Stopping several bills impacting agriculture labor relations have been the focus of the association and other ag interests this year. We have been actively opposing three bills AB 1313 (Allen) which would require overtime for ag employees after 8 hours in a day and 40 hours in a week, AB 2346 (Butler) which would address heat stress regulations by authorizing a private right of action for enforcement and joint liability for farmers and AB 2676 (Calderon) which dramatically increases fines for violations of heat stress regulations.

AB 1313 and AB 2676 are both on the Senate Floor available to be taken up any time. AB 2346 passed out of appropriations committee yesterday with amendments and will be on the Senate Floor next week.

AB 1313 (Allen) would eliminate agriculture's exemption from the 8-hour workday. This bill would:

• require overtime to be paid for all work in excess of 8 hours.

AB 2346 (Butler) was recently amended. The new language eliminates the unworkable regulatory requirements for providing heat and shade. However, the bill continues to create joint and several liabilities for property owners who utilize labor contractors and would allow employees to sue their employer for heat stress violations. The bill would:

• Impose joint liability for growers utilizing the services of a Farm Labor Contractor who is a repeat offender of the Heat Prevention Standard. Repeat offender is defined as anyone with more than one violation in a five year period. This includes technical paperwork violations.
• Create a private right of action allowing an employee to sue the employers for violations of the Heat Prevention Standard

AB 2676 (Calderon) was amended last month to create new criminal penalties for agricultural employers. The bill would:

• Allow for extreme fines of up to $10,000 and six months in jail for failure to provide shade that is 'sufficient to allow the body to cool' at all times and one quart of 'suitably cool' water per employee per hour. If an injury or death occurs as a result of the violation, the penalty is $25,000 and one year in jail.
• The language in the bill is not consistent with the current CalOSHA Heat Stress Standard which would set up employers for frivolous claims of violation.

The association has been supporting other ag labor bills including AB 1675 (Bonilla) which creates civil penalties for unlicensed farm labor contractors. Working with a large coalition of agriculture and business groups to fight these bills, the association has taken an active role testifying in committee negotiations with the proponents and working to educate lawmakers about the detrimental impact these measures will have on both the farmer, and in the case of overtime the employee whose hours may be reduced.

MEMBER ACTION! Now is the time to contact your local legislator and inform them to oppose AB 1313, AB 2346 and AB 2676.

Having just reconvened on August 6 from a month long recess, the California State Legislature finds itself faced with a whopping 800 bills and is clearly poised to have a busy month ahead of them. Fiscal committees will have until August 17, which will be the last day, to congregate and report bills to the Floor. August 20 to August 31 will be Floor Session only for both houses. During this Floor Session the Legislature will be acting on bills. Committees will only be allowed to meet if the rules are waived and only for extraordinary circumstances.

One of the more high profile tasks the Legislature will deal with is the impending pension reform for public employees. The Legislature has not approved any of Governor Jerry Brown's 12 point reform proposal, which is strongly opposed by the public employee unions. The Governor's proposal includes increasing the age of retirement, capping what a retiree's annual retirement can be and eliminating other areas of constant abuse.

The Legislature will also address the other highly controversial issues like funding for the high-speed rail project, UFW sponsored legislation and workers compensation reform.  The UFW is sponsoring three bills, AB 1313 (Allan), AB 2346 (Butler) and AB 2676 (Calderon). If approved, AB 1313 would provide overtime pay for farm workers after eight hours a day or forty hours a week instead of the current format of ten hours a day or sixty hours a week. AB 1313 is awaiting action on the Senate Floor and could be voted on at any time starting August 20. AB 2346 increases requirements for ag employers to reduce the risk of heat illness. In addition, AB 2346 creates civil penalties and allows for private lawsuits for any violation. AB 2676 would see employers face possible criminal punishment for violations of the heat standard.

After August 31, the responsibility transfers to the Governor. He will have until the end of September to sign or veto any bills. There is no pocket veto written into the State Constitution, so failure to act by the Governor results in a bill becoming law.

Finally, on November 6, the General Election will be held where Californians will have the opportunity to vote on eleven different propositions including Proposition 37, perhaps better known as the GMO labeling initiative. If passed, this would require almost any food product made with GMO ingredients to be labeled "GMO." In addition, this measure would drastically restrict the use of the term natural or any of its derivatives in the labeling of food. Notable exemptions written into the measure include dairy, meat, eggs and alcohol, which would not require any labeling. Also on the ballot will be three tax initiatives: Prop 30, Prop 38 and Prop 39. Proposition 30, which is sponsored by the Governor would increase sales tax while also raising personal income tax on incomes over $250,000. Proposition 38 would increase income tax rates on most Californians with the hopes of increasing state revenues by ten billion dollars a year. Proposition 39 would eliminate favorable tax treatment to multistate businesses and would require them to calculate their income tax off their percentage of sales in California. The revenues from Proposition 39, estimated at approximately $1 billion per year, would be split between investments in renewable energy projects and reducing the General Fund deficit.

United States Senator Dianne Feinstein who represents the Democratic Party will be up for reelection on this November's ballot. She will be running against Elizabeth Emken, who is focused on lowering taxes, economic growth, and having accountability in Washington. Californians will elect 53 candidates to the United States House of Representatives, one from each congressional district. As for the State Legislature, there will be twenty seats up for election in the Senate and all eighty seats in the State Assembly.

The Food Safety Modernization Act, which was signed into law on January 4, 2011, contains a number of rulemaking deadlines that the Food and Drug Administration was required to meet. FDA continues to move in various ways to implement FSMA and regularly updates the FSMA website. 

Section 103 - Hazard analysis and risk-based preventive controls

Particular attention should be paid to Section 103 of the bill, which details the requirements for FDA's rules on preventive controls, as July 3, 2012 (18 months after signing), was the deadline for final preventive control rules. FDA missed that date and has not published proposed rules. The last available information shared by FDA was that the proposed preventive rules for food and feed will likely not publish until after the November elections due to the expected $1.2 billion cost.    

FDA Enforcement of FSMA in the Absence of Preventive Control Rules

AFIA initiated a letter with the National Feed & Grain Association and the National Oilseed Processors Association to FDA requesting clarification on its current plan of action regarding the provisions in the absence of the preventive control final rules. FDA last week responded that this law will not be enforced until the rules are final, now expected to be in late 2013. Once the rule is released, industry will have time to submit comments for FDA to review before final rules are issued. FDA will also allow a phase-in of the rules based upon the size of the facilities.  

About FSMA:

FSMA was signed into law on January 4, 2011, and provides the Food and Drug Administration (FDA) with sweeping new authorities and requirements. The law was a bi-partisan supported bill backed by the food and feed industries. It authorizes FDA to promulgate new rules for preventive controls, develop performance standards, create new administrative detention rules, provides authority for mandatory recall of adulterated products, and provides authority for hiring more than 4,000 new field staff among other provisions. It is unclear whether Congress will provide sufficient funding authorization to fully implement the law, but it is clear that FDA is proceeding with rulemaking to meet the new law's regulation deadlines.

A water bill sponsored by environmental justice activists moved out of the Appropriations committee this week after being held for most of the session. SB 685 (Lieu) will establish as state policy a "Human right to water."  There are many identified concerns with the bill, most may not surface for years until law suits on the issue get settled. Many believe this could impact water bond grants, BDCP projects, federal spending and local projects as well as many other impacts still not identified.

The association is actively opposed and working with other ag and water interests in a coalition attempting to either amend the bill or stop it on the floor.

 Click Here For Amended Bill 

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Democratic Governors Bev Perdue of North Carolina and Mike Beebe of Arkansas have filed formal waiver petitions requesting that the EPA reduce the amount of ethanol that refiners are required to blend in gasoline in 2012 and 2013 requirements. Additionally, Democratic Governors Martin O'Malley of Maryland and Jack Markell of Delaware sent letters last week asking for a reduction. The four governors' actions represent a victory for an alliance of livestock and poultry producers, who had been urging state leaders to petition for a reduction. Cattle, hog, chicken and turkey groups are also campaigning to change the ethanol mandate under the RFS.

In her petition, Perdue said the Renewable Fuel Standards mandate "has imposed severe economic harm to my state's poultry, dairy and cattle producing regions. Altogether, severe economic harm is being experienced by the State of North Carolina and many of its agricultural regions, as well as important economic sectors in the state as a direct result of the implementation of the applicable volume requirements of the RFS."

The governors' requests come as President Obama is campaigning for a second term and courting the rural vote, particularly in Iowa, a top hog and ethanol-producing state. The president, the first lady and Agriculture Secretary Tom Vilsack, a former Iowa governor, were in the Hawkeye State on Wednesday to tout administration policies, such as its support for the biofuel industry.

Corn growers and the ethanol industry say the livestock industry wants to go back to the days of cheap corn, when government policies kept the crop at artificially low prices. They credit the mandate for boosting a fledgling industry and providing an alternative to imported oil. The ethanol makers also argue that only 16 percent of the corn crop is turned into fuel - not 40 percent - because the process creates useful byproducts and co-products such as animal feed alternatives, corn gluten meal and corn oil.

The Renewable Fuels Association and Growth Energy, major ethanol trade groups, say the drive to reduce the mandate is unnecessary and unwarranted. "A waiver of the RFS will not provide the relief meat and livestock producers seek nor will it make it rain on dry corn fields and pastures," the Renewable Fuel Association said in a statement issued Tuesday. The group further said reducing the ethanol mandate will "send chilling signals to investors in new biofuel technologies" and contribute to higher gasoline prices.