NEWS & INFORMATION

CONTENTS:

I have read that under natural conditions, inhaled anthrax is exceedingly rare -- only 18 cases were reported in the United States in the entire 20th century.

Not so today! The anthrax scare is certainly frightening and the more I read, the more unease I feel. Before this week, I did not know that anthrax is named after the Greek word for "coal" because the skin lesions that result from the disease are black. Nor did I know that there are three types of anthrax -- skin, lung, or gastrointestinal -- and that while the "skin" form is fatal less than 1% of the time, the fatality rate for untreated inhaled or intestinal anthrax is over 90%!!

I don't think it is wise to assume that only the rich and famous will receive these letters of terror. On the website of the United States Postal Service, a "Suspicious Mail Alert" is posted. According to the notice, this is what to do if you receive a suspicious letter or package:

               1. Handle it with care. Don't shake or bump it.
               2. Don't open, smell, touch, or taste.
               3. Isolate it immediately.
               4. Evacuate the immediate area.
               5. Treat it as suspect. Call local law enforcement.

According to the USPS, characteristics that ought to trigger suspicion include letters or parcels that:
               *Have any powdery substance on the outside
               *Are unexpected or from someone unfamiliar to you
               *Are addressed to someone no longer with your company
               *Have no return address or have one that cannot be verified as legitimate
               *Are of unusual weight given their size
               *Are lopsided or oddly shaped
               *Have an unusual amount of tape on them
               *Are marked with restrictive endorsements, such as "Personal", "Confidential"
               *Have strange odors or stains
               *Show a city or state in the postmark that does not match the return address.

The USPS notice is available to download and print so that it can be posted in employee work areas and mail rooms. Find it at www.usps.com under the heading "safety and security of mail". If you do not have internet access, but would like a copy of the notice, please call the CBSA office.

On June 22nd, the CBSA Membership voted to adopt the National Pulse Trade Rules effective September 1, 2001. The rules replace the trade rules that are included in CBSA's bylaws.

The National Pulse Trade Rules are the result of two years of work from many industry members and organizations across the nation. The creation of the draft rules and subsequent revisions and re-revisions was quite a task. The efforts of those who participated are greatly appreciated.

The National Dry Bean Council will serve as the governing body of the rules and a committee will be appointed annually by the NDBC president to review and recommend necessary modifications or changes. The Committee will include representatives from each production area in the nation.

CBSA members were mailed a copy of the Trade Rules in June. If you would like additional copies, please call the CBSA office and we will provide them to you.

Within the National Pulse Trade Rules references are made to "Incoterms". Incoterms are standard trade definitions most commonly used in international sales contracts. They are devised and published by the International Chamber of Commerce (ICC). Go to www.iccbooks.com for ordering information or call them at (212)206-1150.

Representatives of about twenty agricultural organizations attended a reception and dinner with Governor Gray Davis recently in Sacramento. CBSA's Rich Matteis was in attendance at the event at which the governor was applauded for his support for and passage of the agricultural sales tax relief package.

The governor spent nearly three hours with the group discussing current and future efforts to help California agriculture. Many general topics were covered including environmental issues, tax relief, workers compensation insurance, and domestic and international trade.  Governor Davis praised CDFA Secretary Bill Lyons for his leadership in handling several recent critical agricultural issues.

Most of us know that Workers Compensation covers on-the-job injuries, but there are gray areas. Injuries that occur off the worksite often raise questions about the applicability of Comp coverage. Employers will keep track of their drivers' motor vehicle records as required by an insurance company, but in a rush might grab any available person to run an errand. Is this a mistake?

If an employee is off-site on an activity that benefits the employer, it's likely that Workers Compensation will cover them. You might be taking a chance on someone with a poor driving record if you grab the first employee you see to run an errand, increasing the chances of a Comp claim and an accident claim.

Other instances of high Comp claims probability include situations in which the only road to the workplace is dangerous, an employee is travelling between different worksites controlled by the employer, or an employee is between the parking lot and the workplace. For example, courts have allowed Comp coverage for employees that carpool at the request of the employer on a route that the employee wouldn't have normally taken. Even crossing the street to get lunch opens up a possible Comp claim if that's the only way to get lunch or if an employees is getting lunch for several employees.

Employers should be alert to all the potential situations that might extend Workers Compensation coverage beyond its normal scope. Coverage is generally present when there's some relationship between the travel and a worker's job function. Safety efforts reduce Workers Compensation claims should take into account off-site dangers.

Several months ago, NDBC received a letter from the USDA's Grain Inspection Packers and Stockyards Administration (GIPSA) with regard to "off-color" beans. According to the letter, "..GIPSA has observed an increase in the number of edible bean lots receiving the special grade designation of 'off-color'. Currently official inspectors rely on training, experience, and professional judgment to assign off-color lots that are distinctly off-color due to age or other natural causes, but are not materially weathered. GIPSA does not maintain an official visual reference standard to facilitate consistent application of color lines."

At a meeting earlier this year with the North Central Bean Dealers Association, Rocky Mountain Bean Dealers Association, and the NDBC, GIPSA staff spoke with industry representatives about the lack of a visual reference standard, possible marketing implications, and the Agency's interest in collaborating with the bean industry to establish a reasonable and meaningful visual standard.

GIPSA is looking to 1)establish a visual off-color reference line for various bean classes and 2)asking industry whether or not color should be used as a grade determining factor. The visual reference line is something that GIPSA has said will be established; however, the color grade standard will only be pursued in the future if industry supports such a change in grading standards (NDBC solicited comments from member organizations and reported to GIPSA that there was an overwhelming consensus that the industry does not support the use of color as a grade-determining factor).

GIPSA suggests the formation of an industry/GIPSA working group who would work to establish terms, definitions, and visual standards that are understandable and consistent with marketing needs. All state organizations have been asked by NDBC to invite GIPSA staff to attend membership meetings to present various options, solicit industry input, and answer questions.

As this newsletter goes to print, GIPSA's Mr. Mike Eustrom has been invited to address CBSA members at the Post Harvest Bean Bash in King City on November 30th. CBSA will prepare comments subsequent to this meeting and will share this input with NDBC for discussion at the U.S. Dry Bean Convention in July 2002.

State Institutional Purchases of Ag Products/California Preference - AB 801 (Salinas) - This bill was sponsored by CBSA.  It was a recommendation of the CBSA Board as part of the CBSA Tactical Plan.  It would have required state institutions to buy California agricultural products if the quoted price is no more than 5% higher than out-of-state or foreign agricultural products.  Schools would have been exempt from the 5% overage.  The bill passed the legislature, but the Governor vetoed it due to concerns about the potential cost of the bill to the state and in light of the current economic downturn in the state's economy.  State revenues for the first quarter of this fiscal year are down by over $1 billion.  Essentially, it was the right bill, but at the wrong time financially for the state.

While it is unfortunate the governor did not sign the bill, CBSA is discussing optional language with Assemblyman Salinas for reintroduction of a similar measure next year. Our thanks to Assemblyman Salinas for carrying this measure and working so hard for its passage. (Passed Assembly and Senate. Vetoed by Governor.) CBSA Sponsor/Support.

Agricultural Energy Conservation Program - SB 5x (Sher) - In addition to over $600 million in non-agricultural programs this bill provided $90 million for agricultural energy conservation programs. Monies are available for natural gas alternative fuel retrofit projects, more efficient electrical equipment, pump testing and retrofitting, advanced metering and telemetry, and methane bio-gas digestion projects. For further info contact CBSA.. (Passed legislature and Signed by Governor Davis.) CBSA Cosponsor/Support.

SB 5x Clean-up- SB 84xx (Costa)- CBSA staff during the final weeks of the legislative session drafted amendments to the SB 5x law which went into effect in April and provided for $90 million in grant funds for agricultural energy conservation programs. Since the roll out of the grant program in June and as result of how the California Energy Commission is implementing the program, it became clear that some statute modifications are needed to get more grant money into the hands of agricultural producers and processors. The amendments drafted by CBSA would have made it much easier to qualify for funding under the grant program. Unfortunately, resistance by several key assemblymembers defeated this effort to modify the statute. CBSA has also recently drafted language for a Legislative Counsel opinion letter which may be helpful in freeing up some additional monies for agriculture. (Unable to secure a vehicle to use for this language.)

Sales Tax Exemptions for Agriculture - AB 426 (Cardoza)- Provides for full exemption of sales taxes on propane used in agriculture and partial sales tax exemptions for farm equipment and diesel for producers of farm products. Also exempts diesel used in food processing from state portion of sales tax. CBSA is now working on the implementation phase and has helped to draft regulations to implement the measure. (Passed Legislature. Signed by Governor.) CBSA Supported.

Wholesale Food Vehicles - AB 1741 (Aroner)- Prohibits persons from delivering or transporting food in a wholesale food vehicle within the state without first paying a fee to and securing a permit from the county health department in the county in which the vehicle is registered. The bill also proscribes how food compartments are to be maintained and how food is to be stored in them. (To be heard in the Assembly Health Committee after January 1, 2002.)

Workers Compensation Benefit Increase - SB 71 (Burton)- Would have substantially increased workers compensation insurance benefits without sufficient offsetting reforms. Projected cost increases were between $3.5 and 5 billion which would have driven up workers compensation premiums by 40-50%. CBSA joined about a dozen other agricultural organizations in sending a letter to Governor Davis asking him to veto the bill. The same groups including CBSA also discussed this matter with the governor at a recent dinner meeting with him. (Passed Legislature. Vetoed by Governor.) CBSA Opposed.

Commissions and Councils- AB 1612 (Matthews)- This bill allows commissions and councils to conduct any activities provided for under the California Marketing Act of 1937. This bill is a first step in attempting to respond to a recent U.S. Supreme Court Mushroom Council ruling on commissions and their constitutionality. (Passed legislature. Signed by Governor.)

Truck Lengths - SB 636 (Karnette)- This bill would have given new authority to the Department of Transportation to reduce the lengths of trucks allowed on roads and highways. This bill would be potentially disruptive for agriculture as many rural roads would be subject to new truck length restrictions. (Passed Senate. Failed Passage in Assembly Transportation Committee.) CBSA Opposed.

Pesticide Mill Assessment - AB 780 (Thomson)- Sets the pesticide mill assessment at a level of 17.5 mills until January 1, 2004. This is the current mill assessment level, and therefore, there is no increased cost to agriculture. Provides for $7 million in new General Funds to fully fund DPR. PEPA was involved in nearly all the meetings and negotiations on this measure as it has progressed through the legislature. (Passed Assembly. Passed Senate. Signed by Governor.) CBSA Neutral.

County Agricultural Commissioners - AB 304 (Agriculture Committee)- Establishes that the base salary or the lowest step in the salary range for a county agricultural commissioner shall be the salary established for the position in January 2000 instead of January 1959 as is the current law. This bill allows CDFA to subvent a higher level of funds to counties to help defray salary costs for the county agricultural commissioner. The current amount the secretary can pay to the county is $6,600 and this bill would raise that to $28,000. (Passed Assembly. Passed Senate Agriculture and Water Resources Committee. Passed Senate Appropriations.) CBSA Supported.

Proposition 65 - SB 471 (Sher)- This bill makes various changes to Proposition 65, the Safe Drinking Water and Toxic Enforcement Act. Imposes a new requirement of securing a certificate of merit to demonstrate good cause for public warnings under Proposition 65 based on consultation with an appropriate expert. More importantly, it is the first time the law has been amended since approval by the voters thus hopefully paving the way for future improvements in the Act. An agricultural coalition in which CBSA participates has a regulatory proposal pending before Cal-EPA that would essentially exempt pesticide use from any warning or discharge requirements under Prop 65 as long as such use is in accordance with the label. Passage of AB 471 provides a precedent which should be helpful in working towards adoption of at least some of agriculture’s regulatory proposals. CBSA worked for passage of the bill on the Assembly floor once the bill was amended to the satisfaction of business and agriculture in order to secure the precedent. (Passed legislature. Signed by Governor.) CBSA Neutral.

Plant Laboratory Accreditation - AB 1608 (Assembly Agriculture Committee)- This bill requires all agencies within the state to recognize the results of CDFA accredited laboratories for plant quarantine and plant disease programs. An agency cannot reject the results of an accredited laboratory unless they 1) have a set of standards for doing so; 2) provide written justification for rejecting the results; and 3) have the permission of the Secretary of Agriculture. (Passed Legislature and Signed by Governor Davis.)

Farm Labor Contractors - Written Contracts - AB 638 (Steinberg)- This bill would have required that farmers using Farm Labor Contractors (FLC) have written contracts for same. If a contract is not in place a court shall give this significant weight towards determining that the FLC is not an independent contractor and all farm workers are employees of the grower. (Passed Assembly Labor Committee. Bill failed passage in Assembly Appropriations.) CBSA Opposed.

FLC’s - Penalties and Enforcement - AB 423 (Hertzberg)- This is the other FLC bill introduced this year. It requires growers to do additional verification that the FLC’s they used are licensed, imposes new financial penalties for non-payment of wages and sets up FLC enforcement units at county district attorney offices. The governor vetoed a similar bill last year, except that bill included jail time for failing to pay employees four times in an eight year period. (Passed Legislature. Signed by Governor Davis.)