BILL ANALYSIS Ó SENATE COMMITTEE ON AGRICULTURE Senator Cathleen Galgiani, Chair 2015 - 2016 Regular Bill No: AB 862 Hearing Date: 7/7/15 ----------------------------------------------------------------- |Author: |Committee on Agriculture | |-----------+-----------------------------------------------------| |Version: |6/25/15 | ----------------------------------------------------------------- ---------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ---------------------------------------------------------------- ----------------------------------------------------------------- |Consultant:|Anne Megaro | | | | ----------------------------------------------------------------- Subject: Agriculture SUMMARY : This bill would make clarifying and substantive changes to the Food and Agricultural Code in regards to citrus pest and disease prevention expenditure reimbursements and would add "cultivated mushrooms" and "herbs" to the list of products that cannot be sold in areas in proximity to a certified farmers' market. This bill makes technical changes. BACKGROUND AND EXISTING LAW : The California Citrus Pest and Disease Prevention Committee (CCPDPC) within the California Department of Food and Agriculture (CDFA) was created to advise the secretary on efforts to prevent and manage citrus pests and diseases. An assessment is levied on citrus producers and deposited into the Citrus Disease Management Account for the sole purpose of combating citrus-specific pests and diseases. This account may also contain funds from federal and other non-General Fund sources. The current assessment rate is 8 cents per 40 pound carton, which amounts to $16 million annually and represents 64% of the total budget for this program (Food and Agricultural Code §5911 et seq.). Asian citrus psyllid (ACP) is an invasive pest that feeds on citrus plants' leaves and stems and causes shoot deformation and plant stunting. More importantly, ACP may transmit Huanglongbing (HLB), a bacterial plant disease that causes citrus trees to produce unpalatable/inedible fruit before ultimately killing the tree. AB 862 (Committee on Agriculture) Page 2 of ? CDFA is responsible for administering and regulating the direct sale of agricultural products to consumers to ensure product quality and to prevent fraud, deception, or misrepresentation in the marketplace. One form of direct marketing regulated by CDFA is certified farmers' markets (CFM). Currently, there are nearly 800 CFMs in California and 3,350 certified farmers selling directly to consumers. At the local level, county agricultural commissioners are responsible for issuing producer and operator certificates and conducting on-site inspections to verify that all agricultural products sold at the CFM are grown by the producer (Food and Agricultural Code §47000 et seq.). The Certified Farmers' Market Advisory Committee, composed of 17 members appointed by the secretary of CDFA, was created to make recommendations to the secretary on all matters pertaining to direct marketing, including administration, enforcement, inspections, fees, civil penalties, and an annual budget (Food and Agricultural Code §47011). Current law: 1) Authorizes CCPDPC to develop, under the approval of the secretary, a statewide citrus-specific pest and disease work plan and recommend an annual assessment rate and budget. The CCPDPC shall reimburse the secretary for all reasonable expenditures incurred in carrying out, implementing, and administering the statewide work plan. 2) Authorizes CDFA to adopt regulations to encourage the sale of California agricultural products directly from farmer to consumer, and to ensure that sales activities are free from fraud, deception, or misrepresentation. 3) Requires a CFM operator to annually register with CDFA by applying for and obtaining a certificate from the county agricultural commissioner. 4) Requires all vendors to pay a stall fee not greater than $2.00 per marketing day, with exceptions. Fees are collected by the CFM operator and deposited into the Department of Food and Agriculture Fund to be used to cover the reasonable costs to carry out CFM administration, inspection, and enforcement (Food and Agricultural Code §47021). AB 862 (Committee on Agriculture) Page 3 of ? 5) Requires CFM vendors to post a conspicuous sign at the point of sale that states the name and county location of the vendor's farm/ranch and the statement "We Grow What We Sell" or such similar statement. 6) Prohibits CFM operators who operate other non-agricultural marketing events in close proximity to a CFM from allowing the sale of fresh whole fruits, nuts, vegetables, and flowers outside of the CFM area. PROPOSED LAW : This bill: 1) Makes technical amendments to the Food and Agricultural Code such as correcting the name of the state Department of Public Health, providing the correct name for county agricultural commissioners and county sealers of weights and measures, and clarifying that any division, office, or other entity within CDFA, rather than any agency within CDFA, may issue or renew licenses, registrations, or other indicia of authority issued by the department. 2) Allows the secretary of CDFA to collect all, rather than only reasonable, expenditures for costs relating to citrus pest and disease prevention. 3) Adds "cultivated mushrooms" and "herbs" to the list of products that cannot be sold in areas in proximity to a certified farmers' market. 4) Makes technical amendments. ARGUMENTS IN SUPPORT: According to the author, "This is the Assembly Committee on Agriculture's Omnibus bill to make corrections and provide clarifications to the codes on agricultural matters. The provisions of this measure are non-controversial, have no opposition, and have been vented with the appropriate agencies and industry groups." COMMENTS : AB 862 (Committee on Agriculture) Page 4 of ? Citrus. Last year's SB 1018 (De León), which was signed into law, specifies that only reasonable, rather than all, expenditures incurred by CDFA be reimbursed from the Citrus Disease Management Account for responsibilities related to the Citrus Pest and Disease Prevention Program. This bill also requires the secretary to first notify the CCPDPC of any changes to program activities or increases in expenditures. SB 1018 addressed citrus industry concerns that CCPDPC was not notified before budgetary spending authority was increased or when additional funds were requested by CDFA to cover costs related to this program. The current bill would retain provisions of SB 1018 but would require the CCPDPC to reimburse the secretary for all expenditures incurred in carrying out this program. Mushrooms and herbs. This bill would add only cultivated mushrooms and herbs, not all agricultural products, to the list of products banned from sale in areas near a CFM. When these CFM laws were enacted, the intent was to ban only traditional raw products (such as fresh whole fruits, vegetables, nuts, and flowers) from being sold in an adjacent non-certified market or vending area. However, cultivated mushrooms and herbs were inadvertently left out at that time and are now included in this bill. AB 1135. The City of Beverly Hills has expressed support for the CFM language that was in AB 1135 which has now been moved into AB 862, however, a letter of support with the updated bill number was not available by the committee deadline. RELATED LEGISLATION : AB 1871 (Dickenson), Chapter 579, Statutes of 2014. Revises provisions related to certified farmers' markets by increasing fees and penalties and expanding requirements, enforcement, and violations. SB 1018 (De León), Chapter 924, Statutes of 2014. Specifies that only reasonable, rather than all, expenditures incurred by CDFA be reimbursed from the Citrus Disease Management Account for responsibilities related to the Citrus Pest and Disease AB 862 (Committee on Agriculture) Page 5 of ? Prevention Program, and requires the secretary to notify the California Citrus Pest and Disease Prevention Committee prior to making any changes to program activities or increases in expenditures. AB 281 (De León) Chapter 426, Statutes of 2009. Establishes the California Citrus Pest and Disease Prevention Committee and the Citrus Disease Management Account within CDFA to prevent and manage citrus pests and diseases, and allows the committee to levy fees on citrus producers to pay for citrus disease detection and control programs. 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. PRIOR ACTIONS : ------------------------------------------------------------------ |Assembly Floor: |74 - 0 | |--------------------------------------+---------------------------| |Assembly Appropriations Committee: |17 - 0 | |--------------------------------------+---------------------------| |Assembly Agriculture Committee: |9 - 0 | | | | ------------------------------------------------------------------ SUPPORT : Certified Farmers' Markets of Sacramento OPPOSITION : None received -- END --