BILL ANALYSIS Ó
SENATE COMMITTEE on AGRICULTURE
Senator Cathleen Galgiani, Chair
BILL NO: AB 654 HEARING: 07/02/13
AUTHOR: Hall FISCAL: Yes
VERSION: 06/26/13 CONSULTANT: Anne Megaro
Direct Marketing: certified farmers' markets
SUMMARY :
This bill extends the sunset date to January 1, 2018 for the
collection of certified farmers' market operator fees and
enforcement provisions of direct marketing.
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. These farmers must be certified
and annually inspected by their local county agricultural
commissioner to verify that all products are grown on the
farmer's property (Food and Agricultural Code § 47000 et seq.).
There are approximately 700 certified farmers' markets with
2,200 certified farmers directly marketing products to
consumers. In order to provide market oversight,
administration, and enforcement, a "stall fee" of not greater
than $0.60 is collected from each certified producer per
marketing day. This fee is administered by CDFA, and
enforcement is carried out by the department or county
agricultural commissioners, who may levy civil penalties for
violations of this chapter or any enacted regulation.
The collection of the stall fee and the enforcement article of
this chapter are due to sunset on January 1, 2014.
PROPOSED LAW :
This bill:
AB 654 - Page 2
Extends the repeal date for the collection of certified farmers'
market operator fees, and the enforcement article of direct
marketing, from January 1, 2014 to January 1, 2018.
COMMENTS :
Need for this bill: According to the author, "This measure will
allow CFMs (certified farmers' markets) to continue to provide
consumers with fresh, nutritious, local products and allow
farmers to earn fair prices by marketing directly to consumers.
CFMs are an important tool to combat obesity and food deserts in
California and to promote healthy lifestyles."
Ad Hoc Committee: CDFA convened the Direct Marketing Ad Hoc
Committee to assess the role of direct marketing in California
and identify opportunities to improve regulatory control to
prevent fraudulent selling activities at farmers' markets. 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. Establishing a consensus proved
to be difficult for many issues considered by the Ad Hoc
Committee. These remaining issues, and others, are currently
being addressed in AB 996 (Dickinson).
Legislative Counsel technical amendment: Legislative Counsel
noted an unusual discrepancy in this code section between
different publishers of the California codes. Therefore, the
technical amendment that added Article 3.5 in this bill aims to
correct this discrepancy.
RELATED LEGISLATION :
SB 599 (Evans) of 2013. Extends the sunset date to January 1,
2018 for the collection of certified farmers' market operator
fees and enforcement provisions of direct marketing. This bill
was amended in the Assembly and these provisions were removed.
SB 513 (Cannella), Chapter 337, Statutes of 2011. Extends from
January 1, 2012 to January 1, 2014 the collection of certified
farmers' market fees and related penalty and enforcement
provisions.
AB 2676 (Agriculture), Chapter 440, Statutes of 2006. Extends
from January 1, 2007 to January 1, 2012 the collection of
AB 654 - Page 3
certified farmers' market fees and related penalty and
enforcement provisions.
AB 1726 (Agriculture), Chapter 444, Statutes of 2004. Extends
from January 1, 2005 to January 1, 2007 the collection of
certified farmers' market fees and related penalty and
enforcement provisions. Imposed a late penalty charge on
operators who failed to pay the required fee.
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.
PRIOR ACTIONS :
Not Applicable
SUPPORT :
None received
OPPOSITION :
None received