BILL ANALYSIS                                                                                                                                                                                                    Ó

          |SENATE RULES COMMITTEE            |                        AB 862|
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          Bill No:  AB 862
          Author:   Committee on Agriculture  
          Amended:  6/25/15 in Senate
          Vote:     21  

           SENATE AGRICULTURE COMMITTEE:  5-0, 7/7/15
           AYES:  Galgiani, Cannella, Berryhill, Pan, Wolk


           ASSEMBLY FLOOR:  74-0, 5/22/15 (Consent)  See last page for  

           SUBJECT:   Agriculture

          SOURCE:    Author
          DIGEST:  This bill makes clarifying and substantive changes to  
          the Food and Agricultural Code in regards to citrus pest and  
          disease prevention expenditure reimbursements and adds  
          "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.


          Existing law:

          1)Authorizes California Citrus Pest and Disease Prevention  
            Committee (CCPDPC) to develop, under the approval of the  
            secretary of the Department of Food and Agriculture (CDFA), 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  


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            incurred in carrying out, implementing, and administering the  
            statewide work plan. 

          2)Authorizes the 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 certified farmers' markets (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).

          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. 

          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  


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            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.


          The CCPDPC within the 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.  

          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 CFMs.  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  


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          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).


          Citrus.  SB 1018 (De León, Chapter 924) signed into law in 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 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 retains provisions of  
          SB 1018 but requires the CCPDPC to reimburse the secretary for  
          all expenditures incurred in carrying out this program.

          Mushrooms and herbs. This bill adds 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  

          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   Yes

          SUPPORT:   (Verified8/18/15)


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          Certified Farmers' Markets of Sacramento

          OPPOSITION:   (Verified8/18/15)

          None received

          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."

          ASSEMBLY FLOOR:  74-0, 5/22/15
          AYES:  Achadjian, Travis Allen, Baker, Bigelow, Bloom, Bonilla,  
            Bonta, Brough, Brown, Burke, Calderon, Campos, Chang, Chau,  
            Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly,  
            Dodd, Eggman, Frazier, Beth Gaines, Gallagher, Cristina  
            Garcia, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez,  
            Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden,  
            Irwin, Jones-Sawyer, Kim, Lackey, Levine, Linder, Lopez, Low,  
            Maienschein, Mathis, Mayes, McCarty, Medina, Melendez, Mullin,  
            Nazarian, Obernolte, Patterson, Perea, Quirk, Rendon,  
            Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark  
            Stone, Thurmond, Ting, Wagner, Wilk, Williams, Wood, Atkins
          NO VOTE RECORDED:  Alejo, Jones, O'Donnell, Olsen, Waldron,  

           Prepared by:Anne Megaro / AGRI. / (916) 651-1508
          8/19/15 21:00:54

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