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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