BILL ANALYSIS Ó
AB 996
Page 1
Date of Hearing: May 15, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 996 (Dickinson) - As Amended: May 6, 2013
Policy Committee: AgricultureVote:4
- 0
Urgency: No State Mandated Local Program:
Yes Reimbursable: Yes
SUMMARY
This bill expands Certified Farmers' Market (CFM) laws,
requirements, and fees, and increases penalties for violations.
Specifically, this bill:
1)Increases the misdemeanor fee, punishable by county jail for
up to six months and/or a fine of up to $2,500, for any person
or entity that intentionally makes an intentionally false
representation, by any means, relating to the sale or
availability of agricultural products.
2)Provides that, in lieu of prosecution, the Secretary of the
California Department of Food and Agriculture (CDFA), or a
county agricultural commissioner (CAC) under CDFA's authority,
may levy a penalty against violators amounting to not less
than five hundred dollars ($500) nor more than five thousand
dollars ($5,000) per violation.
3)Creates the Direct Agricultural Marketing Penalty Account
(DAMPA) and requires all penalties collected pursuant to this
chapter to be deposited into DAMPA, and requires funds to be
used to conduct investigations and enforcement of compliance
with this chapter. Authorizes a continuous appropriation of
DAMPA funds, without regard to fiscal year.
4)Authorizes CDFA to create a registration fee, not to exceed
$50, that is reflective of actual cost of processing. Fees
are to be deposited into the CDFA fund and be used for
administration of this section.
5)Reduces the CFM vendor fee from $0.60 to $0.50 per day, per
AB 996
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stall and extends the fee sunset from January 1, 2014 to
January 1, 2016.
6)Creates a new $1 fee for all vendors to be used to fund
investigation and enforcement. Sunsets this fee January 1,
2016.
FISCAL EFFECT
1)The current CDFA budget for administering the CFM program is
$240,000 per year. The enforcement and registration
expansions included in this bill would likely cost an
additional $1 million per year.
2)The stall fee, the registration fee and the penalties
contained in the bill should generate in excess of $750,000
per year in revenue for the CFM Program.
COMMENTS
1)Purpose . A few years ago a Los Angeles television station did
an undercover story exposing a certified producer who was not
producing what he was selling. CDFA put a task force together
to attempt to evaluate the program and develop new
requirements for operating and participating in a CFM.
AB 996 uses the task force recommendations to restructure and
expand the requirements for CFMs, producers, and adjacent
non-agricultural markets. It establishes a specific
inspection and enforcement fee, and reduces the daily stall
fee, but broadens the pool of payers to include those that
participate in adjacent non-agricultural markets. It requires
producers to declare they are selling what they grow, creating
a claim that can be challenged by district attorneys or
citizens, modeled after current Business and Professions Code
false advertising statutes.
2)Certified Farmers' Markets . Certified farmers' markets have
become established in many California communities, as have
other outlets for direct marketing, such as farm stands and
community supported agriculture. There are roughly 800
farmers' markets in California, a significant number of which
operate year-round. Following the enactment of the Federal
Farmer to Consumer Direct Marketing Act of 1976, CDFA enacted
regulations that exempted farmers from packing, sizing and
labeling requirements for fresh fruits, nuts, and vegetables
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and enabled them to sell products they grow at farmers'
markets, provided they receive certification from the county
agricultural commissioner.
Many CFMs have adjacent non-agricultural markets selling all
types of homemade and commercial products.
As CFMs become more popular, the willingness of a few
producers to sell produce they did not grow, or other products
they did not produce, is a concern to CFM operators. In 1999
the Legislature enacted a daily per stall fee of sixty cents,
intending it to be used by CDFA and CAC for inspections and
enforcement purposes. Due to the growth of the program and
reductions in GF support to the CDFA, the fee has had to be
used to administer the program and not for inspection and
enforcement as originally intended.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081