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)
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                 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)
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                  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.