BILL ANALYSIS Ó
SENATE COMMITTEE on AGRICULTURE
Senator Cathleen Galgiani, Chair
BILL NO: AB 224 HEARING: 07/02/13
AUTHOR: Gordon FISCAL: Yes
VERSION: 06/26/13 CONSULTANT: Anne Megaro
Agricultural products: direct marketing: community-supported
agriculture.
SUMMARY :
This bill would define community-supported agriculture (CSA)
within the direct marketing program regulated by the California
Department of Food and Agriculture. This bill would establish
regulatory parameters and require CSA registration fees to fund
administration and related programmatic costs, as specified.
BACKGROUND AND EXISTING LAW :
The federal Farmer-to-Consumer Direct Marketing Act of 1976 was
enacted to promote "the development and expansion of direct
marketing of agricultural commodities from farmers to consumers"
in order to "lower the cost and increase the quality of food to
such consumers while providing increased financial returns to
the farmers" (7 USC Sec. 3001). Shortly following, the
California Department of Food and Agriculture (CDFA) enacted
regulations exempting certified farmers' markets from certain
packing, sizing, and labeling requirements under the Fruit, Nut,
and Vegetable Standards Law in order to sell agricultural
products directly to consumers. These exceptions were expanded
by AB 2168 (Jones) in 2008 to include farm stands, field retail
stands, and other forms of direct marketing. (Food and
Agricultural Code § 47000 et seq.).
Existing law makes legislative findings and declarations in
regards to the direct marketing of agricultural products as
being a benefit to the agriculture community and consumers by
supplying quality produce at reasonable prices. Existing law
encourages CDFA to assist producers in organizing direct
marketing activities by providing technical advice on marketing
methods and in complying with the regulations that affect direct
marketing programs (Food and Agriculture Code § 47000).
Community-supported agriculture (CSA): As defined by the United
States Department of Agriculture's National Agricultural
Library, "Community Supported Agriculture consists of a
community of individuals who pledge support to a farm operation
1Galt, R.E., L. O'Sullivan, J. Beckett, and C. C. Hiner. Jan-Mar
2012. Community Supported Agriculture is thriving in the Central
Valley. California Agriculture. 66(1):8-14.
AB 224 - Page 2
so that the farmland becomes, either legally or spiritually, the
community's farm, with the growers and consumers providing
mutual support and sharing the risks and benefits of food
production."
According to a study conducted at the University of California,
Davis1, CSAs have gained popularity in the last few decades,
first forming in the mid-1980s and growing to over 3,600 CSA
operations today. However, existing law does not specifically
define CSAs within direct marketing programs or provide for a
cohesive programmatic model or regulatory oversight.
Ad Hoc Committee: CDFA convened the Direct Marketing Ad Hoc
Committee to assess the role of direct marketing in California
and create a transparent and inclusive process to reinvigorate
the Direct Marketing Program. The Ad Hoc Committee published a
report in December 2012 with their findings, which confronted
the long-term health of direct marketing, funding and
enforcement, and potential regulatory frameworks and program
designs. The CSA Subcommittee of the Ad Hoc Committee agreed
that some additional regulatory oversight may be necessary to
ensure integrity of commodity marketing, food safety, and a
level business playing field.
PROPOSED LAW :
This bill:
Encourages CDFA to assist in organizing
community-supported agriculture by including CSAs as a form
of direct marketing under Division 17 of the Food and
Agriculture Code.
Defines "community-supported agriculture program," or
CSA program, to mean a program under which a registered
California direct marketing producer, or a group of
registered California direct marketing producers, grow food
for consumer shareholders or subscribers who pledge to
contract to buy a portion of the future crop, animal
production, or both, of the registered California direct
marketing producer(s).
Defines "single-farm" CSA programs to mean a program
where farm products originate from and are produced at the
farm of a single registered California direct marketing
producer, with no more than 10% of products originating
from other registered California direct marketers.
AB 224 - Page 3
Defines "multi-farm" CSA programs to mean a program
where all farm products originate from and are produced at
one or more farms of a group of registered California
direct marketing producers who declare their association as
a group by certification.
Requires that a registered California direct marketing
producer or group comply with the following:
o Register annually with CDFA as either a
single- or multi-farm CSA and declare that produce
will be grown in accordance with good agricultural
practices, as outlined in the small farm food safety
guidelines published by the department.
o Label the farm delivery box with the name and
address of the farm.
o Maintain the consumer boxes in a condition
that prevents contamination.
o Inform consumers of the origin of each item
included in the box.
o Maintain records that document the contents
and origin of all items included in each consumer box.
o Comply with all labeling and identification
requirements for shell eggs and processed foods.
Adds registered California direct marketing producers in
good standing and in compliance with these provisions as an
"approved source" of food that conforms with applicable
laws, current public health principles and practices, and
generally recognized industry standards that protect public
health.
Adds any whole uncut fruit, vegetable or unrefrigerated
shell egg grown or produced in compliance with all
applicable federal, state or local laws, regulations and
food safety guidelines issued by a regulatory agency, as an
"approved source" of food.
Requires all potentially hazardous food contained within
a consumer box to be produced, processed and handled
according to all applicable federal, state and local food
safety requirements.
Requires poultry, rabbit, and other meat to comply with
handling requirements established in the small farm food
safety guidelines published by CDFA per provisions in this
AB 224 - Page 4
bill.
Authorizes the California Department of Public Health or
a local regulatory agency responsible for retail food
safety to enter and inspect a CSA operation in response to
a public food safety complaint. The CSA shall cover
reasonable costs associated with such an inspection.
Authorizes the secretary of CDFA to set and collect an
annual registration fee, not to exceed $100, from a
registered California direct marketing producer. These
funds shall be used by the department for administration of
this program, which includes the following:
o Creation and maintenance of a registration
system.
o Development and publication of periodic small
farm food safety guidelines in consultation with the
Department of Public Health and local health officers.
The guidelines shall include, but not be limited to,
safe production, processing, and handling of both
non-potentially hazardous and potentially hazardous
foods.
o Expenses incurred relative to meetings of any
ad hoc direct marketing advisory committee established
by the secretary.
Waives part or all of the annual registration fee if the
California direct marketing producer pays fees for
registration or certification under any other program under
the purview of this chapter. Provisions of this chapter
shall be followed regardless of any fee waiver.
COMMENTS :
Stated need for this bill: According to the author, the "rapid
expansion of CSAs in recent years along with adaptations to the
original CSA model demonstrates that CSAs are in need of
definition and parameters for its regulation. With the numerous
economic, social, and environmental benefits of Community
Supported Agriculture and its growing popularity, it makes sense
to explore the creation of policy instruments to support the
needs of CSA farmers and consumers." Furthermore, according to
those in support, "It became clear in that task force (CDFA
Direct Marketing Ad Hoc Committee) that CSAs were not an
"approved source" for health and safety purposes at present, and
AB 224 - Page 5
that either they needed to obtain retail food permits from
Environmental Health or they needed to be clearly included in
the direct marketing laws and some food safety practices
mandated that would satisfy the health authorities."
Ad Hoc Committee: According to the Direct Marketing Ad Hoc
Committee report, "In practice, there is significant variation
within the State of California in regard to definition of a CSA.
These models substantially deviate from USDA's definition. For
example, there are entities which purchase agricultural products
at CFMs (certified farmers' markets), farm stands, field retail
stands, the point of production, and wholesale markets and
subsequently sell a "subscription" to the public. Other CSAs
produce some of their own agricultural products and supplement
with products from other producers or entities. As a result of
the ambiguity related to the definition of a CSA, industry and
consumers would benefit from a clear definition of CSAs that
encompasses California's burgeoning CSA industry."
Program cost: The $100 registration fee has been determined by
the Assembly Appropriations Committee to be adequate to cover
the costs of administering this program.
RELATED LEGISLATION :
AB 996 (Dickinson) of 2013. Amends certified farmers' market
law, requirements, fees, and related provisions and adds
community-supported agriculture to the definition of direct
marketing. Held under submission in the Assembly Appropriations
Committee.
AB 1632 (Gordon) of 2012. Would have encouraged CDFA to assist
in organizing the marketing of community-assisted agriculture.
AB 2168 (Jones), Chapter 447, Statutes of 2008. Expands the
definition of direct marketing to include farm stands, field
retail stands, and other forms of direct marketing, revises
related definitions, and authorizes CDFA to adopt regulations to
regulate direct marketing, as specified.
AB 593 (Strom-Martin), Chapter 833, Statutes of 1999. Codifies
regulations exempting direct marketers from specified packing
and labeling standards, amends fee structures, and authorizes
farmers' markets to establish rules and procedures.
AB 224 - Page 6
PRIOR ACTIONS :
Assembly Floor 76-0
Assembly Appropriations 17-0
Assembly Agriculture 7-0
SUPPORT :
Community Alliance with Family Farmers (Sponsor)
California Association of Environmental Health Administrators
California Farm Bureau Federation
California Federation of Certified Farmers' Markets
OPPOSITION :
None received