BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   SB 513|
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                                 THIRD READING


          Bill No:  SB 513
          Author:   Cannella (R)
          Amended:  As introduced
          Vote:     21

           
           SENATE AGRICULTURE COMMITTEE  :  7-0, 5/3/11
          AYES:  Cannella, Rubio, Berryhill, Evans, La Malfa, Vargas, 
            Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  9-0, 5/16/11
          AYES:  Kehoe, Walters, Alquist, Emmerson, Lieu, Pavley, 
            Price, Runner, Steinberg


           SUBJECT  :    Renderers and farmers markets:  fees

           SOURCE  :     California Grain and Feed Association
                      Pacific Coast Rendering Association


           DIGEST  :    This bill reinstates the renderer enforcement 
          program at the Department of Food and Agriculture (CDFA) 
          and the ability of CDFA to impose administrative fees on 
          renderers and collection centers in connection with animal 
          rendering until July 1, 2015.  This bill extends the sunset 
          date for the certified farmers' market operator fees 
          collected by CDFA and the enforcement article for civil 
          penalties and appeal provisions to January 1, 2017.

           ANALYSIS  :    Existing law (1) requires every person engaged 
          in the business of rendering or of operating a collection 
          center to obtain a license from CDFA, as specified, (2) 
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          regulates transporters of inedible kitchen grease, (3) 
          provides an operative date until January 1, 2010, and a 
          repeal date of January 1, 2011, and (4) authorizes the 
          collection of administrative fees, as specified, from 
          renderers and collection centers in connection with 
          rendering. 

          This bill reinstates the renderer enforcement program at 
          CDFA and the ability of CDFA to impose administrative fees 
          on renderers and collection centers in connection with 
          animal rendering until July 1, 2015.  

          Existing law requires, until January 1, 2012, that every 
          operator of a certified farmers' market remit to CDFA a fee 
          equal to the number of agricultural producers participating 
          on each market day for the entire previous quarter to be 
          used by CDFA upon appropriation by the Legislature, as 
          specified, (2) provides that California farmers may 
          transport for sale and sell California-grown fresh fruits, 
          nuts, and vegetables that they produce directly to the 
          public at a certified farmers' market, as specified, and 
          provides that it is unlawful for any person operating under 
          these provisions to commit certain acts related to the 
          conduct of farmers' markets, and (3) provides that, until 
          January 1, 2012, in lieu of prosecution, but not precluding 
          suspension or revocation of certified producer's 
          certificates or certified farmers' market certificates, the 
          CDFA Secretary or the county commissioner may levy a civil 
          penalty against a person who violates these provisions or 
          any regulation implemented pursuant to these provisions, as 
          specified.

          This bill extends the sunset date for the certified 
          farmers' market operator fees collected by CDFA and the 
          enforcement article for civil penalties and appeal 
          provisions to January 1, 2017.

           Background  

          CDFA, funded by licensing fees, oversees health and safety 
          practices of licensed renderers, transporters, and 
          collection centers.  The fees are set by the Secretary and 
          by statute.  The authority to collect licensing fees was 
          sunsetted out on July 1, 2010, and was repealed on January 

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          1, 2011. 

          The Certified Farmers' Market (CFM) program enables farmers 
          to directly sell their produce to consumers under the 
          Direct Marketing Law.  Originally, the CFM program was 
          funded from the General Fund at approximately $120,000 
          annually for state oversight, dispute resolution, and 
          enforcement.  However, in the early 1990s, the General Fund 
          dollars were eliminated.  Following a period of meager 
          funding through a certification charge for participating 
          farmers, the Legislature authorized an operator's fee in 
          1999.  CDFA collects the fee from the CFM operator based on 
          a per stall fee.  The fee revenue supports the county 
          agricultural commissioner who issues the certificates to 
          the producer and the market operator and conducts 
          inspection and enforcement activities at the markets.  The 
          operator fee and enforcement provisions are due to sunset 
          on January 1, 2012.  The sunset provision for enforcement 
          and fees has already been extended multiple times by the 
          Legislature.  

           Prior legislation  .  AB 2676 (Assembly Agriculture 
          Committee), Chapter 440, Statutes of 2006, extended the 
          sunset for the fees. 

           FISCAL EFFECT  :    Appropriation:  Yes   Fiscal Com.:  Yes   
          Local:  No

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

           Major Provisions         2011-12    2012-13     2013-14    Fund  

          Sunset extensions
          - rendering collection program            $108     
          $216$216Special*
                                 ($108)   ($216)    ($216)

          - farmers' market program       $115      $230     
          $230Special*
                                 ($115)   ($230)    ($230)

          * Department of Food and Agriculture Fund

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           SUPPORT  :   (Verified  5/17/11)

          California Grain and Feed Association (co-source)
          Pacific Coast Rendering Association (co-source)
          California Certified Organic Farmers


           ARGUMENTS IN SUPPORT  :    According to the bill's sponsors, 
          this bill provides the necessary funding for the California 
          Rendering Program and Certified Farmers Markets Program 
          with CDFA.  Reenacting the funds for the rendering program 
          ensures that these products are appropriately transported, 
          handled, and recycled and helps prevent theft and illegal 
          distribution, which could impact animal and human health.  
          Farmers' markets are a valuable part of the state's 
          agriculture market, providing a direct link from the farmer 
          to the consumer.  Under California's unique Certified 
          Farmers' Market Program, consumers and the integrity of the 
          markets are protected.   Recently, farmer's markets have 
          come under fire following an NBC-LA investigative report 
          which found several farmers' market vendors making false 
          claims about their produce.  The extension of the sunset 
          date enables the industry to continue to evaluate and 
          review the effectiveness of the enforcement provisions and 
          of the industry self-regulation and funding.


          MEL:mw  5/17/11   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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