BILL ANALYSIS Ó
-----------------------------------------------------------------
|SENATE RULES COMMITTEE | SB 599|
|Office of Senate Floor Analyses | |
|1020 N Street, Suite 524 | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
-----------------------------------------------------------------
THIRD READING
Bill No: SB 599
Author: Evans (D)
Amended: 4/10/13
Vote: 21
SENATE AGRICULTURE COMMITTEE : 5-0, 4/16/13
AYES: Galgiani, Cannella, Berryhill, Lieu, Wolk
SENATE APPROPRIATIONS COMMITTEE : 7-0, 4/29/13
AYES: De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg
SUBJECT : Direct marketing: certified farmers' markets
SOURCE : Author
DIGEST : This bill extends the sunset date to January 1, 2018
for the collection of certified farmers' market (CFM) operator
fees and enforcement provisions of direct marketing.
ANALYSIS :
Existing Law:
1.Requires that every operator of a CFM remit to the Department
of Food and Agriculture (CDFA) a "stall fee" of not greater
than $0.60 to be collected from each certified producer per
marketing day. Sunsets these provisions on January 1, 2014.
2.Establishes the federal Farmer-to-Consumer Direct Marketing
Act (Direct Marketing Act) of 1976 to promote the development
CONTINUED
SB 599
Page
2
and expansion of direct marketing of agricultural commodities
from farmers to consumers.
3.Establishes the Fruit, Nut, and Vegetable Standards Law, under
CDFA, to enact regulations exempting certified farmers'
markets from certain packing, sizing, and labeling
requirements.
4.Requires farmers to be certified and annually inspected by
their local county agricultural commissioner (commissioner) to
verify that all products are grown on the farmer's property.
This bill extends the repeal date for the collection of CFM
operator fees, and the enforcement article of direct marketing,
from January 1, 2014 to January 1, 2018.
Background
The CFM program enables farmers to sell their produce directly
to consumers under the Direct Marketing Act. Sellers are
permitted to market only produce that they grow. This alternate
method of marketing for farmers without the required labeling,
packing, or size requirements has grown tremendously throughout
California. Today there are approximately 700 farmers' markets
and 2,200 certified producers participating in California
farmers' markets, roughly half of which are year-round. The
majority of the seasonal markets operate from April to October
of each year.
Originally, the CFM program was funded from the General Fund.
However, in the early 1990's, General Fund support was
eliminated. Following a period of insufficient funding through
a certification charge for participating farmers, the
Legislature authorized an operator's fee in 1999. CDFA collects
the fee from the CFM operator based on a $.60 per stall times
the number of market events in which a producer participates.
If an operator fails to pay the fee, an interest charge on the
unpaid balance is assessed.
The Secretary of CDFA and commissioner are authorized to levy
civil penalties against certified farmers' markets that violate
the Direct Marketing Act.
Although data is not readily available in regard to the average
CONTINUED
SB 599
Page
3
sales per certified producer at a CFM, CDFA estimates that the
average producer earns approximately $350 to $700 per market
instance, which translates to approximately $40,250 to $80,500
in annual gross sales. Certified producers currently remit the
equivalent of approximately .09% to .17% of their annual gross
sales to CDFA.
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), extended
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), extended
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
operators who fail 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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee by extending
the current sunset, this measure would generate about $221,000
annually (special funds), paid to the CDFA. The funding
supports approximately one position at CDFA that provides
coordination and oversight with county agricultural
commissioners. County Agricultural Commissioners
(commissioners) certify markets and producers pursuant to local
ordinances.
SUPPORT : (Verified 4/30/13)
CONTINUED
SB 599
Page
4
Community Alliance with Family Farmers
ARGUMENTS IN SUPPORT : 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."
JL:ej 4/30/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
**** END ****
CONTINUED