BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 654
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 654 (Hall)
          As Amended  June 26, 2013
          Majority vote
           
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          |ASSEMBLY:  |     |(May 9, 2013)   |SENATE: |37-0 |(September 6,  |
          |           |     |                |        |     |2013)          |
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                    (vote not relevant)
           
           Original Committee Reference:    G.O.  

           SUMMARY  :  Extends the sunset date to January 1, 2018, for the  
          collection of certified farmers' market (CFM) operator fees and  
          enforcement provisions of direct marketing.

           The Senate amendments  delete the Assembly version of this bill,  
          and instead extend the sunset date to January 1, 2018, for the  
          collection of CFM operator fees and enforcement provisions  
          related to CFMs. 

           EXISTING LAW  authorizes the California Department of Food and  
          Agriculture (CDFA) to adopt regulations to permit the direct  
          selling of certified and non-certified agricultural products to  
          consumers; authorizes the collection of CFM operators to be used  
          as specified; provides for civil penalties for violations of  
          rules; and, provides for an appeal and decision process by CDFA.  
           The authority for fees and enforcement sunsets on January 1,  
          2014.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, by extending the current sunset, this measure would  
          generate about $240,000 annually (special funds), paid to the  
          CDFA. The funding supports approximately one position at CDFA  
          that provides coordination and oversight with county  
          agricultural commissioners. County Agricultural Commissioners  
          (commissioners) certify markets and producers pursuant to local  
          ordinances.

           COMMENTS  :  CFM's provide an opportunity for small farmers to  
          market their products without the added expenses of commercial  
          preparation.  This can increase net incomes and helps farmers to  
          stay in business.  There are approximately 700 certified farmers  
          markets and approximately 2,200 certified producers.  Of these  








                                                                  AB 654
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          markets, 51% are year-round markets and the balance is seasonal.  
           In a typical year, the majority of the seasonal markets operate  
          from April through October of each year.

          According to the author, this bill 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.

           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 Committee), Chapter 440, Statutes of 2006,  
          extends from January 1, 2007, to January 1, 2012, the collection  
          of CFM fees and related penalty and enforcement provisions.

          AB 1726 (Agriculture Committee), 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, and  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.


           Analysis Prepared by  :    Victor Francovich / AGRI. / (916)  
          319-2084 


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