BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 862| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- CONSENT 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 SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8 ASSEMBLY FLOOR: 74-0, 5/22/15 (Consent) See last page for vote 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. ANALYSIS: 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 AB 862 Page 2 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 AB 862 Page 3 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. Background 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 AB 862 Page 4 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). Comments 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 bill. FISCAL EFFECT: Appropriation: No Fiscal Com.:YesLocal: Yes SUPPORT: (Verified8/18/15) AB 862 Page 5 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, Weber Prepared by:Anne Megaro / AGRI. / (916) 651-1508 8/19/15 21:00:54 **** END **** AB 862 Page 6