BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, Chair AB 224 (Gordon) - Agricultural Products: Direct Marketing: Community Supported Agriculture Amended: June 26, 2013 Policy Vote: Agriculture 4-0 Urgency: No Mandate: Yes Hearing Date: August 12, 2013 Consultant: Robert Ingenito This bill does not meet the criteria for referral to the Suspense File. Bill Summary: AB 224 bill would (1) define community-supported agriculture (CSA) within the direct marketing program regulated by the California Department of Food and Agriculture (CDFA), and (2) establish regulatory parameters and require CSA registration fees to fund administration and related programmatic costs, as specified. Fiscal Impact: CDFA indicates that it would need 0.5 positions and $25,000 (special funds) to implement the provisions of the bill. CDFA identifies about 350 CSAs in the State. The $100 fee would generate $35,000 in annual revenue. Thus, revenues generated by the bill would be sufficient to fund the additional costs identified above. Background: 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. Proposed Law: This bill would, among other things, do the following: Encourage 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. AB 224 (Gordon) Page 1 Define "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). Define "single-farm" and multi-farm CSA programs, as specified. Require 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. Add 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. 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: AB 224 (Gordon) Page 2 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. Staff Comments: This measure, if enacted, would require CDFA to develop and establish a registration program for CSAs and clarify and make specific the proposed CSA categories. Additionally, it would need to establish and maintain the small farm safety guidelines. CDFA estimates administration costs of $25,000 annually. CDFA estimates there to be approximately 350 CSA's; thus the maximum $100 fee would generate $35,000 to create and maintain a producer registration program. Revenues generated by this legislation would be deposited into the Food and Agriculture Fund and would be sufficient to fund the additional costs identified above.