BILL ANALYSIS Ó AB 1135 Page 1 Date of Hearing: April 29, 2015 ASSEMBLY COMMITTEE ON AGRICULTURE Henry T. Perea, Chair AB 1135 (Committee on Agriculture) - As Amended April 21, 2015 SUBJECT: Agricultural products. SUMMARY: This bill makes additions and clarifying corrections to the Citrus Pests and Disease Management Program (CPDMP) and the Certified Farmers' Market (CFM) statutes. Specifically, this bill: 1)Deletes the term "reasonable" so that all of CDFA's related CPDMP costs are reimbursed; 2)Adds cultivated mushrooms and herbs to the products list that are prohibited to sell in adjacent non-CFMs; and, 3)Corrects the certification or renewal requirements for a farmer to be certified to sell at a CFM, by requiring the farmer to submit to the county agricultural commissioner (CAC), in the county where the land or facility is located, the crops that the farmer plans to harvest. EXISTING LAW establishes the California Citrus Pest and Disease Prevention Committee (CCPDPC) within CDFA to advise the AB 1135 Page 2 Secretary of CDFA on efforts to prevent and manage citrus pests and diseases; authorizes an assessment on citrus producers for the sole purpose of combating citrus-specific pests and diseases; permits the use of funds from federal and other non-General Fund sources; authorizes CCPDPC to develop, under the approval of CDFA, a statewide citrus-specific pest and disease work plan and recommend an annual assessment rate and budget; and, requires the CCPDPC to reimburse CDFA for all reasonable expenditures incurred in carrying out, implementing, and administering the statewide work plan. Existing law establishes that CFMs are point-of-sale locations for California agricultural products that are registered and operated in accordance with specified provisions. Existing law requires an operator of a CFM to establish a clearly defined marketing area where only agricultural products may be sold. Existing law prohibits an operator of a CFM that also operates, manages, or otherwise controls a separate sales activity or vending event or marketing area in close proximity, adjacent, or contiguous to the operator's CFM from allowing the sale or distribution of fresh whole fruits, nuts, vegetables, and flowers by vendors selling within those sales activity or vending event or marketing areas. Under existing law, a violation of these provisions is an infraction or misdemeanor, as specified. Existing law requires a CFM operator or producer to annually register with CDFA by applying for and receiving a certificate from CAC. Existing law requires a producer farming fruit, vegetables, nuts, herbs, and similar crops, once certified, to annually submit information requested by CDFA about the specific crops that the producer will harvest, or intends to harvest, for sale directly to the public. AB 1135 Page 3 FISCAL EFFECT: Unknown. Legislative Counsel has keyed this bill fiscal. COMMENTS: Last year's SB 1018 (De León) placed restrictions on CDFA's management of CPDMP, including limiting CDFA's reimbursements to being "reasonable costs." This bill removes the term "reasonable" so that all CDFA's related costs are reimbursed by CPDMP. Last year's AB 1871 (Dickinson) rewrote and updated the provisions for CFMs, increasing the fees, expanding the violations, strengthening enforcement and restricting the sale of agricultural products in ancillary markets adjacent to a CFM; all at the request of the CFM managers and participating farmers. In reviewing this statute, it has been discovered that there were errors in the language, which this bill, AB 1135 (Agriculture) corrects. Cultivated mushrooms and herbs were omitted as prohibited agricultural products for sale in non-CFMs, and the registration process for certifying a farmer was missing the oversight of CAC. This bill simply corrects these two mistakes. RELATED LEGISLATION: SB 1018 (De León), Chapter 924, Statutes of 2014, specified that only reasonable, rather than all, expenditures incurred by CDFA be reimbursed from the Citrus Disease Management Account (CDMA) for responsibilities related to the program; and, required CDFA obtain approval from CCPDPC for any changes to the program activities or increases in expenditures. AB 1135 Page 4 AB 604 (De León and Fuller), Chapter 17, Statutes of 2010, authorized CDFA to spend any monies it had collected in CDMA on citrus specific pest and disease programs through June 30, 2010. AB 281 (De León, Chapter 426, Statutes of 2009) established CCPDPC and CDMA within CDFA to prevent and manage citrus pests and diseases, and allows CCPDPC to levy fees on citrus producers to pay for citrus disease detection and control programs. AB 1871 (Dickinson), Chapter 579, Statutes of 2014, revised provisions related to CFMs by increasing fees and penalties and expanding requirements, enforcement, and violations. AB 654 (Hall), Chapter 409, Statutes of 2013, extended the sunset date to January 1, 2018, for the collection of CFM operator fees and enforcement provisions. SB 513 (Cannella), Chapter 337, Statutes of 2011, extended the sunset date to January 1, 2014, for the collection of CFM operator fees and enforcement provisions. AB 1135 Page 5 REGISTERED SUPPORT / OPPOSITION: Support Certified Farmers' Markets of Sacramento City of Beverly Hills Opposition None on file Analysis Prepared by:Jim Collin / AGRI. / (916) 319-2084