Amended in Senate June 11, 2014

Amended in Assembly May 23, 2014

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 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.

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, asbegin delete specified, or take action against a license, permit, registration, or certification issued pursuant to the Food and Agricultural Code.end deletebegin insert specified.end insert 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 authorizes the secretary to adopt regulations 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 requires the secretary to establish the Certified Farmers’ Market Advisory 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 would revise the primary goals of the committee and the matters 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, and would specify that members of the committee serve for 2-year terms or at the pleasure of the secretary.

(5) Existing law specifies that a certified farmers’ market certificate or a certified producer’s certificate obtained from a county agricultural commissioner is valid for 12 months and 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 instead require a certified farmers’ market operator or producer to annually register with the department 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 an operator of a certified farmers’ market remit to the department a 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, to be deposited in the Food and Agriculture Fund and, upon appropriation by the Legislature, to be used by the department for specified purposes.

This bill would instead require a fee 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:

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. False, Deceptive, or Misleading Marketing
6

 

7

890.  

(a) It is unlawful for any person or entity, or employee
8or agent of that person or entity, to make any statement,
9representation, or assertion orally, by public statement,
10advertisement, signage, or by any means that relates to the sale or
11availability of agricultural products that is false, deceptive, or
12misleading regarding any of the following:

13(1) The area of production of the agricultural product.

14(2) The identity of the producer of the agricultural product.

P5    1(3) The manner and method of production of the agricultural
2product.

3(b) A violation of the provisions of this section is a misdemeanor
4punishable by imprisonment in the county jail not exceeding six
5months, or by a fine not exceeding two thousand five hundred
6dollars ($2,500), or by both that imprisonment and fine.

7

891.  

In lieu of prosecution, the secretary, or a county
8agricultural commissioner under the authority of the secretary,
9may levy a civil penalty against a person or entity that violates this
10chapter in an amount not less than five hundred dollars ($500) and
11not more than five thousand dollars ($5,000) for each violation.
12The amount of the penalty assessed for each violation shall be
13based upon the scope of the violation, the seriousness of the
14deception, and the impact of the penalty on the violator, including
15the deterrent effect on future violations. Subdivision (e) of Section
1643003 shall apply to a fine or civil penalty levied pursuant to this
17section.

18

892.  

(a) begin deleteIn addition to, or in lieu of, an end deletebegin insertAny end insertaction taken against
19a person by the secretary or a county agricultural commissioner
20pursuant to Section 890 orbegin delete 891,end deletebegin insert 891 shall not precludeend insert the secretary
21or a county agricultural commissionerbegin delete may, relative to the offense,
22modify, suspend, revoke, or refuse or condition the issuance of a
23license, permit, registration, or certification issued under the
24provisions of this code.end delete
begin insert from taking a separate action for a
25violation of a provision of this code that is specific to a particular
26license or permit.end insert

begin delete

27(b) An action taken pursuant to this section shall be based upon
28the scope of the violation, the seriousness of the deception, and
29the corrective or deterrent effect on future violations.

30(c) An action taken pursuant to this section shall be subject to
31the due process and applicable civil remedy provisions of this code
32 that govern the issuance of the license, permit, registration, or
33certification.

end delete
34

893.  

(a) All civil penalties collected pursuant to this chapter
35by the secretary shall be deposited in the Direct Agricultural
36Marketing Penalty Account, which is hereby created in the
37Department of Food and Agriculture Fund, and shall be used to
38conduct investigations and enforcement actions upon complaints
39filed or pursuant to information received that results in the
40investigation of a violation of Section 890. Money deposited
P6    1pursuant to this chapter also may be used to contract with county
2agricultural commissioners for services that further the purposes
3of this chapter, and may be used for expenses incurred by county
4agricultural commissioners for investigative and enforcement
5actions conducted pursuant to this chapter. Notwithstanding Section
613340 of the Government Code, all moneys deposited pursuant to
7this chapter shall be continuously appropriated to the department
8without regard to fiscal year for purposes of this chapter.

9(b) All civil penalties collected pursuant to enforcement actions
10by a county agricultural commissioner pursuant to this chapter
11shall be paid to the county treasurer.

12

894.  

An action brought by the state or a county pursuant to
13Section 892 or 893 for a violation of Section 890 shall preclude a
14concurrent proceeding by the state or a county for the same act.

15

SEC. 2.  

Section 43100 of the Food and Agricultural Code is
16amended to read:

17

43100.  

(a) The terms “California grown,” “California-grown,”
18and similar terms with identical connotations shall be used in the
19labeling or advertising of agricultural products as follows:

20(1) The terms “California grown,” “California-grown,” and
21similar terms with identical connotations may be used for
22marketing, advertising, or promotional purposes only to identify
23food or agricultural products that have been produced in the state
24or harvested in its surface or coastal waters.

25(2) The secretary may adopt guidelines, rules, and regulations
26to further define acceptable uses of the terms “California grown,”
27“California-grown,” and similar terms with identical connotations
28and to prevent any misleading use of the terms.

29(b) A false, deceptive, or misleading use of the term “California
30grown,” “California-grown,” or similar terms with identical
31connotations, or of any seals or other identities officially adopted
32by the department in connection with these terms, or any
33unwarranted use of these items or terms, shall be subject to the
34provisions and penalties set forth in Chapter 9 (commencing with
35Section 890) of Part 1 of Division 1.

36

SEC. 3.  

Section 47000 of the Food and Agricultural Code is
37amended to read:

38

47000.  

The Legislature finds and declares all of the following
39with regard to the direct marketing of agricultural products:

P7    1(a) Direct marketing of agricultural products benefits the
2agricultural community and the consumer by, among other things,
3providing an alternative method for growers to sell their products
4while benefiting the consumer by supplying quality produce at
5reasonable prices.

6(b) Direct marketing is a good public relations tool for the
7agricultural industry that brings the farmer face-to-face with
8consumers and other end users.

9(c) The direct marketing potential of a wide variety of
10California-produced agricultural products should be maximized
11and encouraged.

12(d) Farm stands allow farmers to sell fresh produce and eggs
13grown on their farm as well as other food products made with
14ingredients produced on or near the farm, thus enhancing their
15income and the local economy.

16(e) The permitting, regulating, and operating of certified farmers’
17markets provide the essential core and foundation for the creation
18and operation of additional nonagricultural vending activities that
19are ancillary but contiguous to the certified farmers’ market,
20thereby providing a larger community event amenity for business
21districts and additional revenue for the operators of certified
22farmers’ markets.

23(f) The department should maintain a direct marketing program
24and encourage the sale and purchase of California-grown fresh
25produce and other California-produced agricultural products.

26(g) It is the intent of the state to promote the purchase and
27consumption of California-grown produce and to promote access
28to California-produced agricultural products. Restaurants and
29nonprofit organizations can assist in bringing California-grown
30products to all Californians.

31(h) A regulatory scheme should be developed that provides the
32flexibility that will make direct marketing a viable marketing
33system.

34(i) The department should assist producers in organizing certified
35farmers’ markets, field retail stands, farm stands,
36community-supported agriculture, and other forms of direct
37marketing by providing technical advice on marketing methods
38and in complying with the regulations that affect direct marketing
39programs.

P8    1(j) The department is encouraged to establish an ad hoc advisory
2committee to assist the department in establishing regulations
3affecting direct marketing of products and to advise the secretary
4in all matters pertaining to direct marketing.

5

SEC. 4.  

Section 47000.5 is added to the Food and Agricultural
6Code
, to read:

7

47000.5.  

The following definitions apply to this chapter, unless
8otherwise specified:

9(a) “Agricultural product” means a fresh or processed product
10produced in California, including fruits, nuts, vegetables, herbs,
11mushrooms, dairy, shell eggs, honey, pollen, unprocessed bees
12wax, propolis, royal jelly, flowers, grains, nursery stock, livestock
13meats, poultry meats, rabbit meats, and fish, including shellfish
14that is produced under controlled conditions in waters located in
15California. Products that are characterized as services, arts, crafts,
16bakery, candies, soaps, balms, perfumes, cosmetics, pottery,
17clothing, fabrics, pastas, compost, fertilizers, candles, ceramics,
18foraged, and types of wares are not agricultural products for
19purposes of this chapter. A product that combines an agricultural
20product with a nonagricultural product or service in a manner that
21begin delete substantiallyend deletebegin insert materiallyend insert increases the purchase price of the product
22shall disqualify the product from being sold as an agricultural
23product for purposes of this chapter.

24(b) “Practice of the agricultural arts” means the undertaking of
25being predominantly responsible for the decisions and actions
26encompassing the various phases of producing an agricultural
27product. The practice of the agricultural arts for fruit, floral, nut,
28vegetable, and other plant products includes directive or actual
29responsibility for all the actions of planting, growing, fertilizing,
30irrigating, cultivating, pest control, and harvesting. The practice
31of the agricultural arts for agricultural animal products includes
32directive or actual responsibility for a substantial time of the
33raising, feeding, veterinary care, and product harvesting.

34(c) “Producer” means a person, partnership, corporation, or an
35otherwise legally formed farm or ranch that produces agricultural
36products by the practice of the agricultural arts upon land that the
37person or entity owns, rents, leases, sharecrops, or otherwise
38controls and has the documented legal right to possession. A person
39or entity that rents, leases, or otherwise acquires the right to
40possession of property essentially only for or limited to the period
P9    1of the harvest season of the agricultural products produced on that
2property shall not be considered a producer under the provisions
3of this chapter.

4

SEC. 5.  

Section 47001 of the Food and Agricultural Code is
5amended to read:

6

47001.  

(a) The secretary may adopt regulations to encourage
7the direct sale by farmers to the public of all types of California
8agricultural products.

9(b) These regulations may include provisions to ensure and
10maintain the quality and wholesomeness of the products, and to
11ensure that the selling activities are conducted without fraud,
12deception, or misrepresentation.

13(c) The secretary may enter into a cooperative agreement with
14a county agricultural commissioner to carry out the provisions of
15this chapter, including, but not limited to, administration,
16investigations, inspections, registrations, and assistance pertaining
17to direct marketing producers and outlets. Compensation under
18the cooperative agreement shall be paid from assessments and fees
19collected and deposited pursuant to this chapter and shall provide
20reimbursement to the county agricultural commissioner for
21associated costs not otherwise adequately funded pursuant to
22Section 47020.

23(d) Upon reasonable suspicion of a violation of Section 890, a
24certified farmers’ market operator may contract with a county
25agricultural commissioner for a special onsite field or storage
26verification inspection of a direct marketing producer selling in a
27certified farmers’ market operated and controlled by the operator.
28All contracts and contract fees are subject to the discretion of the
29county agricultural commissioner in the county where the
30verification inspections are being requested.

31

SEC. 6.  

Section 47002 of the Food and Agricultural Code is
32amended to read:

33

47002.  

California farmers registered or certified pursuant to
34this chapter as direct marketing producers may transport for sale
35and sell California-grown fresh fruits, nuts, and vegetables that
36they produce, directly to the public, and shall be exempt from size,
37standard pack, container, and labeling requirements at an outlet or
38location operated by an individual, organization, or entity that is
39regulated pursuant to this chapter or is recognized by a regulation
P10   1adopted pursuant to Section 47001 and is otherwise authorized by
2local laws, subject to the following conditions:

3(a) All fresh fruits, nuts, and vegetables sold shall comply with
4the California Code of Regulations governing maturity and quality.

5(b) No exemption granted by this section supersedes the
6provisions of federal marketing orders, state marketing orders, or
7any health and safety laws, regulations, or ordinances.

8(c) All fresh fruits, nuts, and vegetables sold in closed consumer
9containers shall be labeled with the name, address, and ZIP Code
10of the producer, and a declaration of identity and net quantity of
11the commodity in the package.

12(d) If a farmer selling produce pursuant to this section
13implements any exemption to size, standard pack, container, or
14labeling requirements as provided by this section, those sales may
15only be conducted as direct sales to any of the following:

16(1) Consumers who are end users.

17(2) Individuals, organizations, or entities that subsequently sell
18the produce directly to end users.

19(3) Individuals, organizations, or entities that distribute the
20produce directly to end users at no cost to those end users.

21(e) A farmer selling produce under paragraph (2) or (3) of
22subdivision (d) shall provide the individual, organization, or entity
23a memorandum that lists the identity of the producer, the address
24of the producer, and the identity and quantity of the produce
25purchased. A bill of sale or a container label including this
26information shall meet the requirements of this subdivision.

27

SEC. 7.  

Section 47004 of the Food and Agricultural Code is
28repealed.

29

SEC. 8.  

Section 47004 is added to the Food and Agricultural
30Code
, to read:

31

47004.  

(a) Certified farmers’ markets are California
32agricultural product point of sale locations that are registered under
33the provisions of Section 47020 and operated in accordance with
34this chapter and regulations adopted pursuant to this chapter.

35(b) The operator of a certified farmers’ market shall establish
36a clearly defined marketing area where only agricultural products
37may be sold. Only the producer or the lawful authorized
38representative of the producer may sell agricultural products within
39the area defined as a certified farmers’ market. Sales of agricultural
40products purchased from another individual or entity shall not
P11   1occur within a certified farmers’ market, and an agricultural product
2producer or product dealer shall not sell his or her agricultural
3products to another individual or entity with the understanding or
4knowledge that the products are intended to be resold in a certified
5farmers’ market in violation of this chapter or the regulations
6adopted pursuant to this chapter. Every producer selling within a
7certified farmers’ market shall comply with Section 47020.

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

10(1) Post a conspicuous sign or banner at the point of sale that
11states the name of the farm or ranch, the county where the farm
12or ranch maintains the production grounds that produced the
13products being offered for sale is located, and a statement that “We
14Grew What We Are Selling” or “We Raised What We Are Selling”
15or “We Grow What We Sell” or similar phrases that clearly
16represent that the farm or ranch is only selling agricultural products
17that they themselves have grown or raised on California land that
18they possess or control. Product sales by different farms at the
19same vendor stand shall separate the products from each farm or
20ranch and correspondingly post the required sign or banner in
21direct relationship with the sales display of the products produced
22by each farm.

23(2) Ensure that all processed agricultural products that they offer
24for sale state in a clear manner by package label, container label,
25or bulk sales signage that they consist only, with the exception of
26incidental flavorings and necessary preservatives, of agricultural
27products grown or raised by the farm or ranch selling them, the
28farm or ranch name, and the city where the farm or ranch is located.
29In addition, every processed product shall identify on a package
30label, container label, or on bulk sales signage the registration
31number or other identity reference of the facility where the food
32was processed, or another required labeling statement or
33information, in accordance with Sections 110460, 114365, and
34114365.2 of the Health and Safety Code, or, in the case of meat
35begin insert or poultryend insert products, the identity of the facility where the meatbegin insert or
36poultryend insert
products were cut and wrapped, in accordance with the
37United States Department of Agriculture or State of California
38inspection standards,begin insert respectivelyend insert or, in the case of dairy products,
39the identity of the facility where the dairy products were
40manufactured or processed.

P12   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 fruits, nuts, vegetables, and flowers
12by vendors selling within those sales activity or vending event or
13marketing areas.

14(f) The operator of a certified farmers’ market shall keep an
15accurate participation record of the individual direct marketing
16producers whose agricultural products were presented for sale in
17their market each market day. The operators shall submit to the
18department a quarterly report of the registration numbers and
19participation frequency of the direct marketing producers whose
20agricultural products were presented for sale in the operator’s
21market during that past quarter. The department shall create and
22maintain online capability for reporting.

23(g) Operators of certified farmers’ markets may establish rules
24and procedures that are more restrictive and stringent than state
25laws or regulations governing or implementing this chapter, so
26long as the rules and procedures are not in conflict with state laws
27or regulations.

28(h) Except for certified farmers’ markets operated by
29government agencies, nonprofit entities and other qualified
30operators of certified farmers’ markets shall be considered private
31entities and may take actions, adopt rules, and impose requirements
32they deem necessary for the proper and honest operation of their
33market, subject to the application of any state or other laws.
34Government agency operators of certified farmers’ markets are
35subject to applicable state laws, the regulations and laws of the
36governing agency, and other laws governing the conduct and
37actions they may take as a governmental entity.

38

SEC. 9.  

Section 47004.1 of the Food and Agricultural Code is
39repealed.

P13   1

SEC. 10.  

Section 47010 of the Food and Agricultural Code is
2amended to read:

3

47010.  

(a) The secretary shall establish a committee that shall
4be known as the Certified Farmers’ Market Advisory Committee.
5The primary goals of the committee shall be all of the following:

6(1) Promote the demand and consumption of agricultural
7products purchased directly from producers at certified farmers’
8markets.

9(2) Ensure that existing and future certified farmers’ markets
10are primarily maintained for the benefit of the producers selling
11their products within those markets.

12(3) Ensure that honest and fair marketing of products occurs
13within certified farmers’ markets and within an ancillary vending
14activity under the operation and control of a certified farmers’
15market operator.

16(b) The committee shall be composed of 14 members and their
17alternates. The secretary shall endeavor to appoint six members
18and their alternates who shall be producers or representatives of
19agricultural organizations that represent producers, six members
20and their alternates who shall be certified farmers’ market operators
21or representatives of the operator, one public member, and one
22member and his or her alternate who shall be a county agricultural
23commissioner. An alternate member shall serve at a committee
24meeting only in the absence of, and shall have the same powers
25and duties as, the member for whom he or she is designated as
26alternate. All appointees shall serve two-year terms or at the
27pleasure of the secretary. Members appointed to fill vacancies shall
28serve the remainder of the term.

29(c) The secretary shall make an effort to include members who
30representbegin delete a diverse stateend delete geographicalbegin insert diversityend insert andbegin insert diverseend insert
31 agriculturalbegin delete product.end deletebegin insert products.end insert

32(d) The committee shall meet at the request of the secretary. It
33shall meet at least once each year.

34(e) The committee may appoint its own officers, including a
35chairperson, a vice chairperson, a secretary, and any other officers
36it deems necessary. The committee may adopt rules that it deems
37are necessary for the conduct of its meetings and functions to carry
38out the objectives of this chapter.

39

SEC. 11.  

Section 47011 of the Food and Agricultural Code is
40amended to read:

P14   1

47011.  

The Certified Farmers’ Market Advisory Committee
2shall be advisory to the secretary on matters pertaining to direct
3marketing of agricultural products at certified farmers’ markets
4and may make recommendations, including, but not limited to, the
5following:

6(a) The amendment, repeal, or adoption of legislation and
7regulations that relate to the primary goals stated in subdivision
8(a) of Section 47010.

9(b) Administrative policies and procedures that relate to the
10primary goals stated in subdivision (a) of Section 47010, including
11the inspection of producers and certified farmers’ markets.

12(c) Administrative civil penalties for violations of certified
13farmers’ market laws and regulations.

14(d) Program and enforcement fees collected pursuant to Section
1547021.

16(e) Statewide review of certified farmers’ market promotion
17and enforcement actions.

18(f) The annual budget of the department’s certified farmers’
19market program to carry out the goals and purposesbegin insert ofend insert this chapter.

20(g) Alternative strategies for certification and investigation
21methodology, and methods for industry self-regulation and
22commission formation.

23

SEC. 12.  

Section 47012 of the Food and Agricultural Code is
24repealed.

25

SEC. 13.  

Section 47020 of the Food and Agricultural Code is
26repealed.

27

SEC. 14.  

Section 47020 is added to the Food and Agricultural
28Code
, to read:

29

47020.  

(a) An operator of a certified farmers’ market shall
30annually register with the department by applying for and obtaining
31a certificate from the county agricultural commissioner’s office in
32the county in which the certified farmers’ market is located. The
33application shall include the times and location of the market, the
34name and contact information for the operator of the market, and
35the agent for service of process for the operator. Upon approval
36of an application, the county agricultural commissioner shall issue
37to the operator a certified farmers’ market certificate.

38(b) A certified farmers’ market certificate issued by a county
39agricultural commissioner shall be valid for 12 months from the
40date of issue, and may be renewed annually thereafter. The county
P15   1agricultural commissioner shall inspect every certified farmers’
2market within his or her jurisdiction at least once for every six
3months of operation. At the time of application or renewal, the
4county agricultural commissioner shall provide a schedule of fees
5that reflects an estimate of expenses for inspections and may charge
6a certification and inspection fee equal to the actual expenses
7incurred.

8(c) (1) (A) Before selling at a certified farmers’ market, a
9producer shall register with the department by applying for and
10obtaining a certificate from the county agricultural commissioner’s
11office in the county in which the producer’s land or facility is
12located. The application shall include a declaration by the producer
13that he or she is knowledgeable of and intends to produce in
14accordance with good agricultural practices, as outlined in the
15Small Farm Food Safety Guidelines published by the department.
16Upon approval of an application, the county agricultural
17commissioner shall issue to the producer a certified producer’s
18certificate.

19(B) A declaration made pursuant to subparagraph (A) shall not
20be used to infer that the producer is not required to comply with
21other state or federal laws relative to food safety and good
22agricultural practices.

23(2) Once certified, a producer farming fruit, vegetables, nuts,
24herbs, and similar crops shall annually submit information
25requested by the department about the specific crops that he or she
26will harvest or intends to harvest for sale directly to the public.
27The secretary may promulgate regulations specifying the
28information a producer is required to submit.

29(3) A certified producer’s certificate issued by a county
30agricultural commissioner shall be valid for up to 12 months from
31the date of issue and may be renewed annually thereafter. The
32county agricultural commissioner in each county shall perform at
33least one onsite inspection for all new certified producer’s
34certificate applicants, and may perform additional inspections as
35needed of the property or properties listed on the certified
36producer’s certificate issued in his or her county as deemed
37appropriate by the county agricultural commissioner to verify
38production of the commodities being sold at a certified farmers’
39market or the existence in storage of the producer’s actual harvested
40production, or both, of any product being sold at a certified
P16   1farmers’ market. Where practical or purposeful, verification
2inspections shall be made when the actual harvest or sale of the
3commodity in question is occurring. The county agricultural
4commissioner shall provide to the producer a schedule of fees that
5reflects an estimate of expenses for certification or inspection at
6the time of application or renewal or before any needed additional
7verification inspection, and may charge a certification and
8inspection fee equal to the actual expenses incurred.

9(d) Renewal of a certified farmers’ market certificate or certified
10producer’s certificate may be denied by either the department or
11a county agricultural commissioner if a certified farmers’ market
12or a producer is delinquent in the payment of the required state fee
13or a county certification and inspection fee or administrative civil
14penalty authorized pursuant to this chapter. The certificate may
15be eligible for renewal when all outstanding balances and
16associated penalties or administrative fines have been paid to the
17department or the respective county or counties.

18

SEC. 15.  

Section 47021 of the Food and Agricultural Code is
19amended to read:

20

47021.  

(a) Every operator of a certified farmers’ market shall
21remit to the department, within 30 days after the end of each
22quarter, a fee equal to the number of vendors participating and
23selling goods under the authority and management of the certified
24farmers’ market operator participating on each market day for the
25entire previous quarter. The fee shall be two dollars ($2) for each
26vendor whose products were presented for sale on each market
27day. A certified farmers’ market operator may directly recover all
28or part of the fee from the participating vendors.begin insert An operator of a
29certified farmers’ market that allows only vendors of agricultural
30products produced by producers on land located in the same county
31as the certified farmers’ market may petition the secretary for a
32reduction in the vendor fee. The petition shall include a statement
33of verification of the information upon which the petition is based
34by the county agricultural commissioner in the county where
35certified farmers’ market is located.end insert

36(b) An operator of a certified farmers’ market who fails to pay
37the required fee within 30 days after the end of the quarter in which
38it is due shall pay to the department a monthly interest charge on
39the unpaid balance and a late penalty charge, to be determined by
P17   1the department and not to exceed the maximum amount permitted
2by law.

3(c) All fees collected pursuant to this section shall be deposited
4in the Department of Food and Agriculture Fund. The money
5generated by the imposition of the fees shall be used, upon
6appropriation by the Legislature, by the department to cover the
7reasonable costs to carry out this chapter, including all of the
8following actions undertaken by the department:

9(1) The coordination of the Certified Farmers’ Market Advisory
10Committee or any ad hoc direct marketing advisory committee.

11(2) The evaluation of county enforcement actions and assistance
12with regard to multiple county enforcement problems.

13(3) The adoption of regulations to carry out the provisions of
14this chapter pertaining to certified farmers’ markets.

15(4) Hearings from actions taken to enforce this chapter.

16(5) The maintenance of a current statewide listing of certified
17farmers’ markets locations.

18(6) The maintenance of a current statewide listing of producers
19who have been certified.

20(7) The dissemination to all certified farmers’ markets
21information regarding the suspension or revocation of any
22producer’s certificate and the imposition of administrative
23penalties.

24(8) Other actions, including the maintenance of special fund
25reserves, that are recommended by the Certified Farmers’ Market
26Advisory Committee or any ad hoc direct marketing advisory
27committee and approved by the department for purposes of carrying
28out this chapter pertaining to certified farmers’ markets.

29(9) Investigation and enforcement expenses, including expenses
30incurred by any county agricultural commissioner for actions
31conducted pursuant to this chapter.

32

SEC. 16.  

No reimbursement is required by this act pursuant to
33Section 6 of Article XIII B of the California Constitution for certain
34costs that may be incurred by a local agency or school district
35because, in that regard, this act creates a new crime or infraction,
36eliminates a crime or infraction, or changes the penalty for a crime
37or infraction, within the meaning of Section 17556 of the
38Government Code, or changes the definition of a crime within the
39meaning of Section 6 of Article XIII B of the California
40Constitution.

P18   1However, if the Commission on State Mandates determines that
2this act contains other costs mandated by the state, reimbursement
3to local agencies and school districts for those costs shall be made
4pursuant to Part 7 (commencing with Section 17500) of Division
54 of Title 2 of the Government Code.



O

    97