislation to create the California Agave Commission, funded entirely by the industry, will help our industry grow. There is a long history of successful commodity commissions in the Food and Agricultural Code that allow for pooled resources to pursue initiatives in grower education, sustainable practices, plant health, research, and marketing.
Arguments in Opposition
None on file.
FISCAL COMMENTS
According to the Assembly Committee on Appropriations, this bill has ongoing annual costs of an unknown amount, likely in the low hundreds of thousands of dollars, for CDFA to fulfill its responsibilities related to and provide statutory oversight of the Commission (Food and Agriculture Fund). This bill requires the Commission to levy a mandatory assessment on agave growers and processors and reimburse CDFA for all expenditures incurred by the department in carrying out its duties and responsibilities under this bill. This bill also requires any startup costs incurred by CDFA in conducting the required referendum be covered by a deposit provided to the department by the proponents of the Commission. CDFA notes its startup costs for previously established commissions have been around $10,000.
VOTES
ASM AGRICULTURE: 8-0-2
YES: Soria, Alanis, Aguiar-Curry, Connolly, Irwin, Jones-Sawyer, Villapudua, Wood
ABS, ABST OR NV: Sanchez, Ta
ASM JUDICIARY: 12-0-0
YES: Kalra, Dixon, Bauer-Kahan, Bryan, Connolly, Haney, Maienschein, McKinnor, Pacheco, Reyes, Sanchez, Waldron
ASM APPROPRIATIONS: 14-0-1
YES: Wicks, Sanchez, Arambula, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Grayson, Haney, Hart, Jim Patterson, Pellerin, Villapudua
ABS, ABST OR NV: Ta
UPDATED
VERSION: February 14, 2024
CONSULTANT: Victor Francovich / AGRI. / (916) 319-2084 FN: 0003007
Date of Hearing: April 24, 2024
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
ABPCA Bill Id:AB 2606
Author:(Aguiar-Curry) – As Introduced Ver:February 14, 2024
Policy Committee: | Agriculture | Vote: | 8 - 0 |
Judiciary | 12 - 0 | ||
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill establishes the California Agave Commission (Commission) at the California Department of Food and Agriculture (CDFA).
Specifically, this bill, among other things:
1) Requires the Commission to reimburse the secretary of CDFA for all expenditures incurred by the secretary in carrying out their duties and responsibilities under this bill, as specified.
2) Provides that the state is not liable for any act or omission of the Commission and that any damages incurred by the Commission are to be paid by the funds collected by the Commission from agave growers and processors.
4) Requires the secretary of CDFA, before February 15, 2025, to establish a list of growers and producers eligible to vote on the implementation of this bill. Provides that the Commission shall not be established, and this bill shall not be implemented, except as necessary to conduct an implementation referendum vote, until the secretary makes specified findings in the referendum vote.
5) Requires the proponents of the Commission, before the referendum vote conducted by the secretary, to deposit with the secretary an amount of funds determined necessary by the secretary to defray the expenses of preparing the necessary lists and information and conducting the vote, as specified.
6) Requires the Commission board of directors, no later than the beginning of each marketing season, or as soon thereafter as possible, to establish the assessment to be paid by growers and processors for the marketing season, as specified.
7) Requires the Commission to impose penalties for failure to pay the assessment and authorizes the Commission to levy civil penalties and commence civil actions for certain action, as specified.
8) Requires the Secretary to hold a public hearing, five years after the implementation of this bill, to determine whether the Commission should continue to operate and whether this bill should continue to be implemented, as specified.
For a detailed summary of the other provisions of this bill, please see the Assembly Judiciary Committee analysis of this bill.
FISCAL EFFECT:
Ongoing annual costs of an unknown amount, likely in the low hundreds of thousands of dollars, for CDFA to fulfill its responsibilities related to and provide statutory oversight of the Commission (Food and Agriculture Fund). This bill requires the Commission to levy a mandatory assessment on agave growers and processors and reimburse CDFA for all expenditures incurred by the department in carrying out its duties and responsibilities under this bill. This bill also requires any startup costs incurred by CDFA in conducting the required referendum be covered by a deposit provided to the department by the proponents of the Commission. CDFA notes its startup costs for previously established commissions have been around $10,000.
COMMENTS:
1) Purpose. According to the author:
Agave is a rapidly growing agricultural crop in California because it is resilient to many of the state’s climactic extremes and can serve as an excellent replacement crop for drought or water-stricken production regions. While this is a nascent industry, agave spirits are quickly becoming one of the fastest growing spirits, according to the Distilled Spirits Council of the United States. AB 2606 establishes the California Agave Commission to give the agave industry an opportunity to self-organize and pool grower and distiller resources to invest collectively in education, research, and marketing.
2) Background. Seeking to boost the marketing ability of various industries, state law has authorized various crop- or commodity-based commissions or councils to be formed at CDFA to help promote agricultural products, such as strawberries, blueberries, apples, rice, walnuts, table grapes, and avocados.
These commissions and councils have been established over the years utilizing a nearly identical statutory framework. The framework vests day-to-day governing authority with a board of directors, made up of commodity producers and the public, who may hire staff. The board is overseen, to a degree, by the secretary of CDFA. The secretary of CDFA is required to develop a list of a commodity’s producers who are then given an opportunity to vote on whether to create the commission or council. If created, the commission or council is authorized to charge the commodity producers a fee to assist in the commission or council’s operations and marketing work and to reimburse CDFA for all its costs. To ensure these fees are fairly collected, the commission or council is authorized to sue and seek civil penalties against producers who do not assist in funding the commission or council. Additionally, as these entities are quasi-governmental bodies, the commission or council can sue and be sued and is subject to meeting statutory requirements.
According to the California Agave Council, in recent years, agave has proven to be a promising high-value, climate-resilient, and low water-use crop alternative for California farmers. The organization notes:
Due to the long history of agave grown in Mexico for distilled spirits, many of our Mexican American farm owners and workers bring with them the cultural experience and expertise that provides new business and job opportunities in our disadvantaged farming communities. This legislation to create the California Agave Commission, funded entirely by the industry, will help our industry grow.
Analysis Prepared by: Nikita Koraddi / APPR. / (916) 319-2081
Date of Hearing: April 16, 2024
ASSEMBLY COMMITTEE ON JUDICIARY
Ash Kalra, Chair
ABPCA Bill Id:AB 2606
Author:(Aguiar-Curry) – As Introduced Ver:February 14, 2024
SUBJECT: California Agave Commission
KEY ISSUE: should the california agave commission be created in statute containing many of the same legal rights and authorities as previously created commodity-based commissions and councils?
SYNOPSIS
California is one of the most productive agricultural regions in the world. Seeking to boost California-grown and raised commodities, existing law authorizes the creation and operation of over two-dozen commodity-based commissions and council. The primary function of these organizations is to promote and market specific agricultural products from California. Recognizing that in order to be effective, these commissions and councils must collect operating fees from commodity producers and enter into contracts to assist in the promotion of their industry, these commissions and council are given broad legal authority under existing law. The authority of these commissions and councils is generally subject to the guidance and oversight of the Secretary of Food and Agriculture.
This bill recognizes that agave, especially blue agave which is used to make tequila, is one of the fastest growing crops being produced in California. Accordingly, this measure would create the California Agave Commission to promote California-grown agave and products derived from California-grown agave. The bill adopts a virtually identical statutory framework as the commissions and councils established in existing law.
This bill is supported by the California Agave Commission, which highlights the growing popularity of the crop in California and note agave’s benefits as drought tolerant plant. The measure has no known opposition and was previously heard and approved by the Committee on Agriculture by a vote of 8 to 0.
SUMMARY: Establishes the California Agave Commission and tasks the Commission with marketing California-grown agave products. Specifically, this bill:
- Establishes the California Agave Commission.
- Provides that the California Agave Commission is to have a board of directors consisting of the following:
- Six agave growers;
- Two agave processors; and
- One member of the public.
- Authorizes the Secretary of Food and Agriculture to require the California Agave Commission to correct or cease any existing activity or function that is determined by the Secretary to not be in the public interest or to be in violation of this bill.
- Provides that if the California Agave Commission refuses or fails to cease those activities or functions or to make corrections as required by the Secretary of Food and Agriculture, the Secretary may, upon written notice, suspend all or a portion of the activities or functions of the commission until the cessation or correction of activities or functions as required by the Secretary have been accomplished by the Commission.
- Provides that actions of the California Agave Commission that are in violation of the Secretary of Food and Agriculture’s written notice are deemed to have no legal effect.
- Requires the Secretary of Food and Agriculture to notify the California Agave Commission in writing of the specific acts that the Secretary determines are not in the public interest or are in violation of this bill, and the Secretary’s reasons for requiring a cessation or correction of specific existing or proposed activities or functions, and may make recommendations that will make those activities or functions acceptable to the Secretary.
- Requires the California Agave Commission to reimburse the Secretary of Food and Agriculture for all expenditures incurred by the Secretary in carrying out their duties and responsibilities, as specified.
- Requires, except for the ex officio members of the California Agave Commission board of directors, each member of the commission board of directors to have an alternate member elected in the same manner as the member.
- Requires any vacancy on the California Agave Commission board of directors, including, but not limited to, the failure of any person elected or appointed to the commission board of directors as a member or alternate member to continue in their position due to a change in status making them ineligible to serve, or due to death, removal, or resignation, to be filled by the election of another person, or appointment in the case of a public member, for the unexpired portion of the term, with elected positions to be filled by a majority vote of the commission board of directors.
- Requires, for their entire term of office, a grower member and their alternate on the California Agave Commission board of directors to be an individual, partner, or employee of a grower who has a financial interest in growing agave, or causing agave to be grown.
- Requires, for their entire term of office, a producer member of the California Agave Commission to be an individual, partner, or employee of a processor who has a financial interest in processing agave, or causing agave to be processed.
- Specifies that the public member of the California Agave Commission possess all the powers, rights, and privileges of any other member on the Commission board of directors.
- Establishes three year terms for all members of the California Agave Commission board of directors.
- Provides that the California Agave Commission may sue and be sued and enter into contracts.
- Establishes quorum and other procedural rules for the operation of meetings of the board of directors of the California Agave Commission.
- Provides that the State of California is not liable for any act or omission of the California Agave Commission and that any damages incurred by the Commission are to be paid by the funds collected by the commission from agave growers and producers.
- Authorizes the California Agave Commission to do the following:
- Administer and enforce the provisions of this bill;
- Appoint officers from the members of the commission board of directors;
- Employ a person to serve at the pleasure of the commission as president and chief executive officer, and other personnel, including legal counsel, necessary to carry out this bill;
- Fix the compensation for all employees;
- Appoint committees composed of both members and nonmembers of the commission board of directors to advise in carrying out this bill;
- Establish offices and incur expenses, invest funds, enter into contracts and agreements, and create liabilities and borrow funds in advance of receipt of assessments as determined necessary for the proper administration and enforcement of this bill and the performance of its duties;
- Keep accurate books, records, and accounts of all of its dealings;
- Present facts to, and negotiate with, state, federal, and foreign agencies;
- Make, in the name of the California Agave Commission, contracts to render service in formulating and conducting plans and programs, and any other contracts or agreements determined to be necessary for the purposes of this bill;
- Conduct, and contract with others to conduct, research, including the study, analysis, dissemination, and accumulation of information obtained from research or elsewhere for purposes of this bill;
- Collect information and publish and distribute to growers, processors, and the public a bulletin or other communication for dissemination of information;
- Establish an assessment rate to defray operating costs;
- Establish an annual budget according to accepted accounting practices;
- Submit to the Secretary of Food and Agriculture and annual statement of contemplated activities;
- Investigate and prosecute civil violations of this bill and file complaints with appropriate law enforcement agencies or officers for suspected criminal violations of this bill; and
- Prescribe the form and manner by which proponents and opponents of the California Agave Commission may contact growers if all expenses associated with the contacts are paid in advance.
- Requires, before February 15, 2025, the Secretary of Food and Agriculture to establish a list of growers and processors eligible to vote on the implementation of this bill.
- Provides that the California Agave Commission is not formally established, and the terms of this bill except for this procedure does not take effect, until at least 40 percent of the total number of growers and processors from the list established by the Secretary of Food and Agriculture participate in a vote to implement the Commission and either of the following occurs:
- Sixty-five percent of the growers and producers who voted in the referendum voted in favor of establishing the Commission, and those growers and producers grow or produced a majority of the total quantity of agave grown or processed in the preceding marketing season by all of the growers or processors voting in the referendum; or
- A majority of the growers and processors who voted in the referendum voted in favor of establishing the Commission, and those growers and producers grow or produce 65 percent or more of the total quantity of agave grown or processed in the preceding marketing season by all of the growers voting in the referendum.
- Requires the California Agave Commission board of directors to, no later than the beginning of each marketing season, or as soon thereafter as possible, establish the assessment to be paid by growers and processors for the marketing season.
- Provides that all proprietary information obtained by the California Agave Commission or the Secretary of Food and Agriculture from any source, including the names and addresses of growers and processors, is confidential and cannot be disclosed except if required by court order in a judicial proceeding.
- Requires that a person who fails to file a return or pay an assessment within the time required by the California Agave Commission to pay the Commission a penalty of 10 percent of the amount of the assessment determined to be past due and, in addition, interest on the unpaid balance at the rate of 1.5 percent per month.
- Authorizes the California Agave Commission to seek a civil penalty not to exceed $1,000 against a person who does any of the following:
- Willfully renders or furnishes a false report, statement, or record required by the California Agave Commission, or in any way avoids the payment of an assessment on the product’s highest value;
- Fails to render or furnish a report, statement, or record required by the California Agave Commission;
- When engaged in growing agave for processing into agave products, fails or refuses to furnish to the California Agave Commission or its duly authorized agents, upon request, information concerning the name and address of the persons from whom agave was received and the quantity received; and
- Secrete, destroy, or alter records.
- Authorizes the California Agave Commission to establish procedures for an informal hearing before the Commission or before a committee of the Commission to hear from individuals aggrieved by its actions or determinations.
- Authorizes the California Agave Commission to commence civil actions and utilize all remedies provided in law or equity for the collection of assessments and civil penalties and for the obtaining for injunctive relief or specific performance regarding the rules and regulations adopted pursuant to the authorizing statutes of the Commission.
- Requires a court to issue the California Agave Commission any requested writ of attachment or injunctive relief upon a prima facie showing by verified complaint that a named defendant has violated any rule or regulation of the commission or council, including, but not limited to, the nonpayment of assessments, and that no bond is required to be posted by the Commission as a condition for the issuance of any writ of attachment or injunctive relief.
- Requires that upon entry of any final judgment on behalf of the California Agave Commission against any defendant, the court must enjoin the defendant from conducting any type of business regarding agave until there is full compliance and satisfaction of the judgment.
- Requires, upon a favorable verdict for the California Agave Commission, the commission is entitled to receive reimbursement for any reasonable attorney’s fees and other actual related costs.
- Provides that venue for any actions authorized by 25) may be established at the domicile or place of business of the defendant or in the county of the principal office of the California Agave Commission, but that the Commission may be sued only in the county of its principal office.
- Requires any action pursuant to 25) to be commenced within two years of the discovery of the alleged violation.
- Requires the Secretary of Food and Agriculture to hold a public hearing, five years after the implementation of this bill, to determine whether the California Agave Commission should continue to operate and this bill should continue to be implemented, as specified.
- Adopts a severability clause.
EXISTING LAW:
- Finds and declares that the agricultural and seafood industries are vitally important elements of the state’s economy and are supported by state established commissions and councils specified in this division that are mandated to enhance and preserve the economic interests of the State of California and are intended to do all of the following:
- Implement public policy through their expressive conduct, and that the programs conducted by these commissions and councils are among the broad range of state-mandated regulatory programs that are funded by the public through user fees assessed in accordance with each person’s relationship to a particular program;
- Reflect a continuing commitment by the State of California to its agricultural and seafood industries that are integral to its economy;
- Represent a policy of support for persons engaged in the agricultural and seafood industries, which are critically important elements of the state’s economy;
- Provide benefit to the entire industry and all of the people of this state; and
- Enhance the image of California agricultural and seafood products to increase the overall demand for these commodities. (Food and Agricultural Code Section 63901.)
- Authorizes any agricultural or seafood commission or council to petition the Secretary of Food and Agriculture to adopt and administer any activity authorized pursuant to the California Marketing Act of 1937. (Food and Agricultural Code Section 63905 (a).)
- Authorizes over two dozen agricultural and seafood councils and commissions for commodities ranging from wine grapes to blue berries to spiny lobsters and olive oil. (Food and Agricultural Code Sections 64001 through 79902.)
- Provides that it is unlawful for any person to do any of the following:
- Refuse to render a report, statement, or record required by a commission or council authorized by 3);
- Furnish a false report, statement, or record required a commission or council authorized by 3);
- When engaged in the handling of peppers, to fail or refuse to furnish a commission or council created by 3), or their duly authorized agents, information concerning the names and addresses of persons from whom peppers have been received and the quantity so received; and
- Secrete, destroy, or alter records required to be kept by law. (Ibid.)
- Requires a commission or council established by 3) to establish procedures for the purpose of according individuals aggrieved by its actions or determinations an informal hearing before the commission or council, or before a committee of the commission or council designated for this purpose, and that appeals from decisions of the commission or council may be made to the Secretary of Food and Agriculture and that the Secretary’s determination maybe subject to judicial review upon petition filed with the appropriate superior court. (Ibid.)
- Authorizes councils and commissions described in 3) to commence civil actions and utilize all remedies provided in law or equity for the collection of assessments and civil penalties and for the obtaining for injunctive relief or specific performance regarding the rules and regulations adopted pursuant to the authorizing statutes of the commission or council. (Ibid.)
- Requires a court to issue a commission or council described in 3) any requested writ of attachment or injunctive relief upon a prima facie showing by verified complaint that a named defendant has violated any rule or regulation of the commission or council, including, but not limited to, the nonpayment of assessments, and that no bond is required to be posted by the commission or council as a condition for the issuance of any writ of attachment or injunctive relief. (Ibid.)
- Requires that upon entry of any final judgment on behalf of a commission or council established by 3) against any defendant, the court must enjoin the defendant from conducting any type of business regarding the commodity governed by the commission or council until there is full compliance and satisfaction of the judgment. (Ibid.)
- Requires, upon a favorable verdict for a commission or council established pursuant to 3), the commission or council to receive reimbursement for any reasonable attorney’s fees and other actual related costs. (Ibid.)
- Provides that venue for any actions authorized by 6) may be established at the domicile or place of business of the defendant or in the county of the principal office of the commission or council, but that the commission or council may be sued only in the county of its principal office. (Ibid.)
- Authorizes the Secretary of Food and Agriculture to, upon written notice, suspend all or a portion of the activities or functions of a commission or council established pursuant to 3) until the cessation or correction of activities or functions as required by the Secretary have been accomplished by the commission or council. (Ibid.)
- Authorizes a commission or council authorized by 3) to seek judicial relief from the Secretary of Food and Agriculture’s written notice, or from noncompliance by the commission or council with the written notice, in a court of competent jurisdiction, which may issue a temporary restraining order, permanent injunction, or other applicable relief. (Ibid.)
- Provides that a commission or council created pursuant to 3) may sue or be sued and enter into contracts. (Ibid.)
- Limits the liability of the State of California for any act or omission by a commission or council established pursuant to 3) and provides that any damages incurred by the commission or council are to be paid by the funds the commission or council collects. (Ibid.)
FISCAL EFFECT: As currently in print this bill is keyed fiscal.
COMMENTS: California, and specifically the state’s Central Valley, is one of the most productive agricultural regions in the world. California is a world-leader in producing dozens of crops from wine grapes, to citrus, to nuts. For years, seeking to boost the marketing ability of these industries, state law has authorized various crop or commodity-based commissions or council to be formed to help promote these agricultural products. In that vein, this measure would establish the California Agave Commission to promote and market agave grown in California. In support of this bill the author writes:
Agave is a rapidly growing agricultural crop in California because it is resilient to many of the state’s climactic extremes and can serve as an excellent replacement crop for drought or water-stricken production regions. While this is a nascent industry, agave spirits are quickly becoming one of the fastest growing spirits, according to the Distilled Spirits Council of U.S. AB 2606 establishes the California Agave Commission to give the agave industry an opportunity to self-organize and pool grower and distiller resources to invest collectively in education, research, and marketing.
Background on California’s agave industry. Agave is a succulent plant that is native to the arid regions of North American, notably Mexico and the southwestern states of the United States. Although more than 200 variations of the plant exist, the most famous and profitable as a commodity is Agave tequilana, also known as blue agave. Blue agave’s usefulness as a commodity stems from the crops use in making tequila. Beyond alcoholic beverages, the crop’s sweet sap is used to make sweeteners while the crops itself can be turned into fibers for manufacturing.
Although not typically associated with California agriculture, agave’s growing popularity means that an increasing number of California farmers are growing the crop. Given agave’s status as a drought-tolerant crop it is especially well suited for California’s climate. According to the author of this measure, like other California crops turned into alcoholic beverage, most notably California’s wine grape growers, the agave growers in this state want to self-organize to promote California-grown agave.
Over two dozen commodity-based commissions or council have been created in state law. Agave growers are not the first California agricultural producers to seek to organize to market California-grown versions of their products. Indeed, existing law is replete with over two-dozen commissions and councils established to market California-based meat, fruit, vegetable, and fish products. Existing law provides for the establishment and operations of councils and commissions seeking to promote commodities including California peppers, California dairy, California iceberg lettuce, and California apples to name a few. These commissions and councils have been establishes over the years utilizing a nearly identical statutory framework.
The existing law’s framework for the commodity-based commissions and councils vests day-to-day governing authority with a board of directors, made up of commodity producers and the public, who can hire staff. The boards are overseen, to a degree by the Secretary of Food and Agriculture. The existing law requires the Secretary of Food and Agriculture to develop a list of a commodity’s producers who are then given an opportunity to vote whether or not to create the commission or council. If created, the commission or council is authorized to charge the commodity producers a fee to assist in the commission or council’s operations and marketing work. To ensure that these fees are fairly collected, the commission and council are authorized to sue and seek civil penalties against producers who do not assist in funding the commission or council. These groups are also allowed to collect production data from the commodity producers but cannot share the proprietary data outside of litigation. Additionally, as these entities are quasi-governmental bodies, the council and commissions can sue and be sued and are subject to meeting requirements spelled out in statute.
This bill would create a California Agave Commission based on the models in existing law. Like the more than two-dozen commissions and council established before it, this bill would authorize the creation of a California Agave Commission to promote California-grown agave products. The governance structure of this Commission is virtually identical to those commissions and councils that already exist in statute. The overlap with existing law is true for the provisions of this measure relevant to this Committee, namely the provisions authorizing the commission to seek penalties for non-payment of fees from producers, the ability to enter into contracts and sue or be sued for non-compliance, and to seek judicial orders compelling certain actions from producers. Additionally, while not specifically tied to the California Public Records Act or existing trade secret protections of the Code of Civil Procedure, this bill models the existing law’s provisions for the handling of sensitive industry information by generally limiting its disclosure to litigation matters only.
Although the Commission has extensive legal powers, the power all seem appropriate for a quasi-governmental organization. As noted the California Agave Commission’s powers and authorities are modeled after existing law. Similar to previously established commissions and councils, the California Agave Commission would be provided with extensive legal tools to ensure that the agave producers and growers who would be represented by the Commission act within the confines of the Commission’s rules and regulations. While this power is fairly extensive it is not out of the ordinary for most state agencies. Indeed, many state agencies authorizing statutes explicitly provide that the agency can sue and be sued. Furthermore, unlike other state agencies codified in law, like its predecessors, the California Agave Commission is subject to review five years after its creation. In the event agave growers and producers believe the Commission is not providing value, or acting in a manner that is inconsistent with the industry’s wishes, the producers can vote to end the Commission. Furthermore, in the event the Commission is seen as abusing its powers or behaving in a manner that is inconsistent with law, the Secretary of Food and Agriculture can essentially shut down the Commission’s operations. Given these safeguards, the grant of legal authority to the California Agave Commission appears reasonable.
The recordkeeping provisions of this bill are in keeping with existing law regarding commodity-based commissions and councils. This measure, like many provisions of existing law, prohibits the California Agave Commission from disclosing, “proprietary information obtained by the commission or the secretary from any source.” This is a limit on the public access to information maintained by a quasi-governmental organization. Although this language does not align with the trade secrets exemptions to the California Public Records Act, the Code of Civil Procedure, or the Evidence Code, this language does align with the dozens of previously created commodity-based commissions and council. While it would be the preference of this Committee to better align these provisions with the California Public Records Act, it would throw the California Agave Commission’s record keeping rules out of alignment with other commodity-based commissions and councils. Given that this Committee found little evidence that other commissions and councils are needlessly withholding information from the public these provisions appear reasonable and appropriate.
ARGUMENTS IN SUPPORT: This bill is supported by the California Agave Council. In support of this bill they write:
In recent years agave has proven to be a promising high value climate resilient low water use crop alternative for California farmers. Our industry is young, but rapidly growing. Agave requires less than 10% water than other crops now grown in many of the impacted water regions of our state. Agave provides an economically and environmentally attractive alternative to the fallowing of thousands of acres of productive agricultural land that has already begun and is predicted to severely impact California’s agriculture economy in the years ahead.
In addition, due to the long history of agave grown in Mexico for distilled spirits, many of our Mexican American farm owners and workers bring with them the cultural experience and expertise that provides new business and job opportunities in our disadvantaged farming communities.
This legislation to create the California Agave Commission, funded entirely by the industry, will help our industry grow. There is a long history of successful commodity commissions in the Food and Agricultural Code that allow for pooled resources to pursue initiatives in grower education, sustainable practices, plant health, research, and marketing.
REGISTERED SUPPORT / OPPOSITION:
Support
California Agave Council
Opposition
None on file
Analysis Prepared by: Nicholas Liedtke / JUD. / (916) 319-2334
Date of Hearing: April 10, 2024
ASSEMBLY COMMITTEE ON AGRICULTURE
Esmeralda Soria, Chair
ABPCA Bill Id:AB 2606
Author:(Aguiar-Curry) – As Introduced Ver:February 14, 2024
SUBJECT: California Agave Commission
SUMMARY: This bill establishes the California Agave Commission (CAC) to engage in marketing of California Agave products. This bill authorizes CAC to levy an annual assessment, as specified, on producers, as defined. This bill becomes operative upon a favorable producer referendum vote. Specifically this bill:
- Makes declarations and general provisions that among other thing states the establishment of CAC is necessary for the efficient management of activities authorized in this chapter. The CAC is also necessary to enhance the competitiveness of the industry within the state, national, and international marketplace.
- Defines the following:
- “Agave” means the species of plant in the genus Agave of the family Aparagaceae cultivated for their juice and fiber. Agave cultivated solely for ornamental purposes is not subject to this chapter.
- “Books and records” means books, records, contracts, documents, memoranda, papers, correspondence, or other written data pertaining to matters relating to the activities subject to this chapter.
- “Commission” means the California Agave Commission.
- “Ex officio members” means nonvoting members of the commission board of directors.
- “Grower” means a person who commercially grows agave, or causes agave to be grown, on more than one acre, that is processed into agave products during the marketing season.
- “Market or marketing” means to sell agave and agave products into commercial channels of trade.
- “Marketing season or fiscal year” are synonymous terms and mean the period beginning April 1 of any year and extending through March 30 of the following year.
- “Process or processing” means to engage in the business of a processor.
- “Processor” means a person licensed to commercially process agave and who processes agave in an amount of more than three tons in the state in the preceding marketing season. When the processor is a corporation or a limited liability company, all of the directors, officers, managers, and members of the corporation or limited liability company shall be treated as individuals when determining compliance with this chapter.
- “Public member” means a person appointed to the commission board of directors pursuant to the procedures specified in this chapter.
- “Secretary” means the Secretary of CDFA.
- Creates the CAC and the CAC board of directors, composed of six growers, two processors, and one public member.
- Allows the CAC board of directors to modify the number of members who serve on the commission board of directors, as specified.
- Allows the secretary to require the CAC to correct or cease any existing activity or function that is determined by the secretary to not be in the public interest or to be in violation of this chapter. Also allows the secretary, if the CAC board does not cease prohibited activities, upon written notice, suspend all or a portion of the activities or functions of the CAC, as specified.
- Allows the CAC or the secretary to bring an action for judicial relief from the secretary’s written notice or from noncompliance by the commission with the written notice, as specified.
- Requires the CAC reimburse the secretary for all expenditures incurred by the secretary in carrying out their duties and responsibilities under this chapter, unless a court fined that the secretary’s actions were not justified.
- Requires that each member of the CAC board shall have an alternate member elected in the same manner as the member. An alternate member, in the absence of the member for whom they are an alternate, shall serve in place of the member, as specified.
- Set up rules on replacing a member of the CAC board.
- Requires grower member and their alternate on the CAC board of to be an individual, partner, or employee of a grower who has a financial interest in growing agave, or causing agave to be grown for their time on the CAC board.
- Requires processor member and their alternate on the CAC board shall be an individual, partner, or employee of a processor who has a financial interest in processing agave, or causing agave to be processed for their time on the CAC board.
- Requires the public member and their alternate on the CAC board to have all the powers, rights, and privileges of any other member on the commission board of directors and not have any financial interest in the growing or processing of agave or the marketing of agave products but may be an individual who provides services to individuals who do have a financial interest for their time on the CAC board.
- Sets the term of office of each member of the CAC board and their alternate, except an ex officio member, to be three years from the date of their election and until their successor is elected.
- Requires term of an alternate to be the same term as the member for whom they serve as alternate.
- Allows the CAC to sue and be sued and enter into contracts.
- Defines a quorum of the CAC board as a majority of the members authorized to vote, as specified
- Requires the secretary, or his or her representative, to be notified and allows them to attend meetings of the board, except for executive sessions called for the purpose of discussing litigation against CDFA.
- Provides that no member of the CAC board or any committee shall receive a salary. Except for ex-officio members, members may receive reasonable and necessary traveling expenses and meal allowances for attendance at meetings or special assignment.
- Requires that all monies received by any person from assessments levied under this chapter be deposited in banks of the CAC board’s choosing.
- Relieves the state of any liability for actions of CAC or its contracts. No member, employee or agent of CAC shall be personally liable for contracts or responsible individually for any error except for their own acts of dishonesty or crime.
- Allows, but does not limit, the board to perform the following powers and duties:
- Adopt and amend bylaws, rules, regulations, and orders.
- Administer and enforce this chapter.
- Appoint officers and employ persons to serve as president, chief executive officer, legal counsel, or other personnel.
- Fix compensation for employees.
- Appoint committees.
- Establish offices and incur expenses, invest funds, enter into contracts and agreements, and create liabilities and borrow funds.
- Record and keep accurate books and accounts, which are subject to an annual audit that shall be submitted to the Legislature and the department.
- Present facts and negotiate with state, federal, and foreign agencies.
- Make contracts to render service in formulating and conducting plans and programs, and any other contracts or agreements determined to be necessary, as specified.
- Conduct and contract for research; collect contributions and funds for research purposes.
- Collect information and distribute periodic communications to producers.
- Establish an assessment rate.
- Establish an annual budget, which shall be concurred in by the secretary.
- Submit an annual statement of activities for concurrence by the secretary.
- Investigate and prosecute civil violations of this chapter and file complaints with law enforcement agencies.
- Propose the form and manner by which proponents and opponents of the commission may contact growers if all expenses associated with the contacts are paid in advance.
- Engage in communications with the public regarding activities authorized in this section.
- Establishes implementation and voting procedures to be administered by the secretary and provides that the initial referendum vote be funded by proponents of this chapter.
- Requires 40% of the total number of growers to cast a referendum vote to begin operation of CAC and that either of the following must also occur:
- Of those votes, 65% must vote in favor of CAC. That same 65% must also represent producers who, when total production volume is combined, grow the majority of agave of all those participating in the referendum vote; and,
- Of those votes, a majority of growers must vote in favor of CAC, and those producers must represent 65% or more of the total quantity of agave grown by those participating in the referendum vote.
- Requires 40% of the total number of processors to cast a referendum vote to begin operation of CAC and that either of the following must also occur:
- Of those votes, 65% must vote in favor of CAC. That same 65% must also represent producers who, when total production volume is combined, process the majority of agave of all those participating in the referendum vote; and,
- Of those votes, a majority of producers must vote in favor of CAC, and those producers must represent 65% or more of the total quantity of agave processed by those participating in the referendum vote.
- Requires 40% of the total number of growers to cast a referendum vote to begin operation of CAC and that either of the following must also occur:
- Requires the secretary to declare this chapter inoperative upon a failed referendum vote. Allows the secretary to conduct another referendum vote no sooner than one year after the previous referendum.
- Requires the CAC board to establish an assessment rate to be paid growers and processors. An increase in this rate must be approved by a referendum vote, and a penalty shall be paid on any past due assessment.
- Requires assessment to not exceed the reasonable costs of achieving the purposes of this chapter.
- Requires every grower and processor to keep complete and accurate records. Records must be kept for two years and available for inspection.
- Provides that all proprietary information be confidential.
- Allows CAC to levy civil penalties not exceeding $1,000 for persons who furnish false documents to avoid paying assessment fees and for persons who destroy, alter, refuse, or fail to furnish reports or records required to be kept by this chapter.
- Requires the CAC board to establish procedures for individuals aggrieved by its actions, including appeals and judicial review.
- Allows CAC to commence civil actions and utilize all remedies provided in law for collection of assessments and civil penalties.
- Provides for continuation, suspension, or termination of this chapter through CAC member referendum vote.
- Requires the secretary to hold a public hearing once every five years to determine whether this chapter should be continued. Should a substantial question be raised, the secretary shall hold a referendum vote to determine if CAC shall be continued.
- Authorizes the CAC board, upon two-thirds vote, to recommend to the secretary that CAC be suspended for failure to effectuate its declared purposes. The secretary shall then hold a referendum vote.
EXISTING LAW: Authorizes various marketing and promotion commissions (commissions) to promote the production and marketing of California agricultural commodities. Commissions have a variety of powers covering promotion, advertising, education, production or post-harvest research, and quality standards and inspections. Commissions cover a variety of commodities. (Food and Agriculture Code (FAC) 63901 – 63906)
FISCAL EFFECT: Unknown.
COMMENTS:
Agave is a genus of succulent plants native to the hot and arid regions of the Americas, particularly Mexico and the southwestern United States. There are over 200 species of agave, ranging from small ornamental plants to large and impressive specimens. One of the most well-known species is Agave tequilana, also known as blue agave, which is cultivated for the production of tequila. The heart of the blue agave plant, called the piña, is harvested and processed to extract the sweet sap, which is then fermented and distilled to make tequila. Agave plants are characterized by their thick, fleshy leaves that often end in sharp points or spines. They typically grow in rosette formations close to the ground, although some species can develop tall flower stalks. Agaves are valued for their various commercial uses, including the production of sweeteners, fibers, and alcoholic beverages like mezcal and tequila.
Agave is an expanding agricultural crop in California that is resilient to many of the state’s climatic extremes and may serve as an excellent replacement crop for drought or water-stricken production regions. While this is a nascent industry, agave spirits are quickly becoming one of the fastest growing spirits, according to the Distilled Spirits Council of U.S.
The agave industry wants an opportunity to self-organize and pool grower and distiller resources to invest collectively in education, research, and marketing. Current law has precedent to allow, with statutory authority, the formation of a commodity commission, which may with an affirmative vote of the existing industry to form under the auspices of CDFA, determine and collect assessments and determine how those resources are expended for the benefit of the industry. This bill would offer statutory authority to allow for the creation of such a commission.
This bill would authorize, upon an affirmative referendum vote of all growers and distillers in California, to establish the CAC. The CAC can then set an assessment on growers and processors; the CAC can invest in research, educate the industry about sustainable farming and processing practices, and enhance market competitiveness and consumer education of California agave spirits and products. The bill prescribes membership, the makeup of the board of directors, CAC authorities and obligations, voting procedures, assessments, and penalties. This bill authorizes the CAC, once formed, to levy an annual assessment on growers and processors to support the CAC’s work on the industry’s behalf. The CAC can be disbanded after a hearing by CDFA and a vote of the membership. This bill would have a positive impact on small-scale farmers and farm employees, many of whom are in disadvantaged communities, to bring research and promotional opportunities for culturally relevant foods, such as agave spirits, to the market.
The purpose of marketing programs is to provide agricultural producers and handlers an organizational structure, operating under government sanction, which allows them to solve production and marketing problems collectively that they could not address individually.
Current marketing programs’ activities include commodity promotion, research, and maintenance of quality standards. Commissions provide a structure for solving problems and provide a vehicle for collecting funds to support activities.
For accomplishing the purposes stated by the author for this industry, a commission may be an appropriate entity. Current commissions and marketing orders have been successful in expanding markets, improving product quality, and providing more research for pests and disease prevention. In recent years, one commission was terminated by the industry and another had an audit by the secretary, which revealed potential misuse of funds. This bill has language requiring annual audits, and upon determination of the need, the secretary may conduct a fiscal and administrative audit of the CAC.
PREVIOUS LEGISLATION:
AB 858 (Levine) of 2019 created the Emerald Triangle Sun-Grown Cannabis Commission, consisting of cannabis grows in the Counties of Humboldt, Mendocino, and Trinity for the purpose of conducting research, examining the impact of local and state regulations on the cannabis products industries, and tracking market price information to prevent unfair trade practices. Author revamped this bill to add to CDFA type1C (specialty cottage) cannabis cultivation license a limit of 2,500 square feet of canopy for an outdoor grow.
AB 2810 (Levine) of 2018 would have created the Sun-Grown Cannabis Commission and the Indoor-Grown Cannabis commission for the purpose of conducting research, examining the impact of local and state regulations on the cannabis products industries, and tracking market price information to prevent unfair trade practices. This bill was held in Assembly Business and Professions Committee.
SB 250 (Wolk), Chapter 344, Statutes of 2013, created the Olive Oil Commission of California with prescribed membership, powers, duties, and responsibilities of the commission. This bill also authorized the commission to engage in outreach, education, promotion, marketing, and research relating to olive oil. This is an active commission.
AB 2695 (Hernandez), Chapter 605, Statutes of 2010, created the California Nursery Producers Commission with prescribed membership, powers, duties, and responsibilities of the commission. This bill also authorized the commission to engage in outreach, education, promotion, marketing, and research relating to nursery products. The referendum for this commission failed.
AB 1912 (Evans), Chapter 585, Statutes of 2010, created the California Apiary Research Commission with prescribed membership, powers, duties and responsibilities of the commission. This bill authorized the commission to engage in research and education programs relating to honeybees. The referendum for this commission failed.
AB 606 (Ma), Chapter 366, Statutes of 2009, created the California Blueberry Commission with prescribed membership, powers, duties, and responsibilities of the commission. This bill authorized the commission to engage in education, promotion, marketing, and research relating to blueberries. This is an active commission.
REGISTERED SUPPORT / OPPOSITION:
Support
California Agave Council
Opposition
None on file.
Analysis Prepared by: Victor Francovich / AGRI. / (916) 319-2084
Discussed in Hearing
57SEC
Assembly Floor
1MIN
Senate Floor
53SEC
Assembly Floor
4MIN
Assembly Standing Committee on Judiciary
48SEC
Assembly Standing Committee on Judiciary
4MIN
Assembly Standing Committee on Agriculture
Bill Author
Bill Co-Author(s):