BILL ANALYSIS Ó
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THIRD READING
Bill No: AB 224
Author: Gordon (D)
Amended: 9/3/13 in Senate
Vote: 21
SENATE AGRICULTURE COMMITTEE : 4-0, 7/2/13
AYES: Galgiani, Cannella, Berryhill, Wolk
NO VOTE RECORDED: Lieu
SENATE APPROPRIATIONS COMMITTEE : 5-0, 8/12/13
AYES: De León, Gaines, Hill, Lara, Steinberg
NO VOTE RECORDED: Walters, Padilla
ASSEMBLY FLOOR : 76-0, 5/29/13 - See last page for vote
SUBJECT : Agricultural products: direct marketing:
community-supported agriculture
SOURCE : Community Alliance with Family Farmers
DIGEST : This bill defines community-supported agriculture
(CSA) within the direct marketing program regulated by the
Department of Food and Agriculture (DFA). This bill establishes
regulatory parameters and requires CSA registration fees to fund
administration and related programmatic costs, as specified.
Requires the secretary of DFA to file an order to adopt, amend,
or repeal regulations relating to the fee, as specified.
Senate Floor Amendments of 9/3/13 clarify fees related to
amended registrations, require a single-farm CSA program to
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source all products from only one farm with no more than a de
minimus amount originating from other registered CSAs, and
prohibit the adoption, amendment, or repeal of fees pursuant to
CSAs from being subject to certain rulemaking provisions.
ANALYSIS : Existing law establishes the federal
Farmer-to-Consumer Direct Marketing Act of 1976 which 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." Shortly following, the DFA 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, Chapter 447, Statutes of 2008) to include farm
stands, field retail stands, and other forms of direct
marketing.
Existing law makes legislative findings and declarations
regarding 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 DFA 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.
This bill:
1. Encourages DFA to assist in organizing CSA by including CSAs
as a form of direct marketing under the Food and Agriculture
Code.
2. 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).
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3. Defines "single-farm" CSA programs to mean a program where
all farm products originate from and are produced at the farm
of a single registered California direct marketing producer,
with no more than a de minimus amount of products originating
from other registered California direct marketers.
4. 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.
5. Requires that a registered California direct marketing
producer or group comply with the following:
A. Register annually with DFA 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.
B. Label the farm delivery box with the name and address
of the farm.
C. Maintain the consumer boxes in a condition that
prevents contamination.
D. Inform consumers of the origin of each item included
in the box.
E. Maintain records that document the contents and origin
of all items included in each consumer box.
F. Comply with all labeling and identification
requirements for shell eggs and processed foods.
1. 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.
2. Adds any whole uncut fruit, vegetable or unrefrigerated
shell egg grown or produced in compliance with all applicable
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federal, state or local laws, regulations and food safety
guidelines issued by a regulatory agency, as an "approved
source" of food.
3. 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.
4. Requires poultry, rabbit, and other meat to comply with
handling requirements established in the small farm food
safety guidelines published by DFA per provisions in this
bill.
5. Authorizes the Department of Public Health (DPH) 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.
6. Authorizes the secretary of DFA to set and collect a fee
for, or the fee for amendment to the annual registration, not
to exceed $100, from a registered California direct marketing
producer. Requires these funds to be used by DFA for
administration of this program, which includes the following:
A. Creation and maintenance of a registration system.
B. Development and publication of periodic small farm
food safety guidelines in consultation with the DPH 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.
C. Expenses incurred relative to meetings of any ad hoc
direct marketing advisory committee established by the
secretary.
1. 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. Requires these provisions to be
followed regardless of any fee waiver.
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2. Prohibits the adoption, amendment, or repeal of any fee, as
defined, from being subject to specified requirements of the
Government Code.
3. Requires an order to adopt, amend, or repeal regulations
concerning the fee, as defined, to be transmitted within 30
days by the secretary to the Office of Administrative Law.
4. Requires the Office of Administrative Law to file the order
promptly with the Secretary of State without further review,
as defined, and to contain all of the following:
A. Indicate that the regulations are adopted, amended, or
repealed pursuant to this chapter.
B. State that the order is being transmitted for filing.
C. Request that the Office of Administrative Law publish
a notice of the filing of the order and print an
appropriate reference in Title 3 of the California Code of
Regulations.
Background
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 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,
Davis, 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 . DFA 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
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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.
Prior Legislation
AB 1632 (Gordon, 2012) would have encouraged DFA to assist in
organizing the marketing of community-assisted agriculture. The
bill was referred to the Assembly Agriculture Committee and not
taken up for hearing.
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 DFA 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: Yes
According to the Senate Appropriations Committee, DFA indicates
that it would need 0.5 positions and $25,000 (special funds) to
implement the provisions of this bill. DFA identifies about 350
CSAs in the state. The $100 fee will generate $35,000 in annual
revenue. Thus, revenues generated by this bill will be
sufficient to fund the additional costs identified above.
SUPPORT : (Verified 9/4/13)
Community Alliance with Family Farmers (source)
California Association of Environmental Health Administrators
California Farm Bureau Federation
California Federation of Certified Farmers' Markets
ARGUMENTS IN SUPPORT : According to the author, the "rapid
expansion of CSAs in recent years along with adaptations to the
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original CSA model demonstrates that CSAs are in need of
definition and parameters for its regulation." 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 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."
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. 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."
ASSEMBLY FLOOR : 76-0, 5/29/13
AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom,
Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown,
Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway,
Cooley, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox,
Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon,
Gorell, Gray, Grove, Hagman, Hall, Harkey, Roger Hernández,
Jones, Jones-Sawyer, Levine, Logue, Lowenthal, Maienschein,
Mansoor, Medina, Melendez, Mitchell, Morrell, Mullin,
Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea,
V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner,
Stone, Ting, Wagner, Waldron, Weber, Wieckowski, Wilk,
Williams, John A. Pérez
NO VOTE RECORDED: Holden, Linder, Yamada, Vacancy
JL:k 9/5/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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