BILL ANALYSIS                                                                                                                                                                                                    Ó



                           SENATE COMMITTEE on AGRICULTURE
                          Senator Cathleen Galgiani, Chair

          BILL NO:    SB 599                    HEARING:  04/16/13
          AUTHOR:   Evans                       FISCAL:  Yes
          VERSION:  04/10/13                    CONSULTANT:  Anne Megaro
          

                    Direct marketing: certified farmers' markets

           SUMMARY  :

          This bill extends the sunset date to January 1, 2018 for the  
          collection of certified farmers' market operator fees and  
          enforcement provisions of direct marketing.
          

           BACKGROUND AND EXISTING LAW  :

          The federal Farmer-to-Consumer Direct Marketing Act of 1976 was  
          enacted to promote "the development and expansion of direct  
          marketing of agricultural commodities from farmers to consumers"  
          in order to "lower the cost and increase the quality of food to  
          such consumers while providing increased financial returns to  
          the farmers" (7 USC Sec. 3001).  Shortly following, the  
          California Department of Food and Agriculture (CDFA) enacted  
          regulations exempting certified farmers' markets from certain  
          packing, sizing, and labeling requirements under the Fruit, Nut,  
          and Vegetable Standards Law.  These farmers must be certified  
          and annually inspected by their local county agricultural  
          commissioner to verify that all products are grown on the  
          farmer's property (Food and Agricultural Code § 47000 et seq.).

          There are approximately 700 certified farmers' markets with  
          2,200 certified farmers directly marketing products to  
          consumers.  In order to provide market oversight,  
          administration, and enforcement, a "stall fee" of not greater  
          than $0.60 is collected from each certified producer per  
          marketing day.  This fee is administered by CDFA, and  
          enforcement is carried out by the department or county  
          agricultural commissioners, who may levy civil penalties for  
          violations of this chapter or any enacted regulation. 

          The collection of the stall fee and the enforcement article of  
          this chapter are due to sunset on January 1, 2014.  


           PROPOSED LAW  :





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           This bill:  

          Extends the repeal date for the collection of certified farmers'  
          market operator fees, and the enforcement article of direct  
          marketing, from January 1, 2014 to January 1, 2018.
           COMMENTS  :

           Need for this bill:  According to the author, "Certified Farmers  
          Markets increase consumer's access to fresh local produce and  
          specialty products.  The program, in existence since 1977, is  
          scheduled to sunset on January 1, 2014."

           Ad Hoc Committee:   CDFA convened the Direct Marketing Ad Hoc  
          Committee to assess the role of direct marketing in California  
          and identify opportunities to improve regulatory control to  
          prevent fraudulent selling activities at farmers' markets.  The  
          Ad Hoc Committee published a report in December 2012 with their  
          findings, which confronted the long-term health of direct  
          marketing, funding and enforcement, and potential regulatory  
          frameworks and program designs.  Establishing a consensus proved  
          to be difficult for many issues considered by the Ad Hoc  
          Committee.  These remaining issues, and others, are currently  
          being addressed in AB 996 (Dickinson).

           Legislative Counsel technical amendment:   Legislative Counsel  
          noted an unusual discrepancy in this code section between  
          different publishers of the California codes.  Therefore, the  
          technical amendment that added Article 3.5 in this bill aims to  
          correct this discrepancy.


           RELATED LEGISLATION  :

          SB 513 (Cannella), Chapter 337, Statutes of 2011.  Extends from  
          January 1, 2012 to January 1, 2014 the collection of certified  
          farmers' market fees and related penalty and enforcement  
          provisions.

          AB 2676 (Agriculture), Chapter 440, Statutes of 2006.   Extends  
          from January 1, 2007 to January 1, 2012 the collection of  
          certified farmers' market fees and related penalty and  
          enforcement provisions.

          AB 1726 (Agriculture), Chapter 444, Statutes of 2004. Extends  
          from January 1, 2005 to January 1, 2007 the collection of  
          certified farmers' market fees and related penalty and  
          enforcement provisions.  Imposed a late penalty charge on  





          SB 599 - Page 3


          operators who failed to pay the required fee.

          AB 593 (Strom-Martin), Chapter 833, Statutes of 1999.  Codifies  
          regulations exempting direct marketers from specified packing  
          and labeling standards, amends fee structures, and authorizes  
          farmers' markets to establish rules and procedures.


           SUPPORT  :
          
          Community Alliance with Family Farmers

           OPPOSITION  :
          
          None received