Amended in Assembly April 25, 2013

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, begin delete 47001.2, end delete 47001.5, begin insert and end insert 47014 begin delete , 47020.5, and 47055 end delete 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 begin delete Section end delete begin insert Sections end insert 47004.1 begin insert and 47012 end insert 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 amended, 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 begin insert the Direct Agricultural Marketing Penalty Account, which would be created in end insert the Department of Food and Agriculture Fund begin insert , end insert 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 begin insert the end insert direct marketing of agricultural products, and provides for various findings and declaration in that regard. Existing law authorizes the begin delete Secretary of Food and Agriculture end delete begin insert secretary end insert 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 begin insert the end insert 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, begin delete to be end delete begin insert which is end insert deposited into the Food and Agriculture Fund, as specified.

This bill begin delete 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 end delete would require direct marketing producers to register with the Department of Food and Agriculture and attest compliance with begin delete applicable laws and regulations, as specified end delete begin insert specified practices end insert , begin insert and end insert would impose a registration fee begin delete of $25 end delete begin insert , to be set by regulation, but not to exceed $50 annually, end insert 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 begin delete outlets end delete begin insert point of sale locations end insert 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 begin delete above end delete . 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 begin delete a certified farmers’ market advisory committee end delete begin insert the Certified Farmers’ Market Advisory Committee end insert .

This bill would begin delete authorize, but not require, the secretary to establish that committee, and would end delete specifically limit the duties of that committee to begin insert all end insert matters relating to certified farmers’ markets, as specified. begin insert The bill would decrease the number of members on the committee from 17 members to 14 members, as specified. end insert The bill would repeal the begin delete provision end delete begin insert provisions end insert relating to the begin delete certified farmers’ market advisory committee end delete begin insert Certified Farmers’ Market Advisory Committee end insert 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 begin delete registered direct marketing producers end delete begin insert a California producer end insert to register with the department and obtain begin insert a end insert certified producer’s begin delete certificates end delete begin insert certificate end insert . The bill would require begin delete certified producers end delete begin insert a California producer end insert to submit specified information to the department, including begin insert , among other things, end insert a list of facilities at which their product was processed, as specified, and would require begin insert , until January 1, 2016, end insert each operator of a certified farmers’ market to remit to the department an investigation and enforcement fee begin delete based on the number of individual agricultural product vendors whose products were presented for sale on each market day for the previous quarter end delete , as specified. begin delete The bill would repeal those provisions relating to remitting an investigation and enforcement fee on January 1, 2016. end delete

(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 begin delete agricultural product end delete 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.

begin delete

(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.

end delete begin delete

(9)

end delete

begin insert (8) end insert  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 begin insert Direct Agricultural
Marketing Penalty Account, which is hereby created in the end insert
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 secretary 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) Any intentionally false, deceptive, or misleading use of the
terms “California grown,” “California-grown,” and similar terms
with identical connotations, or of any seals or other identities
officially adopted by the department in connection with these
terms, or a deliberately unwarranted use of these items or terms
shall be subject to the provisions and penalties set forth in Chapter
9 (commencing with Section 890) of Part 1 of Division 1.

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 and other end users.

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

(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.

begin insert

(e) The permitting, regulating, and operating of certified
farmers’ markets provide the essential core and foundation for
the creation and operation of additional nonagricultural vending
activities that are ancillary but contiguous to the certified farmers’
market, thereby providing a larger community event amenity for
business districts and additional revenue for the operators of
certified farmers’ markets.

end insert begin delete

(e)

end delete

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

begin delete

(f)

end delete

begin insert (g) end insert  It is the intent of the state to promote the purchase and
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.

begin delete

(g)

end delete

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

begin delete

(h)

end delete

begin insert (i) end insert  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.

begin delete

(i)

end delete

begin insert (j) end insert  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 begin insert fresh or processed end insert 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 agricultural
products. begin insert Those regulations also shall include the authority of the
secretary to create or recognize any legal mechanism, relationship,
or entity that would allow direct marketing producers to jointly,
in a cooperative, labor-sharing, and cost-sharing manner, sell to
the public the agricultural products produced by them, exempt
from size, standard pack, container, and labeling requirements,
and any applicable provision of Chapter 7 (commencing with
Section 56101) of Division 20. end insert

(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.

(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.

(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.

begin delete

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.

end delete

begin delete SEC. 7. end delete
begin insert SEC. 6. end insert   

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

47001.5.  

(a)  begin delete Every California agricultural end delete begin insert A end insert producer begin insert , not
otherwise registered or certified pursuant to the provisions of this
chapter, end insert 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. begin delete Methods end delete begin insert The registration also shall include the methods end insert
and outlets begin insert to be used that are end insert recognized and regulated by this
chapter begin delete shall be listed end delete .

begin delete

(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.

end delete begin insert

(b) Each registration shall include the signed statement that the
producer is in compliance with any applicable on-farm, food-safety,
good-agricultural practices, as defined by the department, in
cooperation with the direct marketing producer industry. A
producer registered, certified, and in compliance with this section
shall be deemed an approved source, as defined in Section 113735
of the Health and Safety Code.

end insert

(c) The annual registration fee for a direct marketing producer
shall be begin delete twenty-five dollars ($25) end delete begin insert set by regulation, as enacted by
the secretary, that is reflective of the actual cost of the processing
of the registration and shall not exceed fifty dollars ($50) annually end insert .
Fees collected shall be deposited in the Department of Food and
Agriculture Fund and shall be used begin delete exclusively end delete 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 begin delete domestic end delete begin insert ad hoc end insert direct
marketing advisory committee established by the secretary begin delete pursuant
to Section 47001.2 end delete .

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

begin delete

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

end delete

begin delete SEC. 8. end delete
begin insert SEC. 7. end insert   

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

47002.  

California farmers registered begin insert or certified pursuant to
this chapter end insert as direct marketing producers in accordance with
Section 47001.5 may transport for sale and sell California-grown
fresh fruits, nuts, and vegetables that they produce begin delete , end delete directly to the
public, and shall be exempt from size, standard pack, container,
and labeling requirements begin delete , end delete at 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
47001 and is otherwise authorized by local laws, 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 begin insert any of end insert 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 begin delete under end delete begin insert pursuant to end insert 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.

begin delete SEC. 9. end delete
begin insert SEC. 8. end insert   

Section 47004 of the Food and Agricultural Code is
repealed.

begin delete SEC. 10. end delete
begin insert SEC. 9. end insert   

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

47004.  

(a) Certified farmers’ markets are California
agricultural product begin delete outlets end delete begin insert point of sale locations end insert 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. begin delete No sales end delete begin insert Sales end insert of
agricultural products purchased from another individual or entity
shall begin insert not end insert occur within a certified farmers’ market, and begin delete no end delete begin insert an end insert
agricultural product producer or product dealer begin delete may end delete begin insert shall not end insert 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 begin delete 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 end delete begin insert comply with end insert Section begin delete 47001.5 end delete begin insert 47020 end insert .

(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, begin insert and end insert the
county where the farm or ranch is located begin delete , and the direct marketing
producer’s registration number end delete .

(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 begin delete California end delete 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 begin delete California end delete
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 begin delete its end delete begin insert a end insert package label or container label or on bulk sales signage
the registration number begin insert or other identity reference end insert of the facility
where the food was processed begin insert , or any other required labeling
statements or information, end insert in accordance with begin delete Section end delete begin insert Sections end insert
110460 begin insert , 114365, and 114365.2 end insert 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 begin delete in end delete begin insert pursuant to end insert 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
begin delete the end delete begin insert those end insert sales activity or vending event or marketing begin delete area, with
the end delete begin insert areas end insert begin delete exception of fresh whole produce considered tropical
and not generally grown in California end delete .

(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 begin delete farmers end delete begin insert farmers end insert begin insert ’ end insert markets
are subject to applicable state laws, the laws of begin delete their end delete begin insert the governing end insert
agency, and any other laws governing the conduct and actions they
may take as begin delete an agency of government end delete begin insert a governmental entity end insert .

begin delete SEC. 11. end delete
begin insert SEC. 10. end insert   

Section 47004.1 of the Food and Agricultural Code
is repealed.

begin delete SEC. 12. end delete
begin insert SEC. 11. end insert   

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

47010.  

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

begin insert

(1) Promote the demand and consumption of agricultural
products purchased directly from California producers at certified
farmers’ markets.

end insert begin insert

(2) Ensure that existing and future certified farmers’ markets
are primarily maintained for the benefit of the California producers
selling their products within those markets.

end insert begin insert

(3) Ensure that honest and fair marketing of products occur
within certified farmers’ markets and within any ancillary vending
activities under the operation and control of a certified farmers’
market operator.

end insert

(b) The committee shall be composed of begin delete 17 end delete begin insert 14 end insert members and
their alternates. begin delete The secretary shall appoint the members of the
committee from a list of nominees provided by the industry subject
to this chapter. end delete The secretary shall begin insert endeavor to end insert appoint begin delete eight end delete begin insert six end insert
members and their alternates who shall be begin delete active certified end delete producers begin insert end insert
begin insert or representatives of agricultural organizations that represent end insert
begin insert producers end insert , begin delete four end delete begin insert six end insert members and their alternates who shall be
certified farmers’ market begin delete managers end delete begin insert operators end insert or representatives
begin insert of the operator end insert , begin delete two representatives from different major state
direct marketing associations, end delete one public member, and begin delete two
members end delete begin insert one member end insert and begin delete their alternates end delete begin insert his or her alternate end insert who
shall be begin insert a end insert county agricultural begin delete commissioners end delete begin insert commissioner end insert . 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. begin insert end insert begin insert All
appointees shall serve two end insert begin insert -year terms or at the pleasure of the
secretary. Members appointed to fill vacancies shall serve the
remainder of the term. end insert

(c) The secretary begin delete shall appoint only one certified producer,
certified farmers’ market manager, or representative to represent
any one farm or certified farmers’ market and end delete shall make begin delete every end delete
begin insert an end insert effort to begin delete ensure that there is end delete begin insert include members who represent end insert a
diverse begin delete representation from major production and market areas end delete
begin insert state geographical and agricultural product end insert .

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

(e) The committee begin delete shall end delete begin insert may end insert 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.

begin delete SEC. 13. end delete
begin insert SEC. 12. end insert   

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

47011.  

The begin delete committee end delete begin insert Certified Farmers’ Market Advisory
Committee end insert shall be advisory to the secretary on begin delete all end delete 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 begin delete administration and enforcement of
the provision of this chapter pertaining to certified farmers’ markets end delete
begin insert primary goals stated in subdivision (a) of Section 47010 end insert .

(b) Administrative policies and procedures that relate to begin insert the
primary goals stated in subdivision (a) of Section 47010, including end insert
the inspection of certified producers and certified farmers’ markets.

(c) Administrative civil penalties for violations of certified
farmers’ market begin insert laws and end insert regulations.

(d)  begin delete Certification end delete begin insert Program and enforcement end insert fees collected
pursuant to begin delete Section 47020 end delete begin insert Sections 47021 and 47021.5 end insert .

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

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

(g) Alternative strategies for certification and investigation
methodology, and methods for industry self-regulation and
begin delete commission end delete begin insert committee end insert formation.

begin insert

begin insert SEC. 13. end insert   

end insert

begin insert Section 47012 of the end insert begin insert Food and Agricultural Code end insert begin insert is
repealed. end insert

begin delete

47012.  

(a) Except as provided in subdivisions (b) and (c), the
term of any member of the committee shall be two years.

(b) With respect to the terms of initial members of the
committee, eight members shall serve for one year and nine
members shall serve for two years, with the determinations of the
term of each member to be made by lot. No member of the
committee shall serve more than four full consecutive two-year
terms.

(c) Any vacancy that occurs during an unexpired term shall be
filled by appointment for the unexpired term.

end delete

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.

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 begin delete in end delete begin insert for end insert 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 begin delete registered direct marketing end delete begin insert California end insert producer
wishing to sell at a certified farmers’ market shall apply and
register with the department and obtain a certified producer’s
certificate. begin insert Each registration shall include the signed statement
that the producer is in compliance with any applicable on-farm,
food safety, good agricultural practices, as defined by the
department, in cooperation with the direct marketing producer
industry. end insert 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. begin delete These
registration numbers shall correspond with or incorporate
numerically the registered direct market producer numbers. end delete begin insert A
producer registered, certified, and in compliance with this section
shall be deemed an approved source, as defined in Section 113735
of the Health and Safety Code. end insert

(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 begin insert or other pertinent
information end insert of each facility where the food was processed in
accordance with begin delete Section end delete begin insert Sections end insert 110460 begin insert , 114365, and 114365.2 end insert
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 begin delete USDA end delete begin insert United States Department of Agriculture end insert
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 begin delete of this chapter end delete .

(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 begin delete those end delete begin insert the end insert certified begin delete producers’
certificates end delete begin insert producer’s certificate end insert issued in begin delete their end delete begin insert his or her end insert county
to verify production of the commodities being sold at a certified
farmers’ market or the existence in storage of the begin delete producers’ end delete
begin insert producer’s end insert 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 begin delete under end delete begin insert pursuant to end insert 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.

begin delete

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.

end delete

begin delete SEC. 18. end delete
begin insert SEC. 17. end insert   

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 program fee equal to the number of begin delete agricultural product end delete
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. The fee shall be fifty
cents ($0.50) for each begin delete individual agricultural product end delete vendor whose
products were presented for sale on each market day. A certified
farmers’ market operator may directly recover all or part of the
fee from the participating begin delete agricultural product end delete vendors.

(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 begin delete , end delete 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 delete certified farmers’ market advisory
committee end delete begin insert Certified Farmers’ Market Advisory Committee end insert or begin delete the
domestic end delete begin insert any ad hoc end insert direct marketing advisory committee.

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

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

(4) Hearings from actions taken to enforce this chapter.

(5) The maintenance of a current statewide listing of certified
farmers’ markets locations.

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

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

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

(d) 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.

(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).

begin delete SEC. 19. end delete
begin insert SEC. 18. end insert   

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 begin delete based on the number
of individual agricultural product vendors whose products were
presented for sale end delete begin insert equal to the number of vendors participating
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. The begin delete 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 end delete begin insert fee shall
be one dollar ($1) for each vendor whose products were presented
for sale on each market day except as provided for in subdivision
(b) end insert .

begin delete

(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.

end delete begin insert

(b) For certified farmers’ market operators located in counties
that in the previous year issued less than five certified farmers’
market certificates, or for operators of a certified farmers’ market
where only the sale of agricultural products that were produced
within the same county as the location of that certified farmers’
market occurred during the previous quarter, the fee shall be fifty
cents ($0.50) for each vendor whose products were presented for
sale at that market on each market day.

end insert begin delete

(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)

end delete

begin insert (c) end insert  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 begin insert and for any
contractual or reimbursement expenses incurred by a county
agricultural commissioner for investigating the initial or
subsequent end insert begin insert verification inspections required by this chapter and
not otherwise adequately funded pursuant to Section 47020 end insert .

begin delete

(g)

end delete

begin insert (d) end insert  (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.

begin delete

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.

end delete

begin delete SEC. 21. end delete
begin insert SEC. 19. end insert   

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.