Bill Text: CA AB243 | 2017-2018 | Regular Session | Amended
Bill Title: California Beef Commission.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Engrossed - Dead) 2017-07-11 - In committee: Set, first hearing. Hearing canceled at the request of author. [AB243 Detail]
Download: California-2017-AB243-Amended.html
Amended
IN
Senate
July 03, 2017 |
Amended
IN
Senate
June 13, 2017 |
Amended
IN
Assembly
April 18, 2017 |
Amended
IN
Assembly
March 21, 2017 |
Assembly Bill | No. 243 |
Introduced by Assembly Member Cooper (Coauthor: Assembly Member Caballero) (Coauthors: Senators Galgiani and Wilk) |
January 30, 2017 |
LEGISLATIVE COUNSEL'S DIGEST
Digest Key
Vote: MAJORITY Appropriation: YES Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
(a)The fees required pursuant to Section 64691 shall be due and payable as follows:
(1)The fee for cattle or calves, whether originating in the state or out-of-state, shall be paid by the seller. The fee shall be charged and
collected from the seller or from the seller’s account and paid to the secretary by each operator of any stockyard, livestock auction market, slaughterhouse, or registered feedlot in the state. The fee is due and payable to the
secretary on or before the 15th day of the month next succeeding the month in which the cattle and calves are sold. Fees which are not collected in the manner provided in this paragraph shall be collected from the seller by the Bureau of Livestock Identification at the time that brand inspection fees are collected.
(2)The fee for cattle or
calves for which the fee would not otherwise be collected pursuant to paragraph (1) and that are also exempt from brand
inspection
shall be charged and collected from the seller or from the seller’s account by the purchaser and paid to the secretary in the manner specified in paragraph (1).
(3)Any fees
that are not collected in the manner specified in paragraph (1) or (2) shall be paid to the secretary directly by the seller on or before the 15th day of the month next succeeding the month in which the sale occurs.
(4)A fee shall be paid for each head of cattle or calves slaughtered in the state unless specifically exempted by Section 64691 or 64702. If the fee is not deducted from the seller it shall be paid by the purchaser or slaughterer and is due and payable in the manner provided in this section
(b)This section shall become inoperative and is repealed on the date on which Section 64691.7, as added by Assembly Bill 243 of the 2017–18 Regular Session of the Legislature, becomes operative.
(a)The fees required pursuant to Section 64691 shall be due and payable as follows:
(1)The fee for cattle or calves, whether originating in the state or out-of-state, shall be paid by the seller. The fee shall be charged and collected from the seller or from the seller’s account and paid to the secretary by each operator of any stockyard, livestock auction market, slaughterhouse, or registered feedlot in the state. The fee is due and payable to the secretary on or before the 15th day of the month next succeeding the month in which the cattle and calves are sold. Fees which are not collected in the manner provided in this paragraph shall be collected from the seller by the Bureau of Livestock Identification at the time that brand
inspection fees are collected.
(2)The fee for cattle or calves for which the fee would not otherwise be collected pursuant to paragraph (1) and that are also exempt from brand inspection shall be charged and collected from the seller or from the seller’s account by the purchaser and paid to the secretary in the manner determined by the department.
(3)Any fees that are not collected in the manner specified in paragraph (1) or (2) shall be paid to the secretary directly by the seller on or before the 15th day of the month next succeeding the month in which the sale occurs.
(4)A fee shall be paid for each head of cattle or calves slaughtered in the state unless specifically exempted by Section 64691 or 64702.
(b)This section shall become operative only
if an implementation referendum pursuant to Section 65062 is conducted and Chapter 2.5 (commencing with Section 65001) becomes operative.
SECTION 1.
Section 64691.7 of the Food and Agricultural Code is amended to read:64691.7.
The fees required pursuant to Section 64691 shall be due and payable as follows:SEC. 3.SEC. 2.
Chapter 2.5 (commencing with Section 65001) is added to Part 2 of Division 22 of the Food and Agricultural Code, to read:CHAPTER 2.5. California Beef Commission Law
Article 1. General
65001.
The Legislature finds and declares all of the following:65002.
The purposes of this chapter are as follows:65003.
The production of beef and beef products in this state is hereby declared to be affected with a public interest. This chapter is enacted in the exercise of the police power of this state for the purposes of protecting the health, peace, safety, and general welfare of the people of this state.65004.
No action taken by the commission, or by any individual in accordance with this chapter or with the rules and regulations adopted under 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 rule of statutory or common law against monopolies or combinations in restraint of trade.65005.
This chapter shall be liberally construed. If any provision of this chapter or the application of this chapter to any person or circumstances is held invalid, the invalidity shall not affect other provisions or applications of the chapter that can be given effect without the invalid provision or application, and to this end the provisions of this chapter are severable.65006.
It is hereby declared as a matter of legislative determination that commission members and alternates are intended to represent and further the interest of a particular industry concerned and that this representation and furtherance is intended to serve the public interest. Accordingly, the Legislature finds that with respect to persons who are elected or appointed to the commission, the particular industry concerned is tantamount to and constitutes the public generally within the meaning of Section 87103 of the Government Code.Article 2. Definitions
65011.
Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.65012.
(a) “Beef” means the meat of cattle and includes veal.(k)
(l)
(m)
(n)
Article 3. California Beef Commission
65021.
There is in the state government the California Beef Commission that consists of 11 members and 11 alternates appointed by the secretary, each of whom shall be a producer in this state who is a range cattle producer, cattle feeder, dairy producer, or beef packer, with the exception of the public member who shall be a citizen and resident of this state.65022.
Each member and alternate may also be an appointed member or appointed alternate of the council.65023.
(a) The secretary or the secretary’s designee shall serve as an ex officio member.65024.
The secretary shall appoint to the commission at least three range cattle producers, three cattle feeders, three dairy producers, one beef packer, and one public member to represent the general public. The secretary shall use the same formula in the appointment of alternates.65025.
Except as otherwise provided in this section, the public member and the public member’s alternate shall have all the powers, rights, and privileges of any other member or alternate, respectively, on the commission, except that the public member or the public member’s alternate shall not have a vote on issues regarding the assessment established pursuant to Section 65071.65026.
(a) The terms of office of the members and alternates of the commission shall be three years. At the discretion of the secretary, the first appointments made under this chapter shall be so made that the terms of three members and the three members’ alternates shall expire at the end of one year, three members and the three members’ alternates shall expire at the end of two years, and three members and the three members’ alternates shall expire at the end of three years.65027.
A majority of the members of the commission shall constitute a quorum for the transaction of all business, including the election of officers. The commission may continue to transact business at a meeting at which a quorum is initially present, notwithstanding the withdrawal of members, provided any action is approved by the requisite majority of the required quorum.65028.
(a) The commission shall annually select a chairperson and vice chairperson from its membership, to serve at the commission’s pleasure, who, together with three other members selected annually by the commission, shall constitute an executive committee.65029.
(a) The commission shall have two regular meetings each year at times and places determined by the commission.65030.
(a) Members of the commission shall be reimbursed for necessary traveling and other expenses incurred in the performance of their official duties.65031.
An alternate member of the commission shall sit as a regular member of the commission if the member fails for any reason to attend any meeting of the commission. An alternate member shall be compensated and reimbursed in the same manner and to the same extent as a regular member when serving and has all the powers, duties, liabilities, and immunities of the member in whose place he or she is serving, except that the alternate to the chairperson or vice chairperson shall not succeed to the functions of these offices.65032.
The secretary or the secretary’s representative shall be notified and may attend each meeting of the commission. However, the secretary or the secretary’s representative is not permitted to attend an executive session of the commission called for the purpose of discussing potential or actual litigation against the department.65033.
No member or alternate of the commission shall receive a salary.65034.
All funds received by any person from the assessments levied under this chapter or otherwise received by the commission shall be deposited in banks designated by the commission and shall be disbursed by order of the commission through an agent or agents as it may designate for that purpose. A private agent or agents, other than the department, shall be bonded by a fidelity bond, executed by a surety company authorized to transact business in this state, in favor of the commission, in an amount of not less than twenty-five thousand dollars ($25,000).65035.
All funds received by the commission shall be deposited in bank accounts created by the commission separate from those accounts established by the council containing funds received pursuant to Section 64691. Funds collected by the commission pursuant to Section 65071 shall not be commingled with funds collected by the council pursuant to Section 64691.65036.
The state is not 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 are limited to the funds collected by the commission. No member or alternate of the commission, or any employee or agent thereof, is personally liable for the contracts of the commission. No member or alternate of the commission, or any employee or agent thereof, is responsible individually in any way to any other person for errors in judgment, mistakes, or other acts, either of commission or omission, as principal, agent, or employee, except for his or her own individual acts of dishonesty or crime. No member or alternate of the commission, or any employee or agent thereof, is responsible individually for any act or omission of any other member or alternate of the commission, or any employee or agent thereof. No member or alternate of the commission, or any employee or agent thereof, is liable for the default of any other member or alternate of the commission, or any employee or agent thereof.65037.
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 therein.Article 4. Powers and Duties
65041.
The powers and duties of the commission shall include, but are not limited to, all of those contained in this article.65042.
The commission may adopt and from time to time alter, rescind, modify, and amend all proper and necessary bylaws, rules, regulations, and orders in accordance with commission procedures for purposes of carrying out this chapter, including rules for appeals from any bylaw, rule, regulation, operating procedure, or order of the commission.65043.
The commission may administer and enforce this chapter and do and perform all acts and exercise all powers incidental to, or in connection with, or deemed reasonably necessary to, promote, maintain, and enhance the California cattle industry and the production of beef and beef products.65043.5.
If the commission and the council determine that a project is of mutual benefit and consistent with state and federal laws governing the council, the project may be jointly funded by the commission and the council, subject to approval by the secretary.65044.
(a) The commission may employ a person to serve at the pleasure of the commission as the executive director of the commission, and other personnel, including legal counsel of its choice, necessary to carry out this chapter. If any person employed by the commission engages in any conduct that the secretary determines is not in the public interest or that is in violation of this chapter, the secretary shall notify the commission of the conduct and request that corrective and, if appropriate, disciplinary action be taken by the commission. If the commission fails or refuses to correct the situation or to take disciplinary action satisfactory to the secretary, the secretary may suspend or discharge the person.65045.
If directed by a majority of commission members and approval is granted by the secretary, the commission may administer any governmental program related to the California cattle, beef, and beef products65046.
The commission may appoint committees composed of members, alternates, and nonmembers not serving with the commission in any official capacity to advise the commission in carrying out this chapter.65047.
The commission shall approve the compensation for the executive director and any agents or contractors of the commission.65048.
(a) The commission may establish offices and incur expenses, enter into any and all contracts and agreements, create liabilities, develop, own, and control the use of any intellectual or physical property, including real estate for the purpose of housing the operations of the commission, and borrow funds in advance of receipt of assessments as may be necessary in the opinion of the commission for the proper administration and enforcement of this chapter and the performance of its duties.65049.
The commission shall keep books, records, and accounts of all its transactions, dealings, contracts, agreements, funds, and expenditures as it deems necessary. Those books, records, and accounts shall at all times be open to inspection and audit by the secretary. The commission shall be subject to an annual audit by an auditing firm selected by the commission with the concurrence of the secretary. The audit shall be made a part of an annual report to be posted on the commission’s Internet Web site and submitted to the department. In addition, the secretary may, as he or she determines necessary, conduct, or cause to be conducted, a fiscal and compliance audit of the commission.65050.
The commission shall be charged with exercising any and all necessary duties to accomplish the objectives outlined in this chapter.65051.
The commission may accept65052.
The commission may collect information about California beef and dairy production and publish and distribute, without charge, a bulletin or other communication to all eligible producers.The commission shall establish an assessment rate to defray operating costs of the commission.
65054.
(a) The commission shall establish an annual budget according to generally accepted accounting practices. The commission shall prepare annually summarized statements of the activities in which it has been engaged in the previous annual period, and of the activities in which it proposes to engage in the ensuing annual period. The statements shall be made available to all eligible producers at their request.65055.
When the secretary is required to concur in a decision of the commission, the secretary shall give his or her response to the commission within 15 working days from notification of the decision. The secretary shall set forth in writing with specificity the reasons for any refusal to concur. The secretary’s response may be a requirement that additional information be provided.65056.
The commission shall reimburse the secretary for all expenditures incurred by the secretary in carrying out his or her duties and responsibilities pursuant to 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 secretary’s legal costs with regard to that action.65057.
(a) The secretary may require the commission to correct or cease any existing activity or function that is determined by the secretary not to be in the public interest or that is in violation of this chapter.65058.
The secretary shall only prohibit actions by the commission that are inconsistent with the powers and duties provided to the commission by this chapter, in violation of this chapter, or not in the public interest.65059.
The commission and the secretary shall keep confidential and shall not disclose, except when required by court order after a hearing in a judicial proceeding, all lists in their possession of persons subject to this chapter. However, the commission shall establish procedures to provide access to communication with other producers and handlers regarding noncommercial matters affecting the commission and persons subject to its jurisdiction. The access shall not include the actual release of the list of the names and addresses of producers and packers in the possession of the commission or the secretary. In addition, notwithstanding any other law, all proprietary or trade secret information developed or gathered pursuant to this chapter, except as provided in Section 65077, including, but not limited to, names and addresses of packers and producers, cattle or beef produced, bought, or sold, prices paid, and the products of research obtained by the commission, or by the department on behalf of the commission, from any source is confidential and shall not be considered a public record as that term is defined in Section 6252 of the Government Code.65060.
The commission may investigate and prosecute civil violations of this chapter.Article 5. Implementation and Suspension of Operations
65061.
(a) On or before June 1, 2018, the Bureau of Livestock Identification and the council shall submit to the secretary for review a list of producers who have sold or owned cattle in the last calendar year and are eligible to vote.65062.
This chapter, except as necessary to conduct an implementation referendum vote, shall not become operative until the secretary finds that a majority of producers participating in the referendum approve the referendum in an initial referendum vote conducted by the secretary on or before June 1, 2019.65063.
The implementation referendum shall advertise the amount to be assessed and declare that the assessment shall be a mandatory fee. The implementation referendum shall also advertise that the commission will accept petitions to refund the fee for any producer subject to this chapter pursuant to Section 65076.65064.
The secretary shall establish a period in which to conduct the referendum, that shall not be more than 60 days in duration, and may prescribe additional procedures necessary to conduct the referendum.65065.
Nonreceipt of a ballot by an eligible65066.
If the secretary finds that a65067.
If the secretary finds that a65068.
(a) Before the referendum vote conducted by the secretary pursuant to this article, a proponent of the establishment of the commission shall deposit with the secretary the amount that the secretary deems necessary to defray the expenses of analyzing the proposed commission and certifying the necessary list of producers submitted by the council and conducting the vote.(a)A referendum among the state’s producers to terminate the commission shall be conducted by the secretary if the secretary receives a petition for a referendum signed by three thousand eligible producers.
(b)If upon the count of the ballots the secretary finds that 30 percent, or more, of all producers established by the secretary have voted and a majority of the total number of producers voting have assented to the discontinuance and termination of the commission and
the programs that are established and maintained pursuant to this chapter, the secretary shall make a finding to that effect and declare the existence of the commission and the programs that are established and maintained pursuant to this chapter discontinued and terminated at the end of the fiscal year in which the referendum is conducted.
(c)On the expiration of this chapter pursuant to this article, the commission shall remain in existence for the purpose of furnishing the secretary with a complete record of its outstanding financial obligations, accrued and to accrue. The secretary shall pay from the money deposited and disbursed any outstanding obligations and any obligations incurred by the secretary and the department under the terms and provisions of this section. Any money that remains shall be retained by the secretary to
defray the expenses of formulation, issuance, administration, or enforcement of any subsequent program for beef promotion. If no such program is undertaken within a period of three years from the date of termination of this chapter, the money shall be used to fund activities related to the subject matter of this chapter at the discretion of the secretary.
(d)If upon a count of the ballots the secretary finds that less than 60 percent of the total number of producers voting have assented to discontinuance and termination, the secretary shall make a finding to that effect and the commission and programs that are established and maintained pursuant to this chapter shall continue to remain in full force and effect.
65069.
(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 operation of this chapter should be continued. If, after the hearing, the secretary finds that a substantial question exists among the producers assessed under this chapter as to whether the operation of this chapter should be continued, the secretary shall conduct a reapproval referendum to be conducted among producers to determine whether the operation of this chapter shall be reapproved and continue in effect.Article 6. Financial Provisions
65071.
(a) In order to carry out the programs and administer the activities that are conducted pursuant to this chapter, an assessment of one dollar ($1) per head shall be paid on each sale of cattle and calves. The assessment shall be charged on all cattle and calves, except the following:65072.
(a) Each person who is required to pay or collect the assessment shall maintain a complete and accurate record of all transactions subject to assessments under this chapter. These records shall contain information required by the secretary relating to the payment or collection of assessments, shall be preserved for a period of two years, and shall be offered and submitted for inspection and audit at any reasonable time upon written demand by the secretary or his or her duly authorized agent.An assessment greater than one dollar ($1) per head on cattle and calves prescribed by Section 65071 shall not be charged pursuant to that section unless the greater assessment is approved by the producers in this
state, by a referendum called for by a proponent of the commission to be submitted to the producers by the secretary. The secretary shall find that the producers have approved a greater assessment if the secretary finds that a majority of the producers voting in the referendum voted in favor of charging the greater assessment. Ballots shall be provided to producers from a list provided by the council and approved by the secretary, and to other producers who request a ballot that provide proof of eligibility.