California Legislature—2013–14 Regular Session

Assembly Bill No. 996

Introduced by Assembly Member Dickinson

February 22, 2013

An act to amend Sections 43100, 47000, 47001, 47002, 47010, 47011, and 47021 of, to add Sections 47000.5, 47001.2, 47001.5, 47014, 47020.5, and 47055 to, to add Chapter 9 (commencing with Section 890) to Part 1 of Division 1 of, to add and repeal Section 47021.5 of, to repeal Section 47004.1 of, to repeal Article 2 (commencing with Section 47010) of Chapter 10.5 of Division 17 of, and to repeal and add Sections 47004 and 47020 of, the Food and Agricultural Code, relating to food and agriculture, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

AB 996, as introduced, Dickinson. Agricultural products: direct marketing: certified farmers’ markets.

(1) Existing law authorizes the use of the term “California grown” and similar terms for marketing, advertising, or promotional purposes only to identify food or agricultural products that have been produced in the state or harvested in its surface or coastal waters, and makes the fraudulent use of the term or a deliberately misleading or unwarranted use of the term a misdemeanor punishable by a fine of not less than $100 or more than $3,000, or by imprisonment in the county jail for not more than 6 months, or by both the fine and imprisonment.

This bill would make it unlawful for any person or entity to intentionally make any statement, representation, or assertion relating to the sale or availability of agricultural products that is false, deceptive, or misleading, as specified, and would make a violation of those provisions a misdemeanor punishable by imprisonment in the county jail not exceeding 6 months, by a fine not exceeding $2,500, or both the fine and imprisonment. By creating a new crime, the bill would impose a state-mandated local program.

The bill would also authorize the Secretary of Food and Agriculture or a county agricultural commissioner, in lieu of prosecution, to levy a civil penalty, as specified, or take action against a license, permit, registration, or certification issued pursuant to the Food and Agricultural Code. The bill would make those penalties applicable to the fraudulent use of the term “California grown,” as specified above. The bill would require the civil penalties collected by a county agricultural commissioner to be paid to the county treasurer, and would require civil penalties collected by the secretary to be deposited in the Department of Food and Agriculture Fund as continuously appropriated funds to be used to conduct investigations and enforcement actions relating to false, deceptive, or misleading statements relating to agricultural products, and for other specified purposes. By establishing a continuously appropriated fund, the bill would make an appropriation.

(2) Existing law regulates direct marketing of agricultural products, and provides for various findings and declaration in that regard. Existing law authorizes the Secretary of Food and Agriculture to adopt regulations relating to the direct marketing of agricultural products, authorizes a county agricultural commissioner to issue a certified farmers’ market certificate, and requires the county agricultural commissioner to inspect certified farmers’ markets within his or her jurisdiction. Existing law authorizes a county agricultural commissioner to charge certification and inspection fees, and provides for the assessment of penalties and fines relating to the certification, inspection, and regulation of certified farmers’ markets. These fees and penalties are deposited in the Department of Food and Agriculture Fund, and are required to be used, upon appropriation by the Legislature, for related administrative and regulatory purposes.

This bill would define the terms “producer” and “agricultural product” for purposes of the provisions relating to direct marketing. The bill would authorize the secretary to contract with any county agricultural commissioner’s office for purposes relating to direct marketing of agricultural products, and would authorize compensation to be paid under those contracts from funds derived from assessments and fees collected pursuant to the provisions relating to direct marketing. The bill would authorize a certified farmers’ market operator to contract with a county agricultural commissioner’s office for verification inspections, as specified.

(3) Existing law provides for the issuance of a certified producer’s certificate by a county agricultural commission, and authorizes the county agricultural commission to charge a certificate and inspection fee, to be deposited into the Food and Agriculture Fund, as specified.

This bill would authorize the secretary to establish a domestic direct marketing advisory committee to, among other things, assist the department in reviewing regulations affecting, and advise the secretary in matters relating to, the domestic direct marketing of California-produced agricultural products. The bill would require direct marketing producers to register with the Department of Food and Agriculture and attest compliance with applicable laws and regulations, as specified, would impose a registration fee of $25 to be deposited in the Department of Food and Agriculture Fund and used by the department for related administrative purposes.

(4) Existing law specifies that certified farmers’ markets are locations established in accordance with local ordinances, and requires the governing board of a certified farmers’ market with more than one participating certified producer to adopt written rules and procedures pertaining to the operation of the certified farmers’ market.

This bill would instead provide that certified farmers’ markets are California agricultural product outlets that are registered and operated in accordance with specified provisions. The bill would require vendors of agricultural products selling within a certified farmers’ market to comply with specified signage and labeling requirements, and would make those representations subject to criminal, civil, and administrative penalties, as specified above. By creating a new crime, the bill would impose a state-mandated local program. The bill would repeal provisions authorizing an aggrieved certified producer to submit a request to the department for an advisory opinion, and for the department to issue the advisory opinion, and would repeal provisions requiring the department to provide for an informal hearing process for grievances relating to certified farmers’ markets.

(5) Existing law requires the secretary to establish a certified farmers’ market advisory committee.

This bill would authorize, but not require, the secretary to establish that committee, and would specifically limit the duties of that committee to matters relating to certified farmers’ markets, as specified. The bill would repeal the provision relating to the certified farmers’ market advisory committee on January 1, 2015.

(6) Existing law requires a certified farmers’ market certificate to be obtained from a county agricultural commissioner, and authorizes the county agricultural commissioner to assess a fee for the certificate and for inspections, as specified.

This bill would repeal those provisions and instead would require an operator of a certified farmers’ market to annually register with the department, and would require the county agricultural commissioner to issue a certified farmers’ market certificate upon registration. The bill would require registered direct marketing producers to register with the department and obtain certified producer’s certificates. The bill would require certified producers to submit specified information to the department, including a list of facilities at which their product was processed, as specified, and would require each operator of a certified farmers’ market to remit to the department an investigation and enforcement fee based on the number of individual agricultural product vendors whose products were presented for sale on each market day for the previous quarter, as specified. The bill would repeal those provisions relating to remitting an investigation and enforcement fee on January 1, 2016.

(7) Existing law requires, until January 1, 2014, that every operator of a certified farmers’ market remit to the department a fee equal to the number of certified producer certificates and other agricultural producers participating on each market day for the entire previous quarter, which shall be used by the department upon appropriation by the Legislature, as specified.

This bill would instead require, until January 1, 2016, a program fee equal to the number of agricultural product vendors participating and selling goods under the authority and management of the certified farmers’ market operator on each market day for the entire previous quarter to be remitted to the department.

(8) The bill would provide for the establishment of direct marketing producer associations, and would authorize a direct marketing producer association to sell California agricultural products to members of the public, subject to specified provisions. The bill would require the source of those products to be clearly identified and would make a violation of those provisions a crime, as specified. The bill would require a direct marketing producer association to annually register with the department and pay a registration fee, to be deposited into the Department of Food and Agriculture Fund, and used for the administration and enforcement of those provisions. The bill would regulate certified producer consignment sales agreements, as defined, would require those agreements to be annually registered with the department, and would impose a $50 registration fee, to be deposited in the Department of Food and Agriculture Fund for administration of the provisions relating to certified producer consignment sales agreements.

(9) Because the bill would create new crimes, and by imposing new requirements on county agricultural commissioners, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

Chapter 9 (commencing with Section 890) is
added to Part 1 of Division 1 of the Food and Agricultural Code,
to read:

 

Chapter  9. Intentionally False, Deceptive, or
Misleading Marketing

 

890.  

(a) It is unlawful for any person or entity to intentionally
make any statement, representation, or assertion orally, by public
statement, advertisement, or signage, or by any other means that
relates to the sale or availability of agricultural products that is
false, deceptive, or misleading regarding any of the following:

(1) The area of production of the agricultural product.

(2) The identity of the producer of the agricultural product.

(3) The manner and method of production of the agricultural
product.

(b) A violation of the provisions of this section is a misdemeanor
punishable by imprisonment in the county jail not exceeding six
months, or by a fine not exceeding two thousand five hundred
dollars ($2,500), or by both that imprisonment and fine.

891.  

In lieu of prosecution, the secretary, or a county
agricultural commissioner under the authority of the secretary,
may levy a civil penalty against a person or entity that violates this
section in an amount not less than five hundred ($500), nor more
than five thousand dollars ($5,000) for each violation. The amount
of the penalty assessed for each violation shall be based upon the
scope of the violation, the seriousness of the deception, and the
impact of the penalty on the violator, including the deterrent effect
on future violations. Subdivision (e) of Section 43003 shall apply
to any fine or civil penalty levied pursuant to this section.

892.  

(a) In addition to, or in lieu of, any action taken against
a person by the secretary or a county agricultural commissioner
under the provisions of Section 890 or 891, the secretary or a
county agricultural commissioner may modify, suspend, revoke,
or refuse or condition the issuance of a license, permit, registration,
or certification issued under the provisions of this code.

(b) Any action taken pursuant to this section shall be based upon
the scope of the violation, the seriousness of the deception, and
the corrective or deterrent effect on future violations.

(c) Any action taken pursuant to this section shall be subject to
the due process and applicable civil remedy provisions of this code
that govern the issuance of the license, permit, registration, or
certification.

893.  

(a) All civil penalties collected pursuant to this chapter
by the secretary shall be deposited in the Department of Food and
Agriculture Fund, and shall be used to conduct investigations and
enforcement actions upon complaints filed or pursuant to
information received that results in the investigation of a violation
of Section 890. Money deposited pursuant to this chapter may also
be used to contract with county agricultural commissioners for
services that further the purposes of this chapter, and may be used
for expenses incurred by county agricultural commissioners for
investigative and enforcement actions conducted pursuant to this
chapter. Notwithstanding Section 13340 of the Government Code,
all money deposited pursuant to this chapter shall be continuously
appropriated to the department without regard to fiscal year for
purposes of this chapter.

(b) All civil penalties collected pursuant to enforcement actions
by a county agricultural commissioner under the provisions of this
chapter shall be paid to the county treasurer.

894.  

A proceeding brought by the state or a county for an act
that violates the provisions of Section 890 shall preclude any
concurrent or subsequent proceeding by the state or a county for
the same act, or a proceeding brought by a governmental agency
under the provisions of Section 17500 of the Business and
Professions Code for the same act.

SEC. 2.  

Section 43100 of the Food and Agricultural Code is
amended to read:

43100.  

(a) The terms “California grown,” “California-grown,”
and similar terms with identical connotations shall be used in the
labeling or advertising of agricultural products as follows:

(1) The terms “California grown,” “California-grown,” and
similar terms with identical connotations may be used for
marketing, advertising, or promotional purposes, only to identify
food or agricultural products that have been produced in the state
or harvested in its surface or coastal waters.

(2) The begin delete Secretary of Food and Agriculture end delete begin insert secretary end insert may adopt
guidelines, rules, and regulations to further define acceptable uses
of the terms “California grown,” “California-grown,” and similar
terms with identical connotations, and to prevent any misleading
use of the terms.

(b)  begin delete A fraudulent end delete begin insert Any intentionally false, deceptive, or misleading end insert
use of the begin delete term end delete begin insert terms end insert “California begin delete grown” or end delete begin insert grown, end insert begin insert ” end insert
“California-grown,” begin insert and similar terms with identical connotations, end insert
or of any seals or other identities officially adopted by the
begin delete Department of Food and Agriculture end delete begin insert department end insert in connection
with these terms, or a deliberately begin delete misleading or end delete unwarranted use
of these items or terms begin delete , is a misdemeanor punishable by a fine of
not less than one hundred dollars ($100) or more than three
thousand dollars ($3,000), or by imprisonment in the county jail
for not more than six months, or by both the fine and imprisonment end delete
begin insert shall be subject to the provisions and penalties set forth in Chapter
9 (commencing with Section 890) of Part 1 of Division 1 end insert .

SEC. 3.  

Section 47000 of the Food and Agricultural Code is
amended to read:

47000.  

The Legislature finds and declares all of the following
with regard to the direct marketing of agricultural products:

(a) Direct marketing of agricultural products benefits the
agricultural community and the consumer by, among other things,
providing an alternative method for growers to sell their products
while benefiting the consumer by supplying quality produce at
reasonable prices.

(b) Direct marketing is a good public relations tool for the
agricultural industry that brings the farmer face-to-face with
consumers begin insert and other end end insert begin insert users end insert .

(c) The begin insert direct end insert marketing potential of a wide variety of
California-produced agricultural products should be maximized
begin insert and encouraged end insert .

(d) Farm stands allow farmers to sell fresh produce and eggs
grown on their farm as well as other food products made with
ingredients produced on or near the farm, thus enhancing their
income and the local economy.

(e) The department should maintain a direct marketing program
and begin delete the industry should continue to end delete encourage the sale begin insert and
purchase end insert of California-grown fresh produce begin insert and other
California-produced agricultural products end insert .

(f) It is the intent of the state to promote the begin insert purchase and end insert
consumption of California-grown produce and to promote access
to California-produced agricultural products. Restaurants and
nonprofit organizations can provide assistance in bringing
California-grown products to all Californians.

(g) A regulatory scheme should be developed that provides the
flexibility that will make direct marketing a viable marketing
system.

(h) The department should assist producers in organizing
certified farmers’ markets, field retail stands, farm stands, and
other forms of direct marketing by providing technical advice on
marketing methods and in complying with the regulations that
affect direct marketing programs.

(i) The department is encouraged to establish an ad hoc advisory
committee to assist the department in establishing regulations
affecting direct marketing of products and to advise the secretary
in all matters pertaining to direct marketing.

SEC. 4.  

Section 47000.5 is added to the Food and Agricultural
Code, to read:

47000.5.  

The following definitions apply to this chapter, unless
otherwise specified:

(a) “Agricultural product” means a product produced in
California, including fruits, nuts, vegetables, herbs, mushrooms,
dairy, shell eggs, honey, flowers, grains, nursery stock, livestock
meats, poultry meats, rabbit meats, and fish, including shellfish
that is produced under controlled conditions in waters located in
California. Products that are characterized as arts, crafts, bakery,
candies, soaps, balms, perfumes, cosmetics, clothing, fabrics,
pastas, compost, fertilizers, and types of wares are not agricultural
products for purposes of this chapter.

(b) “Practice of the agricultural arts” means the undertaking of
being predominantly responsible for the decisions and actions
encompassing the various phases of producing an agricultural
product. The practice for fruit, floral, nut, vegetable, and other
plant products includes directive or actual responsibility for all the
actions of planting, growing, fertilizing, irrigating, cultivating,
pest control, and harvesting. The practice for agricultural animal
products includes directive or actual responsibility for a substantial
time of the raising, feeding, veterinary care, and product harvesting.

(c) “Producer” means a person, partnership, corporation, or an
otherwise legally formed farm or ranch that produces agricultural
products by the practice of the agricultural arts upon land that the
person or entity owns, rents, leases, sharecrops, or otherwise
controls and has the documented legal right to possession. A person
or entity that rents, leases, or otherwise acquires the right to
possession of property essentially only for or limited to the period
of the harvest season of the agricultural products produced on that
property shall not be considered a producer under the provisions
of this chapter.

SEC. 5.  

Section 47001 of the Food and Agricultural Code is
amended to read:

47001.  

(a) The secretary may adopt regulations to encourage
the direct sale by farmers to the public of all types of begin delete California end delete
agricultural products.

(b) These regulations may include provisions to ensure and
maintain quality and wholesomeness of the products, and to ensure
that the selling activities are conducted without fraud, deception,
or misrepresentation.

begin insert

(c) The secretary may contract with any county agricultural
commissioner to carry out the provisions of this chapter, including
contracts for administration, investigations, inspections,
registrations, and assistance pertaining to direct marketing
producers and outlets. The secretary may enact regulations to
categorize the contracts and set compensation, fees, and rates for
each contract. Compensation under the contracts shall be paid
from assessments and fees collected and deposited under the
provisions of this chapter.

end insert begin insert

(d) A certified farmers’ market operator may contract with a
county agricultural commissioner for a special onsite field or
storage verification inspection of a direct marketing producer
selling in a certified farmers’ market operated and controlled by
the operator. A contract for a verification inspection shall be
authorized only pursuant to a reasonable suspicion of a violation
of this chapter. All contracts and contract fees are subject to the
discretion of the county agricultural commissioner in the county
where the verification inspections are being requested.

end insert

SEC. 6.  

Section 47001.2 is added to the Food and Agricultural
Code, to read:

47001.2.  

(a) The secretary may establish an advisory
committee, to be known as the domestic direct marketing advisory
committee, to assist the department in reviewing regulations
affecting the domestic direct marketing of agricultural products
and to advise the secretary in matters pertaining to the domestic
direct marketing of agricultural products. The committee shall
develop ideas, innovations, and funding sources for the safe,
effective, efficient, and honest marketing of agricultural products
to occur within California, with special attention given to
California’s underserved and low-income communities, and
determine what actions could be taken to encourage the
implementation of ideas, innovations, and funding. Members of
the committee shall serve without compensation or reimbursement
for expenses from the state.

(b) The committee may be composed of representatives of
organizations that have a significant number of members engaged
in the domestic direct marketing of agricultural products,
representatives of marketing groups that devote their resources to
the marketing and encouragement of consumption of agricultural
products by California consumers, individuals whose livelihood
is substantially supported by the domestic direct marketing of
agricultural products, representatives of other branches of
government whose regulations or programs monitor, control, or
encourage the consumption of agricultural products, and members
of the California consumer public who have demonstrated a special
interest in the availability and marketing of agricultural products.
The committee shall meet at the discretion or request of the
secretary.

(c) The committee may appoint officers, including a chairperson,
a vice chairperson, a secretary, and any other officers it deems
necessary. The committee may adopt rules that it deems necessary
to conduct its meetings and functions, and to carry out the
objectives of this chapter.

(d) The committee shall advise the secretary on matters
pertaining to the domestic direct marketing of agricultural products
and may make recommendations, including, but not limited to, the
amendment, repeal, or adoption of legislation and regulations that
relate to the administration and enforcement of this chapter, and
the setting and disposition of any fees assessed by the department
pursuant to this chapter.

SEC. 7.  

Section 47001.5 is added to the Food and Agricultural
Code, to read:

47001.5.  

(a) Every California agricultural producer intending
to sell directly to the California public shall annually register with
the department as a direct marketing producer. Registration shall
include the direct marketing producer’s contact information, a
general list of agricultural products the direct marketing producer
intends to direct market, and the categories of direct marketing
methods the direct marketing producer intends to use. Methods
and outlets recognized and regulated by this chapter shall be listed.

(b) The registration for a direct marketing producer shall include
a statement that the person is in compliance with the following:

(1) Applicable United States Food and Drug Administration
Food Safety Modernization Act (FSMA) mandates and state
regulations.

(2) The food is obtained from an approved source, as specified
under the Health and Safety Code.

(c) The annual registration fee for a direct marketing producer
shall be twenty-five dollars ($25). Fees collected shall be deposited
in the Department of Food and Agriculture Fund and shall be used
exclusively by the department for the administration of this section.
Administration shall include creating and maintaining an online
process and producer data filing system for registration, any
reimbursement for expenses incurred by county agricultural
commissioners for implementing or aiding in the registration
process, or any coordination expenses incurred relative to meetings
and actions of any domestic direct marketing advisory committee
established by the secretary pursuant to Section 47001.2.

(d) The annual fee shall be waived when the direct marketing
producer registration is combined with other annual registration
or certification processes where a fee is exacted from the producer
for processing. The registration provisions of this section shall be
complied with regardless of any waiver of fees granted.

(e) Nothing in this section supersedes any applicable provision
of any federal or state health and safety law, statute, or regulation.

SEC. 8.  

Section 47002 of the Food and Agricultural Code is
amended to read:

47002.  

California farmers begin insert registered as direct marketing
producers in accordance with Section 47001.5 end insert may transport for
sale and sell California-grown fresh fruits, nuts, and vegetables
that they produce, directly to the public, begin delete which produce end delete begin insert and end insert shall
be exempt from size, standard pack, container, and labeling
requirements, at begin delete a certified farmers’ market, as defined in Section
47004, a field retail stand, as defined in Section 47030, or a farm
stand, as defined in Section 47050 end delete begin insert an outlet or location operated
by an individual, organization, or entity that is regulated under
this chapter or is recognized by a regulation adopted pursuant to
Section 4700 end insert begin insert 1 and is otherwise authorized by local laws end insert , subject
to the following conditions:

(a) All fresh fruits, nuts, and vegetables sold shall comply with
the California Code of Regulations governing maturity and quality.

(b) No exemption granted by this section supersedes the
provisions of federal marketing orders, state marketing orders, or
any health and safety laws, regulations, or ordinances.

(c) All fresh fruits, nuts, and vegetables sold in closed consumer
containers shall be labeled with the name, address, and ZIP Code
of the producer, and a declaration of identity and net quantity of
the commodity in the package.

(d) If a farmer selling produce pursuant to this section
implements any exemption to size, standard pack, container, or
labeling requirements as provided by this section, those sales may
only be conducted as direct sales to the following:

(1) Consumers who are end users.

(2) Individuals, organizations, or entities that subsequently sell
the produce directly to end users.

(3) Individuals, organizations, or entities that distribute the
produce directly to end users at no cost to those end users.

(e) A farmer selling produce under paragraph (2) or (3) of
subdivision (d) shall provide the individual, organization, or entity
a memorandum that lists the identity of the producer, the address
of the producer, and the identity and quantity of the produce
purchased. A bill of sale or a container label including this
information shall meet the requirements of this subdivision.

SEC. 9.  

Section 47004 of the Food and Agricultural Code is
repealed.

begin delete

47004.  

(a) Certified farmers’ markets may establish rules and
procedures that are more restrictive or do not violate state law or
regulation governing or implementing this chapter.

(b) Certified farmers’ markets are locations established in
accordance with local ordinances, where California farmers may
transport and sell to the public California agricultural products that
they produced, that are exempt from the established grade, size,
labeling, packaging and other such requirements for fruits, nuts,
and vegetables, and operated in accordance with this chapter and
regulations adopted pursuant to this chapter.

(c) The governing body of any certified farmers’ market
operating with more than one participating certified producer shall
adopt written rules and procedures pertaining to the operation of
the market. The rules shall include a requirement that the governing
body and its designated agents establish, implement, and enforce
all rules and procedures pertaining to the operation of the certified
farmers’ market in a fair, nondiscriminatory, and equitable manner.

end delete

SEC. 10.  

Section 47004 is added to the Food and Agricultural
Code, to read:

47004.  

(a) Certified farmers’ markets are California
agricultural product outlets that are registered under the provisions
of Section 47020 and operated in accordance with this chapter and
regulations adopted pursuant to this chapter.

(b) The operator of a certified farmers’ market shall establish
a clearly defined marketing area where only agricultural products
may be sold. Only the producer or the lawful authorized
representative of the producer may sell agricultural products within
the area defined as a certified farmers’ market. No sales of
agricultural products purchased from another individual or entity
shall occur within a certified farmers’ market, and no agricultural
product producer or product dealer may sell his or her agricultural
products to another individual or entity with the understanding or
knowledge that the products are intended to be resold in a certified
farmers’ market in violation of the provisions of this chapter or
the regulations adopted pursuant thereto. Every producer selling
within a certified farmers’ market shall be registered with the state
as a direct marketing producer, and shall have submitted to the
state all documentation and paid all fees required by Section
47001.5.

(c) All vendors of agricultural products selling within a certified
farmers’ market shall do all of the following:

(1) Post conspicuous signs or banners that state the name of the
farm or ranch, the city where the farm or ranch is located, the
county where the farm or ranch is located, and the direct marketing
producer’s registration number.

(2) Post conspicuous signs or banners that state, “We Grew
What We Are Selling” or “We Raised What We Are Selling” or
“We Grow What We Sell” or similar phrases that shall represent
that the farm or ranch is only selling California agricultural
products that they themselves have grown or raised on California
land that they possess or control.

(3) Ensure that all processed agricultural products that they offer
for sale state in a clear manner by package label or container label
or bulk sales signage that they consist only, with the exception of
incidental flavorings and necessary preservatives, of California
agricultural products grown or raised by the farm or ranch selling
them, and the farm or ranch name and the city where the farm or
ranch is located. In addition, every processed product shall identify
on its package label or container label or on bulk sales signage the
registration number of the facility where the food was processed
in accordance with Section 110460 of the Health and Safety Code
or, in the case of meat products, the identity of the facility where
the meat products were cut and wrapped in accordance with the
United States Department of Agriculture or State of California
inspection standards or, in the case of dairy products, the identity
of the facility where the dairy products were manufactured or
processed.

(4) Ensure all products being represented or offered for sale as
organic are clearly labeled or have conspicuous and posted
point-of-sale signage identifying the products as organic.

(d) The representations required in subdivision (c) shall be
subject to the provisions and penalties specified in Section 890.

(e) An operator of a certified farmers’ market that also operates,
manages, or otherwise controls a separate sales activity or vending
event or marketing area in close proximity, adjacent, or contiguous
to the operator’s certified farmers’ market, shall not allow the sale
or distribution of fresh whole produce by vendors selling within
the sales activity or vending event or marketing area, with the
exception of fresh whole produce considered tropical and not
generally grown in California.

(f) The operator of a certified farmers’ market shall keep an
accurate participation record of the individual direct marketing
producers whose agricultural products were presented for sale in
their market each market day. The operators shall submit to the
department a quarterly report of the registration numbers and
participation frequency of the direct marketing producers whose
agricultural products were presented for sale in the operator’s
market during that past quarter. The department shall create and
maintain online capability for reporting.

(g) Operators of certified farmers’ markets may establish rules
and procedures that are more restrictive and stringent than state
laws or regulations governing or implementing this chapter, so
long as the rules and procedures are not in conflict with state laws
or regulations.

(h) Except for certified farmers’ markets operated by
government agencies, nonprofit entities and other qualified
operators of certified farmers’ markets shall be considered private
entities and may take actions, adopt rules, and impose requirements
they deem necessary for the proper and honest operation of their
market, subject to the application of any state or other laws.
Government agency operators of certified farmers markets are
subject to applicable state laws, the laws of their agency, and any
other laws governing the conduct and actions they may take as an
agency of government.

SEC. 11.  

Section 47004.1 of the Food and Agricultural Code
is repealed.

begin delete

47004.1.  

(a) Any certified producer aggrieved by a rule or
procedure of a certified farmers’ market may submit a written
request to the department for an advisory opinion as to whether,
as a question of law, the rule or procedure in dispute is consistent
with this chapter and the regulations implementing this chapter.
Not later than 15 calendar days after the date on which the written
request is received, the department shall undertake its review and
issue an advisory opinion. The request for and issuance of an
advisory opinion is not a prerequisite to the pursuit of any civil
litigation. However, the advisory opinion shall be given substantial
weight in any subsequent civil or administrative proceeding
involving the parties and subject matter of the advisory opinion.
The department may adopt regulations providing for the precedent
value of its advisory opinions issued pursuant to this section.
Notwithstanding any other provision of law, the department shall
not incur liability in connection with the preparation and issuance
of any advisory opinion issued pursuant to this section.

(b) The department shall provide for an informal hearing
pursuant to Article 10 (commencing with Section 11445.10) of
Chapter 4.5 of Part 1 of Division 3 of Title 2 of the Government
Code, with regard to any grievance of a certified producer involving
questions of fact concerning any action taken by a certified farmers’
market against the producer, or any implementation of a rule or
procedure established by certified farmers’ market against the
producer, or any other related issue, as to whether application of
the rule or procedure in dispute is consistent with this chapter and
the regulations implementing this chapter. The informal hearing
shall proceed without the option of conversion to a formal hearing.
The request for an informal hearing to resolve issues involving
disputes of fact is not a prerequisite to the pursuit of any civil
litigation.

(c) In addition to, or in lieu of, the alternatives set forth in
subdivisions (a) and (b), the parties may agree to employ mediation.
If mediation fails to resolve the dispute, the parties may agree to
employ binding arbitration. The department and the county
agricultural commissioners shall incur no expense or liability for
mediation or binding arbitration.

end delete

SEC. 12.  

Section 47010 of the Food and Agricultural Code is
amended to read:

47010.  

(a) The secretary begin delete shall end delete begin insert may end insert establish a committee begin delete which end delete
begin insert that end insert shall be known as the Certified Farmers’ Market Advisory
Committee. The primary goal of the committee shall be to ensure
the integrity of certified farmers’ markets.

(b) The committee shall be composed of 17 members and their
alternates. The secretary shall appoint the members of the
committee from a list of nominees provided by the industry subject
to this chapter. The secretary shall appoint eight members and their
alternates who shall be active certified producers, four members
and their alternates who shall be certified farmers’ market managers
or representatives, two representatives from different major state
direct marketing associations, one public member, and two
members and their alternates who shall be county agricultural
commissioners. An alternate member shall serve at a committee
meeting only in the absence of, and shall have the same powers
and duties as, the member for whom he or she is designated as
alternate.

(c) The secretary shall appoint only one certified producer,
certified farmers’ market manager, or representative to represent
any one farm or certified farmers’ market and shall make every
effort to ensure that there is a diverse representation from major
production and market areas.

(d) The committee shall meet at the request of the secretary, the
committee chairperson, or upon the request of four committee
members. It shall meet at least once each year.

(e) The committee shall appoint its own officers, including a
chairperson, a vice chairperson, a secretary, and any other officers
it deems necessary. The committee may adopt rules that it deems
are necessary for the conduct of its meetings and functions to carry
out the objectives of this chapter.

SEC. 13.  

Section 47011 of the Food and Agricultural Code is
amended to read:

47011.  

The committee shall be advisory to the secretary on all
matters pertaining to direct marketing of agricultural products at
certified farmers’ markets and may make recommendations
including, but not limited to, the following:

(a) The amendment, repeal, or adoption of legislation and
regulations that relate to the administration and enforcement of
begin insert the provision end insert begin insert of end insert this chapter begin insert pertaining to certified farmers’
markets end insert .

(b) Administrative policies and procedures that relate to the
inspection of certified producers and certified farmers’ markets.

(c) Administrative civil penalties for violations of begin delete direct
marketing end delete begin insert certified farmers’ market end insert regulations.

(d) Certification fees collected pursuant to Section 47020.

(e) Statewide review of begin insert certified farmers’ market end insert enforcement
actions.

(f) The annual budget of the department to carry out this chapter
and the assessment of fees to pay for the costs incurred by the
department to carry out begin insert the provisions of end insert this chapter begin insert relating to
farmers’ markets end insert .

(g) Alternative strategies for certification and investigation
methodology, and methods for industry self-regulation and
commission formation.

SEC. 14.  

Section 47014 is added to the Food and Agricultural
Code, to read:

47014.  

This article shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2015, deletes or extends that date.

SEC. 15.  

Section 47020 of the Food and Agricultural Code is
repealed.

begin delete

47020.  

(a) A certified farmers’ market certificate issued by a
county agricultural commissioner shall be valid for 12 months
from the date of issue. The county agricultural commissioner shall
inspect every certified farmers’ market within his or her jurisdiction
at least once, in every six months of operation. The county
agricultural commissioner may charge a certification and inspection
fee up to a maximum rate of sixty dollars ($60) per hour, unless
the county board of supervisors elects not to charge inspection and
certificate costs. Inspections shall be required notwithstanding a
county board of supervisors’ election not to charge certificate and
inspection fees. If a fee is charged for conducting the certification
and inspection, it shall include either the itemized actual costs, or
the weighted average hourly rate, as determined on an annual basis
by the county, which shall be provided to the certified farmers’
market manager prior to the payment of the fee.

(b) A certified producer’s certificate issued by a county
agricultural commissioner may be valid for up to 12 months from
the date of issue. The county agricultural commissioner in each
county shall perform at least one annual onsite inspection of the
property or properties listed on every certified producer’s certificate
issued in their county to verify production of the commodities
listed on the certificate or the existence in storage of the harvested
production, or both. If the certificate is issued for a period of seven
months or more, the county agricultural commissioner in each
county shall perform at least one additional onsite inspection or
other equally appropriate measure to verify production or storage,
or both. The county agricultural commissioner may charge a
certificate and inspection fee up to a maximum rate of sixty dollars
($60) per hour, unless the county board of supervisors elects not
to charge inspection and certificate costs. Inspections shall be
required notwithstanding a county board of supervisors’ election
not to charge certificate and inspection fees. If a fee is charged for
conducting the certification and inspection, it shall include either
the itemized actual costs, or the weighted average hourly rate, as
determined on an annual basis by the county, which shall be
provided to the producer prior to the payment of the fee.

(c) Renewal of a certified farmers’ market certificate or certified
producer’s certificate may be denied by either the department or
a county agricultural commissioner if a certified farmers’ market
or a certified producer is delinquent in the payment of the required
state fee or any county certification and inspection fee or
administrative civil penalty authorized under this chapter. The
certificate shall be eligible for renewal when all outstanding
balances and associated penalties or administrative fines have been
paid to the department or the respective county or counties.

end delete

SEC. 16.  

Section 47020 is added to the Food and Agricultural
Code, to read:

47020.  

(a) An operator of a certified farmers’ market shall
annually register with the department the times and location of the
market, the name and contact information for the operator of the
market, and the agent for service of process for the operator. Upon
completion of a proper application, the agricultural commissioner
shall issue to the operator a certified farmers’ market certificate.

(b) A certified farmers’ market certificate issued by a county
agricultural commissioner shall be valid for 12 months from the
date of issue and may be renewed annually thereafter. The county
agricultural commissioner shall inspect every certified farmers’
market within his or her jurisdiction at least once in every six
months of operation. The county agricultural commissioner shall
provide an estimate of expenses for inspections at the time of
application or renewal and may charge a certification and
inspection fee reflecting or equal to the actual expenses incurred.

(c) (1) Any registered direct marketing producer wishing to
sell at a certified farmers’ market shall apply and register with the
department and obtain a certified producer’s certificate. All
certified producer certificates will be assigned one or more
permanent registration numbers representing the farm or ranch for
each county where the farm or ranch is located. These registration
numbers shall correspond with or incorporate numerically the
registered direct market producer numbers.

(2) In addition to business contact information for the producer,
the certificate shall also include the Global Positioning System
(GPS) convertible physical addresses and acreage for the locations
in each county where they produce or raise the agricultural product
they sell or intend to sell directly to the public, and the
GPS-convertible physical addresses of any off-farm locations
where the products are or will be stored before they are sold
directly to the public.

(3) Each certified producer farming fruit, vegetables, nuts, herbs,
and similar crops shall annually submit to the department pertinent
information about the specific crops that they will harvest or intend
to harvest for sales directly to the public.

(4) Each certified producer that sells or intends to sell any
processed agricultural product that they produced directly to the
public shall submit to the department a list of each facility where
their production was canned, dried, flavored, preserved, fermented,
juiced, or otherwise processed into the product that they intend to
sell to the public, and the registration number of each facility where
the food was processed in accordance with Section 110460 of the
Health and Safety Code.

(5) Each certified producer that raises animals for meat, cheese,
eggs, honey, or similar products for sale directly to the public shall
annually submit to the department pertinent general information
about the products produced for sale directly to the public. In the
case of meat products, the producer shall also list the facilities
where their products will be slaughtered, cut, and wrapped in
accordance with USDA or State of California inspection standards
in preparation for sale to the public. In the case of any dairy
product, the producer shall also list the facilities where their
product is manufactured and processed.

(6) All certified producers shall keep general records of
agricultural product sales directly to the end users and
memorandum records of product sales to parties intending to resell
or distribute the product to the public or end users under the
provisions of Section 47002 of this chapter.

(7) A certified producer’s certificate issued by a county
agricultural commissioner shall be valid for up to 12 months from
the date of issue and may be renewed annually thereafter. The
county agricultural commissioner in each county shall perform at
least one onsite inspection for all new certified producer certificate
applicants and may perform additional inspections as needed of
the property or properties listed on those certified producers’
certificates issued in their county to verify production of the
commodities being sold at a certified farmers’ market or the
existence in storage of the producers’ actual harvested production,
or both, of any product being sold at a certified farmers’ market.
Where practical or purposeful, verification inspections should be
made when the actual harvest or sale of the commodity in question
is occurring. The county agricultural commissioner shall furnish
the producer an estimate of expenses for certification or inspection
at the time of application or renewal or before any needed
additional verification inspection, and may charge a certification
and inspection fee reflecting or equal to the actual expenses
incurred.

(d) Renewal of a certified farmers’ market certificate or certified
producer’s certificate may be denied by either the department or
a county agricultural commissioner if a certified farmers’ market
or a certified producer is delinquent in the payment of the required
state fee or any county certification and inspection fee or
administrative civil penalty authorized under this chapter. The
certificate shall be eligible for renewal when all outstanding
balances and associated penalties or administrative fines have been
paid to the department or the respective county or counties.

SEC. 17.  

Section 47020.5 is added to the Food and Agricultural
Code, to read:

47020.5.  

(a) Certified producer consignment sales agreements
are written contractual agreements whereby two California
registered direct marketing producers that are certified to sell at a
certified farmers’ market may jointly sell to the public at a certified
farmers’ market the agricultural products produced by both
producers who are parties to the agreement. The certified producer
consignment sales agreement shall be embodied in a written
document that details the terms of the agreement. Certified
producer consignment sales agreements may be prohibited by and
are otherwise subject to the rules and conditions of a certified
farmers’ market operator. Certified producer consignment sales
agreements are valid for use only and exclusively within certified
farmers’ markets operating under and in accordance with provisions
of this chapter. The provisions of Chapter 7 (commencing with
Section 56101) of Division 20 shall not apply to certified producer
consignment sales agreements.

(b) For purposes of this chapter, a consignment is an
arrangement resulting from a written agreement in which one
registered direct marketing producer, the consignor, entrusts his
or her agricultural products to another registered direct marketing
producer, the consignee, for sale at a certified farmers’ market.
The consignee acts as an agent on behalf of the consignor, a
principal, in selling the products. All laws governing the
responsibilities and liabilities for an agent and principal relationship
shall apply. The consignor shall not give up ownership of the
products until their sale to the consumer or other end user. The
terms of the consignment contract shall be that the consignee agrees
to deliver to the consignor a balance of the proceeds received for
any goods sold that has been reduced by the consignee’s fee and
expenses, the total of which shall not be more than 25 percent of
the sale proceeds returned to the consignor. Any goods that have
not been sold shall be returned to the consignor or disposed of in
a nonsales transaction manner dictated by the consignor.

(c) Agricultural products sold at a certified farmers’ market
under the terms of a certified producer consignment sales
agreement are subject to the condition that the source of all
products at the point of sale be clearly identified to the public as
to the name, city, and county of the farm or ranch of the party that
produced the product. All the above source representations required
to be made to the public shall be subject to the provisions and
penalties of Section 890.

(d) A certified producer consignment sales agreement shall
annually or seasonally be registered with the department disclosing
the principal address and contact information for each party to the
agreement, a general description of the terms of the agreement,
and the list of the products to be sold under the terms of the
agreement. A registration fee of fifty dollars ($50) shall be paid
at the time of each registration. No party or agent of a party to a
certified producer consignment sales agreement may sell at any
certified farmers’ market without fulfilling this registration process.
Funds from fees collected shall be deposited in the Department of
Food and Agriculture Fund and shall be used by the department
for the administration of this section. Administration may include
creating and maintaining an online registration and data filing
system, any coordination expenses incurred relative to meetings
and actions of any domestic direct marketing advisory committee
established by the secretary, and for investigations and prosecution
proceedings of violations of this section pursuant to any properly
submitted complaint or pursuant to information received or detected
creating the necessity for the investigation.

SEC. 18.  

Section 47021 of the Food and Agricultural Code is
amended to read:

47021.  

(a) Every operator of a certified farmers’ market shall
remit to the department, within 30 days after the end of each
quarter, a begin insert program end insert fee equal to the number of begin delete certified producer
certificates and other end delete agricultural begin delete producers end delete begin insert product vendors end insert
participating begin insert and selling goods under the authority and
management of the certified farmers’ market operator end insert on each
market day for the entire previous quarter. begin delete The fee shall be
established by January 1 of each year by the department upon the
receipt of a budget recommendation from the advisory committee. end delete
The fee shall begin delete not exceed sixty end delete begin insert be fifty end insert cents begin delete ($0.60) end delete begin insert ($0.50) end insert for
each begin delete certified producer certificate and other end delete begin insert individual end insert agricultural
begin delete producers participating end delete begin insert product vendor whose products were
presented for sale end insert on each market day. A certified farmers’ market
begin insert operator end insert may directly recover all or part of the fee from the
participating begin delete certified and other end delete agricultural begin delete producers end delete begin insert product
vendors end insert .

(b) Any operator of a certified farmers’ market who fails to pay
the required fee within 30 days after the end of the quarter in which
it is due, shall pay to the department a monthly interest charge on
the unpaid balance and a late penalty charge, to be determined by
the department and not to exceed the maximum amount permitted
by law.

(c) All fees collected pursuant to this section shall be deposited
in the Department of Food and Agriculture Fund. The money
generated by the imposition of the fees shall be used, upon
appropriation by the Legislature, by the department, to cover the
reasonable costs to carry out this chapter, including all of the
following actions undertaken by the department:

(1) The coordination of the begin insert certified farmers’ market end insert advisory
committee begin insert or the domestic direct marketing advisory committee end insert .

(2) The evaluation of county enforcement actions and assistance
with regard to multiple county enforcement problems.

(3) The adoption of regulations to carry out begin insert the provisions of end insert
this chapter begin insert pertaining to certified farmers’ markets end insert .

(4)  begin delete Hearing appeals end delete begin insert Hearings end insert from actions taken begin delete by county
agricultural commissioners end delete to enforce this chapter.

begin delete

(5) The review of rules or procedures established by a certified
farmers’ market and the issuance of advisory opinions and the
provision of informal hearings pursuant to Section 47004.1 as to
whether the rules or procedures are consistent with this chapter
and implementing regulations.

end delete begin delete

(6)

end delete

begin insert (5) end insert  The maintenance of a current statewide listing of certified
farmers’ markets begin delete with schedules of operations and end delete locations.

begin delete

(7)

end delete

begin insert (6) end insert  The maintenance of a current statewide listing of certified
producers.

begin delete

(8)

end delete

begin insert (7) end insert  The dissemination to all certified farmers’ markets
information regarding the suspension or revocation of any
producer’s certificate and the imposition of administrative
penalties.

begin delete

(9)

end delete

begin insert (8) end insert  Other actions, including the maintenance of special fund
reserves, that are recommended by the begin insert certified farmers’ market end insert
advisory committee begin insert or the domestic direct marketing advisory
committee end insert and approved by the department for the purpose of
carrying out begin insert the provisions of end insert this chapter begin insert pertaining to certified
farmers’ markets end insert .

(d) This section shall remain in effect only until January 1, begin delete 2014, end delete
begin insert 2016, end insert and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, begin delete 2014, end delete begin insert 2016, end insert deletes or extends
that date.

begin insert

(e) If this section is no longer in effect, any residual funds
collected and deposited pursuant to subdivision (c) shall be
transferred within the Department of Food and Agriculture Fund
and shall be used in accordance with the provisions of subdivision
(c).

end insert

SEC. 19.  

Section 47021.5 is added to the Food and Agricultural
Code, to read:

47021.5.  

(a) Every operator of a certified farmers’ market shall
remit to the department, within 30 days after the end of each
quarter, an investigation and enforcement fee based on the number
of individual agricultural product vendors whose products were
presented for sale on each market day for the entire previous
quarter. The fees shall annually be set on January 1 and shall be
based upon the number of certified farmers’ market certificates
issued during the previous year in each county.

(b) For certified farmers’ markets located in counties that issued
15 or fewer certified farmers’ market certificates, the fee shall be
fifty cents ($0.50) for each individual agricultural product vendor
whose products were presented for sale on each market day.

(c) For certified farmers’ markets located in counties that issued
more than 15 but fewer than 40 certified farmers’ market
certificates, the fee shall be one dollar ($1) for each individual
agricultural product vendor whose products were presented for
sale on each market day.

(d) For certified farmers’ markets located in counties that issued
40 or more certified farmers’ market certificates, the fee shall be
one dollar and fifty cents ($1.50) for each individual agricultural
product vendor whose products were presented for sale on each
market day.

(e) Any operator of a certified farmers’ market who fails to pay
the required fee within 30 days after the end of the quarter in which
it is due, shall pay to the department a monthly interest charge on
the unpaid balance and a late penalty charge, to be determined by
the department and not to exceed the maximum amount permitted
by law.

(f) All fees collected pursuant to this section shall be deposited
in the Department of Food and Agriculture Fund. The money
generated by the imposition of the fees assessed under this section
shall be used exclusively to pursue and conduct investigations and
enforcement actions upon properly filed complaints or pursuant
to information received or detected creating the necessity for the
investigation of any violation of Section 890.

(g) (1) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2016, deletes or extends that date.

(2) If this section is no longer in effect or is repealed or is not
extended by a later enacted statute that is enacted before January
1, 2016, pursuant to paragraph (1), any residual funds collected
and deposited pursuant to subdivision (d) above shall be transferred
within the Department of Food and Agriculture Fund and used in
accordance with the provisions of subdivision (c) of Section 47021.

SEC. 20.  

Section 47055 is added to the Food and Agricultural
Code, to read:

47055.  

(a) A direct marketing producer association is a
membership association in which three or more California
producers may jointly, in a cooperative, labor-sharing and
cost-sharing manner, sell to the public the agricultural products
produced by its members. A direct marketing producer association
shall be organized and documented as an unincorporated
association, a limited liability company, or a corporation whose
owner members are composed of agricultural producer who are
registered with the state as direct marketing producers, and have
submitted to the state any documentation and paid all fees required
by this chapter.

(b) On behalf of its members, a direct marketing producer
association may sell the agricultural products produced by the
members to the public. The source of those products shall be clearly
identified to the public, customer, or subscriber as to the name,
city, and county of the farm or ranch of the member that produced
the product. All of the representations required to be made to the
public shall be subject to the provisions and penalties specified in
Section 890.

(c) Subject to Section 47002, any exemption under any existing
law that applies to an agricultural product in the possession, or
under the control, of the individual direct marketing producer
members shall apply to the product that is delivered by the producer
members to the direct marketing producer association and
subsequently distributed, transported, offered for sale, sold, or
otherwise possessed on behalf of its producer members. For
purposes of this chapter, a direct marketing producer association
shall be considered a single marketing entity and its agents shall
be treated in the same manner as lawful agents of the membership.

(d) A direct marketing producer association shall annually
register with the department the principal address and contact
information for the association, and the contact information for its
agent for service of process. An annual registration fee of one
hundred dollars ($100) shall be paid at the time of registration. A
direct marketing producer association shall not operate under the
provisions of this chapter without fulfilling the annual registration
process. Funds from the fees collected shall be deposited in the
Department of Food and Agriculture Fund and shall be used by
the department for the administration of this section.
Administration may include creating and maintaining an online
registration and data filing system, coordination expenses incurred
relative to meetings and actions of the domestic direct marketing
advisory committee, and investigations pursuant to any properly
submitted complaint or pursuant to information received or detected
creating the necessity for the investigation.

(e) A direct marketing producer association, when operating an
agricultural products outlet on behalf of its members at a location
permitted by local ordinances and in accordance with this section,
shall be considered a certified farmers’ market for permitting and
enforcement purposes under the applicable provisions of the Health
and Safety Code.

(f) A direct marketing producer association when operating a
community-supported agriculture (CSA) sales and delivery
business on behalf of its members in accordance with this chapter,
shall be considered and defined as a CSA for permitting and
enforcement purposes under the applicable provisions of this
chapter and any applicable provisions of the Health and Safety
Code.

SEC. 21.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution for certain
costs that may be incurred by a local agency or school district
because, in that regard, this act creates a new crime or infraction,
eliminates a crime or infraction, or changes the penalty for a crime
or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.

However, if the Commission on State Mandates determines that
this act contains other costs mandated by the state, reimbursement
to local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.