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
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          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