BILL ANALYSIS Ó
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THIRD READING
Bill No: AB 654
Author: Hall (D)
Amended: 6/26/13 in Senate
Vote: 21
PRIOR VOTES NOT RELEVANT
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
SUBJECT : Direct marketing: certified farmers markets
SOURCE : Author
DIGEST : 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.
ANALYSIS : 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". Shortly following, the Department of
Food and Agriculture (DFA) enacted regulations exempting
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certified farmers' markets (CFMs) 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.
There are approximately 700 CFMs 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 DFA,
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 provisions
of this chapter are due to sunset on January 1, 2014.
This bill extends the repeal date for the collection of CFM
operator fees, and the enforcement provisions of direct
marketing, from January 1, 2014 until January 1, 2018.
Comments :
Ad Hoc Committee . DFA 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 CFMs. 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).
Related legislation
SB 513 (Cannella, Chapter 337, Statutes of 2011) extends from
January 1, 2012, to January 1, 2014, the collection of CFM 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 CFM
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fees and related penalty and enforcement provisions.
AB 1726 (Agriculture, Chapter 444, Statutes of 2004) extended
from January 1, 2005, to January 1, 2007, the collection of CFM
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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee, by extending
the current sunset, this bill will generate about $240,000
annually (special funds), paid to DFA. The funding supports
approximately one position at DFA that provides coordination and
oversight with county agricultural commissioners. County
Agricultural Commissioners certify markets and producers
pursuant to local ordinances.
SUPPORT : (Verified 8/14/13)
California Agricultural Commissioners and Sealers Association
ARGUMENTS IN SUPPORT : According to the author, "This measure
will allow CFMs 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."
JL:d 8/14/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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