BILL ANALYSIS Ó AB 224 Page 1 Date of Hearing: May 15, 2013 ASSEMBLY COMMITTEE ON APPROPRIATIONS Mike Gatto, Chair AB 224 (Gordon) - As Amended: May 7, 2013 Policy Committee: AgricultureVote:7 - 0 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill creates an oversight program within the California Department of Food and Agriculture (CDFA) for farmers utilizing Community Supported Agriculture (CSA) to distribute their products. Specifically, this bill: 1)Defines a CSA program to mean a program whereby a registered California direct marketing producer (CDMP) , or a group of registered CDMPs, grow food for a group of California consumer shareholders or subscribers who pledge or contract to buy, on a prepayment basis, a portion of future crops, animal production, or both, from these registered CDMPs. 2)Establishes requirements for any registered CDMP that markets whole produce, shell eggs, or processed foods through a single-farm or multi-farm CSA, including requiring annual registration with CDFA or county agricultural commissioners as a registered CDMP, and informing consumers of the farm of origin of each item in the consumer box or container. 3)Requires an annual registration fee, not to exceed $50, to cover costs of registration processing and enforcement. 4)Requires CDFA to create and maintain an online data filing system process for producers to register. FISCAL EFFECT 1)Annual costs for CDFA to administer and enforce the registration program would be approximately $450,000 per year (Food and Agricultural Fund). AB 224 Page 2 2)There are approximately 350 CSAs in the state. The $50 fee would generate $17,500 in revenue to offset the cost of the program. COMMENTS 1)Community Supported Agriculture . CSA has been a growing marketing method over the last two decades. Originally, participating consumers would prepay the farmer for the produce, thereby providing the financing to the farmer to operate. While this model is still used, several CSA models have developed, including paying for weekly, bimonthly, or monthly box deliveries, discounts for assisting with planting or harvesting, providing consumers many different options and flexibility in their produce choices. 2)Purpose . Sharing produce grown by farmers through community supported agriculture has grown into a flourishing business model. The author contends the rapid expansion of CSAs in recent years, along with the adaptation to the original CSA model, demonstrates that CSAs are in need of definitions and parameters for its regulation. The intent of this legislation is to establish that regulation and a fee to help offset the cost of oversight. 3)Related Legislation . Currently, AB 996 (Dickinson) recasts and expands Certified Farmers' Market laws, requirements, and fees and increases penalties for violations. That bill is pending before this committee. Analysis Prepared by : Julie Salley-Gray / APPR. / (916) 319-2081