California Legislature—2013–14 Regular Session

Assembly BillNo. 1871


Introduced by Assembly Member Dickinson

February 19, 2014


An act to amend Sections 43100, 47000, 47001, 47002, 47010, 47011, and 47021 of, to add Section 47000.5 to, to add Chapter 9 (commencing with Section 890) to Part 1 of Division 1 of, to repeal Sections 47004.1 and 47012 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 1871, as introduced, Dickinson. Agricultural products: direct marketing: certified farmers’ markets.

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

This bill would make it unlawful for any person or entity, or employee or agent of that person or entity, to 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.

This 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 declarations 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,” “practice of agricultural arts,” and “agricultural product” for purposes of the provisions relating to direct marketing. The bill would authorize the secretary to enter into a cooperative agreement with any county agricultural commissioner for purposes relating to the direct marketing of agricultural products, and would require compensation to be paid under those cooperative agreements from moneys 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 for verification inspections, as specified.

(3) Existing law specifies that certified farmers’ markets are locations established in accordance with local ordinances, and requires the governing body 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.

(4) Existing law authorizes the secretary to establish the Certified Farmers’ Market Advisory Committee.

This bill instead would require the secretary to establish that committee, would specify the primary goals of the committee, and would revise the matters in which the committee may make recommendations to the secretary. The bill would decrease the number of members on the committee from 17 members to 14 members, as specified.

(5) 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 producer to register with the department and obtain a certified producer’s certificate. The bill would require a producer to submit specified information to the department, including, among other things, a declaration that he or she is knowledgeable of and intends to produce in accordance with good agricultural practices, as specified.

(6) Existing law requires, until January 1, 2018, 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 a fee equal to the number of vendors participating and selling goods under the authority and management of the certified farmers’ market operator participating on each market day for the entire previous quarter to be remitted to the department.

(7) 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:

P4    1

SECTION 1.  

Chapter 9 (commencing with Section 890) is
2added to Part 1 of Division 1 of the Food and Agricultural Code,
3to read:

4 

5Chapter  9. Intentionally False, Deceptive, or
6Misleading Marketing
7

 

8

890.  

(a) It is unlawful for any person or entity, or employee
9or agent of that person or entity, to make any statement,
10representation, or assertion orally, by public statement,
11advertisement, signage, or by any means that relates to the sale or
12availability of agricultural products that is false, deceptive, or
13misleading regarding any of the following:

P5    1(1) The area of production of the agricultural product.

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

3(3) The manner and method of production of the agricultural
4product.

5(b) A violation of the provisions of this section is a misdemeanor
6punishable by imprisonment in the county jail not exceeding six
7months, or by a fine not exceeding two thousand five hundred
8dollars ($2,500), or by both that imprisonment and fine.

9

891.  

In lieu of prosecution, the secretary, or a county
10agricultural commissioner under the authority of the secretary,
11may levy a civil penalty against a person or entity that violates this
12chapter in an amount not less than five hundred dollars ($500) and
13not more than five thousand dollars ($5,000) for each violation.
14The amount of the penalty assessed for each violation shall be
15based upon the scope of the violation, the seriousness of the
16deception, and the impact of the penalty on the violator, including
17the deterrent effect on future violations. Subdivision (e) of Section
1843003 shall apply to a fine or civil penalty levied pursuant to this
19section.

20

892.  

(a) In addition to, or in lieu of, an action taken against a
21person by the secretary or a county agricultural commissioner
22pursuant to Section 890 or 891, the secretary or a county
23agricultural commissioner may modify, suspend, revoke, or refuse
24or condition the issuance of a license, permit, registration, or
25certification issued under the provisions of this code.

26(b) An action taken pursuant to this section shall be based upon
27the scope of the violation, the seriousness of the deception, and
28the corrective or deterrent effect on future violations.

29(c) An action taken pursuant to this section shall be subject to
30the due process and applicable civil remedy provisions of this code
31 that govern the issuance of the license, permit, registration, or
32certification.

33

893.  

(a) All civil penalties collected pursuant to this chapter
34by the secretary shall be deposited in the Direct Agricultural
35Marketing Penalty Account, which is hereby created in the
36Department of Food and Agriculture Fund, and shall be used to
37conduct investigations and enforcement actions upon complaints
38filed or pursuant to information received that results in the
39investigation of a violation of Section 890. Money deposited
40pursuant to this chapter also may be used to contract with county
P6    1agricultural commissioners for services that further the purposes
2of this chapter, and may be used for expenses incurred by county
3agricultural commissioners for investigative and enforcement
4actions conducted pursuant to this chapter. Notwithstanding Section
513340 of the Government Code, all moneys deposited pursuant to
6this chapter shall be continuously appropriated to the department
7without regard to fiscal year for purposes of this chapter.

8(b) All civil penalties collected pursuant to enforcement actions
9by a county agricultural commissioner pursuant to this chapter
10shall be paid to the county treasurer.

11

894.  

An action brought by the state or a county pursuant to
12Section 892 or 893 for a violation of Section 890 shall preclude a
13concurrent proceeding by the state or a county for the same act.

14

SEC. 2.  

Section 43100 of the Food and Agricultural Code is
15amended to read:

16

43100.  

(a) The terms “California grown,” “California-grown,”
17and similar terms with identical connotations shall be used in the
18labeling or advertising of agricultural products as follows:

19(1) The terms “California grown,” “California-grown,” and
20similar terms with identical connotations may be used for
21marketing, advertising, or promotional purposes, only to identify
22food or agricultural products that have been produced in the state
23or harvested in its surface or coastal waters.

24(2) Thebegin delete Secretary of Food and Agricultureend deletebegin insert secretaryend insert may adopt
25guidelines, rules, and regulations to further define acceptable uses
26of the terms “California grown,” “California-grown,” and similar
27terms with identical connotations, and to prevent any misleading
28use of the terms.

29(b) begin deleteA fraudulent end deletebegin insertA false, deceptive, or misleading end insertuse of the
30term “Californiabegin delete grown” orend deletebegin insert grown,”end insert “California-grown,”begin insert or similar
31terms with identical connotations,end insert
or of any seals or other identities
32officially adopted by thebegin delete Department of Food and Agricultureend delete
33begin insert departmentend insert in connection with these terms, orbegin delete a deliberately
34misleading orend delete
begin insert anyend insert unwarranted use of these items or terms,begin delete is a
35misdemeanor punishable by a fine of not less than one hundred
36dollars ($100) or more than three thousand dollars ($3,000), or by
37imprisonment in the county jail for not more than six months, or
38by both the fine and imprisonmentend delete
begin insert shall be subject to the provisions
39and penalties set forth in Chapter 9 (commencing with Section
40890) of Part 1 of Division 1end insert
.

P7    1

SEC. 3.  

Section 47000 of the Food and Agricultural Code is
2amended to read:

3

47000.  

The Legislature finds and declares all of the following
4with regard to the direct marketing of agricultural products:

5(a) Direct marketing of agricultural products benefits the
6agricultural community and the consumer by, among other things,
7providing an alternative method for growers to sell their products
8while benefiting the consumer by supplying quality produce at
9reasonable prices.

10(b) Direct marketing is a good public relations tool for the
11agricultural industry that brings the farmer face-to-face with
12consumersbegin insert and other end usersend insert.

13(c) Thebegin insert directend insert marketing potential of a wide variety of
14California-produced agricultural products should be maximized
15begin insert and encouragedend insert.

16(d) Farm stands allow farmers to sell fresh produce and eggs
17grown on their farm as well as other food products made with
18ingredients produced on or near the farm, thus enhancing their
19income and the local economy.

begin delete

20(e) The department should maintain a direct marketing program
21and the industry should continue to encourage the sale of
22California-grown fresh produce.

23(f) It is the intent of the state to promote the consumption of
24California-grown produce and to promote access to
25California-produced agricultural products. Restaurants and
26nonprofit organizations can assist in bringing California-grown
27products to all Californians.

28(g) A regulatory scheme should be developed that provides the
29flexibility that will make direct marketing a viable marketing
30system.

31(h) The department should assist producers in organizing
32certified farmers’ markets, field retail stands, farm stands,
33community-supported agriculture, and other forms of direct
34marketing by providing technical advice on marketing methods
35and in complying with the regulations that affect direct marketing
36programs.

37(i) The department is encouraged to establish an ad hoc advisory
38committee to assist the department in establishing regulations
39affecting direct marketing of products and to advise the secretary
40in all matters pertaining to direct marketing.

end delete
begin insert

P8    1(e) The permitting, regulating, and operating of certified
2farmers’ markets provide the essential core and foundation for
3the creation and operation of additional nonagricultural vending
4activities that are ancillary but contiguous to the certified farmers’
5market, thereby providing a larger community event amenity for
6business districts and additional revenue for the operators of
7certified farmers’ markets.

end insert
begin insert

8(f) The department should maintain a direct marketing program
9and encourage the sale and purchase of California-grown fresh
10produce and other California-produced agricultural products.

end insert
begin insert

11(g) It is the intent of the state to promote the purchase and
12consumption of California-grown produce and to promote access
13to California-produced agricultural products. Restaurants and
14nonprofit organizations can assist in bringing California-grown
15products to all Californians.

end insert
begin insert

16(h) A regulatory scheme should be developed that provides the
17flexibility that will make direct marketing a viable marketing
18system.

end insert
begin insert

19(i) The department should assist producers in organizing
20certified farmers’ markets, field retail stands, farm stands,
21community-supported agriculture, and other forms of direct
22marketing by providing technical advice on marketing methods
23and in complying with the regulations that affect direct marketing
24programs.

end insert
begin insert

25(j) The department is encouraged to establish an ad hoc advisory
26committee to assist the department in establishing regulations
27affecting direct marketing of products and to advise the secretary
28in all matters pertaining to direct marketing.

end insert
29

SEC. 4.  

Section 47000.5 is added to the Food and Agricultural
30Code
, to read:

31

47000.5.  

The following definitions apply to this chapter, unless
32otherwise specified:

33(a) “Agricultural product” means a fresh or processed product
34produced in California, including fruits, nuts, vegetables, herbs,
35mushrooms, dairy, shell eggs, honey, flowers, grains, nursery
36stock, livestock meats, poultry meats, rabbit meats, and fish,
37including shellfish that is produced under controlled conditions in
38waters located in California. Products that are characterized as
39arts, crafts, bakery, candies, soaps, balms, perfumes, cosmetics,
40clothing, fabrics, pastas, compost, fertilizers, candles, foraged, and
P9    1other types of wares are not agricultural products for purposes of
2this chapter.

3(b) “Practice of the agricultural arts” means the undertaking of
4being predominantly responsible for the decisions and actions
5encompassing the various phases of producing an agricultural
6product. The practice of the agricultural arts for fruit, floral, nut,
7vegetable, and other plant products includes directive or actual
8responsibility for all the actions of planting, growing, fertilizing,
9irrigating, cultivating, pest control, and harvesting. The practice
10of the agricultural arts for agricultural animal products includes
11directive or actual responsibility for a substantial time of the
12raising, feeding, veterinary care, and product harvesting.

13(c) “Producer” means a person, partnership, corporation, or an
14otherwise legally formed farm or ranch that produces agricultural
15products by the practice of the agricultural arts upon land that the
16person or entity owns, rents, leases, sharecrops, or otherwise
17controls and has the documented legal right to possession. A person
18or entity that rents, leases, or otherwise acquires the right to
19possession of property essentially only for or limited to the period
20of the harvest season of the agricultural products produced on that
21property shall not be considered a producer under the provisions
22of this chapter.

23

SEC. 5.  

Section 47001 of the Food and Agricultural Code is
24amended to read:

25

47001.  

(a) The secretary may adopt regulations to encourage
26the direct sale by farmers to the public of all types of California
27agricultural products.

28(b) These regulations may include provisions to ensure and
29maintainbegin insert theend insert quality and wholesomeness of the products, and to
30ensure that the selling activities are conducted without fraud,
31deception, or misrepresentation.

begin insert

32(c) The secretary may enter into a cooperative agreement with
33a county agricultural commissioner to carry out the provisions of
34this chapter, including, but not limited to, administration,
35investigations, inspections, registrations, and assistance pertaining
36to direct marketing producers and outlets. Compensation under
37the cooperative agreement shall be paid from assessments and
38fees collected and deposited pursuant to this chapter and shall
39provide reimbursement to the county agricultural commissioner
P10   1for associated costs not otherwise adequately funded pursuant to
2Section 47020.

end insert
begin insert

3(d) Upon reasonable suspicion of a violation of Section 890, a
4certified farmers’ market operator may contract with a county
5agricultural commissioner for a special onsite field or storage
6verification inspection of a direct marketing producer selling in a
7certified farmers’ market operated and controlled by the operator.
8All contracts and contract fees are subject to the discretion of the
9county agricultural commissioner in the county where the
10verification inspections are being requested.

end insert
11

SEC. 6.  

Section 47002 of the Food and Agricultural Code is
12amended to read:

13

47002.  

California farmersbegin insert registered or certified pursuant to
14this chapter as direct marketing producersend insert
may transport for sale
15and sell California-grown fresh fruits, nuts, and vegetables that
16they produce, directly to the public,begin delete which produce shall be exempt
17from size, standard pack, container, and labeling requirements, at
18a certified farmers’ market, as defined in Section 47004, a field
19retail stand, as defined in Section 47030, or a farm stand, as defined
20in Section 47050,end delete
begin insert and shall be exempt from size, standard pack,
21container, and labeling requirements at an outlet or location
22operated by an individual, organization, or entity that is regulated
23pursuant to this chapter or is recognized by a regulation adopted
24pursuant to Section 47001 and is otherwise authorized by local
25laws,end insert
subject to the following conditions:

26(a) All fresh fruits, nuts, and vegetables sold shall comply with
27the California Code of Regulations governing maturity and quality.

28(b) No exemption granted by this section supersedes the
29provisions of federal marketing orders, state marketing orders, or
30any health and safety laws, regulations, or ordinances.

31(c) All fresh fruits, nuts, and vegetables sold in closed consumer
32containers shall be labeled with the name, address, and ZIP Code
33of the producer, and a declaration of identity and net quantity of
34the commodity in the package.

35(d) If a farmer selling produce pursuant to this section
36implements any exemption to size, standard pack, container, or
37labeling requirements as provided by this section, those sales may
38only be conducted as direct sales tobegin insert any ofend insert the following:

39(1) Consumers who are end users.

P11   1(2) Individuals, organizations, or entities that subsequently sell
2the produce directly to end users.

3(3) Individuals, organizations, or entities that distribute the
4produce directly to end users at no cost to those end users.

5(e) A farmer selling produce under paragraph (2) or (3) of
6subdivision (d) shall provide the individual, organization, or entity
7a memorandum that lists the identity of the producer, the address
8of the producer, and the identity and quantity of the produce
9purchased. A bill of sale or a container label including this
10information shall meet the requirements of this subdivision.

11

SEC. 7.  

Section 47004 of the Food and Agricultural Code is
12repealed.

begin delete
13

47004.  

(a) Certified farmers’ markets may establish rules and
14procedures that are more restrictive or do not violate state law or
15regulation governing or implementing this chapter.

16(b) Certified farmers’ markets are locations established in
17accordance with local ordinances, where California farmers may
18transport and sell to the public California agricultural products that
19they produced, that are exempt from the established grade, size,
20labeling, packaging and other such requirements for fruits, nuts,
21and vegetables, and operated in accordance with this chapter and
22regulations adopted pursuant to this chapter.

23(c) The governing body of any certified farmers’ market
24operating with more than one participating certified producer shall
25adopt written rules and procedures pertaining to the operation of
26the market. The rules shall include a requirement that the governing
27body and its designated agents establish, implement, and enforce
28all rules and procedures pertaining to the operation of the certified
29farmers’ market in a fair, nondiscriminatory, and equitable manner.

end delete
30

SEC. 8.  

Section 47004 is added to the Food and Agricultural
31Code
, to read:

32

47004.  

(a) Certified farmers’ markets are California
33agricultural product point of sale locations that are registered under
34the provisions of Section 47020 and operated in accordance with
35this chapter and regulations adopted pursuant to this chapter.

36(b) The operator of a certified farmers’ market shall establish
37a clearly defined marketing area where only agricultural products
38may be sold. Only the producer or the lawful authorized
39representative of the producer may sell agricultural products within
40the area defined as a certified farmers’ market. Sales of agricultural
P12   1products purchased from another individual or entity shall not
2occur within a certified farmers’ market, and an agricultural product
3producer or product dealer shall not sell his or her agricultural
4products to another individual or entity with the understanding or
5knowledge that the products are intended to be resold in a certified
6farmers’ market in violation of this chapter or the regulations
7adopted pursuant to this chapter. Every producer selling within a
8certified farmers’ market shall comply with Section 47020.

9(c) All vendors of agricultural products selling within a certified
10farmers’ market shall do all of the following:

11(1) Post a conspicuous sign or banner at the point of sale that
12states the name of the farm or ranch, the county where the farm
13or ranch maintains the production grounds that produced the
14products being offered for sale is located, and a statement that “We
15Grew What We Are Selling” or “We Raised What We Are Selling”
16or “We Grow What We Sell” or similar phrases that clearly
17represent that the farm or ranch is only selling agricultural products
18that they themselves have grown or raised on California land that
19they possess or control. Product sales by different farms at the
20same vendor stand shall separate the products from each farm or
21ranch and correspondingly post the required sign or banner in
22direct relationship with the sales display of the products produced
23by each farm.

24(2) Ensure that all processed agricultural products that they offer
25 for sale state in a clear manner by package label, container label,
26or bulk sales signage that they consist only, with the exception of
27incidental flavorings and necessary preservatives, of agricultural
28products grown or raised by the farm or ranch selling them, the
29farm or ranch name, and the city where the farm or ranch is located.
30In addition, every processed product shall identify on a package
31label, container label, or on bulk sales signage the registration
32number or other identity reference of the facility where the food
33was processed, or another required labeling statements or
34information, in accordance with Sections 110460, 114365, and
35114365.2 of the Health and Safety Code, or, in the case of meat
36products, the identity of the facility where the meat products were
37cut and wrapped, in accordance with the United States Department
38of Agriculture or State of California inspection standards, or, in
39the case of dairy products, the identity of the facility where the
40dairy products were manufactured or processed.

P13   1(3) Ensure all products being represented or offered for sale as
2organic are clearly labeled or have conspicuous and posted
3point-of-sale signage identifying the products as organic.

4(d) The representations required pursuant to subdivision (c)
5shall be subject to the provisions and penalties specified in Section
6890.

7(e) An operator of a certified farmers’ market that also operates,
8manages, or otherwise controls a separate sales activity or vending
9event or marketing area in close proximity, adjacent, or contiguous
10to the operator’s certified farmers’ market shall not allow the sale
11or distribution of fresh whole produce by vendors selling within
12those sales activity or vending event or marketing areas.

13(f) The operator of a certified farmers’ market shall keep an
14accurate participation record of the individual direct marketing
15producers whose agricultural products were presented for sale in
16their market each market day. The operators shall submit to the
17department a quarterly report of the registration numbers and
18participation frequency of the direct marketing producers whose
19agricultural products were presented for sale in the operator’s
20market during that past quarter. The department shall create and
21maintain online capability for reporting.

22(g) Operators of certified farmers’ markets may establish rules
23and procedures that are more restrictive and stringent than state
24laws or regulations governing or implementing this chapter, so
25long as the rules and procedures are not in conflict with state laws
26or regulations.

27(h) Except for certified farmers’ markets operated by
28government agencies, nonprofit entities and other qualified
29operators of certified farmers’ markets shall be considered private
30entities and may take actions, adopt rules, and impose requirements
31they deem necessary for the proper and honest operation of their
32market, subject to the application of any state or other laws.
33Government agency operators of certified farmers’ markets are
34subject to applicable state laws, the regulations and laws of the
35governing agency, and other laws governing the conduct and
36actions they may take as a governmental entity.

37

SEC. 9.  

Section 47004.1 of the Food and Agricultural Code is
38repealed.

begin delete
39

47004.1.  

(a) Any certified producer aggrieved by a rule or
40procedure of a certified farmers’ market may submit a written
P14   1request to the department for an advisory opinion as to whether,
2as a question of law, the rule or procedure in dispute is consistent
3with this chapter and the regulations implementing this chapter.
4Not later than 15 calendar days after the date on which the written
5request is received, the department shall undertake its review and
6issue an advisory opinion. The request for and issuance of an
7advisory opinion is not a prerequisite to the pursuit of any civil
8litigation. However, the advisory opinion shall be given substantial
9weight in any subsequent civil or administrative proceeding
10involving the parties and subject matter of the advisory opinion.
11The department may adopt regulations providing for the precedent
12value of its advisory opinions issued pursuant to this section.
13Notwithstanding any other provision of law, the department shall
14not incur liability in connection with the preparation and issuance
15of any advisory opinion issued pursuant to this section.

16(b) The department shall provide for an informal hearing
17pursuant to Article 10 (commencing with Section 11445.10) of
18Chapter 4.5 of Part 1 of Division 3 of Title 2 of the Government
19Code, with regard to any grievance of a certified producer involving
20questions of fact concerning any action taken by a certified farmers’
21market against the producer, or any implementation of a rule or
22procedure established by certified farmers’ market against the
23producer, or any other related issue, as to whether application of
24the rule or procedure in dispute is consistent with this chapter and
25the regulations implementing this chapter. The informal hearing
26shall proceed without the option of conversion to a formal hearing.
27The request for an informal hearing to resolve issues involving
28disputes of fact is not a prerequisite to the pursuit of any civil
29litigation.

30(c) In addition to, or in lieu of, the alternatives set forth in
31subdivisions (a) and (b), the parties may agree to employ mediation.
32If mediation fails to resolve the dispute, the parties may agree to
33employ binding arbitration. The department and the county
34agricultural commissioners shall incur no expense or liability for
35mediation or binding arbitration.

end delete
36

SEC. 10.  

Section 47010 of the Food and Agricultural Code is
37amended to read:

38

47010.  

(a) The secretarybegin delete mayend deletebegin insert shallend insert establish a committee
39begin delete whichend deletebegin insert thatend insert shall be known as the Certified Farmers’ Market
40Advisory Committee. The primarybegin delete goalend deletebegin insert goalsend insert of the committee
P15   1shall be begin deleteto ensure the integrity of certified farmers’ markets.end deletebegin insert all of
2the following:end insert

begin insert

3(1) Promote the demand and consumption of agricultural
4products purchased directly from producers at certified farmers’
5markets.

end insert
begin insert

6(2) Ensure that existing and future certified farmers’ markets
7are primarily maintained for the benefit of the producers selling
8their products within those markets.

end insert
begin insert

9(3) Ensure that honest and fair marketing of products occur
10within certified farmers’ markets and within an ancillary vending
11activity under the operation and control of a certified farmers’
12market operator.

end insert

13(b) The committee shall be composed ofbegin delete 17end deletebegin insert 14end insert members and
14their alternates. begin delete The secretary shall appoint the members of the
15 committee from a list of nominees provided by the industry subject
16to this chapter.end delete
The secretary shallbegin insert endeavor toend insert appointbegin delete eightend deletebegin insert sixend insert
17 members and their alternates who shall bebegin delete active certifiedend delete producers
18begin insert or representatives of agricultural organizations that represent
19producersend insert
,begin delete fourend deletebegin insert sixend insert members and their alternates who shall be
20certified farmers’ marketbegin delete managersend deletebegin insert operators end insert or representatives
21begin insert of the operatorend insert,begin delete two representatives from different major state
22direct marketing associations,end delete
one public member, andbegin delete two
23membersend delete
begin insert one memberend insert andbegin delete their alternatesend deletebegin insert his or her alternateend insert who
24shall bebegin insert aend insert county agriculturalbegin delete commissionersend deletebegin insert commissionerend insert. An
25alternate member shall serve at a committee meeting only in the
26absence of, and shall have the same powers and duties as, the
27member for whom he or she is designated as alternate.begin insert All
28appointees shall serve two-year terms or at the pleasure of the
29secretary. Members appointed to fill vacancies shall serve the
30remainder of the term.end insert

31(c) The secretarybegin delete shall appoint only one certified producer,
32certified farmers’ market manager, or representative to represent
33any one farm or certified farmers’ market andend delete
shall makebegin delete everyend delete
34begin insert anend insert effort tobegin delete ensure that there isend deletebegin insert include members who representend insert a
35diversebegin delete representation from major production and market areasend delete
36begin insert state geographical and agricultural productend insert.

37(d) The committee shall meet at the request of the secretarybegin delete, the
38committee chairperson, or upon the request of four committee
39membersend delete
. It shall meet at least once each year.

P16   1(e) The committeebegin delete shallend deletebegin insert mayend insert appoint its own officers, including
2a chairperson, a vice chairperson, a secretary, and any other officers
3it deems necessary. The committee may adopt rules that it deems
4are necessary for the conduct of its meetings and functions to carry
5out the objectives of this chapter.

6

SEC. 11.  

Section 47011 of the Food and Agricultural Code is
7amended to read:

8

47011.  

Thebegin delete committeeend deletebegin insert Certified Farmers’ Market Advisory
9Committeeend insert
shall be advisory to the secretary onbegin delete allend delete matters
10pertaining to direct marketing of agricultural products at certified
11farmers’ markets and may makebegin delete recommendationsend delete
12begin insert recommendations,end insert including, but not limited to, the following:

13(a) The amendment, repeal, or adoption of legislation and
14regulations that relate to thebegin delete administration and enforcement of
15this chapterend delete
begin insert primary goals stated in subdivision (a) of Section
1647010end insert
.

17(b) Administrative policies and procedures that relate tobegin insert the
18primary goals stated in subdivision (a) of Section 47010, includingend insert

19 the inspection ofbegin delete certifiedend delete producers and certified farmers’ markets.

20(c) Administrative civil penalties for violations ofbegin delete direct
21marketingend delete
begin insert certified farmers’ market laws andend insert regulations.

begin delete

22(d) Certification fees collected pursuant to Section 47020.

end delete
begin insert

23(d) Program and enforcement fees collected pursuant to Section
2447021.

end insert

25(e) Statewide review ofbegin insert certified farmers’ market promotion
26andend insert
enforcement actions.

27(f) The annual budget of thebegin delete departmentend deletebegin insert department’s certified
28farmers’ market programend insert
to carry outbegin insert the goals and purposesend insert this
29chapterbegin delete and the assessment of fees to pay for the costs incurred by
30the department to carry out this chapterend delete
.

31(g) Alternative strategies for certification and investigation
32methodology, and methods for industry self-regulation and
33commission formation.

34

SEC. 12.  

Section 47012 of the Food and Agricultural Code is
35repealed.

begin delete
36

47012.  

(a) Except as provided in subdivisions (b) and (c), the
37term of any member of the committee shall be two years.

38(b) With respect to the terms of initial members of the
39committee, eight members shall serve for one year and nine
40members shall serve for two years, with the determinations of the
P17   1term of each member to be made by lot. No member of the
2committee shall serve more than four full consecutive two-year
3terms.

4(c) Any vacancy that occurs during an unexpired term shall be
5filled by appointment for the unexpired term.

end delete
6

SEC. 13.  

Section 47020 of the Food and Agricultural Code is
7repealed.

begin delete
8

47020.  

(a) A certified farmers’ market certificate issued by a
9county agricultural commissioner shall be valid for 12 months
10from the date of issue. The county agricultural commissioner shall
11inspect every certified farmers’ market within his or her jurisdiction
12at least once, in every six months of operation. The county
13agricultural commissioner may charge a certification and inspection
14fee up to a maximum rate of sixty dollars ($60) per hour, unless
15the county board of supervisors elects not to charge inspection and
16certificate costs. Inspections shall be required notwithstanding a
17county board of supervisors’ election not to charge certificate and
18inspection fees. If a fee is charged for conducting the certification
19and inspection, it shall include either the itemized actual costs, or
20the weighted average hourly rate, as determined on an annual basis
21by the county, which shall be provided to the certified farmers’
22market manager prior to the payment of the fee.

23(b) A certified producer’s certificate issued by a county
24agricultural commissioner may be valid for up to 12 months from
25the date of issue. The county agricultural commissioner in each
26county shall perform at least one annual onsite inspection of the
27property or properties listed on every certified producer’s certificate
28issued in their county to verify production of the commodities
29listed on the certificate or the existence in storage of the harvested
30production, or both. If the certificate is issued for a period of seven
31months or more, the county agricultural commissioner in each
32county shall perform at least one additional onsite inspection or
33other equally appropriate measure to verify production or storage,
34or both. The county agricultural commissioner may charge a
35certificate and inspection fee up to a maximum rate of sixty dollars
36($60) per hour, unless the county board of supervisors elects not
37to charge inspection and certificate costs. Inspections shall be
38required notwithstanding a county board of supervisors’ election
39not to charge certificate and inspection fees. If a fee is charged for
40conducting the certification and inspection, it shall include either
P18   1the itemized actual costs, or the weighted average hourly rate, as
2determined on an annual basis by the county, which shall be
3provided to the producer prior to the payment of the fee.

4(c) Renewal of a certified farmers’ market certificate or certified
5producer’s certificate may be denied by either the department or
6a county agricultural commissioner if a certified farmers’ market
7or a certified producer is delinquent in the payment of the required
8state fee or any county certification and inspection fee or
9administrative civil penalty authorized under this chapter. The
10certificate shall be eligible for renewal when all outstanding
11balances and associated penalties or administrative fines have been
12paid to the department or the respective county or counties.

end delete
13

SEC. 14.  

Section 47020 is added to the Food and Agricultural
14Code
, to read:

15

47020.  

(a) An operator of a certified farmers’ market shall
16annually register with the department the times and location of the
17market, the name and contact information for the operator of the
18market, and the agent for service of process for the operator. Upon
19completion of a proper application, the county agricultural
20commissioner shall issue to the operator a certified farmers’ market
21certificate.

22(b) A certified farmers’ market certificate issued by a county
23agricultural commissioner shall be valid for 12 months from the
24date of issue and may be renewed annually thereafter. The county
25agricultural commissioner shall inspect every certified farmers’
26market within his or her jurisdiction at least once for every six
27months of operation. The county agricultural commissioner shall
28provide an estimate of expenses for inspections at the time of
29application or renewal and may charge a certification and
30inspection fee reflecting or equal to the actual expenses incurred.

31(c) (1) (A) A producer wishing to sell at a certified farmers’
32market shall apply and register with the department and obtain a
33certified producer’s certificate. Each registration shall include a
34declaration by the producer that he or she is knowledgeable of and
35intends to produce in accordance with good agricultural practices,
36as outlined in the Small Farm Food Safety Guidelines published
37by the department.

38(B) A declaration made pursuant to subparagraph (A) shall not
39be used to infer that the producer is not required to comply with
P19   1other state or federal laws relative to food safety and good
2agricultural practices.

3(2) Once certified, a producer farming fruit, vegetables, nuts,
4herbs, and similar crops shall annually submit to the department
5required information about the specific crops that he or she will
6harvest or intends to harvest for sales directly to the public. The
7secretary may promulgate regulations to define the information
8required by this paragraph.

9(3) A certified producer’s certificate issued by a county
10agricultural commissioner shall be valid for up to 12 months from
11the date of issue and may be renewed annually thereafter. The
12county agricultural commissioner in each county shall perform at
13least one onsite inspection for all new certified producer’s
14certificate applicants and may perform additional inspections as
15needed of the property or properties listed on the certified
16producer’s certificate issued in his or her county as deemed
17appropriate by the county agricultural commissioner to verify
18production of the commodities being sold at a certified farmers’
19market or the existence in storage of the producer’s actual harvested
20production, or both, of any product being sold at a certified
21farmers’ market. Where practical or purposeful, verification
22inspections shall be made when the actual harvest or sale of the
23commodity in question is occurring. The county agricultural
24commissioner shall furnish the producer an estimate of expenses
25for certification or inspection at the time of application or renewal
26or before any needed additional verification inspection, and may
27charge a certification and inspection fee reflecting or equal to the
28actual expenses incurred.

29(d) Renewal of a certified farmers’ market certificate or certified
30producer’s certificate may be denied by either the department or
31a county agricultural commissioner if a certified farmers’ market
32or a producer is delinquent in the payment of the required state fee
33or a county certification and inspection fee or administrative civil
34penalty authorized pursuant to this chapter. The certificate shall
35be eligible for renewal when all outstanding balances and
36associated penalties or administrative fines have been paid to the
37department or the respective county or counties.

38

SEC. 15.  

Section 47021 of the Food and Agricultural Code is
39amended to read:

P20   1

47021.  

(a) Every operator of a certified farmers’ market shall
2remit to the department, within 30 days after the end of each
3quarter, a fee equal to the number ofbegin delete certified producer certificates
4and other agricultural producersend delete
begin insert vendors participating and selling
5goods under the authority and management of the certified farmers’
6market operatorend insert
participating on each market day for the entire
7previous quarter.begin delete The fee shall be established by January 1 of each
8year by the department upon the receipt of a budget
9recommendation from the advisory committee.end delete
The fee shallbegin delete not
10exceed sixty cents ($0.60) for each certified producer certificate
11and other agricultural producers participatingend delete
begin insert be two dollars ($2)
12for each vendor whose products were presented for saleend insert
on each
13market day. A certified farmers’ marketbegin insert operatorend insert may directly
14recover all or part of the fee from the participatingbegin delete certified and
15other agricultural producersend delete
begin insert vendorsend insert.

16(b) begin deleteAny end deletebegin insertAnend insertbegin insert end insertoperator of a certified farmers’ market who fails to
17pay the required fee within 30 days after the end of the quarter in
18which it isbegin delete due,end deletebegin insert dueend insert shall pay to the department a monthly interest
19charge on the unpaid balance and a late penalty charge, to be
20determined by the department and not to exceed the maximum
21amount permitted by law.

22(c) All fees collected pursuant to this section shall be deposited
23in the Department of Food and Agriculture Fund. The money
24generated by the imposition of the fees shall be used, upon
25appropriation by the Legislature, by thebegin delete department,end deletebegin insert departmentend insert
26 to cover the reasonable costs to carry out this chapter, including
27all of the following actions undertaken by the department:

28(1) The coordination of thebegin insert Certified Farmers’ Market Advisory
29Committee or any ad hoc direct marketingend insert
advisory committee.

30(2) The evaluation of county enforcement actions and assistance
31with regard to multiple county enforcement problems.

32(3) The adoption of regulations to carry outbegin delete this chapterend deletebegin insert the
33provisions of this chapter pertaining to certified farmers’ marketsend insert
.

34(4) begin deleteHearing appeals end deletebegin insertHearingsend insertbegin insert end insertfrom actions takenbegin delete by county
35agricultural commissionersend delete
to enforce this chapter.

begin delete

36(5) The review of rules or procedures established by a certified
37farmers’ market and the issuance of advisory opinions and the
38provision of informal hearings pursuant to Section 47004.1 as to
39whether the rules or procedures are consistent with this chapter
40and implementing regulations.

end delete
begin insert

P21   1(5) The maintenance of a current statewide listing of certified
2farmers’ markets locations.

end insert

3(6) The maintenance of a current statewide listing ofbegin delete certified
4farmers’ markets with schedules of operations and locationsend delete

5begin insert producers who have been certifiedend insert.

begin delete

6(7) The maintenance of a current statewide listing of certified
7producers.

end delete
begin delete

8(8) The dissemination to all certified farmers’ markets
9information regarding the suspension or revocation of any
10producer’s certificate and the imposition of administrative
11penalties.

end delete
begin delete

12(9) Other actions, including the maintenance of special fund
13reserves, that are recommended by the advisory committee and
14approved by the department for the purpose of carrying out this
15chapter.

end delete
begin delete

16(d) This section shall remain in effect only until January 1, 2018,
17and as of that date is repealed, unless a later enacted statute, that
18is enacted before January 1, 2018, deletes or extends that date.

end delete
begin insert

19(7) The dissemination to all certified farmers’ markets
20information regarding the suspension or revocation of any
21producer’s certificate and the imposition of administrative
22penalties.

end insert
begin insert

23(8) Other actions, including the maintenance of special fund
24reserves, that are recommended by the Certified Farmers’ Market
25Advisory Committee or any ad hoc direct marketing advisory
26committee and approved by the department for purposes of
27carrying out this chapter pertaining to certified farmers’ markets.

end insert
28

SEC. 16.  

No reimbursement is required by this act pursuant to
29Section 6 of Article XIII B of the California Constitution for certain
30costs that may be incurred by a local agency or school district
31because, in that regard, this act creates a new crime or infraction,
32eliminates a crime or infraction, or changes the penalty for a crime
33or infraction, within the meaning of Section 17556 of the
34Government Code, or changes the definition of a crime within the
35meaning of Section 6 of Article XIII B of the California
36Constitution.

37However, if the Commission on State Mandates determines that
38this act contains other costs mandated by the state, reimbursement
39to local agencies and school districts for those costs shall be made
P22   1pursuant to Part 7 (commencing with Section 17500) of Division
24 of Title 2 of the Government Code.



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