BILL ANALYSIS Ó
AB 224
Page 1
ASSEMBLY THIRD READING
AB 224 (Gordon)
As Amended May 24, 2013
Majority vote
AGRICULTURE 7-0 APPROPRIATIONS 17-0
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|Ayes:|Eggman, Olsen, Atkins, |Ayes:|Gatto, Harkey, Bigelow, |
| |Dahle, Pan, Quirk, Yamada | |Bocanegra, Bradford, Ian |
| | | |Calderon, Campos, |
| | | |Donnelly, Eggman, Gomez, |
| | | |Hall, Ammiano, Linder, |
| | | |Pan, Quirk, Wagner, Weber |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Creates definitions dealing with Consumer Supported
Agriculture (CSA); and, authorizes a fee be established by
regulation for specified purposes. Specifically, this bill :
1)Creates new definitions affecting CSAs as follows:
a) Defines a "CSA program" to mean a program whereby a
registered California direct marketing producer (CDMP) , or
a group of registered CDMPs, growing 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;
b) Defines a "single-farm CSA program" to mean a program
through which all products originate and are produced from
one registered CDMP;
c) Defines a "multi-farm CSA" as a group of registered
CDMP, which declare their association annually when
certification takes place, and all delivered farm products
originate and produced from one or more of the CDMP farm
group; and,
d) Defines "farm" to mean a farm operated by a registered
CDMP.
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2)Requires any CDMP that markets whole produce, shell eggs, or
processed foods through a single-farm or multi-farm CSA to
comply with the following:
a) Requires annual registration with CDFA or county
agricultural commissioners as a registered CDMP, including
the following:
i) A statement specifying if the producer is part of a
single-farm or multi-farm CSA program; and,
ii) A declaration that CDMP is knowledgeable and intends
to produce in accordance with good agricultural
practices, as defined by CDFA.
iii) Prohibits the inference that a declaration made in
accordance with 2) a) ii) above, does not require a CDMP
from requirements to comply with other state or federal
laws relative to food safety and good agricultural
practices.
b) Label the consumer box or container used for delivery of
farm products to consumers with the name and address of the
farm delivering it;
c) Maintain the consumer boxes or containers in a condition
that prevents contamination;
d) Inform consumers, either by including a printed list in
the consumer box or container or by delivering a list
electronically to the consumer, of the farm of origin or
each item in the consumer box or container;
e) Maintain records that document the contents and origin
of all items included in each consumer box or container, in
accordance with CDFA regulations; and,
f) Comply with all labeling and identification requirements
for shell eggs and processed foods imposed pursuant to the
provisions of the Health and Safety Code (HSC), including,
but not limited to, the farm's name, physical address and
telephone number.
3)Requires a registered CDMP that complies with registration, in
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accordance with item 3) a) above, to be deemed an approved
source, as defined in HSC Section 113735.
4)Prohibits anything in this section to be construed to remove
the requirements of a CSA program from obtaining all required
permits and licenses, including, but not limited to, a produce
handler license or cottage food license.
5)Requires an annual registration fee, not to exceed $100, be
established by CDFA through regulation that covers actual
costs of registration, processing and enforcement.
6)Requires registration fees collected to be deposited in the
CDFA fund and be used to administer this article as follows:
a) Create and maintain an online data filing system process
for CDMP to register;
b) Coordinate expenses occurring from meetings of any ad
hoc direct marketing advisory committee created by CDFA.
7)Requires waiver of all or part of this annual registration fee
for CDMP registration or processing, when a CDMP pays fees for
other annual registration or certification processes, under
the purview of this chapter.
8)Requires the provisions of this article to be complied with
regardless of granting any waiver of fees.
9)Includes disclaimer of reimbursement to local agencies or
school districts.
EXISTING LAW makes legislative findings and declarations on
direct marketing of agricultural products as being beneficial to
the industry and the consumer, a good public relations tool, and
suggesting CDFA maintain a direct marketing program; encourage
the sale of California grown fresh produce; develop a regulatory
scheme providing flexibility that makes this a viable marketing
system; and, CDFA is to assist producers in organizing Certified
Farmers Markets (CFMs) and other forms of direct marketing with
technical and regulatory assistance. Statutes provide
exemptions for direct sales from standard size, standard pack,
container, and labeling requirements at CFMs and retail stand
locations, as specified, but are subject to compliance with
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regulations governing maturity and quality, federal and state
marketing orders, health and safety laws, regulations, or
ordinances, and requires all products sold in closed containers
to be labeled with the producers name, address and zip code, as
well as, a declaration of commodity identity and net quality in
the package. Statutes provide for a certification process for
growers and CFMs, to ensure producers grow what they are
selling.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, a one-time cost of approximately $80,000 for CDFA to
develop and implement the required on-line registration and
database, with on-going, annual costs of approximately $35,000
for database maintenance, program accounting, and administration
of the program; on-going costs should be fully offset by fee
revenues.
COMMENTS : 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
other models of CSAs 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.
This one time neighborly sharing of produce grown by farmers,
has fledged into a flourishing business model. According to the
author, 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."
While CDFA has been given legislative direction for working with
all types of direct marketing, little oversight has been given
to CSAs due to CDFAs lack of financial support. Some
entrepreneurs have taken advantage of this by providing produce
that has been purchased or not grown in California, while using
names that suggest they are growers or producers of the products
they offer.
With the 2010 passage of the federal Food Safety Modernization
Act, among many of the new food safety requirements, having food
come from an approved source is one. CDFA will need to develop
what are considered to be "on-farm, food safety, good
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agricultural practices" for producers to follow, as required by
this bill. This is an important element for food safety.
Analysis Prepared by : Jim Collin / AGRI. / (916) 319-2084
FN: 0000877