Update on AB 2606 – California Agave Commission Bill
The California Agave Council is actively gathering feedback on AB 2606, the bill to establish a California Agave Commission, and will continue doing so through 2025. No petition for activation will be submitted in the bill’s current form. Updated legislation could be introduced in early 2026, with changes potentially taking effect in 2027. A Commission would provide a grower-led, transparent structure to fund research, marketing, education, and policy efforts, helping ensure a strong and sustainable future for California’s agave industry. Growers and stakeholders are encouraged to stay informed and share feedback through the Council’s newsletter and email.
The California Agave Council is actively gathering feedback on AB 2606, the legislation that lays the groundwork for establishing a California Agave Commission. This feedback phase will continue through the end of 2025, aiming to incorporate a broad range of perspectives from growers, processors, and industry partners. Based on this input, we anticipate collaborating with the legislature in early 2026 to introduce a bill reflecting the agreed-upon changes. The CA Agave Council will not be petitioning CDFA for activation of AB 2606 in its present form.
The legislative process typically spans approximately nine months. Therefore, any enacted changes would likely take effect on January 1, 2027. Consequently, the earliest a vote to initiate the Commission could occur would be in early 2027.
We will continue to share updates and opportunities for discussion through our newsletter and social media channels. To stay informed and participate in the conversation, sign up for our newsletter at https://mailchi.mp/californiaagave/survey.We welcome your feedback at any time via email at Info@CaliforniaAgave.org.
What is a Commission, and Why is it Important?
A Commission is a grower-led, state-recognized organization that invests in education, research, marketing, and policy efforts through a transparent structure. Commissions have helped many California crops thrive, providing a framework for collective action and industry development.
Key Features of the Proposed California Agave Commission:
Nominal Cost per Pound: A small, per-pound fee collected by processors at harvest, ensuring contributions align with actual production. This approach, refined from the original acreage-based proposal, offers a more equitable and sustainable funding model for the long term.
Grower Rights: One grower equals one vote, regardless of size, protecting the interests of small and large growers alike.
Industry Control: Funds managed by an elected board of growers and processors, ensuring decisions are made by those directly involved in the industry.
Built-in Accountability: The Commission must be renewed by a majority vote every five years, allowing for regular reassessment of its effectiveness.
Equitable Cost-Sharing: No single entity bears the financial burden alone; costs are shared fairly across the industry.
The California agave industry is at a pivotal point of growth. Careful planning and investment are essential to ensure a strong future. Establishing a Commission is a crucial step toward creating the organization, stability, and shared resources needed to move the industry forward. It will also provide growers, investors and companies with confidence that the industry has a cohesive plan and the support necessary for successful growth.
We appreciate all the feedback received thus far and encourage ongoing input as we work together to shape the future of California's agave industry.
CALIFORNIA AGAVE SYMPOSIUM
Don’t miss the biggest gathering for California Agave to learn from experts, ask your questions and network with other leaders in this exciting new movement.
Cultivating the Future: Practical Advice from Planting to Processing
This year’s Symposium is set to be our most engaging and informative event yet! Dive into the latest research, growing and distilling insights, and hands-on advice designed to propel the California agave industry forward.
Expect an exciting lineup of:
🌟 Expert-led discussions on the latest science and innovations.
🌱 Grower and distiller panels sharing real-world experiences and success stories.
💬 Interactive breakout sessions to explore the topics that matter most to you.
🤝 Ample opportunities to network, build community, and connect with industry leaders.
This year, we’re putting a special spotlight on practical tools and strategies for success. From planting and nurturing agave to harvesting and production, you’ll gain actionable takeaways to enhance your operation—whether you’re an established expert or taking your first steps into the agave world.
Don’t miss this chance to be part of an event that’s shaping the future of California’s agave industry.
We’re also thrilled to announce two of our featured speakers: Grover and Scarlet Sanschagrin of Tequila Matchmaker. They have some big updates to share, including their newly launched Agavos Awards, and will provide an overview of the agave industry, lessons learned in Mexico, and offer valuable insights and advice on the future of the international spirits market.
Tickets are only $100 + fees, for Full Members, and discounted also for Associate Level Members. Reach out to us if you’re a Full or Associate for your promo code. If you haven’t received your code yet, please contact us. Not a Full Member? Now’s the perfect time to join and save hundreds of dollars! Visit our Givebutter page to join!
Commission Bill FAQ
What is a Commission? A commission is a legal organization designed to support growers and processors in California. It allows a sustainable pooling of resources for research, education, promotion, and marketing without violating anti-competition laws. Since the 1960s, Numerous commissions have been formed to support various commodity groups. Examples include:
And many more.
How is the Agave Commission established? What is the voting threshold?
The passage of AB 2606 provides industry members with the right to form the Commission, not the mandate itself.
Food and Agricultural Code Section 79992 states: “The commission shall not be established, and this chapter shall not be implemented, except as necessary to conduct an implementation referendum vote, until the secretary finds all of the following in a referendum vote conducted by the secretary…”
The Agave Council can request the CDFA to start a referendum when it’s the right time to begin.[1] CDFA will compile a list of eligible voters and distribute ballots, which must be returned within 60 days.[2]
What is the vote threshold to create the Commission?
The law requires 40% of eligible growers and processors to vote. Two conditions must be met:
(1) At least 65% of growers and processors (representing the majority of agave production or processing) must vote to support the creation of the Commission.
(2) Those that supported the creation of the Commission must represent the majority of agave produced or processed in the State. [3]
These two conditions are required to balance the needs of the agave industry and to ensure every grower and processor has an equal vote.
Is this the vote requirement for all other votes taken by the Commission?
No, this is only the vote threshold for creating the Commission. All other votes of the Commission are by majority vote, unless specified.
Who is eligible to vote in the referendum? Growers with 2 acres or more of agave and licensed processors that process 3 tons or more of agave annually.[4]
What if I grow less than two acres of agave or process less than 3 tons? You are not voting members, are not subject to the assessment, and do not have to report information to the Commission.[5]
Who runs the Commission? The Commission is run by a Board of Directors elected by the growers and processors, who all have an equal vote.[6]
Who is on the Commission's Board of Directors? The board consists of 6 growers, 2 processors, and 1 public member voted on by the members, serving 3-year terms. The public member is appointed by the CDFA Secretary. The grower and processor board members must be growers/processors with a financial interest in agave.[7] All Board meetings are publicly noticed, and any person can participate.
How is the initial Board selected and how do Board members change?
When the Commission is established, CDFA will contact all growers and processors to nominate and elect growers and processors to serve on the commission board of directors.
After the first election, the Board of Directors in an open meeting will determine nomination and election procedures. These procedures must be agreed upon by the Secretary of CDFA.[8]
What activities can the Commission undertake? The Commission can manage administrative functions, conduct research, distribute information, establish assessment rates, and promote agave products. Its work adapts to the needs of the industry.[9]
What is an assessment, and who pays it? An assessment is a fee for the Commission's operational costs. The maximum assessment is $50,000 per year, with no more than $1,000 for those cultivating or processing between 2-10 acres or 3-10 tons.[10] This is a preliminary assessment rate that could be adjusted.
*This is being discussed to change assessments from acreage to tonnage assessed upon processing*
How does the Commission implement changes to procedures, assessment rates, etc.? The law is meant to provide a basic framework for what the Commission can and cannot do and how it operates. Most of the specifics on how the Commission operates can be changed through a vote of the board of directors in a public meeting. But some of the Commission’s requirements are in law. Changing these requires legislation, which can be initiated by the Commission, with the consensus of the agave industry. These two methods allow the Commission to adapt to the needs of the industry.
Why would the Commission request information? The Commission may request data such as acreage, varietals, and production information to identify trends, support marketing efforts, and address industry research needs. information of any individual or entity is confidential.
Can the Commission tell growers and processors how to run their business? No. The Commission is not a regulatory body and can’t impose rules on growers or processors. The Commission cannot tell a grower how to grow or what to grow.
Can the Commission be terminated? Yes, five years after establishment the CDFA will hold a public hearing to review the Commission. A majority vote of eligible growers and processors can decide to terminate it.[11]
[1] FAC §79961
[2] FAC §79963
[3] FAC §79962
[4] FAC §79927 and FAC §79931
[5] Et. al.
[6] FAC § 79936
[7] Et. al.
[8] FAC §79967
[9] FAC §79956
[10] FAC §79971
[11] FAC §79991
California Agave Assembly Bill 2606 Passes
Announcement: California Agave Council and the Path to a Commission
The California Agave Council is a voluntary organization dedicated to building a strong agave community, laying the foundation for a successful agave industry in California, and promoting the industry's collective interests. Since its inception, the Council has considered the possibility of creating a Commission, similar to other commodity industries in the state, to unite stakeholders and provide sustainable funding.
With the passage of AB2606, we are one step closer to that goal. However, the formation of a commission is still years away, and many discussions remain.
The California Agave Council is a voluntary organization dedicated to building a strong agave community, laying the foundation for a successful agave industry in California, and promoting the industry's collective interests. Since its inception, the Council has considered the possibility of creating a Commission, similar to other commodity industries in the state, to unite stakeholders and provide sustainable funding.
With the passage of AB2606, we are one step closer to that goal. However, the formation of a commission is still years away, and many discussions remain. Special thanks to Assembly Majority Leader Cecilia Aguiar-Curry (D-Winters) for her strong support and for authoring this bill. She has been a true champion for California Agave from the very beginning!
Key Points about the Legislation:
AB2606 does not create a Commission; it simply provides a framework for one if agave growers and distillers vote to approve it in the future.
The creation of a Commission would follow a democratic process, with growers and distillers voting, overseen by the California Department of Food and Agriculture.
Realistically, the vote won’t occur until 2026 or later, as the industry is still in its early stages, and many elements need further discussion.
The bill allows the industry to assess whether a Commission would effectively support its growth and success.
This initiative was presented by Louie Brown of Kahn, Soares, & Conway at last year's California Agave Industry Symposium at UC Davis, and again at the April 2024 Annual General Meeting of the California Agave Council.
Why a Commission? This proactive measure allows the agave industry to establish a foundational model, similar to long-standing commodity boards like the California Strawberry Commission and Olive Oil Commission of California. These boards have been successfully structured to serve the best interests of their industries.
A Commission would require mandatory contributions from all industry participants, preventing “free-riders” from benefiting without contributing.
Contributions would be scaled, with smaller growers/distillers paying less and larger entities paying more, ensuring a fair and balanced approach.
It would create a structure where all stakeholders contribute to research, marketing, and industry development, ensuring that the benefits are shared across the industry.
Democratic Governance A Commission’s Board of Directors would be elected by growers and distillers, serving two-year terms. If, at any point, the industry feels the Commission no longer serves its needs, it can be dissolved through a vote.
Moving Forward We look forward to ongoing discussions and encourage everyone to join the California Agave Council, participate in meetings, and help cultivate a vibrant agave community.
Purpose of the California Agave Council:
The California Agave Council was created to unite growers, distillers, and stakeholders in the agave industry under a shared mission: to build a thriving, sustainable agave industry in California. Our council aims to:
Support Growers and Producers: By connecting growers with distillers and resources, we help foster collaboration, streamline production processes, and ensure fair market opportunities for all participants.
Advocate for the Industry: We are actively working with lawmakers, like on the “California Agave Spirits” bill, to ensure legal and regulatory frameworks that benefit agave farmers and distillers. This includes securing grants (like the $500K grant) to fund important projects that will directly impact members.
Promote Sustainable Practices: In partnership with UC Davis and industry experts, we are advancing best practices in sustainable agriculture to ensure the long-term viability and environmental health of agave farming in California.
Educate and Connect: Through regional events, workshops, and networking opportunities, we provide valuable information, tools, and support to help members succeed in this growing industry. This includes guidance on new developments, opportunities, and resources available to members.
Why This Council Matters:
The California Agave Council is more than just a group—it’s a community working together to shape the future of the agave industry in our state. As the demand for agave spirits and products grows, our collective strength and shared knowledge will be key to seizing new opportunities, addressing challenges, and ensuring that California becomes a leader in agave farming and production.
Join us in shaping the future of the California agave industry!