California Assembly Bill AB1733

California 2023-2024 Regular Session

• Introduced: 2/17/23
• Refer: 3/23/23
• Report Pass: 3/23/23
• Refer: 3/27/23
• Report Pass: 4/19/23
• Refer: 4/19/23
• Failed: 2/1/24

Caption

Secretary of Food and Agriculture: license or registration: bonds.

Impact

The bill represents a significant adjustment to compliance requirements for those operating in the agricultural sector, especially given that the current law can lead to abrupt cessation of operations for some agricultural businesses when a bond expires. By extending the grace period, the bill is set to enhance stability for agricultural operators who might face challenges securing new bonds, thereby ensuring continuity in their business activities. This legislative change also indicates a keen focus on supporting agricultural enterprises in California, particularly in maintaining robust infrastructure for license and bond management.

Summary

AB 1733, introduced by Assembly Member Gipson, seeks to amend Section 261 of the Food and Agricultural Code, specifically addressing the procedures surrounding the licensing and registration of entities within the jurisdiction of the Department of Food and Agriculture. The bill proposes to extend the time period in which the Secretary of Food and Agriculture can allow a license or registration to remain valid when a required bond lapses or is canceled from a maximum of 30 days to 60 days. This change aims to provide additional time for licensees or registrants to secure a new bond, thereby preventing potential disruptions in their operations.

Sentiment

The reception of AB 1733 appears to be generally positive among stakeholders within the agricultural community. Advocates believe that the bill alleviates undue pressures associated with compliance, especially in sectors where financial arrangements, such as bonding, can be complex and time-sensitive. The proposal to extend the renewal period for licensing supports the operational viability of agricultural businesses and is perceived as facilitating a more supportive regulatory environment.

Contention

However, while there appears to be broad support for the extension of the license validity period, some concerns might arise regarding the implications of extended periods for bond renewals. Critics could argue that longer durations might create laxity in compliance oversight and enable situations where businesses operate without sufficient financial backing. Nevertheless, the bill, in its current format, seems aimed at striking a balance between necessary regulatory compliance and the practical realities faced by businesses operating in California's farming and agricultural sectors.