BILL NUMBER: AB 1871	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 23, 2014

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 amended, Dickinson. Agricultural products: direct
marketing: certified farmers' markets.
   (1) Existing law  provides for the establishment of standards
for various agricultural products, including fruits, nuts, and
vegetables, and  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 
    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 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.   in that
regard. 
   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 
of law  . 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   requires 
the secretary to establish the Certified Farmers' Market Advisory
 Committee.   Committee, composed of 17 members
serving   2   -year terms, to advise the secretary
on matters relating to direct marketing and certified farmers'
markets.
   This bill  instead would require the secretary to
establish that committee, would specify the primary goals of the
committee, and  would revise the  primary goals of the
committee and the  matters  in   on 
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.   and
would specify that members of the committee serve for 2  
-year terms or at the pleasure of the secretary. 
   (5) Existing law  requires   specifies that
 a certified farmers' market certificate  to be
  or a certified producer's certificate  obtained
from a county agricultural  commissioner,  
commissioner is valid for 12 months  and  authorizes the
county agricultural commissioner to assess a fee for the certificate
and for inspections, as specified.   requires a county
agricultural commissioner to inspect certified farmers' markets and
the properties of certified producers, as specified. Existing law
authorizes a county agricultural commissioner to charge a
certification and inspection fee of up to $60 per hour, except as
specified. 
   This bill would  repeal those provisions and 
instead  would  require  an operator of
 a certified farmers' market  operator or producer 
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.   by applying for and receiving a certificate
from a county agricultural commissioner, and would revise the
requirements for obtaining that certificate. 
   (6) Existing law requires, until January 1, 2018, that 
every   an  operator of a certified farmers' market
remit to the department a  fee   fee, as
established by the department each year,  equal to the number of
certified producer certificates and other agricultural producers
participating on each market day for the entire previous quarter,
 which shall   to  be  deposited in the
Food and Agriculture Fund and, upon a   ppropriation by the
Legislature, to be  used by the department  upon
appropriation by the Legislature, as specified.   for
specified purposes. 
   This bill would instead require a fee  equal to the number
of vendors   of $2 for each vendor  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.  The
bill would revise the purposes for which the fees may be used,
including, among other things, for investigation and enforcement
expenses, including expenses incurred by county agricultural
commissioners for actions conducted pursuant to the provisions
relating to direct marketing. 
   (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:

  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, or employee or
agent of that person or entity, to make any statement,
representation, or assertion orally, by public statement,
advertisement, signage, or by any 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
chapter in an amount not less than five hundred dollars ($500) and
not 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 a fine or civil penalty levied pursuant to this section.
   892.  (a) In addition to, or in lieu of, an action taken against a
person by the secretary or a county agricultural commissioner
pursuant to Section 890 or 891, the secretary or a county
agricultural commissioner  may   may, relative
to the offense,  modify, suspend, revoke, or refuse or condition
the issuance of a license, permit, registration, or certification
issued under the provisions of this code.
   (b) An 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) An 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
also may 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
moneys 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 pursuant to this chapter shall
be paid to the county treasurer.
   894.  An action brought by the state or a county pursuant to
Section 892 or 893 for a violation of Section 890 shall preclude a
concurrent proceeding by the state or a county 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,  
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,   connotations  and to prevent any
misleading use of the terms.
   (b) A false, deceptive, or misleading use of the term "California
grown," "California-grown," or similar terms with identical
connotations, or of any seals or other identities officially adopted
by the department in connection with these terms, or any 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 assist 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,
community-supported agriculture, 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,  pollen, unprocessed bees
wax, propolis, royal jelly,  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 
services,  arts, crafts, bakery, candies, soaps, balms,
perfumes, cosmetics,  pottery,  clothing, fabrics, pastas,
compost, fertilizers, candles,  ceramics,  foraged, and
 other  types of wares are not agricultural products
for purposes of this chapter.  A product that combines an
agricultural product with a nonagricultural product or service in a
manner that substantially increases the purchase price of the product
shall disqualify the product from being sold as an agricultural
product 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 of the agricultural arts 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
of the agricultural arts 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 California
agricultural products.
   (b) These regulations may include provisions to ensure and
maintain the quality and wholesomeness of the products, and to ensure
that the selling activities are conducted without fraud, deception,
or misrepresentation.
   (c) The secretary may enter into a cooperative agreement with a
county agricultural commissioner to carry out the provisions of this
chapter, including, but not limited to, administration,
investigations, inspections, registrations, and assistance pertaining
to direct marketing producers and outlets. Compensation under the
cooperative agreement shall be paid from assessments and fees
collected and deposited pursuant to this chapter and shall provide
reimbursement to the county agricultural commissioner for associated
costs not otherwise adequately funded pursuant to Section 47020.
   (d) Upon reasonable suspicion of a violation of Section 890, 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.
All contracts and contract fees are subject to the discretion of the
county agricultural commissioner in the county where the verification
inspections are being requested.
  SEC. 6.  Section 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 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 pursuant to this chapter or is recognized by a regulation
adopted pursuant to Section 47001 and is otherwise authorized by
local laws, subject to the following conditions:
   (a) All fresh fruits, nuts, and vegetables sold shall comply with
the California Code of Regulations governing maturity and quality.
   (b) No exemption granted by this section supersedes the provisions
of federal marketing orders, state marketing orders, or any health
and safety laws, regulations, or ordinances.
   (c) All fresh fruits, nuts, and vegetables sold in closed consumer
containers shall be labeled with the name, address, and ZIP Code of
the producer, and a declaration of identity and net quantity of the
commodity in the package.
   (d) If a farmer selling produce pursuant to this section
implements any exemption to size, standard pack, container, or
labeling requirements as provided by this section, those sales may
only be conducted as direct sales to any of the following:
   (1) Consumers who are end users.
   (2) Individuals, organizations, or entities that subsequently sell
the produce directly to end users.
   (3) Individuals, organizations, or entities that distribute the
produce directly to end users at no cost to those end users.
   (e) A farmer selling produce under paragraph (2) or (3) of
subdivision (d) shall provide the individual, organization, or entity
a memorandum that lists the identity of the producer, the address of
the producer, and the identity and quantity of the produce
purchased. A bill of sale or a container label including this
information shall meet the requirements of this subdivision.
  SEC. 7.  Section 47004 of the Food and Agricultural Code is
repealed.
  SEC. 8.  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 this chapter or the regulations adopted
pursuant to this chapter. 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 a conspicuous sign or banner at the point of sale that
states the name of the farm or ranch, the county where the farm or
ranch maintains the production grounds that produced the products
being offered for sale is located, and a statement that "We Grew What
We Are Selling" or "We Raised What We Are Selling" or "We Grow What
We Sell" or similar phrases that clearly 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.
Product sales by different farms at the same vendor stand shall
separate the products from each farm or ranch and correspondingly
post the required sign or banner in direct relationship with the
sales display of the products produced by each farm.
   (2) Ensure that all processed agricultural products that they
offer for sale state in a clear manner by package label, 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, 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, container label, or on bulk sales signage the
registration number or other identity reference of the facility where
the food was processed, or another required labeling 
statements   statement  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.
   (3) 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  
fruits, nuts, vegetables, and flowers  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 regulations and laws of the governing
agency, and other laws governing the conduct and actions they may
take as a governmental entity.
  SEC. 9.  Section 47004.1 of the Food and Agricultural Code is
repealed.
  SEC. 10.  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 producers at certified farmers' markets.
   (2) Ensure that existing and future certified farmers' markets are
primarily maintained for the benefit of the producers selling their
products within those markets.
   (3) Ensure that honest and fair marketing of products 
occur   occurs  within certified farmers' markets
and within an ancillary vending activity 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. 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.
  SEC. 11.  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 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 Section
47021.
   (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 this chapter.
   (g) Alternative strategies for certification and investigation
methodology, and methods for industry self-regulation and commission
formation.
  SEC. 12.  Section 47012 of the Food and Agricultural Code is
repealed.
  SEC. 13.  Section 47020 of the Food and Agricultural Code is
repealed.
  SEC. 14.  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  by applying for and
obtaining a certificate from the county agricultural commissioner's
office in the county in which the certified farmers' market is
located. The application shall include  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   approval of an
 application, the county 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   issu   e,  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   At the time of application or renewal,
the  county agricultural commissioner shall provide  a
schedule of fees that reflects  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) (A)  A   Before selling at a
certified farmers' market, a  producer  wishing to sell
at a certified farmers'market shall apply and   shall
 register with the department  and obtain a certified
producer's certificate. Each registration   by applying
for and obtaining a certificate from the county agricultural
commissioner's office in the county in which the producer's land or
facility is located. The application  shall include a
declaration by the producer that he or she is knowledgeable of and
intends to produce in accordance with good agricultural practices, as
outlined in the Small Farm Food Safety Guidelines published by the
department.  Upon approval of an application, the county
agricultural commissioner shall issue to the producer a certified
producer's certificate. 
   (B) A declaration made pursuant to subparagraph (A) shall not be
used to infer that the producer is not required to comply with other
state or federal laws relative to food safety and good agricultural
practices.
   (2) Once certified, a producer farming fruit, vegetables, nuts,
herbs, and similar crops shall annually submit  to the
department required  information  requested by the
department  about the specific crops that he or she will harvest
or intends to harvest for  sales   sale 
directly to the public. The secretary may promulgate regulations
 to define   specifying  the information
 a producer is  required  by this paragraph.
  to submit. 
   (3) 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's certificate
 applicants   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
as deemed appropriate by the county agricultural commissioner 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 shall be made when the actual harvest or
sale of the commodity in question is occurring. The county
agricultural commissioner shall  furnish  
provide                                             to  the
producer  a schedule of fees that reflects  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 producer is delinquent in the payment of the
required state fee or a county certification and inspection fee or
administrative civil penalty authorized pursuant to this chapter. The
certificate  shall   may  be eligible for
renewal when all outstanding balances and associated penalties or
administrative fines have been paid to the department or the
respective county or counties.
  SEC. 15.  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 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. The fee shall be two dollars ($2) 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) An 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 producers
who have been certified.
   (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 any ad hoc direct marketing advisory committee
and approved by the department for purposes of carrying out this
chapter pertaining to certified farmers' markets. 
   (9) Investigation and enforcement expenses, including expenses
incurred by any county agricultural commissioner for actions
conducted pursuant to this chapter. 
  SEC. 16.  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.