California Governmental Relations Report
The California Legislature left for a month long break. This is the first official summer break the legislature has enjoyed in almost 5 years. The Legislature will be holding interim hearings and many district tours but will return to Sacramento for session on August 15. Notable highlights from this legislative session include passing an on time budget. While enacted before the July 1 deadline, the budget is littered with gimmicks and fee increases and if state revenues do not outpace expectations the budget triggers an additional $4 billion in cuts, including a $1.75 billion cut to K-12 education. The current budget includes $19 million in cuts to the Department of Food and Agriculture, elimination of the $32 million for the state's fair system and fee increases in many agencies that impact agriculture most notably a $24 million increase in fees at the Water Resources Control Board. Other firsts about this year's budget include: The first budget passed by a majority vote due to the enactment of Proposition 25 last November allowing for a majority vote budget, first budget ever vetoed by the Governor and the first budget in numerous years passed before the deadline. Impacts on the ag industry are significant including $19 million in general fund cuts to the Department of Food and Agriculture for a cross section of programs from pest inspection and prevention, increased fees for phytosanitary certificates, elimination of the $32 million for the state's fair system and fee increases in many agencies that impact business and agriculture most notably $24 million increase in fees at the Water Resources Control Board. Sponsored Animal Agriculture Bills: The association and our associated organizations are sponsoring several bills that would impact animal agriculture. SB 513 (Cannella) would reinstate an assessment on licensed renderers and grease haulers to fund additional enforcement. Additionally, we recently amended the legislation to include a rendering advisory board. SB 549 (Rubio) would increase the assessment and extend it to liquid egg products to fund the Shell Egg Advisory Committee to increase enforcement to promote food safety and egg quality. Both Bills are in the Assembly Appropriations Committee. Labor Bills: Several labor bills that will directly impact agriculture were introduced and are moving through the process or have already been acted on by the Governor. SB 104 (Steinberg) "Card Check for Agriculture" bill was passed and vetoed. Following many theatrical demonstrations the Governor vetoed the bill and said we need to work to fix the existing system, not eliminate the secret ballot. A bill creating strict liability for wages when hiring Farm Labor Contractors AB 243 (Alejo) passed the Assembly and the Senate Labor Committee and is in Senate Appropriations. AB 26 (Donelly) A bill that would have required employers to e-verify their workers immigration status or suffer significant penalties was defeated in Assembly Judiciary committee. Bills Impacting Ag and Business Below is a list of the most important bills identified. AB 10 (Alejo) - Raises Minimum wage to $8.50 an hour and indexes it to the Consumer Price Index. Held in committee. AB 26 (Donnelly) - Creates Liability on employers for hiring illegal aliens. Held in Committee. AB 46 (Perez) - Would disincorporate the city of Vernon, a 5.5 square mile southern California industrial hub turning over the operations to Los Angeles County. AB 781 (Perez) - Companion bill to AB 46 that creates a Community Services District for the fire department, advisory councils for police and other services and a housing authority. AB 66 (Chesbro) - Continues the funding of .15 cent of sales tax revenue for the rural crime task force. Considered and included as part of the budget. AB 88 (Huffman) - Requires labeling of all genetically modified salmon entering the state. Defeated in Committee. AB 157 (Jeffries) - Reduces the 2009 water bond that will be on the 2012 ballot by 25%. AB 197 (Monning) - Increases the remedy for underpayment of wages to twice the damages plus interest. AB 218 (Wieckowski) - This measure reinstates California's estate tax while exempting agricultural estates, reinstates the Manufacturers Tax Credit and would use the additional revenue to fund the Williamson Act. AB 222 Committee on Agriculture - Eliminates several reports required by statute including the Food Biotechnology Task Force and includes other general clean up provisions for the walnut commission and a law requiring how long abandoned pets must be held. AB 243 (Alejo) - Establishes joint liability for any farmer that enters into a legal contract for services with a Farm Labor Contractor will also be heard that day. AB 292 Galgiani - This bill requires the High Speed Rail Authority to appoint an agricultural advisory committee with 9 members nominated by the Secretary of CDFA. AB 400 (Ma) - Paid sick days, requires the employer to allow employees to use paid sick days if they are victims of domestic abuse or sexual assault. AB 467 (Eng) - Makes non-substantive changes to the 2009 water bond that will be on the 2012 ballot. Bill is being held for future discussions on the water bond. AB 523 (Valadao) - Declares the intent of the Legislature to enact legislation to eliminate all subsidies in California for ethanol. AB 550 (Huber) - Prohibits the construction of a peripheral canal unless expressly authorized by the Legislature. AB 685 (Eng) - Would declare as state policy that every human being has a right to clean affordable water for cooking and sanitary purposes. The bill requires every state agency to consider the policy when making decisions. AB 804 (Yamada) - Paid leave to care for family member by requiring paid leave to care for a seriously ill grandparent, grandchild, sibling, or parent-in-law. AB 914 (Atkins) - Would allow the California Cut Flower Commission to collect market information including price and variety data for an annual report on sales information. AB 1113 (Galgiani) - Increases net energy metering for eligible biogas producers that use ag residues, animal wastes, rendering to generate electricity. AB 1117 (Smyth) - Increase penalties for persons convicted of violating certain animal laws including mandating a 5 and 10 year prohibition from owning, working with or residing with animals following a conviction. AB 1176 (Williams) - Requires the written determination regarding control measures for each pesticide to be addressed by OEHHA and available to the public. Held in Assembly Ag Committee. AB 1265 (Nielsen) - Authorizes a county to have land that is newly contracted and newly renewed contracts for Williamson Act. Signed by the Governor July 15th. SB 34 (Simitian) - Establishes the intent of the Legislature to establish water fees on all water appropriators to fund water infrastructure. SB 104 (Steinberg) - Card Check for agricultural employees. This bill allows for a union to be recognized upon submission of a petition containing a majority of the employees' signatures of any employer. This process would replace the secret ballot elections. Vetoed by the Governor June 28. SB 196 (Cannella) - This bill addresses informational materials being developed by the Department of Food and Ag and the entities it regulates. SB 237 (Wolk) - This bill directs an unspecified amount of funds generated from a "cap and trade auction" or federal funds made available to California to reduce global warming to be made available to mitigate impacts on agriculture. SB 263 (Pavley) - Requires the Department of Water Resources to make groundwater wells reports available. SB 267 (Rubio) - Intended to address the impacts, burdens and costs of waste discharge reporting and regulation in California. SB 353 (Blakeslee) - Requires economic peer review of all regulations that may impact business in California. SB 513 (Cannella) Rendering Advisory Board and Enforcement Fee Extension, Farmers Markets - This legislation will create a rendering advisory board within CDFA and extend the sunset of an enforcement fee. Additionally, this bill extends the sunset for the California Certified Farmer's Market enforcement program. SB 549 (Rubio) Shell Egg Advisory Board - This legislation will increase the mill assessment on shell eggs from $.05 per case (30 dozen) to a ceiling of $.15 per case. Additionally, it will extend the assessment to all liquid egg products. SB 592 (Harman) Dairy Supply Lien - Updates and revises the Dairy Supply Lien to address changes in the diary industry, supply chain, financing that have evolved since its inception in 1988. SB 653 (Steinberg) - Authorizes the governing board of any county, city or special district to levy local personal income taxes, transactions and use taxes, vehicle license fees, and excise tax upon a vote of the public. SB 625 (Hernandez) - Creates a nursery commission to perform, research and marketing activities for California Nursery entities. Held in Committee SB 707 (Cannella) - Adds olive trees to the pome and stone fruits assessment program and advisory board. SB 900 (Steinberg) - Addresses the make-up and conflict of interest provisions for the Regional Water Quality Control Boards. Awaiting Action in Assembly Appropriations Committee. Water Commission Takes up Ag Conservation and Measurement SB 7x 7 passed in November 2009 addressing water use efficiency and measurement is currently being implemented by the California Water Commission. The draft regulations were presented to the Commission meeting in May. Controversy is brewing over which ag districts are required to comply and overall cost. The Department of Water Resources has identified a cost of $70 million on 46 irrigation districts to implement the first year and a $16 million price tag a year for operations and maintenance. This issue will continue to resonate and we will follow this as it develops. Additionally, for processors there is a task force directed to develop best management practices for the Commercial, Industrial and Institutional (CII) sector of waters users. The Association was instrumental in obtaining and "ingredient" and process water exemption that would limit the regulatory requirements on agricultural processors. High Speed Rail Authority - Legislative Hearing On July 15, the Senate Agriculture and Senate Transportation and Housing Committees held a joint hearing in Merced. The Title of the hearing was "Food to Rail: High-Speed Rail Impacts on Agriculture." Key points included alignment, access by a mill to the rail if a new high speed rail corridor is sited adjacent to existing rail, minimizing impacts on feed and grain facilities, the "taking" and compensation process if mills are in the corridor and need to be moved, mitigating impacts such as expedited permits and addressing traffic and land use issues for impacted mills. |