BILL NUMBER: AB 996 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 25, 2013
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, and 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 Sections 47004.1 and 47012
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 the Direct Agricultural
Marketing Penalty Account, which would be created 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 the direct marketing of
agricultural products, and provides for various findings and
declaration in that regard. Existing law authorizes the
Secretary of Food and Agriculture secretary 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 the
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 which is
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
specified practices , and would impose a
registration fee of $25 , to be set by
regulation, but not to exceed $50 annually, 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
point of sale locations 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 the
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 all
matters relating to certified farmers' markets, as specified.
The bill would decrease the number of members on the committee from
17 members to 14 members, as specified. The bill would repeal
the provision provisions relating to
the certified farmers' market advisory committee
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 a California producer to
register with the department and obtain a certified
producer's certificates certificate .
The bill would require certified producers a
California producer to submit specified information to the
department, including , among other things, a list of
facilities at which their product was processed, as specified, and
would require , until January 1, 2016, 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)
(8) 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 Direct Agricultural
Marketing Penalty Account, which is hereby created 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 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.
(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.
(e)
(f) 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.
(f)
(g) 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.
(g)
(h) A regulatory scheme should be developed that
provides the flexibility that will make direct marketing a viable
marketing system.
(h)
(i) 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)
(j) 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 fresh or processed
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. 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.
(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.
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. SEC. 6. Section 47001.5 is
added to the Food and Agricultural Code, to read:
47001.5. (a) Every California agricultural
A producer , not otherwise registered or certified
pursuant to the provisions of this chapter, 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
The registration also shall include the methods and
outlets to be used that are 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.
(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.
(c) The annual registration fee for a direct marketing producer
shall be twenty-five dollars ($25) 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 . 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 ad
hoc 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 , pursuant to this division, where
a fee is exacted from the producer for registration or
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. SEC. 7. Section 47002 of the
Food and Agricultural Code is amended to read:
47002. California farmers registered or certified pursuant
to this chapter 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 ,
directly to the public, and shall be exempt from size,
standard pack, container, and labeling requirements ,
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 any of 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
pursuant to 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. SEC. 8. Section 47004 of the
Food and Agricultural Code is repealed.
SEC. 10. SEC. 9. Section 47004 is
added to the Food and Agricultural Code, to read:
47004. (a) Certified farmers' markets are California agricultural
product outlets point of sale locations
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
Sales of agricultural products purchased from another
individual or entity shall not occur within a certified
farmers' market, and no an agricultural
product producer or product dealer may shall
not 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 comply
with Section 47001.5 47020 .
(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, and
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 a
package label or container label or on bulk sales signage the
registration number or other identity reference of the
facility where the food was processed , or any other required
labeling statements or information, in accordance with
Section Sections 110460 , 114365, and
114365.2 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
pursuant to 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 those sales activity or vending
event or marketing area, with the areas
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 farmers
' markets are subject to applicable state laws, the
laws of their the governing agency,
and any other laws governing the conduct and actions they may take as
an agency of government a governmental
entity .
SEC. 11. SEC. 10. Section 47004.1 of
the Food and Agricultural Code is repealed.
SEC. 12. SEC. 11. Section 47010 of
the Food and Agricultural Code is amended to read:
47010. (a) The secretary may shall
establish a committee that shall be known as the Certified Farmers'
Market Advisory Committee. The primary goal
goals of the committee shall be to ensure the
integrity of certified farmers' markets. all of the
following:
(1) Promote the demand and consumption of agricultural products
purchased directly from California producers at certified farmers'
markets.
(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.
(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.
(b) The committee shall be composed of 17
14 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 endeavor to appoint eight
six members and their alternates who shall be active
certified producers or representatives of
agricultural organizations that represent producers
, four six members and their
alternates who shall be certified farmers' market managers
operators or representatives of the
operator , two representatives from different major
state direct marketing associations, one public member, and
two members one member and
their alternates his or her alternate who shall
be a county agricultural commissioners
commissioner . 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. All appointees shall serve two
-year terms or at the pleasure of the secretary. Members
appointed to fill vacancies shall serve the remainder of the term.
(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 an effort to
ensure that there is include members who represent
a diverse representation from major production and
market areas state geographical and agricultural
product .
(d) The committee shall meet at the request of the secretary
, and the committee chairperson, or
upon the request of four eight
committee members. It shall meet at least once each year.
(e) The committee shall may 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. SEC. 12. Section 47011 of
the Food and Agricultural Code is amended to read:
47011. The committee Certified Farmers'
Market Advisory 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 the provision of this chapter pertaining to certified
farmers' markets primary goals stated in subdivision
(a) of Section 47010 .
(b) Administrative policies and procedures that relate to the
primary goals stated in subdivision (a) of Section 47010, including
the inspection of certified producers and certified farmers'
markets.
(c) Administrative civil penalties for violations of certified
farmers' market laws and regulations.
(d) Certification Program and
enforcement fees collected pursuant to Section 47020
Sections 47021 and 47021.5 .
(e) Statewide review of certified farmers' market promotion
and enforcement actions.
(f) The annual budget of the department
department's certified farmers' market program to carry out
the goals and purposes of this chapter 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 .
(g) Alternative strategies for certification and investigation
methodology, and methods for industry self-regulation and
commission committee formation.
SEC. 13. Section 47012 of the Food and
Agricultural Code is repealed.
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.
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 in
for 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
California producer wishing to sell at a certified farmers'
market shall apply and register with the department and obtain a
certified producer's certificate. 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. 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. 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.
(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 or other
pertinent information of each facility where the food was
processed in accordance with Section Sections
110460 , 114365, and 114365.2 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 United States Department
of Agriculture 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 the
certified producers' certificates
producer's certificate issued in their
his or her county to verify production of the commodities being
sold at a certified farmers' market or the existence in storage of
the producers' producer's 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
pursuant to 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. SEC. 17. 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 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. The fee shall be
fifty cents ($0.50) for each individual agricultural product
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 agricultural
product 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 , 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 certified farmers' market
advisory committee Certified Farmers' Market Advisory
Committee or the domestic any ad hoc
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 certified farmers'
market advisory committee Certified Farmers' Market
Advisory Committee or the domestic an
ad hoc direct marketing advisory committee and approved by the
department for the purpose purposes 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).
SEC. 19. SEC. 18. 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 equal to the number of 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 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
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) .
(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.
(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.
(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)
(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 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
and for any contractual or reimbursement expenses incurred by a
county agricultural commissioner for investigating the initial or
subsequent verification inspections required by this
chapter and not otherwise adequately funded pursuant to Section 47020
.
(g)
(d) (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. SEC. 19. 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.