Amended in Assembly May 6, 2013

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 , 47001.5, end delete and 47014 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 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 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.

begin delete

(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, which is deposited into the Food and Agriculture Fund, as specified.

end delete begin delete

This bill would require direct marketing producers to register with the Department of Food and Agriculture and attest compliance with specified practices, and would impose a registration fee, 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.

end delete begin delete

(4)

end delete

begin insert (3) end insert  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 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. 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.

begin delete

(5)

end delete

begin insert (4) end insert  Existing law requires the secretary to establish the Certified Farmers’ Market Advisory Committee.

This bill 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 provisions relating to the Certified Farmers’ Market Advisory Committee on January 1, 2015.

begin delete

(6)

end delete

begin insert (5) end insert  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 a California producer to register with the department and obtain a certified producer’s certificate. The bill would require 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, as specified. begin insert The bill would require the investigation and enforcement fee to be deposited in the Department of Food and Agriculture Fund as a continuously appropriated fund to be used to pursue and conduct investigations and enforcement actions, as specified. By establishing a continuously appropriated fund, the bill would make an appropriation. end insert

begin delete

(7)

end delete

begin insert (6) end insert  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 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)

end delete

begin insert (7) 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 begin insert dollars end insert ($500) begin delete ,
nor end delete begin insert and not end insert 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
begin delete under the provisions of end delete begin insert pursuant to end insert 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.

(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.

(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 begin delete provide assistance end delete begin insert assist end insert in bringing
California-grown products to all Californians.

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

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

(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 begin insert of the agricultural arts end insert 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
begin insert of the agricultural arts end insert 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 begin delete under end delete begin insert pursuant to end insert
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 47001.5 is added to the Food and Agricultural
Code, to read:

47001.5.  

(a) 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. The registration also shall
include the methods and outlets to be used that are recognized and
regulated by this chapter.

(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 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 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 ad hoc direct marketing advisory committee
established by the secretary.

(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.

end delete

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

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 begin delete in accordance with
Section 47001.5 end delete 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 begin delete under end delete begin insert pursuant
to end insert 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 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.

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

Section 47004 of the Food and Agricultural Code is
repealed.

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

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

47004.  

(a) Certified farmers’ markets are California
agricultural product 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. Sales of agricultural
products purchased from another individual or entity shall not
occur within a certified farmers’ market, and an agricultural product
producer or product dealer 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 comply with Section 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.

(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 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 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 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 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 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
those sales activity or vending event or marketing areas .

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

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

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

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

Section 47004.1 of the Food and Agricultural Code is
repealed.

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

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

47010.  

(a) The secretary shall establish a committee that shall
be known as the Certified Farmers’ Market Advisory Committee.
The primary goals of the committee shall be 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 14 members and their
alternates. The secretary shall endeavor to appoint six members
and their alternates who shall be producers or representatives of
agricultural organizations that represent producers, six members
and their alternates who shall be certified farmers’ market operators
or representatives of the operator, one public member, and one
member and his or her alternate who shall be a county agricultural
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 make an effort to include members who
represent a diverse 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 eight committee
members. It shall meet at least once each year.

(e) The committee 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.

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

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

47011.  

The Certified Farmers’ Market Advisory Committee
shall be advisory to the secretary on 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 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) Program and enforcement fees collected pursuant to Sections
47021 and 47021.5.

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

(f) The annual budget of the department’s certified farmers’
market program to carry out the goals and purposes of this chapter.

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

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

Section 47012 of the Food and Agricultural Code is
repealed.

begin delete SEC. 14. end delete
begin insert SEC. 13. end insert   

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.

begin delete SEC. 15. end delete
begin insert SEC. 14. end insert   

Section 47020 of the Food and Agricultural Code is
repealed.

begin delete SEC. 16. end delete
begin insert SEC. 15. end insert   

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 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 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. 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 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 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.

(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 the certified producer’s
certificate issued in his or her county to verify production of the
commodities being sold at a certified farmers’ market or the
existence in storage of the producer’s actual harvested production,
or both, of any product being sold at a certified farmers’ market.
Where practical or purposeful, verification inspections begin delete should end delete begin insert shall end insert
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 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.

begin delete SEC. 17. end delete
begin insert SEC. 16. 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 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
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 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 or 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 or an ad hoc direct marketing advisory
committee and approved by the department for the 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).

begin delete SEC. 18. end delete
begin insert SEC. 17. 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 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 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’ 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)  begin delete All end delete begin insert Notwithstanding Section 13340 of the Government Code,
all end insert fees collected pursuant to this section shall be deposited in the
Department of Food and Agriculture Fund begin insert and shall be
continuously appropriated to the department without regard to
fiscal year end insert . The begin delete money end delete begin insert moneys end insert generated by the imposition of the
fees assessed begin delete under end delete begin insert pursuant to end insert 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.

(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.

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